With Practo leading the Charge, funding in the Indian Consumer Healthcare space skyrockets

Funding in Indian Consumer Healthcare space skyrocketed in 2015, with the sector seeing an infusion of $258M, owing to a few mega rounds, with mature players such as Practo and NetMeds raising single rounds of $90M and $50M respectively. Practo, in fact, contributed to the majority of the year’s funding raising $120M in 2 rounds.

The Number of deals also increased dramatically in 2015, with a total of 53 rounds which is more than double from the previous year. Startups in appointment booking, online pharmacy, telemedicine and home healthcare services witnessed significant funding activity.

But apart from the 3 mature players, namely Practo, NetMeds and Protea, receiving most of the funding, the majority of the deals have been in early stage rounds, with 45 taking place during the year. Most of these went into Diagnostics Marketplace, Telemedicine – Multispecialty and Fitness Coach – Marketplace. 2016 has also seen a fair share of early stage rounds, with 25 deals taking place in the new year.

So far, a total of $27M has been invested in 2016, through 28 deals, with 1mg raising $15M in its Series B round from Maverick Capital Ventures, Sequoia Capital, Omidyar Networks, Kae Capital and others. Fitness space also attracted investor interest after 2015 with 7 deals in personal fitness management, 10 deals in fitness coach – marketplace and 8 deals in the fitness center marketplace segment.

2015 also witnessed a boom in the total number of companies founded, with the number doubling since last year, with the majority coming up in Healthcare Delivery space, as well as areas such as online pharmacies and companies that help in appointment booking and telemedicine.

Our India report on Consumer Healthcare covers consumer-facing healthcare companies which help patients in managing their health condition and aid in the delivery of healthcare services. There is a total of 841 companies covered in the report, 84 of which have received funding, as of April 2016.  According to the report, a cumulative of over $338M has been invested in the sector since 2009, with 2015-16 till date seeing ~84% of the overall funding.

Doctor – Appointment Booking and Pharmacy are two most funded sectors

Currently, in terms of funding, the Indian Consumer Healthcare space has been dominated by Appointment Booking startups in the Doctor segment, raising a total of around $131M, with Practo leading the charge. Appointment booking was the first sector to start with Practo and Qikwell coming in 2008 and 2011 respectively.
In terms of funding, Pharmacy startups follow with a total $101M raised. Online pharmacy for non-prescription medical products started in 2011, riding on the e-commerce boom around that time with the founding of HealthKart. Prescription medicine has also picked up in recent years with 1mg and Netmeds raising large rounds.

Sequoia Capital, Accel Partners, Powerhouse Ventures, Kae Capital, and GSF India are the most active investors

With three investments each, Sequoia Capital, Accel Partners, Powerhouse Ventures, Kae Capital, and GSF India stand out as the sector’s most active investors. Between the funds, Healthkart has seen investments from Sequoia and Kae, and DailyRounds has received funding from Powerhouse Ventures, Kae Capital, and GSF India.

Note: The report also includes Solutions like patient education, personal health record, monitoring and tracking, listing, appointment booking, marketplaces, telemedicine, and pharmacies. It does not encompass hospitals or their franchises, and offline medical centers and pharmacies.

Preview the report: 

The EdTech space is certainly one of the hottest sectors at the moment and is witnessing a good level of investor interest. The sector witnessed its highest funding volume last year, where ~$3.5B was invested and 2016 seems to have kept the momentum, with over $822M already raised by 107 companies across the same number of deals.

In line with this, Tracxn looks at some of the most innovative companies that have kept the interest in the EdTech space high.

Ardusat (2014, Salt Lake City)

Total Raised: $1M

Ardusat offers satellites and “Space Kits” for student learning activities. Each kit ($150) contains boards and sensors for use in conjunction with the Spire CubeSat satellite. They offer 25 lesson plans for students and educators to take advantage of their kits. Currently works with 44 schools. Will launch its Experiment Platform, for students and teachers to share their experiments for public use.

Brightwheel (2014, San Francisco)

Total Raised: $2.2M

Brightwheel is a mobile communication platform for early education providers including daycare, preschool, and afterschool programs. Teachers can use the app for daily record keeping, communication with parents and payment collection. Additional features allow teachers to track attendance, record observations, share photos, and notes, gain insights into daily activities. Parents are updated about their child’s activities in real-time. 

ZmLearn (2014, Shanghai, China)

Total Raised: $3.22M

ZmLearn is an online tutoring marketplace where one-on-one education can be provided by the platform for high school students. Their philosophy is to accompany elite education and doubt clearance for college entrance exams which is imparted by about 1500 part-time teachers who are all students from Tsinghua University, Beijing University, Fudan University, National Chiao Tung University and Zhejiang University.

1mifudao (2014, Shanghai, China)

Total Raised: $1.58M

1mifudao is an online platform for tutoring primary and secondary school students while its main target customers are children of working families. It provides students with a counseling and answers to the students queries throughout the lesson to generate their own private course library. It provides teachers with comprehensive evaluation, one-on-one tutoring system, Q & A’s, review classroom etc. Claims to have raised seed funding from OneSmart.

Bibblio (2013, London)

Total Raised: $42.18k

Bibblio provides a recommendation as a service API plugin for publishers, edtech platforms, institutions and archives for letting users discover content. Automatically analyses each item in the  catalogue, maps their connections and suggests the best related content for each. It also provides a discovery and an enrichment API which matches similar data together by a smart algorithm which picks up different presentation styles of the same type of data. The discovery engine catalogues and indexes data for faster results with recommendations. 

