Consumer Technology Trends 2021
Heartcore Capital
Investing in happiness. Europe’s consumer technology VC
2
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Credits
3 Credits
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Credits Pauline Gueho
Konstantin Mehl (Kaia Health)
Mehdi Benjelloun
Anders Krohn (Aula Education)
Charlotte Parsons (illustrations)
Benoit Wirz (Brighteye Ventures)
Joao Cardoso De Jesus (Lovys)
John Kristensen (Astrid Education)
Nicolas Morin-Forest (Gourmey)
Andreas Kullberg (Astrid Education)
Nathan Labat (La Fourche)
Jan Lynn-Matern (Emerge Education)
Anton Soulier (Taster)
Viktor Irle (EV Volumes)
Annie Marie Coleridge (Alva)
4 Credits
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While you’re here…
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Read by top executives at
5
Source: Heartcore
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Contents
6 Contents
01
Introduction
02
Categories 24
Retail
138
Media
43
Food
150
Gaming
72
Finance
162
Health
90
Insurance
174
Education
99
Travel
190
Crypto
114
Housing
125
Mobility
Introduction
7 Introduction
“There are decades where nothing happens and there are weeks where decades happen.” Vladimir Ilyich Ulyanov (Lenin)
8 Introduction
What a difference a year makes.
months “The next two decades will reshuffle the consumer economy more profoundly than the last two did” Heartcore Consumer Technology Trends #1 (Feb 2020)
9 Introduction
Source: Heartcore
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Covid-19 has forced ALL of us to experiment with new things.
10 Introduction
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Covid-19 pushed us across the “online adoption chasm”. Chasm
11 Introduction
Source: Wikipedia, Heartcore
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Case in point: seniors.
Change in the number of Europeans that bought something online in 2020
+13%
+14%
+4%
Adults 18-55
12 Introduction
Source: Eurostat
Adults 55-64
Adults 65-74
Covid-19 mostly accelerated preexisting trends.
EXISTING TRENDS ACCELERATED Online commerce
Food & grocery delivery
Digital entertainment POSITIVE IMPACT
NEW TRENDS
Remote working Online learning
Rise of personal vehicles
Digital health Online communications
Home fitness
“The offline world” NEGATIVE IMPACT
13 Introduction
Source: Heartcore
(food, entertainment, education, workplace, healthcare, etc.)
Collapse of International travel
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Remote working could be the shift with the most profound implications.
14 Introduction
Source: Heartcore
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Consumers altered their behavior during the pandemic.
EXISTING TRENDS ACCELERATED
Anxiety disorders RISK AVERSION & ANXIETY
RESHUFFLING OF PRIORITIES
Preference for trusted brands
Increased shift towards sustainability
NEW TRENDS
Price sensitivity & trading down
Focus on safety & hygiene
Larger baskets, lower frequency
Social Distancing Tail risk appreciation
Reduction in discretionary spending
Saving & investing
Shift away from cities
Work-life balance re-imagined
“Hygge”
Covered in Heartcore’s Consumer Technology Trends Report #1
15 Introduction
Source: Heartcore
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Brands are part of the broader conversation – whether they like it or not.
16 Introduction
Source: Walmart, Stonetoss
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The world is deinstitutionalizing in front of us.
17 Introduction
Yesterday’s authority
Source: Heartcore
Tomorrow’s alternative
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It’s been a phenomenal year for Consumer Tech.
12-month price change (%)
Consumer technologies IPOs over the past 12 months
448%
335% 292% 291%
148%
18 Introduction
lix
42%
Ne tf
er
43%
Ub
55%
Ro ku Sp ot ify Ap pl e Am az on
Sn ap
Te sla
Pe lo to n
65%
Source: Koyfin, Renaissance, analysis Heartcore as of Feb 22nd
$290B
$18B
Combined market capitalization of these 13 companies
Combined IPO proceeds raised by these 13 companies
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Partying like it’s 1999?
NASDAQ Composite Index historical PE ratio (x)
87.00x
81x 72x
77.00x 67.00x 57.00x 47.00x 37.00x 27.00x 17.00x
19 95 19 96 19 97 19 98 19 98 19 9 20 9 00 20 0 20 1 0 20 2 0 20 3 0 20 4 0 20 5 0 20 6 0 20 7 0 20 8 0 20 9 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 1 20 9 20
7.00x
19 Introduction
Source: S&P CapitalIQ, analysis Heartcore as of Feb 22nd 2021
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But this time the internet is the real deal.
Share of World Population Online
Technology Companies’ Share of S&P500 Net Earnings
100%
100%
75%
75%
50%
50% 62%
25%
25% 27%
4%
2%
0%
0% 1999
20 Introduction
2020
Source: Statista, S&P CapitalIQ, analysis Heartcore
1999
2020 2000
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And monetary conditions are unprecedented.
G4 Central Banks Balance Sheets ($TR)
Yield on 10-year Treasuries (%) USA
$35
DE
FR
6% $30 2x increase from 2020 to 2021e.
$25
5% 4%
$20
3%
$15 $10
2%
$5
1%
$0 2008 2010
2012
2014
2016
2018 2020
0% 2006 2008 2010 2012 2014 2016 2018 2020 -1% -2%
21 Introduction
Source: J.P. Morgan, Koyfin, analysis Heartcore data as of Feb 22nd 2021
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There’s still a lot left to eat!
Share of online retail sales in household consumer expenditures (EU27 + UK, %) 100% 90% 80% 70% 60% 50%
?
40% 30% 20% 10%
7% 0%
0% 1995
2020
25 years
22 Introduction
2030
10 years
Source: EC.Europa, Morgan Stanley, Chinese Ministry of Commerce, analysis Heartcore
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Categories
24
138
43
150
72
162
90
174
99
190
114 125
23
Retail
24
Unsplash - Super Straho
Key fundraising rounds.
Company
Date
HQ
Description
Type
Investors
Thrasio
Feb. 21
US
Acquirer and operator of Amazon FBA businesses
750
$
Series D
Advent, Oaktree
Fanatics
Aug. 20
US
Fan gear and jerseys maker
350
$
Series E
Fidelity, SoftBank, Thrive
StockX
Dec. 20
US
Marketplace to buy and sell sneakers
275
$
Series E
Altimeter, Tiger Global, Whale Rock
Thrasio
Jul. 20
US
Acquirer and operator of Amazon FBA businesses
260
$
Series C
Advent
Heyday
Nov. 20
US
Platform acquiring, incubating & launching brands
175
$
Series A
Arbor, General Catalyst, Khosla
Catawiki
Dec. 20
NL
Marketplace for collectibles
150
€
Series E
Accel, Permira
Branded Group
Feb. 21
DE
Acquirer and operator of Amazon FBA businesses
150
$
Venture
Declaration Partners, Lurra Capital, Target Global
Rad Power Bikes
Feb. 21
US
D2C electric bikes and bike accessories
150
$
Venture
Fidelity, T. Rowe Price, Vulcan
Function of Beauty
Dec. 20
US
Direct-to-consumer customizable hair and skincare products maker
150
$
Series B
L Catterton
ManoMano
Jan. 20
FR
ecommerce platform for DIY, home improvement and gardening products
139
$
Series E
Eurazeo, General Atlantic, Temasek
Grove Dec. 20 Collaborative
US
ecommerce platform for natural home and personal 125 care products
$
Series E
Glynn Capital, Morgan Stanley, NextView
Warby Parker Apr. 20
US
Affordable eyewear omnichannel brand
125
$
Series G
Baillie Gifford, Durable Capital, T. Rowe Price
Perch
Oct. 20
US
Acquirer and operator of Amazon FBA businesses
124
$
Venture
Boston Seed, Spark, Tectonic
Back Market
May 20
FR
Marketplace for refurbished smartphones and electronics devices
120
$
Venture
Aglae, Eurazeo, Goldman Sachs
OfferUp
Mar. 20
US
P2P marketplace for electronics, furniture, and cars
120
$
Venture
Pobts, Warbug Pincus, a16z
Warby Parker Aug. 20
US
Eyewear omnichannel brand
120
$
Series G
D1
US
Marketplace for authentic sneakers & apparel
100
$
Series E
D1
Goat
25 Categories | Retail
$ (M)
Sep. 20
Source: Heartcore
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Key M&A transactions & IPO.
26 Categories | Retail
Company
Date
HQ
Description
$ (M)
Type
Allegro
Oct. 20
PO
Ecommerce platform offering a wide range of product
19,000 $
IPO
GS, JP Morgan, MCI
Wish
Dec. 20
US
Mobile shopping platform for affordable goods
14,100 $
IPO
DST, General Atlantic, Temasek
Poshmark
Jan. 21
US
Marketplace for second-hand clothing
3,000
$
IPO
Inventus, Mayfield, Uncork
Vroom
Jun. 20
US
Marketplace for used vehicles
2,500
$
IPO
General Catalyst, L Catterton, PICO
Hims & Hers
Jan. 21
US
D2C products for skincare, erectile dysfunction, and hair loss
1,600
$
SPAC
Forerunner, Maverick, Thrive
Owlet Baby Care
Feb. 21
US
Baby health monitors maker
1,074
$
SPAC
Eclipse Ventures, Eniac Ventures, RTP
Eargo
Oct. 20
US
D2C hearing aids maker
654
$
IPO
Crosslink, Maveron, NEA
Mirror
Jun. 20
US
Interactive fitness hardware device
500
$
M&A
Casper
Feb. 20
US
D2C mattress brand
476
$
IPO
Topshop
Feb. 20
US
Omnichannel fast-fashion clothing brand
330
£
M&A
Asos
Arcadia Group, Leonard Green & Partners
Care/of
Aug. 20
US
D2C personalized vitamin
225
$
M&A
Bayer
Goodwater, RRE, Tusk
Poppin
Nov. 20
US
Customized furniture design
110
$
M&A
Kimball International
BoxGroup, First Round, Shasta Ventures
Hollar
Jan. 20
US
Online dollar store
M&A
Letgo
Mar. 20
US
Shopping app for second-hand clothing
M&A
OfferUp
Accel, NEA, Prosus & Naspers
Essential
Feb. 21
US
Mobile and home devices maker
M&A
Nothing
Playground, Redpoint, Tencent
Source: Heartcore
Acquirer
Lululemon
Investors
First Round, Lerer Hippeau, Spark Lerer Hippeau, NEA, Norwest
Five Below Comcast, Index, Lightspeed
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Online retail spiked in the pandemic.
Ecommerce sales in the US ($B) Forecast
1200
1,120
40%
995
1000
30.7% 884
30%
787
800 672
600
16.2%
16.9%
721
20%
514 447
394
400
337
290
12.3%
15.0%
13.5%
7.3%
12.6%
12.6%
9.2%
10%
200 0
0% 2015
2016
2017
2018
2019
2020
Retail value
2021
2022 2023 2024 2025
% change
Ecommerce sales excl. sales tax
27 Categories | Retail
Source: Euromonitor
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Ecommerce has punched through every ceiling.
US ecommerce penetration of total retail sales (%)
25% 21.0% 20% 15.8% 15%
10% 5.1%
5.3%
5.6%
6.4%
7.2%
8.0%
8.8%
9.7%
10.7%
11.8%
13.2%
14.3%
5%
0% 2007 2008 2009 2010
2011
2012
2013
2014
2015
2016
2017
2018
2019 2020
Ecommerce penetration
28 Categories | Retail
Source: US Census Bureau
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Even laggard categories were accelerated by Covid-19.
29 Categories | Retail
Top growth categories in penetration 2019-2020
2019 2020 YoY ecommerce penetration ecommerce penetration penetration growth Apparel
25%
38%
52%
Pet care
20%
30%
50%
Consumer electronics
46%
67%
46%
Consumer Health
12%
16%
33%
Personal Accessories
27%
35%
30%
Beauty
15%
19%
27%
Home & Garden
11%
14%
27%
Toys & Games
15%
17%
13%
Source: Euromonitor
heartcore.com
Mobile is on its way to becoming the dominant way to shop.
