Heartcore Capital Consumer Technology Trends 2022

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Consumer Technology Trends 2022


Investing in happiness.

Europe’s consumer technology VC

2

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Credits

3 Credits

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While you’re here…

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Contents

5 Contents

1

Introduction

2

Categories

Stabilizing after the shock

Zooming in on major consumer categories

23

Web3

105

Mobility

37

Retail

116

Media

48

Food

126

Gaming

62

Finance

139

Health

75

Insurance

149

Education

84

Travel

94

Housing

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Introduction

6 Introduction


Consumer Technology Trends 2020

Recapping last year’s edition

2020 was a shock year, as the Covid19 pandemic forced all of us to experiment with new things. It will be remembered as a historical tailwind for consumer technology - a catalyst that pushed us across the “online adoption chasm”. The pandemic mostly accelerated pre-existing trends (rather than create new ones). These tailwinds, combined with unprecedented monetary conditions, pushed Tech valuations to new highs. Pockets of excess are visible (unlike in 1999), and the Internet is now the real deal - tech still has a lot of the economy left to eat! The world is currently in an ongoing secular phase of de-institutionalization visible at every layer of our societies and economies.

7 Introduction

Source: Heartcore

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One year later… Stabilizing after the shock.

8 Introduction


Yearly Growth Rate in Key Metrics*

“Online” kept growing, although more modestly.

350%

326%

300%

250% 207% 200%

150%

134% 99%

97%

100%

84%

68%

63%

50%

60%

54%

47%

38%

38%

0% Doordash

Shopify

HelloFresh

Peloton

Zoom

Roblox

Booking.com

-50% 2020

2021

-55%

-100%

Metrics: Doordash: GMV, $M Zoom: Revenues, $M

9 Introduction

Shopify: GMV, $ Roblox: DAUs, M

HelloFresh: Orders Peloton: Revenues, $M Booking Holdings: Revenues, $M

Source: Doordash, Shopify, HelloFResh, Peloton, Zoom, Roblox, Booking ; Analysis: Heartcore

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Covid19

A return to pre-Covid growth rates, from a much higher base.

10 Introduction

Source: Heartcore

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European employees preferences on work-from-home

Remote-work is proving to be a profound shift from the norm.

24% 46%

30%

3-5 days

1-2 days

Never

Percentage of European employees likely to switch jobs if work returns to full-on-site

26% 47%

27%

Likely and very likely

11 Introduction

Source: McKinsey

Neutral

Unlikely and very unlikely heartcore.com


Covid19 had several knock-on effects

12 Introduction


Suppliers' delivery times index a lower index reflects longer delivery times

A year of supply chain disruptions.

60

50

40

30

20

10

0 2007

2009

2011

2013 USA

13 Introduction

Source: HIS Markit

2015

2017

2019

2021

Europe

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Inflation Rate (%)

Inflation is at its highest level in 25 years…

6%

5%

4%

3%

2% Europe USA

1%

0%

-1%

-2%

-3% 2010

14 Introduction

Source: tradingeconomics.com

2012

2014

2016

2018

2020

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Global Venture Capital Funding ($ billions)

…creating the most favorable funding environment we’ve ever seen..

+93% YoY

800

700

671

600

500

+11%

CAGR

400 347

337.3 309.1 300

200

172

176

186

2014

2015

2016

203

100

0

15 Introduction

Source: KPMG Venture Pulse

2017

2018

2019

2020

2021

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…but also resulting in negative implications.

16 Introduction

Source: Financial Times, Sifted, CNN

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In other news…

17 Introduction


Private European Companies Valued Above $1BN

A new joined the European herd every 4 days in 2021!

160

140

+84 companies

120

2.2x YoY

100

80

60

40

20

0 2019

2020 Consumer

18 Introduction

Source: Crunchbase, analysis Heartcore

2021 Other

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Among VCs, Crypto was the theme of the year…

Global venture investment in cryptocurrency companies ($BN, excluding token investments) IN BILLION $ 30

25

20

3.6x YoY 15

10

5

0 2012

19 Introduction

Source: Pitchbook

2013

2014

2015

2016

2017

2018

2019

2020

2021

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…and even fully rebranded to Web3 in 2021.

20 Introduction

Source: Google Trends, Twitter

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Crypto finally became a consumer phenomenon.

21 Introduction

Source: Heartcore

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Annual change in digital ad pricing observed by Common Thread Collective e-commerce merchants in 2021

Apple’s changes to iOS 14 disrupted online advertising.

+150% +140%

+100%

+50% +40%

+0% Google

22 Introduction

Source: Common Thread Collective

Facebook

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Crypto

Web 3

23


Crypto in 2020

Recapping last year’s edition

At the beginning of the pandemic, the digital assets market was not spared from the wider financial market bloodbath. Bitcoin dropped to $6,400 but was quick to recover. BTC & the rest of the market ended up performing extremely well in 2020, bringing new momentum to the industry. DeFi saw explosive growth (total value rose from $635M to +$40bn) with new and exciting projects emerging quickly, and a solid influx of new entrants in the market. The hype we saw in late 2020 around non-fungible tokens was a brief glimpse of what was to come in 2021. We were very excited by NFTs’ potential to redesign the value chains of various industries (i.e., art, gaming, and the creator economy. The industry was not yet predominantly referred to as “Web3” (our section last year was titled “Crypto”), since the non-financial/non-speculative applications were still relatively few in comparison to today.

24 Web3

Source: Heartcore

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Company

Key fundraising rounds.

25 Web3

Date

HQ

Description Fantasy football game where players can buy, trade, and play with NFT Financial company that builds payment infrastructure for crypto

$ (M)

Type

Investors

Sorare

Sep. 21

FR

MoonPay

Dec. 21

US

BlockFi

Jun. 21

US

Wealth management platform for crypto investors

FTX

Oct. 21

US

Cryptocurrency derivatives exchange

421 $

Series B

Sequoia, Temasek, Ontario Teachers Pension Plan

Celsius Network Oct. 21

US

Cryptocurrency earning and borrowing platform

400 $

Venture

WestCap, Caisse de dépôt et placement du Québec

Ledger

Jun. 21

FR

Hardware wallet for securing crypto assets

380 $

Series C 10T Holdings

BlockFi

Mar. 21

US

350 $

Series D Bain, DST, Pomp, Tiger

Dapper Labs

Apr. 21

CA

305 $

Venture Coatue

Blockchain.com Mar. 21

UK

300 $

Series C DST, Lightspeed, Vy

Bitpanda

Aug. 21

AT

Centralized crypto exchange

263 $

Series C

Dapper Labs

Apr. 21

CA

Maker of blockchain-based digital collectibles CryptoKitties and NBA Top Shot NFT

250 $

Series D Coatue, a16z, GV

Bitpanda

Mar. 21

AT

Centralized crypto exchange

170 $

Series B Valar, DST

Blockchain.com Feb. 21

UK

Provider of a variety of cryptocurrency services to retail and institutional clients

120 $

Venture

OpenSea

Jul. 21

US

Marketplace to collect and sell NFT

100 $

Series B a16z, Coatue

Braintrust

Dec. 21

US

Blockchain-powered freelancer marketplace

100 $

ICO

Coatue, Tiger

OneOf

Jun. 21

US

NFT platform for the music community

63 $

Seed

Sangha Capital, Tezos Foundation

Source: Heartcore Internal Tracker

Wealth management platform for crypto investors Maker of blockchain-based digital collectibles CryptoKitties and NBA Top Shot NFT Provider of a variety of cryptocurrency services to retail and institutional clients

680 $

Series B SoftBank, Atomico, Bessemer, D1

555 $

Series A Tiger

500 $

Series D Third Point, Hedosophia

Valar Ventures, Redo Ventures, LeaBlock, Jump Capital

Moore Strategic, Access Industries, Lightspeed, Lakestar, Eldridge, GV

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Key M&A transactions & IPOs.

26 Web3

Company

Date

HQ

Description

$ (M)

Acquirer

Coinbase

Apr. 21

US

Platform to buy and sell cryptocurrency

RTFKT

Dec. 21

US

Creators of virtual sneakers and collectibles

M&A

Nike

LedgerX

Oct. 21

US

Derivatives exchange platform

M&A

FTX

Source: Heartcore Internal Tracker

86,000 $

Type IPO

Investors Tiger,a16z, Greylock, Initialized Capital a16z, Shrug Capital, Galaxy Digital, GFR Fund, NaHCO3 Lightspeed, GV, Digital Finance Group, MIAX Exchange Group

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Web 3 • • • •

Web 2

Value Created

Web3: the blockchainbased “new era” of the Internet.