Branch Track (2014, Riga, Latvia)

Total Raised: $278k

Branch Track provides a multitude of tools that enable trainers to create simulated scenarios for CRM and Sales training. Tools and features provided include visual editor, pre-designed character library for scenarios, easy embedding into online courses, API backed performance tracking and reporting, customizable interface, review tools, video creation tools, voice over addition option and more. 

Pi-Top (2014, Surrey)

Total Raised: $203K

Pi-top provides DIY Raspberry Pi powered laptop building kits, which contains a screen, base top, base bottom, Hub and a microcomputer. Users can assemble all the products to form a laptop and learn coding and 3d print with the inbuilt Raspberry Pi game. Also provides analytics to teachers. 

Epigami (2014, Singapore)

Total Raised: $40K

Epigami provides an online platform to connect students with private tutors in Singapore. The company has a database of active tutors in Singapore, for various subjects at multiple levels. Epigami is currently funded by Action Community for Entrepreneurship (ACE), international venture capital funds and other angel investors.

Smartivity Labs (2015, Delhi)

Total Raised: $200K

Smartivity offers activity based learning products for 3 – 12 year old children. It currently offers S.T.E.M learning activity boxes and Smartivity Edge, an augmented reality enabled 3D coloring sheets. Smartivity claims to have a presence in over 450 offline outlets and e-commerce stores.

Highbrow (2014, San Francisco)

Total Raised: $150K

Highbrow provides free email subscription service that sends bite-sized curated courses and hence services as a marketplace for teachers to teach content. Users can sign-up to only one course at a time. Claims to have 150k+ active users and 70%+ emails open rate as of Jan 2016. Highbrow also provides design, delivery and promotion assistance to course creators. Content includes Art, Business, Health, History, Literature, Logic and more. Each content is 300-500 words long and contains a quiz at the end for assessment purposes.

Tutora (2015, Sheffield)

Total Raised: $212K

Tutora is an online marketplace for finding verified tutors. Students can search for tutors based on subject and location. Compare profiles, read reviews and message tutors.  A tutor can send students with the  booking request after the location and time are agreed upon. Students pay online after the tutoring session. Caters to students in Primary, GCSE, and A-Level.

Apptuto for CFA Exam (2014, San Francisco)

Total Raised: $500K

Apptuto is a question bank for CFA preparation with 3k+questions. Users can generate their own customised test by subject weightings. Gives detailed performance analysis. Can create study groups and compare your performance against peers. Compatible with mobile platforms. Apptuto teaches in a gamified manner by rewarding progress and performance with gemstones and progress points. Also gives proficiency badges based on the level of proficiency. Currently offers preparation only for level 1 exam. Part of batch 14 of 500 startups.

Codarica (2014, Stockholm)

Total Raised: $120K

Codarica offers a game building platform for kids. The platform enables kids to build and share educational games. The platform also has in-house games to teach kids about computer science and coding.  Part of Disney and Techstars Accelerator. Second game Coda Game focusses on problem solving, creativity and logic for kids of age 6-12 years.

Cybrary (2015, Maryland)

Total Raised: $400K

Cybrary provides cybersecurity training as self-paced, customizable and online videos over the cloud. The service is free for individuals but offers premium paid services for businesses. Pricing is based on the number of users, or employees, who will be taking the course annually. Courses are accessed using allocated company portal by entering invite code from the Cybrary website. Courses include “Enterprise End User Security Awareness Course” covering social engineering, antiphishing, password security, basic computer settings etc and advanced course library including CISM, CRISC, CAP,  DIACAP/DIARMF, CSSLP, HIPAA, FISMA Compliance, Managing PCI, SCADA, and CISO.

Note: The data excludes debts and grants

With the ever increasing rise in mobile app consumption, entrepreneurs are racing towards the next set of innovation. Tinder being one such mobile app which has seen a deep reach and been able to attract a large consumer base, it comes as less of a shock that this innovation is coupled with Tinder clones across different business segments. Here is a list of notable Tinder-esque business models across different sectors, along with notable companies.

Enterprise Security with 357 deals in the last decade, of which more than 65% were struck in the last 5 years has always been a hotbed of corporate investments. So, it’s not very surprising that the trend has continued in 2016. Smith’s acquisition of Morpho, a biometric verification provider for $710M and Fire Eye’s acquisition of iSight Partners, threat intelligence solution for enterprises for $200M are just two of the 22 deals that have taken place  in the first four months of 2016 itself.

Network Security leads the way

Network Security, BYOD (bring your own device) and IAM (identity access and management) have accounted for almost 50% of the deals in the last decade with 60, 51 and 49 deals respectively. With BYOD trend on the rise, large enterprises are showing a great interest in BYOD security companies which has led to 12 M&As in the last 15 months itself.

US accounts for 76% of the acquisitions in Enterprise Security

US accounts not only for most number of enterprise security companies, but also for the largest number of M&A deals. Overall US accounts for 279 deals, which is a sizeable difference compared to the locations next in line: Israel [14], UK [12].

Majority of security consolidation happens at Series B

Although a sizeable number of public listed companies have been acquired, the sector has seen a large of chunk of consolidation taking place in the private market at various stages ranging from seed stage to Series F. Of the 120 funded companies acquired, 50% of the companies were mid – stage (raised Series B or Series C).

Cisco loves network security

IBM & Cisco are the top acquirers in the space with 12 & 10 deals each.

Cisco clearly has its eyes on network security companies with 50% of its acquisitions activity in that space, whereas IBM has made acquisitions in a suite of services like Network security, BYOD, Endpoint security and many more.

List of Top 10 acquisitions in Enterprise Security Space

For all M&A deals in Enterprise Security, sign up here.