Mobile share of digital commerce spending in the US (%)
40% 29.0% 30%
32.0% 31.0%
25.0% 20.0%
20%
22.0%
16.4% 9.0%
10%
13.0% 11.3% 10.8% 11.1%
5.8% 1.8%
0% Q2 '10
Q2 '11
Q2 '12
Q2 '13
Q2 '14
Q2 '15
Q2 '16
Q2 '17
Q2 '18
Q2 '19
Q2 '20
Mobile share US
30 Categories | Retail
Source: Comscore
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In-app conversion keeps improving.
Mobile shopping app user acquisition costs worldwide ($) 80 75.9
60
58.4
40
39.4 30.5 23.5
20 13.8 4.5
4.1
4.1
0 2017 Cost-to-install
31 Categories | Retail
Source: Adjust
2018 Cost-to-register
2019
19.5 8.8 2.9 2020
Cost-to-purchase
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5,000,000
Search volumes for top 1.000 branded and nonbranded Amazon Keywords on Google and Amazon (US, 2018)
Adidas
500,000
Google Searches
Lingerie
Food iPhone Xr Sheets
Roku
CBD oil
Ps4
Audible Christmas
Prime video Kindle
Laptop Bluetooth headphones Headphones
External hard drive Monitor Water bottle
50,000
Where consumers start their search depends on what they are looking for.
iPhone charger Men socks
50,000
iPhone 7 case Aa Batteries
Paper towels
500,000
5,000,000
Amazon Searches Nonbranded Terms
32 Categories | Retail
Source: Jumpshot
Branded Terms
Nonbranded Avg
Branded Avg
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Amazon averages 74% share of digital transactions (US, 2019)
70M Electronics
# of Digital Transactions
Amazon is expanding its market share of US digital transactions.
Home
Health
35M
Home Improvement Food Women’s Clothing
Beauty Men’s Clothing
Pets
Shoes
Personal Care Office
Sports/Outdoors
Toys/Games Automotive Household Essentials
Appliances
Baby
Furniture
30%
65%
74%
100%
Amazon’s Market Share
33 Categories | Retail
Source: Jumpshot
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Direct-toconsumer growth is slowing.
D2C ecommerce Sales (US, $B)
25
80% 21.15
69.8% 20
17.75
60%
56.5% 14.28
15 10.73 10
40% 33.1% 24.3%
6.85
19.2%
5 0
0% 2017
2018
2019
D2C E-Com Sales
34 Categories | Retail
Source: eMarketer
20%
2020
2021
% Change
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Shopify's growth underscores the boom in longertail DTC…
Shopify GMV ($B) $100
120% 101%
102%
$80
100%
$78
80%
$61
$60
69% $41
$40
60%
57% 49%
40%
$26
$20
28%
$15 $4
20%
$8
$0
0% 2014
2015
2016 GMV
35 Categories | Retail
Source: Shopify Quarterly Results
2017
2018
2019
2020
% Change
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Retail under pressure – every purchase is an online purchase.
L’Oréal has developed digital factories with advanced audiovisual capabilities to create responsive, consumer-oriented and highly personalised social content. In 2019, L’Oréal’s 1M content posts reached a total of 1.3B visitors and 285M fans.
Direct-to-consumer sales as % of Nike’s total revenue 40% 30% 20%
15%
17%
19%
22%
24%
26%
29% 30%
33%
10%
In 2017, Nike announced it’s “Consumer Direct Offense”, expanding its focus on content, community and customisation, driving a veritable D2C revolution. “As we look ahead, we are focused on moving even faster against our strategic vision of Consumer Direct Acceleration.”, Matt Friend (CFO), Q2 2020
20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20
0%
% of DTC of group revenue 36 Categories | Retail
Source: L’Oreal, Nike
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Home shopping is back (and the anchor is a celeb influencer).
Livestreaming made in-roads as the shopping medium allowing for an emotional connection, further disrupting an already-battered retail industry In 2019, 30% of China’s population viewed livestreams. In 2020, the number grew to 39%.
Li Jiaqi, a Chines salesman luminary of beauty products, gained international fame after selling 15,000 lipsticks in five minutes.
On Singles’ Day in 2019, Li attracted 36M viewers during his live-stream on Taobao and generated more than $145M in sales.
37 Categories | Retail
Source: Scmp, Forbes. Photo credits: Alizila, Youku
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Livestreaming emerges as major driver of purchase decisions.
Proportion of livestreaming ecommerce’s GMV in online shopping in China (%)
15.2%
10.2%
4.5% 1.9% 0.3% 2017
2018
2019
2020
2021
Share of online shopping
38 Categories | Retail
Source: Statista
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YouTube dominates in product reviews.
Global YouTube search volume “unboxing” vs. “review” vs. “Tesla” 100
50
0 2008-01
2010-07
2013-01 Unboxing
2015-07 Review
2018-01
2020-07
Tesla
Google trends normalizes search data to the time and location of a query. The numbers are scaled on a range of 0-100.
39 Categories | Retail
Source: Google Trends
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To be a kid again: the joy (and $$$) of unboxing videos.
40 Categories | Retail
Source: Youtube, Forbes
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The influencer brand trend continues to evolve.
41 Categories | Retail
Source: Instagram, analysis Heartcore
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Heartcore portfolio
We are bullish on membershipdriven retail.
42 Categories | Retail
“Fitness”
Source: Italic
“Kitchen”
“Pets”
“Apparel”
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Food
43
Unsplash - Brooke Lark
Key fundraising rounds.
44 Categories | Food
Company
Date
HQ
Description
Type
Investors
goPuff
Jan. 20
US
On-demand everyday essentials delivery platform
750
$
Series D
Accel, SoftBank
Wolt
Jan. 21
FI
On-demand food delivery platform
530
$
Series E
Coatue, ICONIQ, Tiger Global
Impossible Foods
Mar. 20
US
Producer of plant-based substitutes for meat, dairy, and fish
500
$
Series F
Horizons, Mirae, Temasek
Doordash
Jun. 20
US
On-demand local food delivery company
400
$
Series H
Durable Capital, Fidelity, T. Rowe Price
goPuff
Oct. 20
US
On-demand everyday essentials delivery platform
380
$
Series E
Accel, D1, Luxor
Instacart
Jun. 20
US
Same-day grocery delivery platform
225
$
Venture
D1, DST, General Catalyst
Oatly
Jul. 20
SE
Oat and plant-based milk brand
200
$
Venture
Blackstone, Coefficient, K2
Impossible Foods
Aug. 20
US
Producer of plant-based substitutes for meat, dairy, and fish
200
$
Series G
Coatue, Mirae, Temasek
Instacart
Oct. 20
US
Same-day grocery delivery platform
200
$
Venture
D1, Valiant
Deliveroo
Jan. 21
UK
On-demand food delivery platform
180
$
Series H
Durable Capital, Fidelity
Infarm
Dec. 20
DE
Urban vertical farms operator
170
$
Series C
Atomico, Lightrock, TriplePoint
Memphis Meats
Jan. 20
US
Producer of meat, seafood, and poultry from animal cells
161
$
Series B
Norwest, SoftBank, Temasek
Perfect Day
Jul. 20
US
Animal-free dairy producer
160
$
Series C
CPP, Horizons, Temasek
Vivino
Feb. 21
DK
Wine marketplace offering free digital discovery tools via mobile app
155
$
Series D
Kinnevik, Creandum, GP Bullhound
Plenty
Oct. 20
US
Vertical farms operator that sells fresh food to customers
140
$
Series D
Driscoll's, SoftBank
Getir
Jan. 21
TU
On-demand food and essentials delivery company
128
$
Series B Crankstart, Base Partners, Tiger Global
Wolt
May 20
FI
On-demand food delivery platform
100
€
Series D
Source: Heartcore
$ (M)
83 North, Highland, ICONIQ
heartcore.com
Key M&A transactions & IPO.
45 Categories | Food
Company
Date
HQ
Description
DoorDash
Dec. 20
US
On-demand local food delivery company
39,000
$
IPO
Postmates
Jul. 20
US
On-demand food delivery company
2,650
$
M&A
Uber
Founders Fund, Spark, Tiger Global
Drizly
Feb. 21
US
Wine and liquor delivery platform
1,100
$
M&A
Uber
Avenir, Polaris, Tiger Global
Flaschenpost
Nov. 20
DE
On-demand drinks delivery startup
1,000
$
M&A
Dr Oetker
Cherry, Tiger Global, Vorwerk
Freshly
Nov. 20
US
Healthy meals delivery startup
950
$
M&A
Nestlé
Highland, Insight, Nestlé
Vital Farms
Jul. 20
US
Manufacturer of pastureraised eggs and poultry.
862
$
IPO
BevMo
Nov. 20
US
Wine and liquor retail chain
350
$
M&A
goPuff
Factor 75
Nov. 20
US
Fully-prepared healthy meals provider
277
$
M&A
HelloFresh
Flow, Listen, Marcy Venture
Chowbotics
Feb. 21
US
Salad-making robot manufacturer
M&A
Doordash
Foundry Group, Geekdom, Upslope
JoyRun
Nov. 20
US
Community based delivery company
M&A
Walmart
Floodgate, Norwest, TriplePoint
June Oven
Jan. 21
US
Direct-to-consumer smart oven maker
M&A
Weber
First Round, Foundry Group, Lerer Hippeau
Source: Heartcore
$ (M)
Type
Acquirer
Investors CRV, Khosla, Sequoia
Sunrise Strategic Partner
heartcore.com
Groceries are finally moving online.
Historical grocery sales online penetration (%) 14% 12%
12%
10%
10%
9% 8% 6% 4%
2.5%
2% 0% 2010
2011
2012
2013 2014 2015 2016 UK
46 Categories | Food
FR
DE
2017
2018 2019 2020
USA
Source: McKinsey, Kantar, Mercatus, ONS, Bureau of Economic Analysis, Statista
heartcore.com
And that shift has only just begun.
Current and 2025 expected grocery sales online penetration (%) 30% 25%
24%
25% 20%
20%
22%
21%
15% 12% 10% 5%
10%
10%
9%
3%
0% DE (2020)
FR (2020)
UK (2020)
USA (2020)
Korea (2020)
China (2020)
2025 expectations
47 Categories | Food
Source: McKinsey, Kantar, Mercatus, ONS, Bureau of Economic Analysis, Statista
heartcore.com
We still underestimate the magnitude of that shift.
Grocery sales vs mobile app economy (Europe, 2019, $B)
$2,200B
~ 200x
$11.2B Grocery sales (Europe)
48 Categories | Food
Source: IGD, Sensortower
Appstore revenues (Europe, iOS + Play)
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So, who will capture that value?
49 Categories | Food
1980’s
2020’s
Not incumbents.
50 Categories | Food
heartcore.com
Heartcore portfolio Heartcore portfolio
Death by a thousand cuts. Fresh
Dry
Cleaning
Beauty & Care
Pets
Alcohol
Heartcore portfolio
Heartcore portfolio
51 Categories | Food
heartcore.com
No silver bullet.
Who
Segment
Frequency
Where
Delivery
AOV
Infrastructure
Daily to weekly
City centers
< 30 min on demand
€20-30
Weekly
Tier 1-2 cities & suburbs
Same/Next planned
€60-80
Semi centralized warehouses
Monthly
Everywhere
3 days
€100+
Centralized warehouse
Distributed dark stores
Heartcore portfolio
Heartcore portfolio
52 Categories | Food
Source: Heartcore
heartcore.com
Within cities, full-stack is the new black.
V. 1.0 v 1.0
2.0 vV.2.0
3.0 vV. 3.0
Non-integrated
Semi-integrated
Fully integrated
personal shopper
store-picking model
dark-store model
model
+
+
53 Categories | Food
Heartcore portfolio
heartcore.com
The dark-store model is superior.
Per order unit economics (€) Store-picking model AOV Revenue % share Direct revenue Extra delivery fee charged to consumer Revenue per order
€25 20% €5 €3.5 €8.5
€25 100% €25 €3.5 €28.5
90% -€0.5 -€5.0 -€5.5
40% -€15 N/A -€15.0
Contribution margin 1 per order
€3.0
€13.5
Pick/pack + delivery @ 80% utilisation rate Variable fullfilment costs per order
N/A €0
25% -€6.25
Contribution margin 2 per order
€3.0
€7.3
Average gross margin on revenue COGS per order Rider fee per order (70% recovery) Direct costs per order
54 Categories | Food
Dark-store model
Source: Heartcore
heartcore.com
Covid-19 was a massive boost to “stock-up” players.
