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Retail wave: Walmart, Amazon and CVS want to disrupt healthcare services, but what does that mean for incumbent companies?
To read our thoughts on how PE & VC could benefit, click here. | | | | | |
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| How do startups typically fare after a down round? | | Down rounds are going to happen, in this market and the next. For some companies, they are unavoidable if growth slows or financing benchmarks can't be hit before returning to sell more equity. These rounds come along with dilution to the stakes of existing investors, founders, and employees, setting off a host of other problems, too. Can morale be kept high at a company that is seemingly destined to fail? Can early investors continue to support a company that isn't reaching expectations, while others in their portfolio are exceeding them?  | | See a large version of our down round funnel in the research. | Allegorically speaking, down rounds could be the final nail for a company. That, of course, can't be the full truth. Sure, some companies aren't able to continue growing after raising down rounds, but our data shows that 70% of companies that raise a down round go on to raise more private investment. The expectation is that down rounds are occurring at a much higher rate in 2022 than last year because of the quick departure of the market from growth at all costs—which led to huge valuation multiples—to sustainable growth and strong fundamentals. Even with the slowing market through the first half of 2022, only about 6% of round valuations were lower than the company's prior valuation. Though down rounds are a lagging datapoint. While it may take time to see these deals pick up in the data, we can look to see how companies that raised down rounds in the past have fared. It seems that expectations need to be adjusted, but down rounds create a new set of opportunities for both the company and investors. If I were at a PE firm, I'd be prepping due diligence on the late-stage venture market. Download our free research: Down Rounds, Impacts, and Exit Opportunities. As always, please reach out with any questions or feedback. | | | | | | | | | Wireless charging could be a game-changer for mobile devices | | The following is an excerpt from our new Internet of Things Report: IoT devices require improved power management for mass deployment, given the costs of battery replacement across large-scale device fleets. Approaches to improved power management include distance charging, battery-less sensors, energy harvesting, analytics compression, low-power connectivity, and high-efficiency chipsets. Based on spending data on all IoT hardware components, we estimate the market for power solutions comprises 3.7% of IoT hardware spending. This includes integrated circuits intended to improve power efficiency for sensors and industrial electronic equipment. This market share implies a total addressable market of $8.5 billion globally as of 2022, growing at a 7.9% CAGR to a $10.7 billion market in 2025.  | | PitchBook clients can click to get full market map access. | Wireless charging holds the potential to revolutionize mobile devices by creating a new protocol in addition to wifi and Bluetooth. Radio frequency can deliver electricity at bandwidths currently only found in wired connections, removing the need for battery power or energy harvesting. Radio frequencies can be transformed with techniques including multiple input/multiple output and beamforming, which can create high-throughput signals targeted in specific directions. Innovations in orthogonal frequency division multiplexing can enable power to be delivered in fractal patterns, avoiding objects and posing minimal safety risks similarly to radio waves. For more insight into this and other opportunities within IoT, PitchBook clients can access the premium research here.
Non-clients can download a preview. | | | | | | | |
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Regenerative agriculture is gaining ground with global food companies and governments, spurring investment in related technologies.
In the US, the Inflation Reduction Act includes commitments for these sustainable farming practices—meant to restore land, conserve natural resources and mitigate climate change.
Against this backdrop, global agtech startups raised $2.5 billion in venture funding in Q2, a decline of more than 23% on a quarterly basis, with indoor farming and ag biotech specialists gleaning the most investor attention.
Our new Agtech Report digs deeper into the data and also explores opportunities in RNA and synthetic biology as well as reducing livestock emissions: | | | | | |
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A couple of events to add to your calendars: - Oct. 18—Join our fireside chat with fintech policy analysts Ryan Schoen and John Sonsalla on what the sector should expect from policymakers in 2022 and beyond. Register here.
- Nov. 2—We're co-sponsoring and will be participating in the Intelligent Applications Summit 2022 in Seattle. The event will bring together leaders who are building and enabling intelligent applications in the business and life science sectors. To request an invitation, click here for more details.
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Our insights and data featured in the press: - How healthtech has weathered the market storm far better than other sectors this year. [Fortune]
- Instacart's changes are an acknowledgment that it needs to do more than manage an army of gig-worker shoppers to succeed. [Insider]
- Investors poured $8.6 billion into supply chain tech startups in Q2, with last-mile delivery seeing the largest inflows. [Axios Pro]
- A look at PE middle market fundraising in five charts. [Fortune]
If you're a journalist interested in interviewing our analysts or requesting data, contact our PR team. | | | | | |
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Highlights from our other recent research:
Market updates
Thematic research
Emerging Technology Research
Coming next week (subject to change) - Sustainable Investing Report
- Quantitative Perspectives: US Market Insights
- Global Private Debt Report
- ETR: Internet of Things*
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| A message from Streetbeat | | |
| Streetbeat democratizes investing with big data & algo-trading for everyone | | Streetbeat is a Fintech startup born from years of Wall Street experience, offering proprietary investing strategies. After raising a $10M seed round in January 2022, Streetbeat has reached over 100,000 revenue generating customers.
Damian Scavo, Founder and CEO of Streetbeat commented: “We were expecting 1,000 customers in one year, we got 99,000 more. Not bad considering that we are in a super competitive niche and we launched the app 8 months ago. I wonder what will happen when we release the exciting new features we are working on right now…”
Learn more about the growth of Streetbeat | | | | | | | |
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| | Since yesterday, the PitchBook Platform added: | | 365 Deals | 1706 People | 538 Companies | 24 Funds | | | | | | |
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