For International Family Day, Tracxn looks at some of the investors who also happen to be family members.

What started as an online bookstore in 1994 is now the biggest online products store in the world. So how did they do this? Through the key strategy that all technology giants of today undertake – Acquisitions! Amazon has had their fair share of acquisitions across the past 22 years and through this infographic below we shall see their journey specifically in the retail, books and technology enablers space.

This week, we at Tracxn have uncovered some of the most interesting blogs and articles in the VC world. Here is a compilation of them for your weekend read:

500ish – The Falling Apple – Wall Street wants Apple to be Amazon. Not happening. by M.G. Seigler

In his blog, M.G. Seigler, General Partner at GV talks about Apple’s enviable problem: Conquering the high-end smartphone segment to the point where it seems that its hyper-growth has ended, and the steps it can take to counter the challenges this problem comes with. According to Seigler, Apple’s mistake was that they didn’t re-invest money quickly enough in the dawn of new Apple

Find this interesting? Read the full version here.

SaaStr – How often are strategic Limited Partners able to add value to a private equity or VC fund? by Jason Lemkin

Jason Lemkin, Founder, SaaStr, shares his view on how strategic LPs can add value to smaller, early-stage VCs. He feels that it would work better for them to have a handful of relationships that are actively updated each quarter, with a heads-up on why the good ones are doing well, where they will be in 3-6-12 months, and precisely which ones might be good investing opportunities for each LP — and when.

Read more here.

The Equity Kicker – Forecasting in venture capital by Nic Brisbourne

In Nic Brisbourne’s recent blog, he talks about the importance for VCs to be able to predict which companies are going to succeed and forecast future trends to stay ahead of the curve. He looks at a list from Tetlock on the key characteristics people need to have to make valuable market predictions. He also stresses the importance of VCs needing to keep an open mind and back off quickly if forecasted trends aren’t playing out as planned.

Check out the blog here.

Continuations – Loyalty and the Need for Group Platforms in Insurance, Services and More by Albert Wenger

Albert Wenger, partner at Union Square Ventures, talks about the importance of Platforms that are explicitly built around groups with group membership becoming the source of loyalty and building such platforms to support insurance and service provision in a group model. According to him, a group oriented platform would probably change the notion of looking at service customers as primary customers and workers on the platform as secondary, and really see the groups that form and operate on the platform as the primary customer.

Read the entire blog here.

Life Science VC – A Tale of Two Startup Worlds: Biotech And Tech VC Ecosystems by Bruce Booth

In this blog, Bruce Booth, Partner at Atlas Venture, looks at the fundamental disparities between the startup world in the Biotech space and the Tech VC Ecosystem. According to Bruce, the venture capital ecosystem is comprised of two worlds, one being the Tech venture capital which is largely dominated by the 800-lbs gorilla of software investing, and the other being life science (LS) venture capital, predominantly focused on therapeutic biotech.

Read the full article here.

Investment in Healthcare IT is booming. The sector is growing each year with 2016 showing a promising start to what could be the highest funded year till date.

By taking a closer look at the sector’s funding activity, we find that there has been  over $13 Billion invested in Healthcare IT since 2010, nearly $5 Billion of which has been invested in 527 rounds of funding since Jan 2015 till 2016 (YTD). Solutions for Healthcare Provider and Value-Based Care are the key focus of investment activity with blockbuster deals like Flatiron ($175M) and Mindmaze ($100M) in Q1 2016.

Looking at all that activity, there are certainly many positive takeaways from the space, a sentiment which is shared by investors who are making big bets, and trying to make healthcare, and eventually our lives, better. So, we decided to track down all those healthcare dollars, and based on the Tracxn database, here are the most active investors in Healthcare IT space:

Early Stage Investors

RockHealth – Leading the pack of Most Active Early Stage Investors with a total of 30 early stage deals, is Rock Health. Founded in 2010, RockHealth funds and supports startups building the next generation of technologies transforming healthcare. Provides funding, strategic and operational support, co-working space, and access to a top-tier network of partners, academic medical centers, and clinicians.
Representative Portfolio – Honor, Amino, AgileMD, Wellframe, Podimetrics, Amplify Health, Accountable,Moxe Health, Lumity, Beam, Benefitter, Health Equity Labs, Sensentia, TelePharm

Y Combinator – A close second on our list with 27 deals is Y Combinator, a venture fund focused on seed investments for startups. It offers financing as well as business consulting along with other opportunities to 2-4 person teams looking for guidance to create a product out of an idea.
Representative Portfolio – Drchrono, Notable Labs, ReSchedule Med, CrowdMed, EnsoData, CloudMedx, List Runner, Medigram, Akido, SimplyInsured, Zen99, CareLedger, Sirum

Healthbox – At #3, Healthbox closed 20 deals. They provide a collaborative, global ecosystem to catalyze advances in healthcare through their four-month accelerator program. It helps healthcare entrepreneurs, understand the industry and build a sustainable business.
Representative Portfolio – Clariture, Casagem, Epion Health, medopad, eClinic Healthcare, CareHubs, Push for Wellness, LeanWagon, United Preference

Dreamit Ventures – Dreamit Ventures completed 14 early stage deals. It is a global network that connects entrepreneurs, investors and brands helping post-seed companies scale by connecting them to customers, capital, and community.
Representative Portfolio – Protenus, Decisive Health, Psious, NarrativeDx, Emocha, Baton Handoff, Redox, Seratis, Medl, TrueClaim