55 Categories | Food
Heartcore portfolio
Monthly revenues (€)
•
6 years old
•
1M+ paying members in the US
•
c. $500M revenues (+100% YoY)
•
Profitable
•
est. $1.3B valuation
Source: Sharespost, Grocerydive, La Fourche
Covid-19 1
4
7
10 13 16 19 22 25 28
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Covid-19 was also a major tailwind for meal delivery.
Quarterly orders (index 100 in Q1 2019) Doordash
Delivery Hero
JustEat Takeaway
500 450 400 350 300 Covid-19
250 200 150 100 Q1 2019
56 Categories | Food
Q2 2019
Q3 2019
Q4 2019 Q1 2020 Q2 2020 Q3 2020
Source: Doordash, DeliveryHero, Just East Takeaway, analysis Heartcore as of Feb 22nd 2021
heartcore.com
Consolidation
2020 was a year of consolidation and fundraising.
+
+
+ LATAM assets
Fundraising events
Raised $3.4B in IPO
57 Categories | Food
Source: Techcrunch
$575M funding
$530M funding
heartcore.com
Profitability vastly improved in 2020.
Adjusted EBITDA margin (%) UberEats
Doordash
Delivery Hero
12%
-19% -30%
-63%
10%
-16% -26%
-28%
-59%
-99% FY 2019
58 Categories | Food
Q1 2020
Q2 2020
Source: Doordash, DeliveryHero, Just East Takeaway, analysis Heartcore
Q3 2020
heartcore.com
In 2019 investors had bet the real estate layer would be next…
Raised $35M (A16Z, Founders Fund)
59 Categories | Food
Raised $1.2B (Mubadala, Softbank, Oaktree, Target Global)
Raised $400M (Saudi Arabia’s PIF)
Source: Techcrunch
Raised $50 (GV)
Raised $117M (Knollwood, Lumia, BECO, CEVentures)
heartcore.com
… but what a difference a year makes.
60 Categories | Food
Source: CNN (Dec 2020)
heartcore.com
The next big thing? launching delivery brands on top of underutilized kitchens.
61 Categories | Food
Heartcore portfolio
heartcore.com
There’s massive potential in leveraging culturally relevant IP.
62 Categories | Food
Source: Apple App Store
heartcore.com
Delivery networks are also starting to get unbundled by segments…
Raised $68M (Left Lane, Greycroft)
Raised $82M (GGV, KKR) Raised $90M (Kinnevik, 83North, Felix)
63 Categories | Food
Source: TechCrunch
heartcore.com
… and by functiondelivery vs demand generation.
Build your own delivery app
Pay for delivery only i.e. “bring your own customers”
64 Categories | Food
Pay for demand generation only i.e. “bring your own drivers”
heartcore.com
YoY Change in Sales (US, %)
Covid-19 was a massive boost to plant-based products.
Conventional fresh meat
Plant based alternatives
290% 231%
240% 190% 140%
140%
164%
147%
159% 119% 90%
90% 40%
40% -10%
39%
37%
23%
3%
Jan-20
Feb-20
Mar-20
Apr-20
May-20
Jun-20
20%
Jul-20
Consumer responses to whether Covid-19 makes them less safe about buying meat (US) No
25% 37%
Makes me nervous, but won't stop me from buying meat Yes, I will buy less meat
65 Categories | Food
Source: Nielsen, The Good Food Institute, Datassential, analysis Heartcore
39%
heartcore.com
...and there’s still massive room to grow.
Breakdown of Total Sales & Market Sizes (Europe + US, %) $320B market
$265B market
$67B market
100%
75%
50%
25%
12% 0.80%
2.80%
Meat
Dairy
0% Plant-based alternatives
66 Categories | Food
Source: ING, Good Good Institute, Spins, analysis Heartcore
Milk Traditional
heartcore.com
Following in the footsteps of Oatly.
67 Categories | Food
heartcore.com
Significant barriers to scale act as strong moats for established players.
68 Categories | Food
Total Funding ($M)
R&D FTEs
Patents & Applications
Outlets
c. $1,500
c. 100
114+
c. 30k
c. $400
c. 70
21+
c. 110k
> $220
52
50+
c. 18k
Impossible Foods’ foray into milk could mean bad news for smaller plant-based milk companies
Source: Impossible Foods, Beyond Meat, Just, analysis Heartcore
heartcore.com
Cellular Agriculture is still looking for its “Oculus moment”.
1985
2014
VPL Research is the first company to
Facebook buys Oculus
commercialize VR goggles
?
2013 Mark Post develops the first cultured hamburger
69 Categories | Food
Source: Wikipedia
heartcore.com
Best of both worlds: we think that hybrid models are the future.
Heartcore portfolio
Mixing cultured chicken cells and plant-based ingredients to create synthetic nuggets
Mixing cultured chicken cells and plant-based ingredients to create synthetic nuggets
Mixing cultured pork cells and plant-based ingredients to create synthetic pork
70 Categories | Food
Mixing cultured pork cells and plant-based ingredients to create synthetic bacon
Mixing cultured pork cells and plant-based ingredients to create synthetic pork
heartcore.com
From Soylent to Magic Spoon?
71 Categories | Food
heartcore.com
Finance
72 Categories | Finance
Unsplash -Christiann Koepke
Key fundraising rounds.
73 Categories | Finance
Company
Date
HQ
Description
Robinhood
Jan. 21
US
Consumer stock brokerage to buy and sell US stocks, options, and ETFs
Robinhood
Sep. 20
US
660
$
Series G
DST, Sequoia, a16z
Robinhood
Aug. 20
US
600
$
Series F
IVP, Sequoia, TSG
Revolut
Jul. 20
UK
Low fee banking services delivered via mobile app
580
$
Series D
Ribbit, TCV, TSG
Chime
Sep. 20
US
Challenger bank with no minimum balance, monthly fees, or overdraft fees
534
$
Series F
Coatue, DST, Tiger Global
Affirm
Sep. 20
US
Pay-now-buy-later solution for online shoppers
500
$
Series G
Durable, GIC, Spark
TransferWise
Jul. 20
UK
Money transfer service for sending money abroad without hidden fees
319
$
Secondary
D1, Lone Pine Capital, Vulcan
Varo Money
Jun. 20
US
Low fee mobile only challenger bank
241
$
Series D
Gallatin Point, HarbourVest, The Rise Fund
Public.com
Feb. 21
US
Investment social network where members can own fractional shares of stocks and ETFs
220
$
Series D
Tiger Global, Greycroft, Lakestar
Greenlight
Sep. 20
US
Mobile bank offering kids debit cards with parental control features
215
$
Series C
Canapi, Goodwater Capital, TTV
Aspiration
May 20
US
Retail banking servicer focused on sustainability
135
$
Series C
Alpha Edison, DNS, SuRo Capital
Current
Dec. 20
US
Retail banking servicer catering to young adults' needs
131
$
Series C
Avenir, Sapphire, Tiger Global
Stash
Feb. 21
US
Retail banking and investment platform toppedup with advisory services
125
$
Series G
Eldridge, Goodwater Capital, T.Rowe Price
Stash
Apr. 20
US
Retail banking and investment platform toppedup with advisory services
112
$
Series F
Goodwater Capital, Greenspring, T.Rowe Price
Fast
Jan. 21
US
Login and checkout solutions designed for online shoppers
102
$
Series B
Stripe, Addition, Index
Albert
Jan. 21
US
Personalized financial advice servicer
100
$
Series C
General Atlantic, Portag3,QED
N26
May. 20
DE
Mobile-first, low-fee banking servicer
100
$
Series D
Valar, Tencent
Source: Heartcore
$ (M)
Type
3,400 $ Venture/Debt
Investors Ribbit, Sequoia, a16z
heartcore.com
Key M&A transactions & IPO.
74 Categories | Finance
Company
Date
HQ
Description
$ (M)
Affirm
Jan. 21
US
Pay-now-buy-later solution for online shoppers
11,900
$
IPO
Credit Karma
Feb. 20
US
Personalized, free credit scoring tools provider
7100
$
M&A
Upstart
Dec. 20
US
Fast loans provider
1800
$
IPO
Personal Capital
Aug. 20
US
Financial advice servicer
1000
$
M&A
Empower Retirement
Crosslink, IVP, Venrock
Motif
May 20
US
Investment platform for stock and bonds
M&A
Charles Schwab
Foundation, Ignition, Norwest
Verse
Jun. 20
ES
P2P mobile payment network
M&A
Square
Greycroft, Spark, e.ventures
Source: Heartcore
Type
Acquirer
Investors Baillie Gifford, Durable, Founders Fund
Intuit
Felicis, QED, Tiger Global First Round, Khosla, Thrid Point
heartcore.com
The crowd is betting against Wall Street.
75 Categories | Finance
Source: Financial Times, Bloomberg
heartcore.com
Graham and Dodd are both dead. Long live the crowd!
76 Categories | Finance
heartcore.com
Famous last words: This time it’s different! (1/2)
77 Categories | Finance
2021 vs 2000 “darlings” - forward P/E ratios (x) 2021
2000
5,691x
7,021x
634x
410 x
567 x
323 x
Source: Reuters, Financial Times, data as of February 8th 2021
heartcore.com
Famous last words: This time it’s different! (2/2)
Share of World Population Online (%)
Technology Companies’ Share of S&P500 Net Earnings (%)
100%
100%
75%
75%
50%
50% 62%
25%
25% 27%
0%
2%
4%
0% 1999
78 Categories | Finance
2020
Source: Statista, CapitalIQ, analysis Heartcore
1999
2000 2020
heartcore.com
Robinhood users over time (M)
Everyone is now an equity trader!
13
14 12
10
10 8
6
6 4 1.8 2
0.6
0
0 2015
2016
2017
2018
2019
2020
User growth on r/wallstreetbets (M) 4 3 2 1 0 1/1/2020
79 Categories | Finance
4/1/2020
Source: Company website, news reports
7/1/2020
10/1/2020
1/1/2021
heartcore.com
SPAC IPOs, cumulative number & amounts ($B) 90
SPACs are BACK…
300
80 250
248
70 60
200
50 150
83.4
40 30
100 83
20 10 0
1.4 10 2013
1.8 12 2014
3.9 20 2015
3.5 13
10
34
59
46
23.5
10.8
13.6
2018
2019
50 0
2016
2017
Amount raised ($bn)
2020
2021YTD
# IPOs
# of Active SPACs, Jan 2021 Total Active
355
Seeking target
296
Pre-IPO
Announced combinations
80 Categories | Finance
Source: Bloomberg, Reddit
89
59
heartcore.com
2020 was another big year for neobanks.
Notable financing rounds for neobanks since January 2020 ($M) 1850 580 534 304 215 136 130 123 95 45 0
81 Categories | Finance
500
1000
1500
Source: Crunchbase Note(s): (1) Klarna launched their savings account in July 2020, (2) EUR to USD and GBP to USD fx as per announcement dates of transactions for Starling, Monzo and Lunar
2000
heartcore.com
User growth for leading European neobanks 2016-2020 (m customers) 14
On the back of strong user growth.
12 10 8 6 4 2 0 2016
2017 Revolut
2018 N26
Monzo
2019
2020
Starling
Lunar
# of active markets
>35 10
>25
Source: Company websites, Heartcore analysis
3
1
1 heartcore.com
Revolut has reached critical mass at lightning speed.
Number of retail customers (M) 33M 29M 27M 24M 19M
12M
1848
83 Categories | Finance
1864
Source: Company websites, analysis Heartcore
1870
1896
1870
2015
heartcore.com
Neobanks have created financial supermarkets…
84 Categories | Finance
Current accounts
Wealth
Payments
Other features
B2B Accounts
Manage savings
Financial products
Payments
Other features
B2B Accounts
Under the current accounts offering
Current accounts
Savings
Borrowing
Other features
B2B Accounts
Current accounts
Payments
Loans
Marketplace
B2B Accounts
Source: Company websites Note(s): Categorization as per the individual company websites
heartcore.com
…but they are yet to “bank” their customers.