Web 1 • • • •

• Participative social web • Dynamic content • Monetization at the application layer

?

Users predominantly consumers of content Static pages No monetization mechanisms

1990

27 Web3

Flow of both information & value (natively) Composability Users as co-owners of networks

Source: Fabric Ventures, Chris Dixon

2025

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While Bitcoin has reached recognition, the Web3 story is only just starting.

1200

# (million) of internet users worldwide

1000

800

600

1M OpenSea Users

10M Metamask Users

+220M traders of crypto worldwide

400

200

75M Coinbase users 0 1992

28 Web3

1994

Source: OurWorldInData.org, DuneAnalytics

1996

1998

2000

2002

2004

2006

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Web3’s development is set to be exponential.

21000

Web3 monthly active developpers

18000 15000 12000 9000 6000 3000 0 Jan-14

Jan-15

Jan-16

Jan-17

Jan-18

Jan-19

Jan-20

Jan-21

Jan-22

Attractive environment for engineering talents

Composability & Open-Source ethos enabling rapid development cycles

29 Web3

Source: Electric Capital

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Alternative Layer 1 chains surged.

Alternative Layer 1 chain’s (L1s) TVL ($,bn) 30

20

10

0 2021 BSC ($15.4B)

30 Web3

Source: Kraken Intelligence, DeFi Llama

2022 SOL ($11 .33B)

LUNA ($18.45B)

AVAX ($11.73B)

FTM ($4.93B)

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$9

8,32bn

$8

Gross Merchandise Value

NFTs experienced astounding growth.

OpenSea & Etsy Quarterly GMV ($, Bn)

6,71bn

$7

$6

$5

3,8bn

$4

3,13bn

3,11bn

3,04bn

$3

$2

$1

0,38bn

0,25bn $0 Q1 21'

Q2 21' Etsy

31 Web3

Source: DuneAnalytics - @rchen8, Etsy Earning Reports, *Q4 21’ Etsy’s projected GMV

Q3 21'

Q4 21 '

OpenSea

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89,7M

100 90 80

Active Buyers

The other reality: a nascent market with a small buyer base.

OpenSea & Etsy Active Buyers (M)

70 60 50 40

1,02M

30 20 10 0 2021 Etsy

32 Web3

Source: DuneAnalytics, Etsy Earning Reports

OpenSea

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Timeline of companies entering the NFT space (2021)

Major brands and tech companies hopped on the bandwagon. JAN

33 Web3

FEB

Source: Activate Media Report

MAR

APR

MAY

JUNE

JULY

AUG

SEP

OCT

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Meanwhile, Web3 native communities are building IP from the ground up.

34 Web3

Source: SnoopDogg Twitter, BAYC Discord

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New financial primitives emerged, dubbed “DeFi 2.0”.

ETH DeFi TVL ($, M) DeFi 2.0

DeFi 1.0

200

160

120

80

40

0 09/20

35 Web3

Source: DeFillama

01/21

05/21

09/21

01/22

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DeFi 2.0’s core focus is to provide “liquidityas-a service”.

The Emerging Protocol Liquidity Spectrum

Liquidity Mining

Short Term Liquidity

36 Web3

Source: Tokemak Medium, Olympus Medium, Messari

Protocol Owned / Rental Liquidity

Long Term Liquidity

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Retail

37


Retail in 2020

Recapping last year’s edition

The pandemic accelerated e-commerce adoption in 2020, with mobile significantly increasing it’s share of digital commerce spending. Amazon continued to expand its market share of US digital transactions, deepening its monopoly on commodity ecommerce. Direct-to-consumer ecommerce sales slowed for the fifth consecutive time, showcasing the a clear chasm between utility and brand harbors. Livestreaming continued to gain popularity as a shopping medium, with China still leading the trend. The pandemic influenced the way consumers discovered and purchased products, turning it into a virtual, immersive experience with celebrities and influencers as curators.

38 Retail

Source: Heartcore

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Company

Key fundraising rounds.

HQ

Description Acquirer and operator of Amazon FBA businesses Platform buying up brands selling on Amazon and scaling them

$ (M)

Investors

Feb. 21

US

Berlin Brands Group

Sep. 21

DE

Heyday

Nov. 21

US

Platform acquiring, incubating & launching brands

550 $

Series C Raine, Premji, General

SellerX

Dec. 21

DE

Acquirer and operator of Amazon businesses

500 $

Series C Sofina, BlackRock

Vinted

May 21

EE

Second-hand clothes marketplace

303 $

Series F

LTK

Dec. 21

US

Creator-driven marketplace

300 $

Series D SoftBank

StockX

Jan. 21

US

Marketplace for sneakerheads

275 $

Series E Altimeter, Tiger

Elevate Brands Jul. 21

US

Acquirer and operator of Amazon FBA businesses

250 $

Venture FJ Labs, Novel TMT

Heroes

Sep. 21

UK

Acquirer and operator of Amazon SMBs

200 $

Mar. 21

FR

Second-hand luxury fashion marketplace

178 $

Series H Kering, Tiger

Sep. 21

FR

Second-hand luxury fashion marketplace

178 $

Series I SoftBank

Olsam Group

Sep. 21

UK

165 $

Series A Apeiron, Elevat3, North Wall

PatPat

Aug. 21

US

160 $

Series D SoftBank

Eobuwie

Jul. 21

PL

Footwear and accessories marketplace

130 $

Venture SoftBank

Razor Group

Nov. 21

DE

Acquirer and operator of e-commerce brands

125 $

Series B Fortress, 468, Presight

D1 Brands

Aug. 21

US

Amazon FBA sellers turned aggregators buying, building, and growing e-commerce brands

123 $

Series A

Otrium

Apr. 21

NL

Marketplace helping clothing brands sell end-of-season items

120 $

Series C BOND, Index, Eight Roads

Source: Heartcore Internal Tracker

Acquirer and operator of Amazon businesses and other D2C ecommerce brands E-commerce platform selling baby and matching family outfits

750 $

Type

Thrasio

Vestiaire Collective Vestiaire Collective

39 Retail

Date

700 $

Series D Advent, Oaktree PE

Debt

Bain Capital

EQT, Accel, Insight, Lightspeed, Burda Principal Investments

Crayhill Capital Management

CoVenture, Crossbeam, ID8 Investments

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Company

Key M&A transactions & IPOs.

40 Retail

Date

HQ

$ (M)

Type

Poshmark

Jan. 21

US

Marketplace for second-hand clothing

3,000 $

IPO

Rent the Runway

Oct. 21

US

E-commerce website allowing women to rent designer apparel and accessories

1,700 $

IPO

BarkBox

Jun. 21

US

Subscription-based e-commerce for dog lovers

1,600 $

IPO

Hims & Hers

Jan. 21

US

D2C products for skincare, erectile dysfunction, and hair loss

1,600 $

SPAC

The Honest Company

May. 21

US

Shopping platform offering baby, personal care, and beauty products

1,400 $

IPO

ThredUp

Feb. 21

US

Fashion resale marketplace enabling individuals to buy and sell clothing for women and children

1,300 $

IPO

Owlet Baby Care

Jul. 21

US

Baby health monitors maker

1,100 $

IPO

Topshop

Feb. 21

UK

Women’s fashion and new season trends brand

400 $

M&A

Winc

Nov. 21

US

Wine marketplace where wine drinkers can get wine recommendation according to their taste

171 $

IPO

Depop

June. 21

US

Mobile application for users to buy and discover new fashion

170 $

M&A

Etsy

Pricerunner

Nov. 21

US

Shopping comparison platform helping customers to judge between trending products and pricing

118 $

M&A

Klarna

Mall Group

Nov. 21

CZ

E-commerce platform across Central and Eastern Europe

M&A

Allegro

Essential

Feb. 21

US

Mobile and home devices maker

M&A

Nothing

Source: Heartcore Internal Tracker

Description

Acquirer

Investors Inventus, Mayfield, Uncork Bain Capital, Kleiner Perkins, Highland Capital Partners, TCV Lerer Hippeau, 500 Startups, Resolute Ventures Forerunner, Maverick, Thrive

Asos

General Catalyst, ICONIQ, Lightspeed, M13, Dragoneer Redpoint, trinity Ventures, Upfront Ventures, Highland Capital Ventures Eclipse Ventures, Eniac Ventures, RTP Arcadia Group, Leonard Green & Partners Bessemer, Amplify.LA, 500 Startups, Crosscut Ventures HV, Balderton, Creandum, Octopus Ventures, General Atlantic, Future Fifty Creades AB

Playground, Redpoint, Tencent heartcore.com


Peak lockdown, retail closures, unprecedented e-commerce adoption

40%

Reopening

30% 20% 10%

US

Jul-21

Nov-21

Mar-21

Nov-20

Jul-20

Mar-20

Jul-19

Nov-19

Mar-19

Jul-18

Nov-18

Nov-17

Mar-18

Jul-17

Mar-17

Jul-16

Nov-16

Mar-16

Jul-15

Nov-15

Mar-15

Nov-14

Jul-14

Mar-14

Jul-13

Nov-13

Mar-13

Jul-12

Nov-12

Nov-11

Mar-12

Jul-11

0% Mar-11

After a boost in 2020 and normalization in 2021, ecommerce is back to its old growth curve.