Venrock – Originally the VC arm of the Rockefeller family since 1969, Venrock partners with entrepreneurs to establish successful, enduring companies in technology and healthcare space. They feature at #5 among early stage investors with 13 deals, but that is just half the story. (more on Venrock later)
Representative Portfolio – Aledade, CodeRyte, Lyra Health, Grand Rounds, Kyruus, Vocera, Castlight Health, Jiff

Late Stage Investors

Venrock –  In terms of late-stage funding, Venrock is the top investor with 12 late-stage investments in Healthcare IT, mostly through follow-on investments. They have carried forward the legacy of the Rockefeller family since 1969, partnering with entrepreneurs to establish enduring companies.
Representative Portfolio – Awarepoint, CodeRyte, Grand Rounds, RelayHealth, Vocera, Castlight Health, Jiff

HLM Venture Partners – Neck-to-Neck with Venrock at 12 late-stage deals is HLM Venture Partners, a healthcare VC targeting venture and expansion-stage, US-based companies. Their focus is on technologies and services which directly improve the way healthcare is organized, delivered, and paid for, in the post-Reform era.
Representative Portfolio – OnShift, Phreesia, MedVentive, Change Healthcare, Imagine health, AbilTo

BlueCross BlueShield Venture Partners – At number 3 is BlueCross BlueShield Venture Partners (BCBSVP). It is a corporate venture fund program to which twenty-nine BCBS entities have committed over $500 million across three Funds. The Funds invest in promising emerging companies of strategic relevance to Blue Cross and/or Blue Shield Plans and provide access to its portfolio to deploy innovation at scale.
Representative Portfolio – Contessa Health, InVivoLink, Solera Network, eClinic Healthcare, Allay, BeneStream, ArroHealth, AbilTo

Norwest Venture Partners – With 8 late stage deals, NVP places fourth on our list. Norwest Venture Partners (NVP) is a multi-stage investment firm that partners with entrepreneurs to build great businesses, since 1961. The firm manages over $6 Billion in capital and has funded more than 575 companies since inception.
Representative Portfolio – CareCloud, iRhythm Tech, Health Catalyst, TigerText, Crossover Health

Sandbox Industries – Tied at fourth place with NVP is Sandbox Industries which launches new businesses and invests in software and tech-enabled businesses. The firm also has an exclusive relationship with Blue Cross and Blue Shield to manage a corporate venture fund that invests in healthcare technology and tech-enabled services.
Representative Portfolio – Patientco, CareSimply, ZeOmega, Lumiata, Lumeris, Solera Network, Bloom Health, EveryMove, AbilTo

These are the top investors as we approach the middle of 2016. Whether the landscape will see a dramatic shift later in the year is yet to be seen, but we can be certain that the sector is on the right track.

With $1.5B raised in 2015, the Second Hand Goods sector continues to see momentum

The Second Hands Goods sector continued to see momentum in 2015, with the year witnessing not only the most amount of dollars invested but also the highest number of deals, with $1.5B invested through 93 rounds. The most notable funding round of the year was Baixing’s $386M funding round.

The upward trend in funding activity is a continuation of the all-year highs which were previously seen in 2014, where the funding volume increased drastically from the lukewarm 2011-2013 period. In fact, the amount of dollars invested in 2014 witnessed an increase of 420% over 2013. This increase can be attributed to the fact that big guerilla classified players like 58.com, Ganji & Quikr collectively raised more than $1B funding in late stage investments during the year.

As a whole, $4B has been invested into the space since 2011, out of which the 2014-2015 period has seen a total $2.9B raised. Funding in the Second Hand Goods space has been dominated by startups based in China primarily, but the U.S. market is now starting to see an increase in the number of startups funded.

Moving back to the funding activity, in 2016, the dollars the flow of dollars into the sector has continued, with $203M invested in 14 funding rounds. The year has also seen the emergence of Japan’s first pre-IPO startup unicorn in the Second-hand goods space, in the form of Mercari, which has raised $75M in the year.

Significant Increase in Late Stage Rounds

Taking a closer look at the funding rounds, it is apparent that 2015 has seen a significant increase in the number of late-stage deals taking place, increasing to 16 from the 10 seen in 2014. This increase has certainly played a role in the increased funding volumes in 2015. On the other hand, the value of the late-stage deals which dominated 2014 was of a higher value, with the year seeing the highest average funding per round, at $121.5M.

What has been another positive for 2015, however, is the fact that the number of early stage deals is also higher, indicating that early-stage rounds still capture a significant portion of the funding.

Horizontal Platforms has attracted the most funding

With a funding of over $2.8B, the Horizontal segment stands out as the most funded and most mature segment, within the Second Hand Goods space, by far, accounting for around 67% of the total funding. 2014 was the highest funding year for the segment, with the market seeing consolidation with only late stage investments and acquisitions. Due to said consolidation, 2015 has seen a dip in funding towards the segment.

Besides seeing consolidation, in the Horizontal space, the Second Hand Goods market is also witnessing consolidation in the vertical space as well.

The Fashion segment, however, seems to now be attracting funding, seeing its largest investment volumes in 2015 at $303M. The segment is now the second highest funded segment with a total $418.5 in funding raised. The fashion segment is now ripe for consolidation, with the sector seeing 3 acquisitions. So far, $91M has already been invested in the segment in 2016.

Y-Combinator and S V Angel are the Most Active Investors

Early Stage VC firm Y-Combinator was the most active investor in the space with Yardsale & Fobo (both of which were acquired by Gone), Lollipuff, Asseta, AptDeco, MoveLoot, and Listia as part of its portfolio. S V Angel follows with 6 companies, namely, EggCartel, Twice, MoveLoot, Shop Hers, Poshmark, and Listia. Beenos, Naspers, and QueensBridge Venture Partners also feature with 5 investments each.