JP Morgan Chase 2019 revenue breakdown per business unit ($B) $140
$120 9 $100
$80
14
38
$60
$40 56* $20
$0 Consumer & Community banking Asset & Wealth management
85 Categories | Finance
Corporate & Investment banking Commercial banking
Source: JP Morgan Chase 2019 Annual Report * The CCB BU includes consumer & business banking, home lending and card, merchant services and auto
heartcore.com
Going deep or going broad?
Payments
Trading
Insurance
BNPL
Cryptocurrencies
Heartcore portfolio
86 Categories | Finance
heartcore.com
Also fighting against verticalized players.
87 Categories | Finance
heartcore.com
Market capitalization for the payment's champions and US largest banks ($B)
The payment’s oligopoly champions finance.
$500
$400 439 $300
264
$300 $200 $200 $100 $0
88 Categories | Finance
325
401 $400
Source: Yahoo Finance as of Jan 28th 2021
$100
$0
heartcore.com
Every company can now become a fintech company.
Heartcore portfolio
89 Categories | Finance
heartcore.com
Insurance
90 Categories | Insurance
Unsplash -Ulises Baga
Key fundraising rounds.
91 Categories | Insurance
Company
Date
HQ
Description
$ (M)
Type
Investors
Bright
Sep. 20
US
Health insurance platform for individuals and families
500
$
Series E
Bessemer, NEA, T. Rowe Price
Oscar
Dec. 20
US
Health Insurance provider
365
$
Venture
Baillie Gifford, Coatue, Tiger Global
Hippo
Dec. 20
US
Tech-driven home insurance company
350
$ Convertible
Hippo
Jul. 20
US
Tech-driven home insurance company
150
$
Series E
BOND, Dragoneer, Ribbit
Sidecar
Jan. 21
US
Personalized health insurance startup
125
$
Series C
Drive Capital, Tiger Global, Cathay
Policygenius
Dec. 20
US
Online broker focused on financial protection
100
$
Series D
KKR, Norwest, Revolution
Bought By Many
Dec. 20
UK
Digital pet insurance provider
78.4
£
Venture
Commerz, FTV, Octopus
Bestow
Dec. 20
US
Affordable term life insurance company
70
$
Series C
Breyer, NEA, Valar
CLARK
Jan. 21
DE
Multi-offer mobile insurance platform
69
€
Series C
Portag3, Tencent, White Star
Luko
Dec. 20
FR
Digital home insurer
50
€
Series B
Accel, EQT, Founders Fund
Clearcover
Jan. 20
US
Affordable car insurance provider
50
$
Series C
Cox, IA Capital, OMERS
The Zebra
Feb. 20
US
Insurance comparison marketplace
38.5
$
Series C
Accel, Floodgate, Silverton
Ladder Life
Feb. 20
US
Instant life insurance provider
37.5
$
Series C
Brewer Lane, Lightspeed, RRE
Kin
Aug. 20
US
Digital home insurer
35
$
Series B
Commerce, Guggenheim Partners, QED
Marshmallow Nov. 20
UK
Digital insurance for immigrants, expats and nomads
30
$
Series A
Outrun Ventures
Mitsui Sumitomo Insurance Co. Ltd
Getsafe
Dec. 20
DE
Mobile insurer catering to Millennials' needs
30
$
Series B
Commerz, Earlybird, Swiss Re
Branch
Jul. 20
US
Rapid-quoting home and auto insurance company
24
$
Series A
Greycroft, HSCM Bermuda
Source: Heartcore
heartcore.com
Key M&A transactions & IPO.
92 Categories | Insurance
Company
Date
HQ
Description
Clover
Jan. 21
US
Health coverage provider
7,000
$
SPAC
First Round, Greenoaks, Sequoia
Root
Oct. 20
US
Car insurance provider
6,700
$
IPO
Coatue, DST, Ribbit
Go Health
Jul. 20
US
Online broker for health insurance
6,600
$
IPO
Nimble, Norwest Equity
Lemonade
Jul. 20
US
Full-stack insurance company
1,600
$
IPO
Allianz, GV, SoftBank
Metromile
Feb. 21
US
Pay-per-mile auto insurance provider
1;300
$
SPAC
First Round, Index, NEA
Cover Hound
Nov. 20
US
Online broker for car insurance
111
$
M&A
Brown & Brown
RRE, Bullpen, Ace Limited
Getsurance
Jan. 21
DE
Digital life insurance provider
M&A
Nürnberger Versicherung
Picus, IBB, RGAx
Source: Heartcore
$ (M)
Type
Acquirer
Investors
heartcore.com
EV/Sales multiple (x, NTM)
Investors have woken up to the massive opportunity in insurance...
84.5x
39.7x 32.7x 26.8x 18.4x
18.1x 10.6x
Lemonade
Shopify
Zoom
Airbnb
Doordash
Tesla
Peloton
~ $8B funding raised by insurance startups in 2020 across US & Europe (record year)
93 Categories | Insurance
Source: Koyfin, CB Insight, Astorya.io, data as of Feb 22nd 2021
heartcore.com
...for good reasons!
$2,800B Market in EU/UK +US (Life & Non Life)
<10% Online penetration in Europe
-11 Industry NPS in Europe (second worst category before car rentals..)
80% Recurring revenues
94 Categories | Insurance
Source: Statista, Lumoa, Heartcore
Avg. yearly premium retention
heartcore.com
Some companies tried to rethink insurance from the ground up...
PIVO T
Raised seed round from Sequoia in 2015 and launched on the vision of disrupting insurance though a P2P model. Blocked by regulators and forced to pivot to a traditional model.
CLO SED Launched in the UK in 2013 with the vision of disrupting car insurance through a P2P model. Shut down in 2018.
95 Categories | Insurance
Source: Insurancejournal, Techcrunch
PIVO T
Launched in the UK in 2011 on the vision of bringing “group buying” to insurance i.e. allowing members to get better prices on many products through buying in bulk. Later pivoted to become a traditional pet insurer.
PIVO T Pioneered P2P insurance in Berlin in 2010, raised > $15M on this vision. Later pivoted.
heartcore.com
The immediate opportunity is to bring consumers online and improve their experience.
Banking
• •
2013 ~ 10M customers
• •
2015 ~ 15M customers
• •
2013 7M customers
Insurance
• •
2015 1M customers
• •
2015 300k customers
• •
2014 350k customers
+? 96 Categories | Insurance
Source: Chime, Revolut, N26, Lemonade, Root, Press
heartcore.com
Monoliners vs bundlers?
Monoliners
• •
Monoline = Health Expanding within Health into doctors appointment or video consultation
Bundlers
• •
Started in Home Expanded into Pets
Heartcore portfolio
• •
97 Categories | Insurance
Monoline = Home Expanding within Home into repairs & maintenance
• •
Started in Home Expanded into Cars, Pets, Smartphones, Health
heartcore.com
#embedded Insurance
98 Categories | Insurance
Source: Extend, Clyde
heartcore.com
Travel
99 Categories | Travel
Unsplash - Annie Spratt
Key fundraising rounds.
100 Categories | Travel
Company
Date
HQ
Description
$
Type
Investors
Airbnb
Apr. 20
US
P2P marketplace for short and mid-term stay
1,000 $
PE
SilverLake, Sixth Street Partners
Sonder
Jun. 20
US
Managed platform for short to medium stays
170
$
Series E
Fidelity, Innovia, WestCap
GetYourGuide Oct. 20
US
Marketplace for tours & activities
133
$ Convertible
Lakestar, SoftBank, Spark
Vacasa
Jun. 20
US
Vacation homes rental platform
108
$
Series D
Level Equity, Riverwood, SilverLake
Omio
Aug. 20
DE
Multi-mode search tool combining rail, air, bus, and car
100
$
Venture
Kinnevik, NEA, Temasek
Hipcamp
Jan. 21
US
Platform for accessing private land for camping and outdoor recreation
57
$
Series C
BOND, Index
Maps.me
Jan. 21
CH
Online travel app built on the blockchain
50
$
Venture
Alameda, CMS, Genesis
Getaway
Feb 21
US
Cabins in rustic locations rental platform
42
$
Series C
Certares
Limehome
Feb. 20
DE
Managed apart-hotels platform
31
€
Series A
HV, Lakestar, Picus
Life House
Jan. 20
US
Lifestyle hotels network
30
$
Series B
GFC, Thayer Ventures, Tiger Global
The Guild
Jan. 20
US
Startup offering premium short-term accomodations
25
$
Series B
Convivialite, Mark VC, Maveron
Tourlane
Feb. 20
DE
Online travel-booking platform for multiday tours
20
$
Series C
DN, Sequoia, Spark
Habitas
Feb. 20
US
Community-based hotel network
20
$
Series A
Source: Heartcore
heartcore.com
Key M&A transactions & IPO.
101 Categories | Travel
Company
Date
HQ
Description
$
Airbnb
Dec. 10
US
P2P marketplace for short and midterm stay
47,000
Hostmaker
Mar. 20
UK
Home rental management platform
M&A
Houst
DN, DSG, Initial
Freebird
Aug. 20
US
Flight ticket replacement service
PE
Capital One
Accomplice, American Express, General Catalyst
Campanda
May 20
DE
Marketplace for recreational vehicle rental
PE
Russmedia Equity Partners
Accel, Idinvest, btov
Source: Heartcore
Type $
Acquirer
IPO
Investors Sequoia, T. Rowe Price, a16z
heartcore.com
The pandemic triggered the worst crisis in travel industry history…
International tourist arrivals in 2020 (%)
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
-77%
-80%
-83%
0% -1% -20%
-16%
-40% -60% -80%
-65% -81%
-100%
-97%
-96%
-91%
YoY monthly change
102 Categories | Travel
Source: UNWTO
heartcore.com
…and the longterm effects on the market are still uncertain.
”…as executives conduct more business remotely, going back to inperson meetings and pitches seems less urgent. Natarajan Chandrasekaran, the chairman of Indian conglomerate Tata Sons said in an interview with New York Times that he used to fly from India to the Unites States to pitch a $50,000 project. But recently, he said, his firm’s consultancy business closed $2B worth of deals in “five or six Zoom calls.”
$700 $600 $500 $400 $300
Covid outbreak
$200
Vaccine announcement
$100 $18.04.19
18.06.19
18.08.19
18.10.19
18.12.19
18.02.20
18.04.20
18.06.20
18.08.20
18.10.20
18.12.20
Zoom stock price
103 Categories | Travel
Source: New York Times, Skift Research Global Travel Outlook, Zoom
heartcore.com
The question isn't if travel will come back, but when and how?
GDP growth (%) 10%
Forecast 6.0%
5%
4.3% 2.4%
4.5% 1.8%
4.8% 2.5%
4.5% 2.2%
5.1%
4.9%
3.9%
3.7%
2.9%
1.7%
2.2%
0%
-3.3%
-5%
-5.8%
-10% 2015
2016
2017
Advanced Economies
104 Categories | Travel
2018
2019
2020
2021
2022
2023
Emerging and Developing Economies
Source: Skift Research Global Travel Outlook, analysis Heartcore
heartcore.com
Change in international outbound travel (% YoY, Germany)
In previous recoveries, corporate lagged leisure travel.
60% 30% 0% -30% -60% 2000
2003
2006
2009
2012
2015
2018
Leisure Business Economic downturn
Change in international outbound travel (% YoY, US) 10%
0%
-10% 2006
2008
2010
2012
Leisure
2014
2016
2018
Business
Economic downturn
105 Categories | Travel
Source: Skift Research Global Travel Outlook, analysis Heartcore
heartcore.com
Green shoots: nascent recovery in US leisure…
US business versus vacation travel rates in 2020 (%)
60%
40%
41%
39% 34%
34% 28%
20% 10%
14%
39%
15%
35%
28%
31% 25%
16%16% 15% 10%
9%
12%
10%
11%
10%
0% Jan
Feb
Mar
Apr
May
Jun
General Business
106 Categories | Travel
Source: Skift Research Global Travel Outlook, analysis Heartcore
Jul
Aug
Sep
Oct
Nov
Vacation
heartcore.com
China hotel bookings and room nights (% YoY) 100%
0% -50%
Bookings
No v20
O ct -2 0
p20 Se
Au g20
Ju l-2 0
Ju n20
ay -2 0 M
Ap r20
ar -2 0 M
Fe b20
-100% Ja n20
… and strong recovery in domestic China.