Ecommerce share of US and UK retail sales (in %)

UK

US ecommerce sales (in $B) Sept. 2021: $850B Sept. 2019: $556B

900

600

300

0 Mar-17

41 Retail

Sep-17

Mar-18

Sep-18

Source: US Census Bureau, ONS, The New Consumer, Ben Evans

Mar-19

Sep-19

Mar-20

Sep-20

Mar-21

Sep-21

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Capital raised by FBA aggregators (in $B)

FBA aggregators witnessed a big momentum.

12.50

10.00

7.50

5.00

2.50

0.00 01/2020

05/2020 Thras io

09/2020 Berlin Brands Group

01/2021 Perch

Heyday

05/2021 SellerX

09/2021

01/2022

Other Aggregators

Keith Rabois is building the Wayfair for all product categories

42 Retail

Source: Crunchbase, OpenStore , Heartcore analysis

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Shein App

Fast fashion’s aggressive protagonist.

Worldwide search interest 100 80 60 40 20 0 2004-01

2006-12

2009-11

2012-10 SheIn

43 Retail

Source: Google Trends, Ben Evans, CB Insights Note: Data as of Jan 2022

Zara

2015-09

2018-08

2021-07

H&M

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Transactions of secondhand fashion and family items in Europe

The continued rise of the circular economy.

Transaction value in €B

Share of target audiences in %

20

100%

18

90%

16

80%

14

70%

12

60% We are here

10

50%

8

40%

6

30%

4

20%

2

10%

0 2018

0% 2019

2020

Gen Zers

2021

2022

Millennials

2023

2024

Baby Boomers

2025

2018 2019 2020 2021 2022 2023 2024 2025 Gen Zers

Millennials

Baby Boomers

The following companies raised a combined value of $3.8B1:

44 Retail

Source: McKinsey, Crunchbase 1 Cumulative raise since inception of respective company.

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Closet share (in %) 100%

Welcome to the closet of the future.

3%

4% 4%

9%

90% 7% Rental (Rent the Runway)

4%

18%

11%

80%

Secondhand market share to grow by 9 points over the next 10 yers, more than any other sector.

5% Resale (Vinted, thredUP)

8%

70%

12% Amazon Fashion 60% 9%

Direct to Consumer (Ocean’s Apart, Allbirds)

Fast fashion market share to stay roughly flat over the next 10 years.

50% Fast Fashion (Zara, SheIn, H&M) 40% “Old school retailers”. Includes: department stores (Macy’s), midpreiced specialty (Gap), off-price (Primark) and other retailers (QVC)

84%

67% 30% 53% 20%

10%

Lack of differentiated offering in department stores vs. online channels causes the segment to diminish over time.

0% 2010

45 Retail

Source: ThredUp *Note: Analysis by ThredUp, category estimates might be biased.

2020

2030

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Purchase decisions need better recommendations and curation.

Curated is an e-commerce platform, leveraging category experts to assist shoppers with high-consideration purchases.

Wirecutter is a product review and recommendation platform, curated by an in-house editorial team.

$140M raised (Forerunner, Greylock)

Acquired by The New York Times in 2016 for €30M

Trustpilot is a free and independent review platform. $200M raised, pre-IPO (Northzone, Index)

46 Retail

Source: Crunchbase, Heartcore analysis

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Key trend: vertical specific platforms for the creator economy.

Explosion of the creator toolset

Upstream from e-commerce, the industry is changing dramatically. This will have an impact on the companies and brands that are launched over the next decade. Podcasters

Content & Newsletters

Design

Video Creators

Creator CRM

Real Estate Gaming

47 Retail

Source: Heartcore analysis

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Food

48


Food in 2020

Recapping last year’s edition

A former laggard of online adoption, Food was one of the categories most positively impacted by Covid19. The penetration of online groceries went up >3x (from a low base) across Europe and the US. Meal deliveries also had a strong year (c. 2x) as offline restaurants were forced to close during lockdown. We weren’t expecting to see a single winning model in online-grocery, but rather an “unbundling” of the offline supermarket model from the 1980s into a variety of online models based on demographics and use-cases. Covid19 unleashed large amounts of spare capacity from restaurant operators. Thus, we predicted that next big thing in meal delivery would be the launch of delivery brands that capitalize on that existing capacity and leverage culturally relevant IP. We were excited by the progress made in cellular agriculture, particularly the novel hybrid approach to lab-grown proteins (part plant-based, part cells). The main question here remains around timing…

49 Food

Source: Heartcore

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Company

Key fundraising rounds.

50 Food

Date

HQ

Description On-demand everyday essentials delivery platform On-demand everyday essentials delivery platform

$ (M)

Type

Investors

GoPuff

Dec. 21

US

GoPuff

Mar. 21

US

GoPuff

Aug. 21

US

On-demand everyday essentials delivery platform

Gorillas

Sep. 21

DE

On-demand and fast grocery delivery platform

810 $

Series C Delivery Hero, Coatue, DST

Flink

Dec. 21

DE

On-demand and fast grocery delivery platform

750 $

Series C DoorDash, Mubadala Capital

Picnic

Sep. 21

NL

Online supermarket

600 $

Series D Bill & Melinda Gates Foundation Trust

Getir

Jun. 21

TR

Grocery delivery app

550 $

Series D

Wolt

Jan. 21

FI

Food delivery platform

530 $

Series E ICONIQ

Impossible Foods

Dec. 21

US

Plant-based meat company

500 $

Series E Mirae

Glovo

Apr. 21

ES

On-demand delivery platform

450 $

Series F Lugard Road, Luxor

Nature’s Fynd

Jul. 21

US

Vegan protein startup

350 $

Series C SoftBank, Blackstone

Perfect Day

Oct. 21

US

Animal-free dairy producer

350 $

Series D

Weee!

Mar. 21

US

Online grocery delivery offering Hispanic and Asian food products

300 $

Series D DST, Blackstone, Tiger

Getir

Mar. 21

TR

On-demand food and essentials delivery company

300 $

Series C Sequoia, Tiger

Bowery Farming

Jun. 21

US

Vertical farming copany

300 $

Series C Norwest, Blackstone, Breyer

Gorillas

Mar. 21

DE

On-demand and fast grocery delivery platform

290 $

Series B Coatue, DST, Tencent

Instacart

Mar. 21

US

Grocery delivery platform

265 €

Venture a16z, Sequoia, D1 Capital

Source: Heartcore Internal Tracker

1,500 $

Series H Guggenheim Partners

1,100 $

Series G D1

1,000 $

Series H

Guggenheim Investments, Blackstone, Hedosophia, Adage

Tiger, Sequoia, Silver Lake, DisruptAD, Mubadala

Temasek, Canada Pension Plan, Horizons Ventures

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Key M&A transactions & IPOs.