Note: The Tracxn Report on Second Hand Goods covers companies that provide a platform to buy and sell used/pre-owned consumer goods in the following categories: electronics, furniture, fashion, sports gears, books, baby & kids and collectibles. It excludes the companies operating in the buying and selling of used cars and real estate trading.
Preview out the report here:

The funding during 2015 was dominated by a few mega rounds, with startups such as Chinac, Illumio, Mirantis and UCloud, each raising $100M

Funding in Cloud Infrastructure startups increased by 21% in 2015, with startups in the space raising ~$855M during the year, marking the sector’s highest funding volume. The funding during 2015 was dominated by a few mega rounds, with startups such as Chinac, Illumio, Mirantis and UCloud, each raising $100M during the year, signifying the fact that Cloud Computing still continues to see a lot of interest.

So far, the trend has followed into 2016 with $220M being invested in the space, and the year is also expected to follow the high funding pattern due to the surge in the number of companies now adopting the cloud. As a whole, Cloud Infra companies have raised more than $5.57B, with $3.25B invested in 155 companies between 2011 and 2016.

With the increasing adoption of the cloud, funding activity is now moving into more established companies, considering that the sector has also seen a greater number of late stage deals in 2015, increasing to 11 from 6 in 2014.

2011-2013 can be considered as the period when cloud started receiving a significant amount of attention, and 2013, in particular, had seen the most number of early stage rounds, at 62. But with Cloud moving from being just a buzzword to a necessary adoption, the number of early-stage deals is now on a decline with 2015 seeing just 29 early stage deals.

IaaS is the most funded segment

IaaS is the cornerstone of the Cloud Infra space, and this sentiment has reflected in terms of funding as well, with startups in the Infrastructure-as-a-Service segment seeing the most funding, by far, raising a total of $2.7B since 2011. Funding in the space picked up pace post-2013, with 2015 seeing a peak. Startups in the space are now seeing mostly late stage rounds, such as Ucloud, a Chinese IaaS startup, raising $100M in 2015.

VC Interest in the space can be attributed to the fact that global spending towards public and private clouds is increasing, which in turn can be assigned to the advantages IaaS platforms bring in terms of cost, and regulations, more of which is covered in our report.

Cloud Infrastructure Security gains traction

With Cloud Security being a hot topic in the industry, funding in cloud infrastructure security has gained traction steadily in last five years with $233M invested in 2015 alone, reiterating the fact that companies are now taking infrastructure security seriously, and are adding another layer on top of the existing security provided by public cloud providers.

Governance platforms are seeing a decline

Startups in Cloud Governance platforms space which include cloud monitoring and management are declining since 2013. This phenomenon can be attributed to the launch of monitoring and managing products by the public cloud providers such as Amazon’s Cloud Watch and Auto Recovery.

Intel Capital, Andreessen Horowitz, and Foundation Capital are the Most Active Investors

Intel Capital was the most active investor in the Cloud Infrastructure space, having invested in companies the likes of Mirantis, Joyent, Virtustream, Huayun, ScienceLogic, Nirvanix, Skyport Systems, and Adaptive Computing . Andreessen Horowitz comes next with investments in Illumio, Bracket Computing, DigitalOcean, and SignalFx. Foundation Capital also features in the list with CliQr, Rohati Systems, ZeroStack, and PrivateCore in its portfolio.

Note: The Cloud Infrastructure report covers companies that provide virtualized computing resources over the internet and companies that enable infrastructure as service offerings. Companies that provide exclusive consulting and support for setting up, maintaining services, resellers, managed cloud infrastructure hosting services, and companies that are run by foundations are not included in this report

Check out the full report here:

The sector has seen more than $2.8B invested in the space between 2011 and 2015, and approximately $117M has been invested in the first quarter of 2016

Funding volumes in Industrial IoT has been increasing steadily on a YoY basis since 2012. 2015 has seen a continuation of this trend with $850M invested in the space, an increase of 24% over the previous year. This constant inflow of funding can be attributed to the fact that market for Industrial IoT is huge especially in developing countries where there are no legacy systems to overhaul. Overall, the sector has seen more than $2.8B invested in the space between 2011 and 2015, and approximately $117M has been invested in the first quarter of 2016.

This is also coupled with the fact that the number of companies in the space is steadily increasing, driven by the development of infrastructure favouring the Internet of things by giants like Cisco, IBM, and the advancement of sensor technology. The fact that the number of sensors being shipped is also on a rise, with the number increasing by more than five times between 2012 and 2014, has provided investors with a positive sentiment towards the space.

Due to the high interest in the space, the sector is also witnessing an upward trend in the number of deals as well. 2015 has witnessed a total of 112 deals, with the most notable one being Viewglass’ $150M raise from NZ Super Fund and Corning.

Early-stage funding continues to form the majority of the rounds with 153 out of the total 218 rounds between 2014 and 2015

Notably, the number of late stage deals has also increased significantly over the last two years indicating the positive response companies are receiving for their products in the market.

Healthcare and Smart Buildings are the most funded Business Models

Currently, in terms of funding, the Industrial IoT space has been dominated by two segments, i.e., Healthcare and Smart Buildings.

Healthcare IoT sector comprises of companies providing connected solutions that assist healthcare professionals to gain more  visibility into patients health.  The sector as a whole has so far raised a total funding of $1.13B. Among the startups in the space, patient monitoring solutions have seen majority of the funding, followed by medication adherence solutions. Current patient monitoring solutions focus on capturing vital signs data in real time and analysing the data to provide insights thus helping caregivers to predict diseases before they strike.