50%
Room Nights
Revenue passenger kilometers (% YoY) 100%
50%
0%
-50%
-100% Jan-19 Mar-19 May-19 Jul-19
Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20 Sep-20
APAC International
107 Categories | Travel
Source: Skift Research Global Travel Outlook, analysis Heartcore
China Domestic
heartcore.com
Third quarter 2020 airline capacity
Pent-up demand: expect sharp increase in travel as soon as restrictions are eased.
United
-70%
Delta
-63%
American
-59%
Southwest
-32% -80%
-60%
-40%
-20%
0%
Capacity change YoY
Skyscanner flight searches (UK – UAE); 7 day rolling average (% YoY) 400% 300% 200% 100%
UK government adds UAE to air travel corridor
0%
24 -N ov 01 -D ec
No v 17 -
29 -S ep 06 -O ct 13 -O ct 20 -O ct 27 -O ct 03 -N ov 10 -N ov
p 22 -S ep
15 -S e
p 08 -S e
01 -S e
p
-100%
YoY Change
108 Categories | Travel
Source: Companies, analysis Heartcore
heartcore.com
Marketplaces should benefit from the unpredictability of demand.
Unlike airlines and hotels, online travel marketplaces can map to variable source and destination markets rapidly Heartcore portfolio
Flexibility on corridors means agility in recovery.
109 Categories | Travel
Source: Skift Research Global Travel Outlook, analysis Heartcore
heartcore.com
New models (1/2) : the rise of the megatrend outdoor and adventure travel.
110 Categories | Travel
Source: Companies, analysis Heartcore
heartcore.com
New models (2/2) : professionalization of marketplace merchants.
111 Categories | Travel
Continued fundraising for startups professionalizing supply on Airbnb
Heartcore portfolio
Source: Companies, Crunchbase, analysis Heartcore
heartcore.com
Given competitive intensity, are there any white spaces left in travel?
Request for startups
Google harvests intent, but no top of funnel online player has emerged: we are looking for travel media companies
Loyalty is a key profit driver and OTAs including Google are too expensive: we are looking for membership travel startups, ideally with subscription
Travel is borderless: we are looking for decentralized web companies focused on the end user that make use of crypto/tokens to make international travel easier and more enjoyable
112 Categories | Travel
heartcore.com
Mkt Cap Feb 2021 $128B
$4.0 $3.5B IPO at $86.5B Mkt Cap
$3.5
Amount raised (in $B)
$2.5 $2.0
$7.2M Series A at $70M (Greylock)
$0.5
$0.6M Seed at $2.5M (YC, Sequoia)
$120
$1B Series F at $31B (TCV)
$100
$80 $475M Series D at $10.5B (TPG)
$1.5 $1.0
$1.5M Series E at $25B (General Atlantic)
$200M Series C at $2.9B (Founders Fund)
$3.0
$1B Debt at $18B (Fidelity)
$1B Debt at $30B (JPM)
$60
$40
$112M Series B at $1.3B (a16z)
$20
$-
$2009
2010
2011
2012
2013
2014
2015
2016
Cumulative disclosed funding ($m)
113 Categories | Travel
$140
Valuation (in $B)
And of course: the biggest travel industry story of the year…
Airbnb valuation over time
Source: Crunchbase
2017
2018
2019
2020
2021
Valuation ($m)
heartcore.com
Housing
114 Categories | Housing
Unsplash - Brian Babb
Key fundraising rounds.
115 Categories | Housing
Company
Date
HQ
Description
$ (M)
Type
Investors
Better.com
Nov. 20
US
Online mortgage lender and home ownership platform
200 $
Series D
9Yards, American Express, L Catterton
Sonder
Jun. 20
US
Hospitality platform for short to medium stays
170
$
Series E
Fidelity, Innovia, WestCap
Noah
Apr. 20
US
Home equity company providing upfront funding for 150 a share in homes' value
$
Venture
Breega, USV, Undisclosed Pension Funds
Divvy Homes
Jan. 21
US
Rent-to-own real estate platform
110
$
Series A
GGV, Tiger Global, a16z
Orchard (ex Perch)
Sep. 20
US
Platform enabling sellers to buy their next home before they sold their current one
69
$
Series C
Accomplice, FirstMark, Revolution Growth
Zumper
Mar. 20
US
Rental platform making renting an apartment easier 60 for both landlords and renters
$
Series D
Greycroft, e.ventures
Valon
Jan. 21
US
Tech-enabled homeownership and mortgage servicer
50
$
Series A
a16z
Roofstock
Jan. 20
US
Marketplace for investing in leased single-family rental homes
50
$
Series C
SVB, Citi Ventures, Lightspeed
Common Living
Sep. 20
US
Community-driven co-living company
50
$
Series D
Kinnevik, Maveron, Norwest
Landing
Jan. 21
US
Membership-based network of furnished urban apartments
45
$
Series B
Foundry Group, Greycroft, Maveron
Mighty Buildings
Jan. 21
US
3D-printed house maker
40
$
Series C
Khosla, Zeno, Modern
Homeday
Jun. 20
DE
Online resource for finding a new home and via local realtors
40
$
Venture
Axel Springer, Purplebricks
Tomo Networks
Oct. 20
US
Mortgage and transaction platform for both real estate agents and consumers
40
$
Seed
NFX, Ribbit, Zigg
Orchard (ex Perch)
Jan. 20
US
Platform enabling sellers to buy their next home before they sold their current one
36
$
Series B
Accomplice, FirstMark, Navitas
Sundae
Dec. 20
US
Real estate marketplace focused on sellers of distressed property
36
$
Series B
Founders Fund, Navitas, QED
Source: Heartcore
heartcore.com
Key M&A transactions & IPO.
116 Categories | Housing
Company
Date
HQ
Description
OpenDoor
Dec. 20
US
Online real-estate marketplace focused on the sale process
18,000
$
SPAC
General Atlantic, SoftBank, Khosla
Porch
Dec. 20
US
Platform connecting for home-related projects
520
$
SPAC
Valor Equity, Founders Fund, Battery
Essential
Feb. 21
US
Home devices maker
M&A
Nothing
Altimeter, Redpoint, Tencent
Umbrella
Jan. 21
US
Home services platform catering to seniors' needs
M&A
ANGI Homeservices
BoxGrop, Maveron, Thrive
Lamudi
May 20
DE
Global real estate platform serving emerging markets
M&A
Emerging Markets Property
Axel Springer, Battery Ventures, HV
Homebell
Oct. 20
DE
Home services platform for all improvement projects
M&A
Portal United
Index, Lakestar, Picus
Setter
Dec. 20
CA
Home service company for home maintenance and repairs
M&A
Thumbtack
NFX, REACH, Sequoia
Source: Heartcore
$ (M)
Type
Acquirer
Investors
heartcore.com
“Working from home” is the new normal.
Share of Americans working from home (%) COVID effect
60%
51% 50% 40% 33% 30% 20% 10%
4%
6%
20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 Ap 19 r M -20 ay Ju 20 nJu 20 l Au -20 g Se -20 p20
0%
117 Categories | Housing
Source: US Consensus Bureau American Community Survey; Gallup 2020
heartcore.com
“Indoor Plant”
“Paint Brush”
Source: Google Trends
31 /0 1/ 2
02 0
01 9 31 /0 1/ 2
02 0 31 /0 1/ 2
01 9 31 /0 1/ 2
01 8 31 /0 1/ 2
01 7 31 /0 1/ 2
01 6 31 /0 1/ 2
02 0 31 /0 1/ 2
01 9 31 /0 1/ 2
31 /0 1/ 2
01 8
01 7
100 90 80 70 60 50 40 30 20 10 0 31 /0 1/ 2
01 6 31 /0 1/ 2
31 /0 1/ 2
“Picture Frame”
100 90 80 70 60 50 40 30 20 10 0
118 Categories | Housing
01 8
01 7
01 6
31 /0 1/ 2
31 /0 1/ 2
02 0
01 9 31 /0 1/ 2
01 8 31 /0 1/ 2
01 7 31 /0 1/ 2
01 6
100 90 80 70 60 50 40 30 20 10 0 31 /0 1/ 2
COVID effect
100 90 80 70 60 50 40 30 20 10 0 31 /0 1/ 2
As we spend more time at home, we want it to look nice.
“Sofa”
heartcore.com
Some will not go back to the office.
Share of workers working from home (UK, %)
39%
68% 3%
39%
19%
18%
13% What workers were doing before COVID WFH all of the time
119 Categories | Housing
Source: YouGov
What workers want after COVID
WFH some of the time
Don't know
Never WFH
heartcore.com
Digital nomads: a growing breed that works where they live, not live where they work.
Share of workers willing to relocate if it became possible for them to work from home full time (UK, %) 1 in 5 workers would move far away Moving to a different area of the country that is not within commuting distance for my company's workplace
6% 14%
11%
Moving to a different country
7%
10% 12%
Moving to a different area of the country but still within commuting distance for my company's workplace
9%
Continue to live in the same area I do now
Would strongly consider Don't know Would not consider at all
120 Categories | Housing
Source: YouGov
15%
27%
58%
18%
11%
52%
57%
18%
36%
20%
10% 7% 5%
Would somewhat consider Would not strongly consider
heartcore.com
8.00
10.0
7.00
9.0 8.0
6.00
7.0
5.00
6.0
4.00
5.0
3.00
4.0 3.0
2.00
2.0
1.00
1.0
0.00
0.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Median Tenure (in Years)
Median tenure and existing home sales
Existing Home Sales (in millions)
Since 2008, homeowners have increasingly held on to their houses.
Median tenure
121 Categories | Housing
Source: DataTree by First American , NAR, FRED
Existing home sales
heartcore.com
Technology companies improve liquidity for buyers and sellers.
The six phases of the homeowner lifecycle
Search
122 Categories | Housing
Finance
Buy First Home
Build Equity
Move Up
Downsize
heartcore.com
Reykjavik
Regulators are pushing back as Airbnb is transforming cities...
Regulations vary across cities Hosts require a permit from local authorities to be eligible to rent out property on Airbnb Hosts require a licence and/or have a notification obligation to local authorities and/or can rent out only for a limited # of days
Oslo
Hosts are obligated to register as host at local authorities and/or have to pay additional tax Dublin
London
Amsterdam Brussels
Berlin
Prague
Paris
Vienna Zurich
Krakau
Budapest
Zagreb
Rome Madrid
123 Categories | Housing
Athens
… accelerating the rise of professional short & midterm supply.
124 Categories | Housing
CLO SED
Heartcore portfolio
CLO SED
Source: Crunchbase, analysis Heartcore
heartcore.com
Mobility
125 Categories | Mobility
Unsplash
Key fundraising rounds.
Company
Date
HQ
Description
$ (M)
Type
Investors
Cruise
Jan. 21
US
Self-driving vehicles developer
2,000 $
Venture
General Motors, Microsoft
Waymo
May 20
US
Self-driving vehicles developer
750
$
Venture
Fidelity, Perry Creek, T. Rowe Price
Pony.ai
Feb. 20
US
Self-driving vehicles developer
462
$
Series B
Kunlun, Sequoia, Toyota
Pony.ai
Feb. 21
US
Self-driving vehicles developer
367
$
Series C
5Y, Eight Roads, Ontario Teachers' Pension Plan
Cazoo
Oct. 20
UK
Marketplace for used cars
310
$
Series E
D1, Fidelity, General Catalyst
Auto1
Aug. 20
DE
P2P marketplace for used cars
300
$ Convertible
TIER
Nov. 20
DE
On-demand micro-mobility services provider
250
$
Series C
Northzone, SoftBank, White Star
Lilium
Mar. 20
DE
Electric aircraft taxi service provider
240
$
Venture
Atomico, LGT, Tencent
Lime
May 20
US
On-demand micro-mobility services provider
170
$
Venture
Alphabet, GV, Uber
Voi
Dec. 20
SE
On-demand micro-mobility services provider
160
$
Series C
Balderton, Creandum, The Raine Group
Bolt
Jan. 21
EE
Rideshare and micro-mobility platform
150
€
Series D
D1, Darsana
Rad Power Bikes Feb. 21
US
D2C electric bikes and bike accessories manufacturer
150
$
Venture
Fidelity, T. Rowe Price, Vulcan
Series E
Menlo Ventures, PeopleFund, SoftBank
Getaround
Oct. 20
US
P2P car-sharing platform
140
$
Bolt
May 20
EE
On-demand micro-mobility services provider
109
$ Convertible
Ghost
Jan. 21
US
Maker of a device turning cars into self-driving vehicles
100
$
Series D
Founders Fund, Khosla
Cazoo
Mar. 20
UK
Marketplace for used cars
100
£
Venture
Mubadala, Stride, dmg
Superpedestrian Dec. 20
US
Micro-mobility platform
60
$
Series D
Citigroup, OurCrowd
NL
D2C urban e-bikes maker
40
$
Series B
Balderton, Felix, Norwest
VanMoof
126 Categories | Mobility
Baupost, Farallon, SoftBank
Sep. 20
Source: Heartcore
Naya Capital
heartcore.com
Key M&A transactions & IPO.