51 Food

Company

Date

HQ

Description

$ (M)

Type

Acquirer

Investors Tiger, DST, 83North, EQT Ventures, ICONIQ, Coatue

Wolt

Nov. 21

FI

Food delivery platform

8,100 $

M&A

DoorDash

The Bountiful

May 21

US

Vitamin and supplement seller

5,750 $

M&A

Nestle

BodyArmour

Nov. 21

US

Sport drink seller

5,600 $

M&A

Drizly

Feb. 21

US

Wine and liquor delivery platform

1,100 $

M&A

Vivera

Apr. 21

NL

Plant-based meat company

408 $

M&A

JBS

Hu Kitchen

Jan. 21

UK

Paleo-inspired, low processed food restaurants

361 $

M&A

Mondelez

Delivery Hero

Jun. 21

DE

Wine and liquor retail chain

170 $

M&A

Glovo

Lola Market

Sep. 21

ES

Traditional food delivery platform

M&A

Glovo

Mercadao

Sep. 21

PT

Fast grocery delivery marketplace

M&A

Glovo

Source: Heartcore Internal Tracker

Dr Pepper Snapple Coca-Cola Group, The CocaCola Company Tiger, FJ Labs, Polaris Partners, Avenir Uber Growth Capital

Mondelez, Bullish, Sonoma Brands Insight Venture Partners, Point Nine Capital, Luxor Capital Group

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Grocery Online Penetration in Select Countries (%)

The penetration of online groceries stabilized.

14.00%

12% 12.00%

11.50% 10.20%

10.00%

9.90%

8.00% 6.50% 6.00% 4.30% 4.00%

2.00%

0.00% UK

US 2019

52 Food

Source: Earnest Research, ONS

2020

2021

heartcore.com


Quickcommerce was quick to consolidate.

Five companies seem to have distinguished themselves by their amounts of funding IN MILLION $ 4,000

$3,600M

3,500 3,000 2,500 2,000 1,500

$1,100M

1,000 500

$1,100M

$750M $430M

0

+

+

+

Heartcore portfolio

53 Food

Source: Heartcore, Crunchbase

heartcore.com


Retailers and delivery platforms are moving to quick-commerce.

Quick-commerce

low/mid throughput + low/mid gross margins

+

+

Grocer

Delivery platform

high gross margin

high gross margin

Partnerships established in 2021

54 Food

Source: Heartcore

+

+

+

+

+

+

heartcore.com


Unbundling continues with a few segments picking up momentum.

55 Food

Full-stack online grocers

Food-waste grocers

Ethnic grocers

$600M (Bill & Melinda Gates)

$225M (Accel, SoftBank)

$225M (Accel, SoftBank)

$119M (Index, Partech, Quadrille Capital)

$110M (Insight, Norwest Venture Partners)

$6M (FJ Labs, Picus Capital, M13, Firstminute)

$223M (Kinnevik AB, SoftBank, Prosus Ventures)

$43M (Accel, Octopus Ventures, VNV Global)

$15.5M (Creandum, Project A Ventures, Force Ventures)

Source: Heartcore, Crunchbase

heartcore.com


We think that the next 5 years will consist of a universal “roll out” of existing online grocery models in most markets, followed by a “refinement” of these products.

56 Food


Delivery Platforms

Say hello to digital restaurant franchises!

Asset-light, high-margin and strong network effects. Have created tremendous value over the past 10 years but are now reaching maturity (focus on profitability, expanding into e.g., groceries)

Heartcore portfolio

Digital Restaurant Franchises Franchise restaurant brands, purpose-built Tech and supply chain to kitchen operators. Asset-light, highmargin businesses with strong economies of scale and network effects.

Kitchen Operators

Operate kitchens (real estate and staff). Become franchisees of digital restaurant franchises. Asset-heavy, lower-margin business.

57 Food

Source: Heartcore

heartcore.com


2021 was a huge year for cellular agriculture… Meat

$267M

Dairy

$345M

$350M

Other

$34350

$6M

Heartcore portfolio

$85M

58 Food

Source: Heartcore, Crunchbase

$15M

$120M

$42M

heartcore.com


…and 2022 could be even bigger - thanks to regulation.

59 Food

Bloomberg’s Tasting of Gourmey’s cultivated foie-gras

Source: Bloomberg, The Good Food Institute, Businessweek

heartcore.com


Costs are collapsing & efficiency is increasing fast.

An illustration: Gourmey’s KPIs (redacted)

Concentration of the most expensive input (high correlation with COGS)

Yield

20x

increase in 2y

2019

60 Food

Source: Gourmey, Heartcore

2020

0%

2021

2022

2023

heartcore.com


This is due to a technological paradigm shift.

2010’s

2020’s

Primary cells (taken directly from tissue through biopsies)

Pluripotent stem cells (have the capacity to self-renew and turn into any cell type)

x No use of food science Use of food science (to recreate flavors and textures)

100% cell-based

Hybrid approach

Cheaper, faster, more versatile and tastier 61 Food

Source: Heartcore

heartcore.com


Finance

62


Recapping last year’s edition

Finance in 2020 The crowd went up against Wall Street, with unprecedented growth for neobrokers and explosive growth for social investing. Robinhood saw unprecedented growth, the “meme”-stock was born, we went through a SPAC frenzy like never before and valuations went through the roof as everyone became an equity trader. 2020 was a banner year for neobanks. Vast funding rounds were motivated by strong growth, and user counts are now larger than many of the old incumbents. The one thing missing is profitability; that path was deemed unclear as financial “supermarkets” were created without offering the most profitable product lines of traditional banking.

63 Finance

Source: Heartcore


Company Robinhood

Key fundraising rounds.

64 Finance

Date

HQ

Description Consumer stock brokerage to buy and sell US stocks, options, and ETFs Mobile broker providing investments opportunities

$ (M) 3,400 $

Type

Investors

Venture/ Ribbit, Sequoia, a16z, NEA, Index, Debt ICONIQ Sequoia, Accel, Creandum, Thrive Series C Capital, TCV, Founders Fund

Feb. 21

US

Trade Republic May. 21

DE

N26

Oct. 21

DE

Mobile banking solution provider

900 $

Series E Third Point, Coatue, Dragoneer

Revolut

Jul. 21

UK

Mobile banking solution provider

800 $

Series E SoftBank, Tiger

Mollie

Jun. 21

NL

Payment service provider

800 $

Chime

Aug. 21

US

Challenger bank with no minimum balance, monthly fees, or overdraft fees

750 $

Klarna

Jun. 21

SE

E-commerce payment solutions platform

639 $

Varo Bank

Sep. 21

US

Mobile banking solution provider

510 $

Better.com

Apr. 21

UK

Online mortgage originator company

500 $

Monzo

Dec. 21

UK

Digital-only bank platform and marketplace

500 $

Starling Bank

Mar. 21

UK

Zopa

Oct. 21

UK

TradingView

Oct.21

US

Zepz

Sep. 21

Upgrade

900 $

Blackstone Growth, EQT Growth, Series C General Atlantic, Alkeon Capital, HMI Capital, TCV Sequoia, SoftBank, General Atlantic, Series G Tiger, Dragoneer SoftBank, Adit Ventures, Honeycomb Venture Asset Management, WeastCap Group Lone Pine, Declaration Capital, Series E Eldridge, Berkshire, BlackRock PE

SoftBank

Coatue, Alpha Wave Ventures, the Abu Dhabi Growth Fund Fidelity, Qatar Investment Authority, Series D RPMI Series H

Mobile banking platform offering personal, joint and business accounts Provider of peer-to-peer loans and other financial services Provider of charts, tools and social networking for investors

300 $

Pre-IPO SoftBank, Chimera, IAG

298 $

Series C Tiger

UK

Money transfer service

292 $

Series E Farallon Capital, Leapfrog, TCV

Nov. 21

US

Provider of credit and mobile banking

280 $

Series F Coatue, DST

Greenlight

May 21

US

Credit card provider for children

260 $

Series D a16z, TTV Canapi, Wells Fargo, BOND

Public.com

Feb. 21

US

Investing platform to build a portfolio of stocks, ETFs, and crypto

220 $

Series D Accel, Greycroft, Lakestar

Source: Heartcore Internal Tracker

376 $

heartcore.com


Company

Key M&A transactions & IPOs.