Medication adherence solution which inform caregivers about the details of medication intake by patients have huge use case for insurance industry, where they utilize the data to offer customized insurance to patients. Within the space, Proteus Technology has alone raised $404M of the $434M of funding in this sector and has started venturing into other business models.

Smart Buildings is the next funded segment, raising a total funding of $992M, with the last two years seeing the most amount invested. Within the space, startups within the Energy Efficiency space have seen a majority of the funding, raising a total of $916M. With Green Building codes being implemented by regulatory agencies in various geographies, the need for such solutions is increasing and is also leading to greater adoption by builders.

Khosla Ventures and KPCB are the Most Active Investors

Khosla Ventures is the most active investor in the space, with the fund investing in a total of 9 companies so far, the likes of View Glass, Helium, and Quanttus. KPCB follows with a total of 6 investments, including Telogis, Enlighted, and Farmers Edge.

Note: The Tracxn Report on Industrial IoT report covers companies that are riding the IoT wave to develop connected solutions for industries to improve efficiency and make more informed decisions. The solutions provided are sensors which generate data from surroundings, cloud systems which capture, store and analyse data and interfaces for visualization of data. The Report excludes legacy systems like ERP, SCADA etc and also excludes cloud solutions that pick up manually entered data. Drones, Robots and enabling technologies like infrastructure platforms are not part of this report and would be present in other relevant reports from Tracxn. For

For funding activity analysis, this report only includes venture capital / private equity funding rounds and excludes debt financing and grants/prize money.

Preview the report here:

A daily newsletter summarizing interesting Indian startups and recent activity both in India & globally

INTERESTING STARTUPS

Funds Tiger (2016, Bangalore) B2C Marketplace for SMB financing. Founders are ex-Informatica, Yahoo, Proteans Software, Symphony Teleca and are alumni of IIT Delhi, IIM Bangalore and University of Pennsylvania. Local competition includes Indifi (2015, Gurgaon) . Global competitors are Biz2Credit (2007, NYC) and Yooli (2013, Beijing)

INDIA INTERESTING NEWS

Maiyas (2012, Bangalore) Authentic South Indian restaurant chain raises $30M from Peepul Capital Link

Bhive Workspace (2014, Bangalore) Coworking space provider raises $1M in funding led by Blume Ventures Link

Veqta (2015, Delhi) Sports based digital broadcast network exclusively raises $500K in seed funding led by Chatsworth Management and sports management company ITW Link

TaxiVaxi (2014, Pune) Mobile first online cab aggregator services provider raises $500K in seed funding led by HNIs Link

SmartQ (2015, Bangalore) Food take out ordering app for employees of Tech Parks raises $250K in pre series A funding  led by YourNest Angel Fund Link

Parent Lane (2016, Bangalore) Social networking app for parents raises an undisclosed amount in angel round of funding from former Flipkart president Sujeet Kumar and others Link

Fundamentor (2014, Pune) Gamified application for aptitude development raises an undisclosed amount in seed round of funding from Subramanya SV and aims to enhance marketing initiativesLink

Impartus (2013, Gurgaon) Video based educational services provider for video-learning solutions joined hands with Xerox Research Centre India  Link

ToneTag (2014, Bangalore) Contactless payments platform using sound waves and NFC partners with Mphasis (1998, Bangalore) IT, F&A, HRO and customer sales and support services provider to bring sound based contactless payments Link

Yatra (2006, Gurgaon) Online travel search engine and bookings platform partners with taxi aggregators to offer cab facility Link

Havmor (1944, Ahmedabad) Chain of casual dining restaurants and ice cream parlors enters Delhi-NCR Link

MealHopper (2015, Gurgaon) Food-tech startup which connected home chefs to consumers halts its operations due to financial constraints Link

GLOBAL ROUNDUP

Nexeon (2006, Abingdon) Battery with silicon anode technology raises $43M in venture capital funding round led by Imperial Innovations Group plc, Invesco Asset Management, and Woodford Investment Management LLP Link

Afero (2014, Los Altos) Secures BLE module and cloud platform for connectivity of IoT devices raises around $20M in series A round of funding led by Samsung Catalyst Fund, SoftBank Group, Fenox Venture Capital, Presidio Ventures and others Link

Ligabue (1919, Venice) Industrial catering company raises around $20M in funding from Fondo Italiano Link

RedPoint Global (2006, Wellesley) Enterprise Data Management and Omnichannel Marketing Solutions provider raises $12M in series C funding led by Grotech Ventures of Vienna, Virginia, and WP Global Partners LLC Link

Dedrone (2014, Kassel) Provider of drone early-warning and detection system raises $10M in series A round of funding led by Menlo Ventures Link

Shift Technology (2013, Paris) Detector of fraud in insurance and e-commerce using data science raises $10M from Accel Partners, Elaia Partners and Iris Capital to prevent fraudulent insurance claims Link

Adesso (1997, Dortmund) IT services provider acquires Smarthouse Media (1999, Karlsruhe) Online financial applications provider for an undisclosed amount Link

Madison Logic (2009, NYC) Intent data aggregator for B2B marketers and publishers acquiresInternal Results (2011, London) Performance based B2B lead generation services provider for an undisclosed amount Link

E.ventures, SF based early stage VC firm closes $150M early-stage fund to invest in European startups Link

The entrepreneurial bug has bitten not only the young but also the seasoned investors. Investors even from different funds are teaming up to build innovative companies. Companies are being founded in a suite of areas like Saas, Retail, Enterprise Security to name a few.