127 Categories | Mobility
Company
Date
HQ
Description
Luminar
Dec. 20
US
Autonomous vehicles manufacturer
8,000
$
SPAC
Daimler, VectorIQ, Volvo
Vroom
Jun. 20
US
Marketplace for used vehicles
2,500
$
IPO
General Catalyst, L Catterton, PICO
Canoo
Dec. 20
US
Electric vehicles manufacturer
2,400
$
SPAC
Blackrock
Wheels up
Feb. 21
US
Membership-based private aviation service
2,100
$
SPAC
Fidelity, NEA, T. Rowe Price
Zoox
Jun. 20
US
Autonomous vehicles manufacturer
1,200
$
M&A
Shift
Jun. 20
US
Marketplace for used cars
730
$
SPAC
Boosted USA
Apr. 20
US
Lightweight electric longboards maker
M&A
Lime
FundersClub, SV Angel, StartX
Drover
Dec. 20
UK
Car subscription service for new and used cars
M&A
Cazoo
Cherry, Shell, Version One
Circ
Jan. 20
DE
On-demand micro-mobility services provider
M&A
Bird
Idinvest, Target Global, signals
Ubitricity
Jan. 21
DE
Operator of charging infrastructure for electric vehicles
M&A
Shell
Earlybird, Honda, Siemens
Source: Heartcore
$ (M)
Type
Acquirer
Amazon
Investors
Grok, Lux, Threshold DCM, Highland, Threshold
heartcore.com
Mobility usage before and after COVID-19
Mobility behavior has changed dramatically in 2020.
62%
Personal vehicles
68%
28%
Local public transport
63%
12%
Ride hailing
32%
9%
Cab or limousine
36%
7%
Airline
42%
6%
Rental car
36%
6%
Electric scooter
16% 0%
2020
128 Categories | Mobility
Source: Bloomberg
10%
20%
30%
40%
50%
60%
70%
80%
Used mode of transportation at leas t once in the last 3 months (2019 survey)
heartcore.com
Shifting back to private vehicles?
Change in urban mobility use immediately post-Lockdown US Public transit
EU China US
Ride hailing (pooled)
EU China US
Taxi & ride hailing
EU China US
Car sharing
EU China US
Micromobility shared
EU China
Bike, own scooter, walking
US EU China US
Private car
EU China 0%
20% Much le ss frequently
129 Categories | Mobility
Source: BCG
40% Le ss frequently
60% Same as befo re
More frequently
80%
100%
Much more fr equently
heartcore.com
125% Trips, indexed vs. same week in 2019
However, old patterns will rebound once the pandemic is over.
Number of trips on Uber in NYC during Jan-Sept 2020 (Indexed YoY, %)
100%
75%
50%
25%
6/ 1
20 /1 3/ 2 17 /2 2/ 3 16 /3 30 /3 13 /4 28 /4 11/ 5 25 /5 8/ 6 22 /6 6/ 7 20 /7 3/ 8 17 /8 31 /8 14 /9 28 /9
0%
130 Categories | Mobility
Source: Uber
heartcore.com
E-bikes have been the big winner of the pandemic.
E-bikes sold in Europe 2019A - 2030E (M units) CAGR (’20 – ’30) 16.4%
18
17.0
16 CAGR (’20 – ’25) 17%
14 12
10.0
10 8 6 4
3.7 2.2
2.5
2017
2018
4.6
2 0
131 Categories | Mobility
Source: ECF, Forbes, Statista
2019
2020
2025E
2030E
heartcore.com
Amidst demand declines, micromobility is consolidating.
132 Categories | Mobility
Source: Company websites
heartcore.com
People are using the car more but deferring new purchase decisions.
New passenger car registrations in the EU between 2017-2020 (excl. UK)
14,000,000
12.6M
12,000,000
5.4%
12.7M
10.0%
13M
5.0% 1.5%
1.9%
10,000,000
10M
-5.0%
8,000,000
-10.0% 6,000,000
-15.0%
4,000,000
-20.0% -23.7%
2,000,000 0 2018 EU (excl. UK)
Source: ACEA
-25.0% -30.0%
2017
133 Categories | Mobility
0.0%
2019
2020
Y.o.y. Growth (%)
heartcore.com
EVs have been the bright star.
Plug-in EV sales (BEV & PHEV light vehicles)
1600 000 2020 Total 1.5m
1400 000
Country & 2020 PEVs
1200 000
Belgium 48k 1000 000
Italy 61k Netherlands 90k
800 000
Sweden 96k 600 000
Norway 108k UK 181k
400 000
Fra nce 194k 200 000
USA 328k Germa ny 398k
-
134 Categories | Mobility
2010
2011
2012
2013
2014
2015
2016
2017
N/A
>1k%
195%
85%
34%
40%
22%
31%
52%
14%
88%
N/A
N/A
0.2%
0.2%
0.4%
0.6%
0.9%
1.3%
2.2%
2.5%
4.2%
Source: EV Volumes
2018
2019
2020
heartcore.com
EVs are breaking into the mainstream.
Price of a Li-ion battery pack (volume-weighted average in $ per kwh) $1,400 $1,200 $1,000 $800 $600 $400 $200 $2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
135 Categories | Mobility
Source: Bloomberg, ARK
heartcore.com
EVs are approaching price parity with gas-powered cars.
US retail price comparison in the mid-size car category
$60,000 $50,000
$50,000 $39,000
$40,000 $30,000
$26,000 $18,000
$20,000 $10,000 $2019
2021
Retail price - Toyota Camry
136 Categories | Mobility
2023
2025
Retail price - 350-Mile Range EV
heartcore.com
Full autonomous driving is still decades away.
AV parity with humans: >100B miles**
Estimated 3.3B miles NB: Not really an apples to apples comparison as Tesla data is collected with humans in the loop, using Tesla Autopilot
around 100B miles. Waymo, the leading contender 20M miles (Feb 2020)
4.35M miles (Dec 2020)
* Graphics not at scale; **A 2016 paper by RAND affiliated scientists made the estimate that for AVs to prove at conventional significance levels (e.g. <5% and 80% power) would need substantially more than 100bn miles driven to perform on par or better than humans in terms of failures per 100m miles
137 Categories | Mobility
Source: Company websites, RAND, Lex Fridman
heartcore.com
Media
138 Categories | Media
Unsplash - Austin Distel
Key fundraising rounds.
Company
Date
HQ
Quibi
Jan. 20
US
Feb. 21
US
Multi-thematic online forum and social network
Moonbug
Dec. 20
UK
Caffeine
Jul. 20
Clubhouse
$ (M)
Investors
PE
250
$
Series E
Vy Capital
Digital-first entertainment company for kids
120
$
Series B
Felix, Fertitta, Goldman Sachs
US
Social broadcasting platform for gaming, entertainment, and arts
113
$
Venture
Cox Enterpises, Fox Corp., Sanabil
Jan. 20
US
Audio-first social network
100
$
Series B
a16z
Discord
Dec. 20
US
Voice, video, and text chat platform
100
$
Series H
GreenOaks, Index
Discord
Jun. 20
US
Voice, video, and text chat platform
100
$
Series G
Index
Patreon
Sep. 20
US
Online platform that lets artists get paid directly by fans
90
$
Series E
Lone Pine, NEA, Wellington
Soundcloud
Feb. 20
DE
Social music platform
75
$
Venture
SiriusXM
Citizen
Jan. 21
US
Mobile app that notifies users of nearby crimes
73
$
Convertible, Series C
Goodwater, Greycroft
The Athletic
Jan. 20
US
Subscription-based sports media website
50
$
Series D
Bedrock, Comcast, Switch
Yubo
Nov. 20
FR
Virtual meeting social app
47.5
$
Series C
Alven, Gaia, Idinvest
Minute Media Dec. 20
UK
Digital media brands portfolio operator
40
$
Series I
Battery, Dawn, Goldman Sachs
US
Subscription-based book club service
40
$
Series B
Felicis, Founders Fund, General Catalyst
Feb. 21
Source: Heartcore
Short form mobile subscription streaming service 750
Type
$
Literati
139 Categories | Media
Description
heartcore.com
Key M&A transactions & IPO.
140 Categories | Media
Company
Date
HQ
Description
Type
Acquirer
Investors
Tastytrade
Jan. 21
US
Financial media company
1,000
$
M&A
IG Group
TCV
Fubo TV
Oct. 20
US
Sports-focused live TV streaming service
655
$
SPAC
Grindr
Mar. 20
US
Dating app for the LGBT community
608
$
PE
San Vincente Acquisition Partners
Beijing Kunlun
Wattpad
Jan. 20
CA
Online social storytelling platform
600
$
M&A
Naver
OMERS, The Raine Group, USV
CNET
Sep. 20
US
Platform for tech product reviews & news
500
$
PE
Red Ventures
Spark, TCV
Tubi TV
Mar. 20
US
Ad-supported VOD service
440
$
M&A
Fox Corp.
Foundation Capital, Touchdown
Giphy
May. 20
US
GIFs search engine
400
$
M&A
Betaworks, DFJ, Lightspeed
Dubsmash
Dec. 20
US
Music & video-based social network
M&A
Balderton, Heartcore, Index
Wondery
Dec. 20
US
Podcast network
M&A
Amazon
Fox, Greycroft, Lerer Hippeau
Meetup
Mar. 20
US
Platform for interest-based events
M&A
AlleyCorp
Omidyar, Threshold, USV
Huffpost
Nov. 20
US
Online news aggregator
M&A
BuzzFeed
Greycroft, Oak Investment Partners, RRE
Source: Heartcore
$ (M)
DCM, Northzone, Sky UK
heartcore.com
2020 Global state of Social Networks.
141 Categories | Media
Source: Statista
Rank
Social Network
MAUs in Millions
HQ
#1
2603
US
#2
2000
US
#3
YouTube
2000
US
#4
Messenger
1300
US
#5
1203
China
#6
1082
US
#7
TikTok
789
China
#8
694
China
#9
550
China
#10
Qzone
517
China
#11
430
US
heartcore.com
TikTok Worldwide Monthly Active Userbase (M users)
TikTok experienced massive growth in 2020…
1000 900 800 700 600 500 400 300 200 100 Jan-21
Nov-20
Sep-20
Jul-20
May-20
Mar-20
Jan-20
Nov-19
Sep-19
Jul-19
May-19
Mar-19
Jan-19
Nov-18
Sep-18
Jul-18
May-18
Mar-18
Jan-18
0
(Estimated)
142 Categories | Media
Source: Press Releases
heartcore.com
Total Unique Visitors (US, M) 200
139
100 50
70
0 Ja n20 Fe b20 M ar -2 0 Ap r20 M ay -2 0 Ju n20 Ju l20 Au g20
… and is closing the gap with Western peers.
150
TikTok
Average Monthly Time Spent Per Visitor (US, hours) 12 10
11
8 6
6
4 2
Ja n20 Fe b20 M ar -2 0 Ap r20 M ay -2 0 Ju n20 Ju l20 Au g20
0
Instagram 143 Categories | Media
Source: Techcrunch, CNBC
TikTok heartcore.com
Legacy players are copying competitors fast to stay relevant.
144 Categories | Media
Social Media Platforms Features
Source: Axios – Andrew Witherspoon
heartcore.com
Yet, TikTok was intrinsically different.
