💡 INTELLI™ Week-in-Review Insights
Friday, November 11, 2022 | Volume 1 Series 25 | Prediction Friday
Thanks to all that attended our Web2→Web3 panel event earlier today. In case you missed it, we’ve included the link to the recording below. In terms of the venture world - another week flies by! We have some signals, metrics, and predictions brought to you by the team at INTELLI™.
🚨 For those of you who missed our Web2→Web3 panel event earlier today, feel free to watch the discussion on our Vimeo channel here:
This video, along with a summary of the participants & main discussion points, will also be posted on the events page of our website within the next day.
🦄 Predicted NextGen Unicorns
An analysis of PrivCo data helped pinpoint startups with valuations below $1BN and ranked them by their performance based on recent funding activity, revenue, and employee growth. Here are 25 of them:
OpenSpace Labs, Inc.- provides solutions that combine simple 360-degree cameras, computer vision and AI to make it easy to capture a complete visual record of the jobsite, share it via the cloud and track progress.
HawkEye 360- develops a space-based radio frequency (RF) mapping and analytics system designed to provide geospatial data analytics.
Coralogix- a developer intended to harness data streams into one cloud.
Enable Injections- develops and manufactures on-body delivery systems designed to improve the patient experience.
Paycargo LLC- provides a payment platform for the freight industry.
Astronomer, Inc.- a developer for data orchestration to collect and prepare statistics for business analytics.
Kin Insurance, Inc- develops an online insurance platform.
Verana Health, Inc.- a company that operates in the software & internet services industry.
CelLink Corporation- develops high-conductance flexible circuits for the solar, LED, and battery industries.
Tifin- develops a fintech platform for wealth and asset management.
Mavrck- developer of an all-in-one influencer marketing platform designed to identify and activate micro-influencers for enterprise brands.
Critical Start- a company that developed a platform that detect threats and stop breaches by resolving every alert for customers.
LinkSquares, Inc.- software company that features AI-powered contract management and analytics tools for in-house legal and finance teams.
Castle Creek Biosciences, Inc.- develops a fibroblast technology platform designed to create transformative cell and gene therapies.
Cleerly, Inc.- a digital healthcare company that creates digital care pathways to prevent heart attacks.
Connecteam- a company offering a deskless workforce management app providing an all-in-one experience for communication, engagement operations and training.
Genesis Global Technology- developer of software solutions for financial markets organizations.
H1 Insights, Inc.- a company that developed a healthcare data analytics platform intended to help companies make smarter scientific decisions.
FreshRealm- an online meal distribution service provider that partners with retailers to create fresh meal destinations that provide solutions to people with a busy and healthier consumer lifestyle.
Scipher Medicine- a precision immunology company that leverages a proprietary Network Medicine platform and artificial intelligence to commercialize blood tests revealing a persons' unique molecular disease signature and match such signature to the most effective therapy.
Mosyle Corporation- developer of a mobile device manager designed to manage apple devices and networks.
Semperis- a company that developed an identity-driven cyber resilience and threat mitigation platform for cross-cloud and hybrid environments.
Brightline, Inc.- a full-family behavioral health care platform built specifically to care for kids, teens, and parents across a range of common family challenges.
Gorgias- a company that offers a customer service platform for e-commerce.
Madison Reed, Inc.- developer of professional hair coloring products intended to make hair colors with harsh-free ingredients.
📉 Venture Investors Predict Valuations to Hit Rock Bottom — Sooner Than We All Think.
So far in 2022, the venture environment has changed dramatically: The investing pace has slowed to two-year lows, and sinking valuations have finally started showing up in the data: median tech valuations fell nearly 29% in the third quarter from the second quarter of this year, per CB Insights, with valuations for late-stage deals falling by 50%.
Beth Ferreira, general partner at New York-based early-stage firm FirstMark, who focuses on consumer startups says: “that’s the big question: whether or not there’s really a market clearing price [for startups]….Everyone thought it was gonna be right after Labor Day, and it’s probably a Q1 [2023] exercise of when we see that. I think we’re starting to see it now as companies [are] making the tough and right decisions to take capital at different valuations than they were anticipating.”
Philippe Botteri, a U.K.-based partner at storied VC firm Accel, where he focuses on cloud and security startups says “my guess is that it’s going to happen next year—it’s gonna be probably slower at the beginning of the year. I think we will [look] much more active at the end of the year.”
Cack Wilhelm, a general partner at IVP who spends a lot of time on growth-stage cloud and tech firms, says “we talk about it being like, March, April [of next year]” when enough companies that “need money” will start tapping venture again—during which time you’ll likely see more data points to gauge valuations.
Read more of their statements here.
If one thing’s for sure, it’s that making predictions in the venture space is always risky in such a volatile macro environment. But for industry watchers, it seems like they should keep their eyes downward: The bottom may still be below us.
💵 Fundraising Is Going To Get A Lot Tougher
It is looking more and more likely that the VC fundraising blob will start to shrink next year, as fundraisers are expected to run into a much more difficult market.
For the US market, a mere 38% of LPs say they will target venture capital in 2023, down from the 54% in 2022. For Asia, it's a low 9%, down from 21%, and for Europe/Israel, just 13%, down from 16% this year.
To read more and see full data, click here.
💰 INTELLI™ Featured Venture Deals
OncoPrecision, a biotechnology company that develops technologies to replicate cancer patients' disease, raises $3.3MM Seed from IndieBio.
Cover Genius, a company that develops an insurance distribution platform designed to protect the customers of online companies, raises $70MM Series D from Dawn Capital.
Galen Robotics, a manufacturer of surgical robots, raises $15MM Series A from Ambix Healthcare Partners.
Tour24, a company that develops a mobile app for self-guided tours, raises $5.5MM Series A from 29th Street Ventures.
Roots Automation, a developer of a digital co-worker for the insurance industry, raises $10MM Series A from MissionOG.
OptionsMD, a firm that provides care for treatment-resistant depression and therapies, raises $2.35MM Seed from Bread & Butter Ventures.
Iink Payments, a developer of a claims and endorsement management platform that helps facilitate property insurance payments, raises $3MM Seed II from Grand Ventures.
Qwick, a provider of an on-demand staffing platform for hospitality businesses and professionals, raises $40MM Series B from Tritium Partners.
Retirable, a company that provides a platform for retirement advisory, raises $6MM Seed from Primary Venture Partners.
Haven, a developer of a software platform for the mortgage industry, raises $8MM Series A from Fifth Wall.
Tune in next week for more updates brought to you by PreIPO INTELLI™