65 Finance

Date

HQ

Description

$ (M)

Type

Toast

Sep. 21

US

Restaurant management platform including 17,50 $ payment solutions 0

IPO

Remitly

Sep. 21

US

Mobile payment service to make money transfers

6,900 $

IPO

EngageSmart

Sep. 21

US

Customer engagement and payment software company

4,200 $

IPO

Acquirer

Bessemer, Tiger, Greenoaks, American Express Ventures, TPG, Durable Capital Partners Visa, PayU, Stripes, Generation Investment Management, Threshold, QED Investors General Atlantic, Summit Partners

Blend

Jul. 21

US

Digital lending platform for mortgages, consumer loans, and deposit accounts

4,000 $

IPO

Robinhood

Jul. 21

US

Consumer stock brokerage to buy and sell US stocks, options, and ETFs

3,200 $

IPO

EngageSmart

Sep. 21

US

Customer engagement and payment software company

4,200 $

IPO

Blend

Jul. 21

US

Digital lending platform for mortgages, consumer loans, and deposit accounts

4,000 $

IPO

Robinhood

Jul. 21

US

Consumer stock brokerage to buy and sell US stocks, options, and ETFs

3,200 $

IPO

CurrencyCloud Jul. 21

UK

Cloud-based platform for B2B cross-border payments

963 $

M&A

Visa

Invoice2go

Jul. 21

US

Payment services provider for freelancers and SMBs

625 $

M&A

Bill.com

MineralTree

Oct. 21

US

Online account payable automation software for finance professionals

500 $

M&A

LendInvest

Jul. 21

UK

Marketplace platform for property finance

353 $

IPO

Source: Heartcore Internal Tracker

Investors

Coatue, Tiger, General Atlantic, Canapi Ventures, Greylock, Founders Fund, 8VC, Emergence Ribbit, Sequoia, a16z, NEA, Index, ICONIQ, Salesforce Ventures General Atlantic, Summit Partners Coatue, Tiger, General Atlantic, Canapi Ventures, Greylock, Founders Fund, 8VC, Emergence Ribbit, Sequoia, a16z, NEA, Index, ICONIQ, Salesforce Ventures Visa, Anthemis, Sapphire, Xange, Notion Capital, Atlas Venture, GV Accel, OCV, Ribbit

Eight Road Partners, Global Great Hill Partners, .406 Payments Ventures, First Data Atomico, GP Bullhound, Future Fifty, JP Morgan, HSBC Bank heartcore.com


Acquirers, Payments, Processors, and Networks have outperformed the S&P 500 in TSR since 2011

The payments industry is an outperforming giant.

Average annual TSR June 2011 – June 2021 (%)

TSR index: June 2011 = 100

1200

26 Acquirers and

payments processors

900

25 Networks 20 Overall

payments

600

15 S&P 500 13 Issuers

300

11 Bank Index June 2011

June 2011

June 2011

June 2011

June 2011

June 2011

June 2011

June 2011

June 2011

June 2011

June 2011

Selection of VC-backed payments champions Heartcore portfolio

66 Finance

Source: S&P Capital I; BCG Value Science Center; BCG analysis - Boston Consulting Group Note: Total shareholder return (TSR), share prices and market capitalization are as of June 2021

heartcore.com


Companies dedicated to payments are cropping up in every vertical.

67 Finance

Restaurants

Salary

Crypto

Other

heartcore.com


BNPL share of ecommerce payments mix by country (2020)

We are nowhere near maturity for BNPL.

25% 23%

20%

19%

15% 15% 12%

10%

9% 8% 7% 5%

5%

4% 2%

2%

2% 1%

68 Finance

Source: WorldPay Global Payments Report

nd Ire la

in Sp a

an d Po l

y Ita l

Fr an ce

UK

Be lg iu m

k De nm ar

Ne th er la nd s

la nd Fin

ay No rw

an y G er m

Sw

ed en

0%

heartcore.com


Why would you invest in stocks if you can own a piece of Enigma? Nascent asset classes are being created by startups

69 Finance

Collectibles

Fine Art

Music Royalties

Football Cards

Raised: $109m (Accel, Upfront, Social Leverage)

Raised: $110m (Left Lane Capital, Galaxy Interactive)

Raised: $71m (Founders Fund, Paradigm, a16z)

Raised: $739m (Benchmark, SoftBank, Accel)

Source: Company websites, Crunchbase

heartcore.com


Business model innovation is needed as PFOF is being challenged.

Watchdogs in the EU and the US are clamping down on PFOF. The practice was banned in the UK in 2012

Dependence on PFOF varies between trading platforms (%-share of total revenue)

79% 70 Finance

50%

3%

Sources: Net Interest, ESMA, Reuters, Company filings, Bloomberg, David The Rubenstein Show

0% heartcore.com


S&P SPAC Index underperformed all benchmarks in 2021 (indexed, %-change)

SPACtacular returns were nowhere to be seen.

140

130

120

110

100

90

80

70

60 2021/01 S&P 500 Top 50

+25.44%

71 Finance

Source: S&P Global

2021/04 S&P 500 Growth

+23.70%

2021/07 S&P SPAC Index (USD)

-3.47%

2021/10 S&P 500 Value

+20.35%

2022/01 S&P 500

+22.29%

heartcore.com


European and US neobanks had another year of big raises in 2021 ($m)… 1000

US & European neobanks had another banner year…

900

900

800

800

750

700 600

510

500

475 376

400 300

210

200

193

100 0

… Creating a herd in which unicorns are no longer that rare ($bn valuation) 35

33

30 25 25 20 15 10 5

9 4.5

2.5

1.9

1.9

1

0

72 Finance

Sources: TechCrunch, Forbes, Crunchbase

heartcore.com


…with even bigger prizes in sight as emerging markets leapfrog into neobanking.

HQ

Year Founded

Funding & Last Valuation

Selected Investors

2013

Total funding: $2.3bn Valuation: $38bn

Sequoia, Berkshire Hathaway, Goldman Sachs, DST Global, TCV

2016

Total funding: $129.5m Valuation: $14.5bn

Goldman Sachs, Horizon Capital, Baring Vostok Capital Partners

2019

Total funding: $91.5m Valuation: $550m

Valar Ventures, Target Global, Entrée Capital

Neobanks in emerging markets have amassed customers like no one else (m users) 50

48

Emerging

40

EU/UK 30 18

20

18

7

10

5

3

1

Starling

Kuda

0 Nubank

73 Finance

Tinkoff

Revolut

Source: Crunchbase, Valuation as of January 14th 2021, company filings

N26

Monzo

heartcore.com


The next frontier of neobanks are striving for financial inclusion.

Heartcore portfolio

Migrants Raised: $46m (Valar, Heartcore, Avid)

Raised: $55m (DST, Accel, Lightspeed India)

Family / Youth

Creators & Freelancers

74 Finance

Raised: $3.1m (Bessemer, Point72 Ventures)

Source: Company websites, Crunchbase

Raised: $557m (Bond, a16z, Owl)

Raised: $402m (a16z, Tiger, QED Investors)

Raised: $21m (Fintech Collective, EQT Ventures)

Raised: $46m (CRV, USV, Coatue)

Raised: $191m (General Catalyst, Stripe, Coatue)

Raised: $80m (Target Global, Foundation Capital)

Raised: $6.1m (EQT Ventures, 468 Ventures)

Raised: $8m (Discovery Ventures, Addition)

heartcore.com


Insurance

75


Insurance in 2020

Recapping last year’s edition

2020 was the year when investors fully started appreciating the vast opportunity of disrupting the insurance industry. A market worth $2.8 trillion in Europe and the US alone with <10% online penetration, and on the podium for the worst NPS of any industry (-11). Valuation multiples rose to stratospheric levels with Lemonade trading at >80x sales, way in excess of other tech darlings at the time. Insurance had proven to be a tough nut to crack. Most models had to reinvent themselves from initial attempts as their unit economics were against them from the start. Two business models dominated the startup scene in insurance: the monoliners and the bundlers. Insurance distribution followed in the footsteps of finance as embedded insurance gained increased traction.

76 Insurance

Source: Heartcore

heartcore.com


Company

Key fundraising rounds.