145 Categories | Media
“People looking for Content” to “Content looking for People”
People
Intent
Content
People
AI Engine
Content
Source: The Story of TikTok & China’s ByteDance – Attention Factory
heartcore.com
Category
Vertical social networks are rising.
Companies
Gaming 🎮
Money 🤑
Beauty 💄
Sports 🏀
Professional 👩💻 Mental Health 🗣 Various 🧑🎨
146 Categories | Media
heartcore.com
Some vertical networks are experiencing massive growth.
147 Categories | Media
Source: Google
heartcore.com
Vertical networks tend to monetize better.
Model
Companies
Subscription
In-App currency
Tips
Transactional
Commerce-enabled
148 Categories | Media
heartcore.com
Social & direct commerce are converging.
149 Categories | Media
Source: Tyler Faux - Twitter
heartcore.com
Gaming
150 Categories | Gaming
Unsplash - Florian Olivo
Key fundraising rounds.
151 Categories | Gaming
Company
Date
HQ
Description
Type
Investors
Epic Games
Aug. 20
US
Publisher of proprietary games like Fortnite
1,530
$
Venture
Baillie Gifford, Fidelity, T. Rowe Price
Roblox
Jan. 21
US
Online game platform and game creation system
520
$
Series H
Altimeter, Dragoneer, a16z
Magic Leap
May 20
US
Augmented reality devices maker
350
$
Venture
Scopely
Oct. 20
US
Interactive mobile games developer
340
$
Series E
NewView, TSG, Wellington
Epic Games
Jul. 20
US
Publisher of proprietary games like Fortnite
250
$
Venture
Sony
Scopely
Mar. 20
US
Interactive mobile games developer
200
$
Series D
Advance Venture Partners, TCG
Roblox
Feb. 20
US
Online game platform and game creation system
150
$
Series G
Temasek, Tencent, a16z
Playco
Sep. 20
US
Developer of instant-play games across a variety of platforms.
100
$
Series A
Caffeinated, Makers Fund, Sequoia
FaZe Clan
Apr. 20
US
Professional eSports organization
40
$
Series A
NTWRK
Lockwood Publishing
Nov. 20
UK
Developer behind Avakin Life
25
$
Series A
Tencent
Parsec
Dec. 20
US
Software for playing games through video streaming
25
$
Series B Lerer Hippeau, Makers Fund, a16z
Gunzilla Games
Nov. 20
DE
Independent gaming studio
25
$
Series A
GameGroove Capital
Sleeper
May 20
US
Fantasy sports startup
20
$
Series B
General Catalyst, Rainfall, a16z
RecRoom
Jan. 21
US
Social gaming platform
20
$
Series C
First Round, Madrona, Sequoia
Bohemia
Jun. 20
CZ
Venture
Tencent
Source: Heartcore
Video game development studio
$ (M)
heartcore.com
Key M&A transactions & IPO.
152 Categories | Gaming
Company
Date
HQ
Description
$ (M)
Type
Acquirer
Investors
Unity
Sep. 20
US
Gaming software engine
13,700
$
IPO
DFJ Growth, Sequoia, Silver Lake
DraftKings
Apr. 20
US
Online fantasy sports contests
6,500
$
SPAC
Accomplice, FirstMark, Revolution
FanDuel
Dec. 20
US
Fantasy sports provider
4,180
$
M&A
Skillz
Sep. 20
US
Competitive mobile game maker
3,500
$
SPAC
Peak Games
Jun. 20
TU
Casual puzzle games developer
1,850
$
M&A
Zynga
Earlybird, Endeavor, Hummingbird
Hutch Games Dec. 20
UK
Mobile racing games developer
275
$
M&A
Modern Times Group
Backed VC, Index, Initial
Flutter Bullpen, Comcast, Pentech Entertainment Accomplice, Atlas, NextView
Sulake
Jan. 21
FI
Virtual worlds and social networking games
M&A
Azerion
Movida, SoftBank
Mayhem
Jan. 21
US
Platform bringing together gamers through live experiences
M&A
Niantic
Accel, Afore, NextGen
Next VR
Apr. 20
US
Live and on-demand broadcast platform
M&A
Apple
Comcast, RSE, Time Warner
Fig
Apr. 20
US
Crowdfunding platform for video games
M&A
Republic
Greycroft, NextView, Spark
Source: Heartcore
100
$
heartcore.com
Covid-19 was another tailwind to the gaming industry.
Gaming revenue (excl. ad rev, $B) $200
$179 $150
$150
+19,6%
$139 -2,6% +13,6%
+11%
$100 +6,2% +3%
$50 +8,7%
+15,4%
2018
2019
+24%
$0 Mobile
153 Categories | Gaming
Source: IDC, Marketwatch
PC
2020 Console
heartcore.com
Change in reported total time spent playing video games YoY (2020 vs 2019) per age group (US)
(Un)surprisingly, older people were the ones playing more.
+59%
+48% +45% +37%
+25%
+24%
+21% +13% +8% +2% 2 to 5
154 Categories | Gaming
6 to 9
Source: The NPD Group
10 to 12
13 to 17
18 to 24
25 to 34
35 to 44
45 to 54
55 to 64
65+
heartcore.com
Global Consumer Spending in Mobile Games 100 80
Mobile gaming performed particularly well.
+25,3%
60 40 20
$47.6B
$38,0B +27,1%
$25.1B
$31.9B
2019
2020
0 Google Play
App Store
Global Mobile Game Downloads 60 50 40
$10.1B
+39,3%
$46.1B
$9.2B
30 20
+9,8%
$33.1B
10 0 2019 Google Play 155 Categories | Gaming
Source: SensorTower
2020 App Store heartcore.com
6 mobile games account for 12% of total revenues.
156 Categories | Gaming
Top Mobile Games By Worldwide Revenue Between Jan 01 and Dec 14 – 2020 ($B) $2.6B
$2.5B
$1.2B
Source: SensorTower
$1.1B
$1.1B
$0,9B
PUBG Mobile
Honor of Kings
Pokémon GO
Coin Master
Roblox
Monster Strike
heartcore.com
As the world shut down, players socialized online.
157 Categories | Gaming
150M MAUs
Source: Press Releases
131M MAUs
22M copies sold
100M+ Downloads
heartcore.com
New virtual worlds are burgeoning.
158 Categories | Gaming
Name
HQ
Singularity 6
US
Playable Worlds
Description
Fundraising
A game development studio dedicated to the idea that games can create $16.5M Series A with deeper, more meaningful experiences. a16z
US Cloud-native sandbox game world.
Lockwood Publishing
UK
Studio behind Avakin Life - a 3D world where people can meet and express themselves socially in a safe virtual world.
Mainframe Industries
FI
Cloud-native massively multiplayer online game
Source: TechCrunch, VentureBeat
$10M Series A from Galaxy Interactive & Bitkraft £19M Series A from Tencent, Novator €7.6M Series A from a16z, Riot, Sisu, Maki, Play Ventures
heartcore.com
Roblox Payout to 3rd Party Game Developers ($M) $250M
Consumers are increasingly cocreating games.
$110M $70M $30M 2017
2018
2019
2020
Roblox Game Ecosystem Concentration
159 Categories | Gaming
Source: Roblox S1, R.Woodbury
10%
Top 50M = 100% of revenues
30%
Top 500 Games = 90% of revenues
20%
Top 50 Games = 60% of revenues
30%
Top 10 Games = 40% of revenues
10%
Top Game is 10% of revenues
heartcore.com
Discord Monthly Active Users (M users) 140
Communication is a critical part of social gaming.
45
56
10 2017
2018
2019
2020
Monthly Total Hours watched on Twitch (M hours)
1700 1500 1300 1100
160 Categories | Gaming
Source: TechCrunch
Fe b M ar ch Ap ril M ay Ju ne Ju l Au y gu st Se pt Oc t No v De c
Ja
n
900
heartcore.com
Crypto could increase IP crossovers relevance.
161 Categories | Gaming
Source: Sorare/ TopShot websites
heartcore.com
Health
162 Categories | Health
Unsplash - National Cancer Institute
Key fundraising rounds.
163 Categories | Health
Company
Date
HQ
Description
Type
Investors
Hinge
Jan. 21
US
Digital clinic for back and joint pain
310
$
Series D
Coatue, Tiger Global
Alto
Jan. 20
US
Telehealth pharmacy for prescription drugs
250
$
Series D
Greenoaks, Jackson Square Ventures, SoftBank
Ro
Jul. 20
US
Digital health clinics for men & women
200
$
Series C
FirstMark, General Catalyst, Initialized
EverlyWell
Dec. 20
US
At-home health testing platform
175
$
Series D
Foresite, Highland, TCG
Cityblock
Dec. 20
US
Health care for low-income patients
160
$
Series C
General Catalyst, Kinnevik, Wellington
Honor
Nov. 20
US
Managed platform for at-home elderly care
140
$
Series D
Baillie Gifford, T. Rowe Price, a16z
KRY
Jan. 20
SE
Digital healthcare provider
140
€
Series C
Accel, Creandum, Index
K Health
Jan. 21
US
Urgent and primary telehealth company
132
$
Series E
GGV, PICO, Valor
Medly
Jul. 20
US
Digital pharmacy platform
100
$
Series B
Greycroft, Lerer Hippeau, Volition
Carbon
Nov. 20
US
Omnichannel primary and urgent care company
100
$
Series C
Builders VC, DCVC, Dragoneer
Mindstrong
May 20
US
Therapeutic platform for serious mental health conditions
100
$
Series C
8VC, General Catalyst, Optum
Hinge
Feb. 20
US
Digital clinic for back and joint pain
90
$
Series C
Bessemer, Insight, Quadrille
23andMe
Dec. 20
US
At-home DNA testing company
82.5
$
Series F
NewView, Pegasus, Sequoia
Source: Heartcore
$ (M)
heartcore.com
Key M&A transactions & IPO.
164 Categories | Health
Company
Date
HQ
Description
Type
Acquirer
Investors
Livongo
Aug. 20
US
Platform for diabetes monitoring, management, and prevention
18,500
$
M&A
Teladoc
General Catalyst, Kleiner Perkins, Sapphire
GoodRx
Sep. 20
US
US drug prices comparison website
12,700
$
IPO
Francisco Partners, Lerer Hippeau, Silver Lake
Clover
Jan. 21
US
Health coverage for US seniors
7,000
$
SPAC
First Round, Greenoaks, Sequoia
Oak Street
Aug. 20
US
Primary care professionals on Medicare
5,000
$
IPO
General Atlantic, Harbour, Quantum
23andMe
Feb. 21
US
At-home DNA testing company
3,500
$
SPAC
GV, NewView, Sequoia
One Medical
Jan. 20
US
Members-based primary care practice
1,700
$
IPO
Bessemer, Maverick, The Carlyle Group
Hims & Hers
Jan. 21
US
D2C brand for erectile dysfunction, & hair loss products
1,600
$
SPAC
Forerunner, Maverick, Thrive
Adapthealth
Jul. 20
US
Full-service home medical equipment
1,300
$
SPAC
Eargo
Oct. 20
US
Direct-to-consumer hearing-aids maker
654
$
IPO
Care/of
Nov. 20
US
Direct-to-consumer personalized vitamin pack maker
225
$
M&A
Bayer
Goodwater Capital, RRE, Tusk
CareZone
Jun. 20
US
Mobile app helping users manage health information
M&A
Walmart
Catamount, NEA
Source: Heartcore
$ (M)
Crosslink, Maveron, NEA
heartcore.com
Healthcare investments set new records in 2020.
Total dollars and deal count in US and Europe $18 $16
615 deals
$14 $12 $10
564 deals 463 deals
$8 $6 $4 $2 $-
165 Categories | Health
Source: SvB
$8.9
$10.6
$15.3
2018
2019
2020
heartcore.com
Consumers are increasingly embracing telemedicine.
Share of people considering using telemedicine (US, %)
2019
2020 11%
76%
166 Categories | Health
Source: McKinsey
heartcore.com
Co-existence of horizontal and vertical telemedicine models.
Primary care
Heartcore portfolio
Secondary care
167 Categories | Health
heartcore.com
Telemedicine providers are shifting to omnichannel.