Investors love to back companies founded by former investors which is very evident from the fact that of the list of funders who turned founders, more than 50% of the funded companies managed to raise funding within a year from the time of inception.

Here is a list of founders who were formerly investors in our Fab 15 list of investors.

Disclaimer: The analysis is carried out only for the funds which belong to our list of Fab 15 investors and for a time period of 3 years. 

This week, we at Tracxn have uncovered some of the most interesting blogs and articles in the VC world. Here is a compilation of them for your weekend read:

Flybridge Capital Partners – Growth vs. Profitability and Venture Returns by Jeff Bussgang

A compilation of the most interesting videos highlighting news and tech innovations from around the world, from the biggest announcements at Google I/O, executive moves.

Here is where Ford Motor Co. will be in 5 years 

Ford’s executive chairman drops a few hints at how the company has planned for the future. As a part of the strategy, the company is open to more co-operation with startups. Alternatively, read the interview here.

The 10 biggest announcements from Google I/O 

With Google trending across all social media platform, some of the biggest announcements this year have been around its new VR platform, improvements in Android and many more. Have a look at the video to find out the 10 biggest announcements.

Singapore startup scene receives nearly $30M boost from Government 

The startup scene in South East Asia is definitely shaping up well for the locals, with the government participating in its acceleration. The government said it will provide funds to four large local enterprises to match their investments in fledgling local companies.

Lending Club CEO resigns, shares drop

Incase you missed the hottest news in alternative lending, with the lending club CEO resigning the company’s shares plummeted 35%. It was discovered that the staff sold $22M in loan in March & April 2016, that did not meet the buyers requirements.

DJI: The chinese startup leading the drone industry 

China’s leading drone manufacturer DJI feels that the next big push in the industry will be dictated by the consumers and not the manufacturers.

China’s leading drone manufacturer DJI feels that the next big push in the industry will be dictated by the consumers and not the manufacturers.

Corporates have played a very important role in fueling the smart cars ecosystem, and bringing the future of automobile technology into the realm of reality. While there are multiple corporates working on their very own smart cars technology, many corporations are also making crucial investments and acquisitions in the space.

Corporate entities have been either investing or making acquisitions across varied sectors including autonomous driving (where General Motors acquired Cruise Automation for $1B), Connected cars (Audi leading a $25M round in TTTech), or Fleet management solutions (General Motors investing in Telogis).

What is interesting is the fact that these corporates are also coming from varied industries with large automotive companies focusing on startups which autonomous driving capabilities, such as Delphi and Ottomatika, while making some investments in OBD (on-board diagnostics) based services like Magna and Zubie. Telecom companies are also getting into the mix by making investments in OBD based connected services, usually in their own geography, for instance, Deutsche Telekom in Mojio. Automotive aftermarket service providers and insurance players have also taken an interest in OBD based service companies. The smart car segment is now also seeing participation from new companies with Samsung and Sony showing interest in the automotive market, making investments focusing on autonomous vehicles and connected car infotainment solutions.

In line with this, we have taken a look at the key activity of corporates in the smart cars space, in terms of investments and acquisitions.

Intel and Qualcomm are the top corporate investors in Smart Cars

With a total of five investments through their investment arms, Intel and Qualcomm are the most active corporate investors in the space. Samsung follows with a total of four investments.

Blackberry and Harman are the most active Corporate Acquirers

The smart cars sector has seen a good number of acquisitions from large corporations over the years, with 2015 seeing a total of 7 corporate-led acquisitions. This trend has continued onto 2016, which has seen four acquisitions so far. In terms of the corporates with the most number of acquisitions, Blackberry and Harman stand out having made two acquisitions each.

On the back of our Funders to Founders article, we carried out a deep dive into the top investors in the companies founded by former Investors, time taken for fund raise, along with a bunch of other analysis. Take a look at our infographic below:

A daily newsletter summarizing recent activity & interesting startups in the energy storage sector globally

RECENT NOTABLE ACTIVITY – ENERGY STORAGE

• Aquion Energy pulled in another $33M to support its saltwater batteries for long-duration storage. This funding is a part of a $60M round. Link
• UK-based battery start-up Nexeon became the latest energy storage specialist to pique investor interest by announcing it has successfully completed a $44M funding round to support its ambitious expansion plans. Link
• Lithium-ion technology developer, Hyperdrive Innovation has secured a cash injection of $4.7M from venture capital firms Hamilton Capital Partners and Rivers Capital, alongside R&D grant funding from Innovate UK and the Advanced Propulsion Centre. Link
• Energy storage company Powervault has amassed $1.5M of investment through its latest crowdfunding campaign. Link
• French oil giant Total is purchasing all of Saft’s shares at a valuation of nearly $1.1B, as it aims to enter the energy storage market and boost its development in the renewable sector. Link

SOME INTERESTING STARTUPS FOUND

OnDemand.Energy (2016, Noida) – They are creating a network of charged batteries through a consumer app.. In case of low battery, users can use app to scan nearest Cellon provider and receive directions. Then he will scan a QR code of merchant and get a Cellon issued. After charging, users can return charger to nearest Cellon provider.
NETenergy (2015, Chicago) – NETenergy has created a thermal battery, that works much like an electrical battery, except it stores thermal energy. By utilizing NETenergy’s thermal battery to store cold energy, building owners can save 30% or more on their energy usage and reduce carbon emissions by 50%.