77 Insurance

Date

HQ

Description

$ (M)

Type

Investors

Wefox

Jun. 21

DE

Digital insurance company

650 $

Series C Target, OMERS, G Squared

Clearcover

Apr. 21

US

Affordable car insurance company

200 $

Series D Eldridge, American Family, OMERS

Ethos

May 21

US

Life insurance provider

200 $

Series D General Catalyst, Sequoia, Accel, GV

The Zebra

Apr. 21

US

Insurance comparison marketplace

150 $

Series D Weatherford, Accel

Oscar Health

Jan. 21

US

Health insurance company

140 $

Series I

Sidecar Health Jan. 21

US

Personalized health insurance platform

125 $

Series C Drive, Menlo, BOND, Tiger

Leocare

Dec. 21

FR

Multi-equipment contract insurer

110 $

Series B Eight

Ethos

Jul. 21

US

Life insurance provider

100 $

Series D SoftBank

Insurify

Sep. 21

US

Insurance comparison platform

100 $

Series B Motive Partners

Ladder

Oct. 21

US

Life insurance company

100 $

Series D Thomvest, OMERS

Marshmallow

Sep. 21

UK

Full-stack car insurance carrier

85 $

Series B Passion, Investec, SCOR

Jerry

Aug. 21

US

Car insurance comparison company

75 $

Series C

Bestow

Jan. 21

US

Affordable life insurance provider

70 $

Series C Breyer, Valar, NEA

YuLife

Jul. 21

UK

Gamified life insurance company

70 $

Series B Target Global, Eurazeo, Latitude

CLARK

Jan. 21

DE

Insurance platform

69 $

Series C Tencent, White Star

Kin

May 21

US

DTC home insurance company

64 $

Senator Investment Group, Hudson, Series C University of Chicago, Allegis NL Capital

Get Safe

Oct. 21

DE

Digital insurance provider

63 $

Series B EarlyBird, Abacon Capital

Source: Heartcore Internal Tracker

Dragoneer, Baillie Gifford, Coatue, Founders Fund, Khosla, Lakestar, Tiger

Goodwater, Bow Capital, Kamerra, Highland, Park West Asset,

heartcore.com


Key M&A transactions & IPOs.

Company

HQ

Description

$ (M)

7,900

Type

Acquirer

Investors Coatue, Lakestar, Tiger, General Catalyst, Founders Fund, Khosla, Fidelity

Oscar Health

Mar. 21

US

Health insurance company offering individual and family plans, medicare advantages, and small group products

Allstate

Jan. 21

US

Multi-product insurance company

2,800

$

M&A

Metromile

Oct. 21

US

Pay-per-mile auto insurance provider

500

$

M&A

NEA, Index, Social Capital, G Squared

Hippo Insurance

Aug. 21

US

Homeowner insurance company

SPAC

Ribbit Capital, Dragoneer, Lennar Ventures, ICONIQ

SPAC

Flourish Ventures, Commerce Ventures, Senator Investment Group

Kin

78 Insurance

Date

Jul. 21

US

Source: Heartcore Internal Tracker

Homeowner insurance company

IPO

Blackstone

heartcore.com


180% 160% 140% 120% 100% 80% 60% 40% 20%

Metromile

Root

Lemonade

Hippo

Oscar Health

Goosehead

1 04 /1 2/ 20 2

20 21 04 /1 1/

04 /1 0/ 20 21

04 /0 9/ 20 21

20 21 04 /0 8/

04 /0 6/ 20 21 04 /0 7/ 20 21

04 /0 4/ 20 21 04 /0 5/ 20 21

04 /0 2/ 20 21 04 /0 3/ 20 21

0% 04 /0 1/ 20 21

Reality called. 2021 offered sharp resets in valuations for the high-fliers…

U.S. Neoinsurers underperformed the S&P 500 Index in 2021 (%-change)

SP500 Index

Multiples compressed dramatically between 2021 highs and January 2022 90x

84x

60x

46x 37x

30x

21x

18x

12x 3x

2x

6x

1x

0x

79 Insurance

Source: Google Finance, company filings, Koyfin Note(s): Share price data for 21/1/1 – 22/1/1; MCAP/Sales multiples (x, LTM) from 2021 high and 2022/1/9

heartcore.com


Average CAC shot up for Lemonade y/y (in US$)

Will it ever work beyond initial go-to-market audiences?

300

291

+45%

250 196

200 150 100 50 0

CAC first 9 months 2020

CAC first 9 months 2021

While loss ratios imply lesser quality customers 2020 91.3%

100% 81.6% 80% 60%

2021

79.6%

72.0%

77.0%

56.7%

40% 20% 0%

80 Insurance

Source: Company filings Note(s): Quarterly CAC has been triangulated using marketing spend over new inflow of customers. Directionally correct estimate.

heartcore.com


The opportunity remains huge despite the recent sell-off.

$2,800B

<10%

-11

Market in EU/UK +US (Life & Non-Life)

Online penetration in Europe

Industry NPS in Europe (second worst category before car rentals..)

80% Recurring revenues

81 Insurance

Source: Statista, Lumoa, Heartcore

Avg. yearly premium retention

heartcore.com


It’s easier being a monoliner in the U.S. than Europe.

Annual premiums for single services in US and Europe (US$)

$2,400-4,00

$1,500-1,700

$760-850

$160-220 Heartcore portfolio

82 Insurance

Source: Company websites, Heartcore research Note: Premiums derived comparable person in the US and Europe

heartcore.com


It used to be about cars and homes, but now it’s about life and death.

“Online life insurance” searches in the USA

100 90 80 70 60 50 40 30 20 10 0 1/5/20

4/5/20

Founded: 2016 Total funding: $406m 2021 funding: $300m Investors: Sequoia, General Catalyst, SoftBank

83 Insurance

7/5/20

10/5/20

Founded: 2015 Total funding: $194m 2021 funding: $100m Investors: OMERS, Lightspeed Venture Partners, Canaan Partners

Source: Crunchbase data, news articles, Google Trends

1/5/21

4/5/21

Founded: 2016 Total funding: $137.5m 2021 funding: $70m Investors: Valar Ventures, NEA, Core Innovation Capital

7/5/21

10/5/21

1/5/22

Founded: 2016 Total funding: $87m 2021 funding: $70m Investors: Target Global, Creandum, Latitude, Eurazeo

heartcore.com


Travel

84 Travel


Recapping last year’s edition

Travel in 2020 The travel sector took the hardest hit from the pandemic, suffering a net loss of 900m international arrivals in 2020. We expected a strong increase in travel once restrictions were lifted as a result of pent-up demand, which has only partially held true for the year of 2021. A megatrend manifested itself during the pandemic: outdoor and adventure trave exploded, with VC money pouring into RV rental marketplaces and campsite booking services. Airbnb's IPO was big news for travel in 2020, and we predicted that the company is on track to become a full-fledged OTA.

85 Travel

Source: Heartcore

heartcore.com


Key fundraising rounds.

86 Travel

Company

Date

HQ

Description

Type

Investors

TripAdvisor

Mar. 21

US

TravelPerk

Apr. 21

ES

AllTrails

Dec. 21

US

Peek

Jan. 21

US

Travel and tourism booking marketplace

80 $

GetYourGuide Feb. 21

US

Online platform for booking tours, attractions, and activities worldwide

80 $

Hipcamp

Jan. 21

US

Platform for booking campsites

57 $

Series C BOND, Index

Holidu

May 21

DE

Vacation booking platform

45 $

Series D 83North, Prime Ventures, EQT

Getaway

Feb 21

US

Cabins in rustic locations rental platform

42 $

Series C Certares

Exoticca

Aug. 21

ES

Multi-day package tours specialist

30 €

Series C Mangrove, Aldea

Roadsurfer

Jul. 21

DE

Camper rental platform

28 $

Series B HV, Heartcore

Cabana

Jul. 21

US

Platform to book trips and vans

10 $

Series A Craft, Goldcrest

Surfa

Dec. 21

US

Platform to find a trip advisor a book trips

Source: Heartcore Internal Tracker

Travel guidance platform

$

Travel platform providing travels and expense management services for business travelers Mobile application for people to explore the outdoors with hand-curated trail maps, reviews and, user recordings

300 $

Post-IPO TCV

160 $

Greyhound Capital, Target, Series D LocalGlobe, Heartcore, DST, Felix, Kinnevik AB, Spark Capital, 14W

150 $

5$

PE

Permira

Series C WestCap, Goldman Sachs Debt

Seed

UnitCredit Group

Forerunner, Heartcore

heartcore.com


Key M&A transactions & IPOs.