168 Categories | Health
Source: McKinsey, Techcrunch, Kry
heartcore.com
Offline doctors' visits will become more sporadic.
169 Categories | Health
Source: McKinsey, Tytocare
heartcore.com
Membership based primary care platforms are rising.
170 Categories | Health
Source: One Medical, Avi Medical
heartcore.com
Number of connected wearables (M units)
Connected wearables (M)
Wearables are well placed to interface with other products and services.
1105 929 835 722 526 325
2016
171 Categories | Health
593
Source: Statista
2017
2018
2019
2020
2021
2022
heartcore.com
The digital therapeutics documentation gap.
Number of articles published on digital therapeutics, 2015-2018
Total articles published
21,725
Scientific publications
5,332
Peer-reviewed scientific publications Peer-reviewed scientific publications with data
172 Categories | Health
Source: McKinsey
384 153
heartcore.com
Path to reimbursement
Universal reimbursement approved Share of population reached
The path to reimbursement is still very long and painful.
High
Contracts signed with individual players/ providers Used with early adopters to gain certification
Trial/pilot phase
Low 173 Categories | Health
Source: McKinsey
Quality and degree of available data
High heartcore.com
Education
174 Categories | Education
Unsplash - William Iven
Key fundraising rounds.
175 Categories | Education
Company
Date
HQ
Description
Type
Investors
Coursera
Jul. 20
US
Online, video-based education company
130
$
Series F
G Squared, Kleiner, NEA
Masterclass
May 20
US
Celebrity-taught classes via streaming platform
100
$
Series E
Atomico, Fidelity, NEA
Handshake
Oct. 20
US
Platform for college students to meet recruiters
80
$
Series D
GGV, Lightspeed, Spark
Brainly
Jan. 21
PO
Learning platform for homework
80
$
Series D
General Catalyst, Learn Capital, Runa Capital
Lambda School
Aug. 20
US
ISA for software engineering programs
74
$
Series C
GGV, GV, Gigafund
Skillshare
Aug. 20
US
Video tutorials in creative fields
66
$
Venture
Burda, OMERS, USV
Udemy
Nov. 20
US
Open platform for instructors to create and market their own courses
50
$
Series F
Learn Capital, Tencent
Udemy
Feb. 20
US
Open platform for instructors to create and market their own courses
50
$
Series E
Benesse
Outschool
Sep. 20
US
Marketplace of live online classes for kids
45
$
Series B
Lightspeed, Reach Capital, USV
Duolingo
Nov. 20
US
Gamified language-learning platform
35
$
Series H
Durable, General Atlantic
Statespace
Nov. 20
US
Training platform for gamers and eSport athletes
34.6
$
Series B
FirstMark, June, Khosla
Quizlet
May 20
US
Revision platform for students
30
$
Series C
General Atlantic
Udemy
Dec. 20
US
Open platform for instructors to create and market their own courses
23.5
$
Series G
Mindrock Capital
Photomath
Feb. 21
US
Math learning app that detects math problems on photos
23
$
Series B
Menlo, Goodwater, Learn Capital
Knoma
Oct. 20
UK
Revenue-based education funding platform for lifelong learning
21
£
Series A
Fasanara, GFC, Seedrs
Le Wagon
Mar. 20
FR
Short and intensive coding bootcamp provider
19
$
Series A
Cathay
Source: Heartcore
$ (M)
heartcore.com
Key M&A transactions & IPO.
176 Categories | Education
Company
Date
HQ
Wyzant
Feb. 21
US
Teachable
Mar. 20
RaiseMe
Type
Acquirer
Investors
Marketplace connecting students with tutors
M&A
IXL Learning
Wyzant
US
Platform allowing anyone to create and sell online courses
M&A
Hotmart
Teachable
Jul. 20
US
Platform enabling students to earn micro-scholarships
M&A
CampusLogic
RaiseMe
Bluprint
Jul. 20
US
Online courses about crafts
M&A
TN Marketing
Bluprint
Upromise
Jun. 20
US
Credit for college students and family members to make it easier to pay for college
M&A
Prodege
Upromise
Source: Heartcore
Description
heartcore.com
177 Categories | Education
16.1
2.3x
VC funding (in $B)
Covid-19 was a major tailwind for the EdTech industry.
Global education venture capital funding ($B)
8.2 7.0 4.2
0.5
0.7
0.9
2010
2011
2012
1.3
1.8
2013
2014
2015 Year
Source: Holon IQ, Techcrunch, analysis Heartcore Capital
4.4 3.2
2016
2017
2018
2019
2020
heartcore.com
Yet the education industry remains highly underdigitized.
178 Categories | Education
Growth in global EdTech expenditure
$404B
2% +1
GR A C
$227B
Source: Holon IQ
3.6% digital spend
5.2% digital spend
2020
2025
heartcore.com
EdTech investments in the different subcategories ($M) 400
300 300 Investments ($M)
The market sees the biggest opportunity in consumer and corporate education.
255
135 100
75
40
0
2017 Consumer
Source: Brighteye, Techcrunch
100
60
55
179 Categories | Education
248
240
200
Corporate
48
55
2018
2019
Schools
Universities
heartcore.com
Massive uptick in organic web traffic driven by Covid-19.
180 Categories | Education
Change in web organic traffic of EdTech companies
K-12
Source: Brighteye
Higher Education
Lifelong Learning
heartcore.com
Education app downloads surged during the pandemic…
Growth in education app downloads during COVID Peak Week in 2020 vs. Weekly Average Q4 2019
+190%
+150% +140%
+135% +125%
+120%
+120%
+120% +95%
+90% +65%
+65%
181 Categories | Education
Source: App Annie
It a ly
pa n Ja
an y G er m
e W
or
ld w
id
an ce Fr
hi na C
in Sp a
a In di
Ko re a
So ut h
Un ite
d
St at es
Br az il
Ki ng do m
Un ite d
Au st ra
lia
+55%
heartcore.com
100
Indexed Downloads
…and so did tools enabling online learning.
Weekly App downloads in top education Apps in the US
+580% vs. weekly average in Jan 2020
80 +290% vs. weekly average in Jan 2020
60
40
20
+565% vs. weekly average in Jan 2020
0 12/2019
01/2020 Google Classroom
182 Vertical Trends | Education
Source: App Annie, Mobile Action
02/2020 Remind
ClassDojo
heartcore.com
The largest EdTech unicorns are all tutoring companies (and all Asian!).
183 Categories | Education
Five highest valued EdTech unicorns
Company
Source: HolonIQ
HQ
Model
Valuation ($B)
Tutoring
15.5
Tutoring
12.0
Tutoring
10.0
Language
4.5
Online post secondary/ Skills
3.3
heartcore.com
Increasing trust towards higher level education.
Global population increase in highest level of education attainment (M) 4000 3500 3000
+1.200M
2500 +970M
2000
+1.500M
1500 +130M
-70M
1000
+640M
-180M
-250M
500 0 No education
Primary 1990
Secondary 2020
Post secondary
2050
*Graph assumes base value of 1B in 1990, to better reflect changes that occurred between 1990 and 2020, as well as projected changes between 2020 and 2050
184 Categories | Education
Source: HolonIQ
heartcore.com
As more people look for higher education, universities will be forced to adapt.
2019 OECD average population with tertiary education (%)
25-34 year olds
28% 45% 55% 72%
With tertiary education
185 Categories | Education
55-64 year olds
Source: OECD, edweek
Without tertiary education
heartcore.com
• The world’s biggest provider of online courses • 3,200 free and paid short courses and 310 specializations • Partners with more than 200 universities and businesses • 73m users
Startups are introducing universities to this new reality.
• Platform that helps colleges and universities add indemand tech skills • Partnered with over 20 colleges and 1,000 students • Aims to equip all students with digital competencies • Courses are delivered within traditional university environment
Heartcore portfolio
• • • •
186 Categories | Education
The Learning Experience Platform (LXP) for higher education 6x user growth in 2020 4 out of 5 students reported feeling easily connected to their learning community with Aula 9 out of 10 students reported satisfaction with the quality of their learning experience when delivered on Aula
Source: Techcrunch, Edsurge, Crunchbase, Coursera, Podium Education, Aula
heartcore.com
Education and training expenditure ($T)
Job-mandated upskilling courses replace existing offerings.
Forecasted global education and training expenditure ($T) 8
7.4 7
7.3
7.1 6.8 6.5
6.4
6.3
6
6.8 Post-COVID 3.6% CAGR
6.0
5.9 5.4
5.5
5 2019
2020
2021 Pre Covid
187 Categories | Education
7.8
Pre-COVID 4.8% CAGR
Source: HolonIQ
2022
2023
2024
2025
Post Covid
heartcore.com
K-12 will remain largely offline.
• On average online course taking is still less effective than offline course taking for K-12 students • For high performers the difference in results from online to offline learning are insignificant • Struggling students perform notably worse with the online studying format • Tools to help solve for parents disconnect between schools and at home learning will be important
188 Categories | Education
heartcore.com
After school there is more school.
189 Categories | Education
heartcore.com
Crypto
190 Categories | Crypto
Unsplash - Nick Chong
Crypto could redefine every consumer category.
191 Categories | Crypto
Decentralized applications
Source: Jesse Walden, Variant Fund, analysis Heartcore
heartcore.com
Growth
Attract
192 Categories | Crypto
Platform’s relationship to complements (developers, creators)
Platform’s relationship to users
Growth
Consumers are increasingly dissatisfied with Big Tech.
Time
Extract
Source: Chris Dixon, Variant, analysis Heartcore
Cooperate
Time
Compete
heartcore.com
UNI token allocation
User-owned platforms offer better incentives.
Community Team Investors Advisors
Uniswap liquidity pool design
Consumer
193 Categories | Crypto
Source: Uniswap.org, Variant Fund, Pmayr.xyz
Consumer
heartcore.com
Coinbase vs Uniswap – monthly trade volume ($B) 25
194 Categories | Crypto
15 10 5
Coinbase
Sep-20
Aug-20
Jul-20
Jun-20
May-20
Apr-20
Mar-20
Feb-20
Jan-20
Dec-19
Nov-19
Oct-19
Sep-19
Aug-19
Jul-19
Jun-19
May-19
Apr-19
Mar-19
Feb-19
0 Jan-19
And when incentives are right, sky is the limit.
20
Uniswap
Date of Creation
June 2012
November 2018
FTEs
1713
17
Funding
$547M
$11M
Source: TheBlock - LinkedIn
heartcore.com
In 2020, Crypto found (early) productmarket-fit in finance.
195 Categories | Crypto
Source: Defi Pulse, Messari
heartcore.com
DeFi protocols are going after every segment in finance.
Lending and Borrowing
Exchanges
Stablecoins
Synthetic Assets
Derivatives
Prediction Markets
Decentralized Protocols
196 Categories | Crypto
Source: Messari
heartcore.com
Crypto Art volume ($M)
NFTs in art & gaming were also 2020 crypto hits. Sorare monthly revenues ($M) 12 10 8 6 4 2
197 Categories | Crypto
Source: CryptoArtData.io, Dune Analytics, @rchen8, Boris Golden on Twitter
Fe b21
Ja n21
-2 0 De c
No v20
O ct -2 0
p20 Se
Au g20
Ju l-2 0
Ju n20
M
ay -2 0
0
heartcore.com
We’re massively excited about this paradigm shift, but true mass adoption still feels 5 to 10 years away.
198 Categories | Crypto
Decentralized apps remain hard & way too expensive to use.
199 Categories | Crypto
Source: Metamask, Argent
heartcore.com
“Real world” bridges are still clunky…
200 Categories | Crypto
Source: The Defiant
heartcore.com
Most DeFi users are still “crypto whales”.
201 Categories | Crypto
Total DeFi users over time (M)
Source: @richardchen39, Dune Analytics
heartcore.com
1840’s
But speculative frenzies are usually directionally correct!
1990’s
The 1840s’ Railway mania was directionally correct.
The 1990s’ Doctom mania was directionally correct.
2000’s
The 2000s’ Cleantech mania was directionally correct.
2010-2020’s
… there’s a good chance the current Crypto mania will prove to be directionally correct. Ignore at your own risk! 202 Categories | Crypto
heartcore.com
Thank you!