LEADER BOARD – ENERGY STORAGE

Battery Developers and Manufacturers
Saft (1913, Bagnolet, IPO) – Saft is a world leader in the design and manufacture of advanced technology batteries for industrial and defence applications. The Group is implementing its strategy for high technology lithium-ion batteries in the renewable energy storage, transportation and telecommunication networks markets. Went public in July, 2005.
Boston Power (2005, Westborough, $637M) – Boston-Power develops and manufactures batteries which charges faster, lasts longer, performs better and is safer than what’s currently on the market. The technology can be used in electronic devices like  laptops, PDAs and mobile phones. Backed by GSR Ventures, Oak Investment Partners, Foundations Asset Management, Venrock, GGV Capital and Gabriel Venture Partners.

Energy Storage Systems
BYD (1996, Mississauga, IPO) – BYD is a tech enterprise in China specializing in IT, automobile, and new energy. They are the largest supplier of rechargeable batteries in the globe, and has the largest market share for Nickel-cadmium batteries, handset Li-ion batteries, cell-phone chargers and keypads worldwide. Went public in August, 2002.
Alevo (2009, Martigny-Ville, $1B) – Alevo provides energy storage systems for grid scale storage. The “GridBank” is comprised of Lithium Ion cells which have 50000 recharge cycles. These cells are combined together to create large battery banks which can be positioned anywhere across the grid. Backed by SA Framtak.

Component Developer
Manz (1987, Reutlingen, IPO) – Manz is a leading provider of production equipment for lithium-ion battery cells, battery systems, super-capacitors and capacitors. The products manufactured by the company are production solutions for lithium-ion batteries and capacitors in e-mobility and stationary energy storage Went public in September, 2006.
Nexeon (2006, Abingdon, $61M) – Nexeon is a battery materials and licensing company with a unique silicon anode technology. Their technology unlocks the potential of silicon to deliver increased capacity without compromising lithium-ion battery cycle life, and  provides lighter batteries with more power and longer lifetime between charges. Backed by Imperial Innovations and Invesco Perpetual.

Charging Solutions
CyberPower Systems (1997, Shakopee, IPO) – CyberPower Systems designs and manufactures uninterruptible power supply (UPS) systems, power distribution units (PDUs), surge protectors, mobile charging devices, connectivity devices and Fiber-to-the-Premise (FTTx) backup power solutions. Went public in January, 2010.
Gogoro (2011, Taipei, $180M) – Gogoro develops and sells electric scooters and battery swapping infrastructure. Its main product is Gogoro Smartscooter – an electric scooter designed for urban transportation. In addition to this, Gogoro has also designed a battery swapping infrastructure – Gogoro Energy Network. Backed by National Development Fund of Taiwan and Panasonic Corporation.

Battery Management Solutions
Lucid (2005, Netanya, $46M) – Lucid Technologies develops software which helps extend battery life of android powered smartphones. Their proprietary technology optimizes CPU/GPU functional load which results in lower power consumption in the smartphone. While doing so it addresses the dynamic content in social networking, gaming, browsing and navigation applications. Backed by Giza Venture Capital, Genesis Partners, Rho Capital Partners and Intel Capital.

Leaderboard includes all the top funded, IPO and successfully running bootstrapped companies along with their location, founding year and funding amount.

For latest updates, visit Energy Storage feed.

Over $3.9 billion was invested in wearable tech 2015-16, and 1.2 billion invested in 2016 alone, as VCs place their bets on the future of entertainment and fitness.  Notable infotainment focused wearable tech companies include VR focused hardware players like Oculus VR, Razer, AntVR, Mojing, and Avegant, and AR focused startups like Magic Leap, Vuzix, Meta and Recon Instruments. 

The United States has the highest number of wearables companies (528), followed by India (74), and UK (71), and over 50 companies from China and Canada. Over 345 wearable technology startups were funded in the last five years.

The most active investors in wearable tech are Khosla Ventures (14), Y Combinator (14), Andreesen Horowitz (10), Hax (10), Intel Capital (10), and True Ventures (10).

HAX and Y Combinator are active at the seed stage, while Khosla Ventures and Andreesen Horowitz and Intel Capital are active at the Series A stage, while Norwest Venture Partners, Qualcomm Ventures, and Stanford University are most active at the late stage. Interestingly, data indicates that the average ticket size for early stage funding has come down to $8.6M in 2016, from $11.4M in 2015.

Investor activity is focused on fitness and infotainment focused wearable companies, followed by healthcare and fashion. Fitness wearables occupy about 40 percent share of total shipments of wearables by volume. San Francisco-based Fitbit, which had an IPO in June 2015 is one of the largest players in the space – followed by Garmin, Huami, Jawbone and Withings.

Healthcare focused wearables companies are focussing on chronic disease managment, monitoring devices and health management – around 49 percent of the wearable startups working in healthcare make monitoring devices, and 17 percent work in chronic disease management. Some of the top funded players in this sector are Senseonics, iRhythm Tech, MC10, Scanadu, and Echo Therapeutics. A number of startups focused on wearables for sports training and bioactivity monitoring were founded in 2013 and 2014 in the US and UK. Whoop, Zepp Labs, Game Golf, Vicis, and Woo Sports are some of the top funded players in this sector.

Tracxn’s latest report on the wearable technology sector tracks interesting startups, emerging business models, the most active investors and the biggest investments in the sector this year. Explore VC investment trends and startups that are engaged in software and hardware technology in AR (augmented reality) and VR (virtual reality) devices, fashion wearables, fitness and safety tracking, wellness devices, augmented reality, virtual reality, and smart watches. The report also identifies interesting interesting startups, based on Editor’s picks, companies that are likely to become Unicorns, or are Minicorns – i.e. looking for late stage funding. Preview our latest updated Wearable Technology Report here.