87 Travel

Company

Date

HQ

Description

$ (M)

Type

Acquirer

Investors

Journy

May 21

US

Travel planning service that pairs traveler with a trip designer

M&A

Hopper

Menlo, Pear VC, Techstars, Caviar, Resolute Ventures

Inspirock

Oct. 21

US

Mobile application providing day-to-day plan of activities at various destinations on the user’s personalized itineraries

M&A

Klarna

MakeMyTrip.com

PlacePass

Oct. 21

US

Digital marketplace helping travelers find, compare, and book activities

M&A

Mapify

Jun. 21

DE

Social marketplace connecting travelers

M&A

Weekend.com Jan. 21

DE

Travel application for weekend getaway

M&A

Source: Heartcore Internal Tracker

Marriott International, Wilson Sonsini Goodrich & Rosati Haus Capital, HomeToGo MairDumont Ventures Hopper

trivago

Travelzoo, Vilauma

heartcore.com


Global performance of the travel industry across different travel segments (skift index)

Cautiously optimistic and creeping back to normal…

120

100

80

60

40

20

0 Jan-20

Apr-20

Jul-20

Macroeconomics

88 Travel

Source: Skift

Oct-20 Traveler Activity

Jan-21 Lodging

Apr-21 Flight

Jul-21

Oct-21

Car Rental

heartcore.com


Outbound departures from Europe & CCA (in million trips)

2022: pent up demand is set to drive a strong H2.

900

600

741

768 692

300 521

305 245

234

2020

2021

0 2018

2019

Skift recovery assumption

89 Travel

Source: Skift, Heartcore Analysis

2022

2023

2024

Heartcore estimate

heartcore.com


Great opportunities are created through adversity.

Heartcore portfolio

Founded Total amount raised

Highlight

90 Travel

Source: Crunchbase, Skift

2008

2009

2009

$5.9B (pre-IPO)

$890M

$835M

Largest tours and activities marketplace in the world

Largest vacation rental company in the US

Most valuable travel company in the world

heartcore.com


Domestic vs. International travel spending 2020 vs. 2021

The bridge to recovery: domestic travel sees continuous demand.

+43%

+30%

+19%

+49%

+16%

-25%

+40% +26%

+38% +4%

Domestic spend

91 Travel

Source: WTTC

International spend

heartcore.com


Outdoor travel emerges as a strong trend from COVID tailwinds.

“Hiking Boots” Google search volume in the U.S.

100 90 80 70 60 50 40 30 20 10 0 2004-01

92 Travel

Source: Google Trends

2007-01

2010-01

2013-01

2016-01

2019-01

2022-01

heartcore.com


Travel intermediation is on the rise and travel agents are making a comeback.

New conception of travel agencies and intermediaries

Origin provides personalized, end-to-end travel experiences. Inspiration, planning, and booking in one place.

Thatch’s mobile app enables travel creators to curate, share and sell travel guides and planning services.

$5M total raised (Project A, Cavalry)

$5M total raised

Heartcore portfolio

Fora is “Compass for travel agents” - a business-in-a-box that allows any knowledgeable, well-traveled person to become a travel agent. $5M total raised (Forerunner, Heartcore)

93 Travel

Source: Crunchbase, Heartcore Analysis

Easol provides software for travel merchants, a “Shopify” for travel experiences. Opens up direct bookings for even the smallest operators. $30M raised (Notion, Tiger)

heartcore.com


Housing

94


Housing in 2020

Recapping last year’s edition

This was a year that saw large amounts of capital being pumped into companies that democratize homeownership - either by helping first-time buyers break into the real estate market or by giving owners the ability to sell existing properties more easily.

The rise of work-from-home undoubtedly changed demand patterns in housing. The notion of “home” became more important, and we saw an increase in people investing in more heavily in furniture and interior design. Covid also contributed to the growth of the digital-nomad lifestyle and increased demand for short-term apartment rentals. Moreover, we saw increased regulatory scrutiny around short-term rentals as cities struggled to address the increasing supply shortages for long-term lets.

95 Housing

Source: Heartcore

heartcore.com


Key fundraising rounds.

96 Housing

Company

Date

HQ

Divvy Homes

Aug. 21

US

Lessen

Dec. 21

US

Landis

Aug. 21

US

Flyhomes

Jun. 21

Ribbon

Description Real estate platform facilitating rent-to-own home purchases Marketplace that connects real estate owners to property services

$ (M)

Type

200 $

Debt

Investors Tiger, Caffeinated, a16z, GGV Capital, GIC, Moore Specialty

170 $

Series B Fifth

Platform helping renters to become homeowners

165 $

Series A Sequoia, Arrive, Dreamers VC, Signia

US

Homebuying platform

150 $

Series C Norwest

Sep. 21

US

Homeownership platform

150 $

Series C

Homeward

Jun. 21

US

Platform helping people to buy homes faster

136 $

Debt

Pacaso

Sep. 21

US

125 $

Series C

Divvy Homes

Feb. 21

US

110 $

Series A a16z

HomeLight

Sep. 21

US

Orchard

Sep. 21

US

Home buying and selling company

Sundae

Jul. 21

US

Real estate marketplace focused on distressed properties

80 $

Reali

Aug. 21

US

Homeownership platform

75 $

Bungalow

Sep. 21

US

Online marketplace for residential real estate

75 $

Clikalia

Dec. 21

ES

Digital real estate platform for home buying and selling

70 $

Cover

Oct. 21

US

Modular home builder

60 $

Source: Heartcore Internal Tracker

Real estate platform that helps people buy and co-own a second home Real estate platform facilitating rent-to-own home purchases Platform matching home-sellers with real estate agents

100 $

Debt

100 $

Series D

Greenspring, Greylock, Bain Capital Ventures, NFX YC Continuity, a16z GFC, Greycroft, SoftBank, Fifth Wall, Gaingels

Zeev, Group 11, Stereo, Menlo Accomplice, FirstMark, Revolution, First American, Juxtapose

Series C Fifth Wall, General Global Capital Zeev Ventures, Akkadian Ventures, Signia Ventures Deer Park Road, Coatue, Khosla, Series C Founders Fund, Atomico Debt

Debt

Fifth Wall

Series B Gigafund

heartcore.com


Key M&A transactions & IPOs.

97 Housing

Company

Date

HQ

Description

$ (M)

Type

Compass

Apr. 21

US

Platform for renting, buying, and selling real 8,000 $ estate assets

IPO

Vacasa

Dec. 21

US

Platform helping homeowners selling, 4,400 $ buying, and managing their vacation homes

IPO

Offerpad

Sep. 21

US

Platform for buying and selling homes

IPO

Starcity

Jun. 21

US

Platform providing co-living options for renters in expensive cities

M&A

WeWork

Oct. 21

US

Provider of flexible workspaces

SPAC

Source: Heartcore Internal Tracker

3,000 $

Acquirer

Investors SoftBank, Fidelity, Thrive Capital, Founders Fund Silver Lake, Riverwood Capital, Level Equity Management LL Funds, BlackRock

Common Living

NEA, Kima, Y Combinator, Reshape, Urban Us SoftBank, Goldman Sachs

heartcore.com


It is becoming increasingly hard to become a homeowner.

House prices, wages and rents in the EU (Indexed)

140

House price

135 130 125 120

Wages

115

Rent

110 105 100 95 90 2011

2012

2013

2014 Rents

2015

2016 HPI

2017

2018

2019

2020

2021

Nominal Wages

Index levels (2010 = 100), 2010Q1-2021Q2, Labour cost index / Source: Eurostat

98 Housing

heartcore.com


Housing is becoming society’s dividing line.

99 Housing

heartcore.com


PropTechs could help solve the housing crisis.

Democratizing homeownership through financial innovation Cheaper, faster fabrication of houses

Integrated Property Development, leveraging pre-fab systems

100 Housing

heartcore.com


Real estate platforms are going full stack.

V1

V2

V3

Real Estate Listings

Real Estate Listings

Real Estate Listings

Agent tools

Agent tools

Agent tools

Agent Network

Agent Network

Mortgage Broker

Mortgage Broker

Instant Offer

Instant Offer (iBuyer)

Financial Services (Mortgage, Deposit)

101 Housing

heartcore.com


Median Purchase Price (Phoenix, 2021 in $)

Is the iBuyer model working?

$520,000 $480,000

Zilllow continued to pay top-dollar after the market cooled off

$440,000 $400,000 $360,000 $320,000 $280,000

Jan

Feb

Market

Mar

Abr

May

Opendoor

Jun

Offerpad

Jul

Aug

Sep

Zillow

iBuyer Gross Profit Margins over time (%) 20.0% 15.0% 10.0% 5.0% 0.0% -5.0%

OpenDoor

Offerpad

Zillow

-10.0% -15.0% -20.0% -25.0%

102 Housing

FY19

FY20

Source: mikedp.com | Financial reports: OpenDoor, Offerpad, Zillow

1Q21

2Q21

3Q21

heartcore.com


Home price appreciation since January 2020 in the US (in %)

35 30

The grass is greener in the countryside...

Car-dependent

25 20 15 10

Transit-dependent

5 0 Ja n

Feb

Mar

Apr

May

Jun

-5

Jul

Aug

Sep

Oct

Nov

Dec

Ja n

Feb

2020

Mar

Apr

May

2021

Demand for Second Homes in the US (Indexed)

250

200

150

100

50

0 Dec Jan Feb Mar Apr May Jun

Jul

2020

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Jul

Aug Sep

2021

Indexed at pre-pandemic months: Jan-Feb 2020

103 Housing

Source: Redfin – Demand Index

heartcore.com


Democratizing access to second homes. Buys villa for e.g. $2m

Sells for $2.4m (20% liquidity premium) to 8 new owners Manages property for monthly fee (ca $100 p.m. + expenses and other cost)

104 Housing

heartcore.com


Mobility

105


Recapping last year’s edition

Mobility in 2020 Demand for public transport and shared mobility plunged during the pandemic. On the other hand, private vehicle usage had a renaissance due to consumers deferring to new/used car purchases. The race for a mobility ”super app” continued, and micro mobility providers such as Tier and Lime consolidated via a wave of M&A. Anything “electric” was the hero of the mobility industry last year. Shared mobility was set to rebound, while the electrification of private vehicles was just getting started. Notably, electric edged towards the price of nonelectric cars since the demand for petrol cars and E-Bikes was so high.

106 Mobility

Source: OICA, Carwow

heartcore.com


Company

Key fundraising rounds.

107 Mobility

Date

HQ

Description

$ (M)

Type

Investors

713 $

Series E

Sequoia, Tekne Capital, Ghisallo Capital, G Squared, D1 Capital, Naya

Bolt

Aug. 21

EE

Transportation platform providing ridehailing, micromobility, and food delivery services

FlixMobility

Jun. 21

DE

Transportation company

650 $

Series G Canyon, General Atlantic, Permira

CarNext

Jul. 21

NL

Platform to buy and lease used cars

400 $

Venture TDR Capital, Goldman Sachs

Tier Mobility

Oct. 21

US

Ride-sharing solutions platform

200 $

Series D SoftBank

Motorway

Dec. 21

US

190 $

Series C Index, ICONIQ

Bolt

Jan. 21

EE

150 $

Series D D1

Rad Power Bikes

Feb. 21

US

D2C electric bikes and bike accessories manufacturer

150 $

Venture

VanMoof

Sep. 21

NL

Company that designs and sells electric bikes

128 $

Series C Hillhouse, Norwest, Felix, Balderton

BlaBlaCar

Apr. 21

FR

Carpooling platform

115 $

Pre-IPO VNV Global, Otiva JF AB, FMZ

Voi

Dec. 21

SE

Micro-mobility start-up providing electric scooters

115 $

Series D Raine, VNV Global

Virtuo

May 21

FR

Car-on-demand services provider

96 €

Series C AVP, Bpifrance, H14

Vay

Dec. 21

DE

Company working on a driverless mobility service

95 $

Kinnevik, Coatue, Eurazeo, Atomico, Series B La Famiglia, Creandum, Visionaries Club, Project A

Dott

Apr. 21

NL

Transportation platform for electrical scooters and bikes

85 $

Series B Sofina

Cake

Sep. 21

SE

Electronics motorcycle maker

60 $

Series B AMF, Creandum, Headline

Motorway

Jun. 21

US

Used-car marketplace for professional car dealers

48 $

Series B Index, BMW, Unbound

Voi

Aug. 21

SE

Micro-mobility start-up providing electric scooters

45 $

Series C The Raine Group, VNV Global

Metropolis

Feb. 21

US

AI and computer vision company to modernize parking

41 $

Series A 3L, Slow, Dragoneer

Beep

Jun. 21

US

Developer of autonomous vehicles

38 $

Venture Intel, Blue Lagoon

Source: Heartcore Internal Tracker

Used-car marketplace for professional car dealers Transportation platform providing ridehailing, micromobility, and food delivery services

T. Rowe Price, Vulcan Capital, Fidelity, Durable, Morgan Stanley

heartcore.com


Key M&A transactions & IPOs.

108 Mobility

Company

Date

HQ

Description

$ (M)

Type

Acquirer

1,100 $

M&A

Uber

Cazoo

Drizly

Feb. 21

US

Wine and liquor delivery platform

Drover

Jan. 21

UK

Car subscription service for new and used cars

M&A

Auto1

Jan. 21

DE

Used-car trading platform

IPO

Cazoo

Mar. 21

UK

Used car marketplace

Autodoc

Apr. 21

DE

Online spare auto parts retailer

Bird

May 21

US

Electric scooter company

AramisAuto

Jun. 21

FR

Online car dealer

Source: Heartcore Internal Tracker

SPAC

Investors Tiger, FJ Labs, Polaris Partners, Avenir Growth Capital Shell Ventures, Cherry Ventures, Target, Partech, Autotech Ventures, RTP Global Allianz X, Deutsche Bank, Polar Light Ventures Stride.VC, dmg ventures, BlackRock, D1 Capital Partners, General Catalyst

IPO SPAC IPO

Target, Idinvest, Sequoia, Index 360 Capital, Serena

heartcore.com


Global vehicle car production (in millions)

Dude, where’s my car?

80

-23%

60

40

20

0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Renault Zoe – Waiting time Aug 2020: 3 months Dec 2021: 6 months 109 Mobility

Source: OICA, Carwow

VW ID3 – Waiting time Aug 2020: 3 months Dec 2021: 9-12 months heartcore.com


Average used car price in the US (2020-2022)

Used cars, so hot right now.

$32.500

$30,000

$27.500

$25,000

$22.500

$20,000

$17.500 Jan 2020

May 2020

Sep 2020

Jan 2021

IPO at $5.6Bn valuation

Raised $300M at $3.3Bn valuation 110 Mobility

Source: Cargurus, Techcrunch

May 2021

Sep 2021

Jan 2022

SPAC at $5.5Bn valuation

Raised $190M at >$1Bn valuation

Raised $283M at $1.8Bn valuation heartcore.com


EVs have just 1/3 of the parts of conventional vehicles making them "easier" to build than a petrol car

Cars are losing their place as a status symbol.

Parts needed, by fuel type

Car brands founded after/before 2001*

68% 68% (95) (95)

32% 32% (45) (45)

30 000

11 000

Gasoline

EV

Founded before 2001

Founded after 2001

*with planned production by 2023 111 Mobility

Source: Goldman Sachs, Heartcore

heartcore.com


Market share of new cars in the EU by fuel type 60%

EVs are finally becoming mainstream 2021 saw another crazy year for EVs, both in consumer demand and in capital markets. For the first time in history, EV sales surpassed diesel sales. With EV model and infrastructure maturity, as well as government incentives and consumer demand, this growth track is set to continue over the next few years. Public markets, on the other hand, might have gotten a bit ahead of themselves…

40%

20%

0%

Q1 Q2 Q3 Q4 2018 2018 2018 2018 Petrol

Market cap in Tn USD*

$1.23Tn 112 Mobility

Q1 2019

$0.47Tn

Source: acea, Yahoo finance, *as of 31st December 2021

Q2 2019 Diesel

Q3 2019

Q4 Q1 Q2 Q3 Q4 Q1 2019 2020 2020 2020 2020 2021 HEV

Q2 2021

Q3 2021

ECV

Global car sales 2020

0.5M

25.6M heartcore.com


EV charging is moving "to the edge”.

Expected charging demand from passenger vehicles in Europe (Twh)

100

Expected number of public charge points by technology in Europe

2000

13% 75

14%

1500

45% 50

1000

55%

25

0

0 2020

2030

2025

Private

113 Mobility

73%

500

Source: Boston Consulting Group

Public

2020

Slow Charge

2025

Fast charge

2030

High-power charge

heartcore.com


Micro mobility companies are going public and multimodal.

2017

2021

Pr e

2017

114 Mobility

Pr e

IPO

2018

2020

Pr e

-IP O

2020

-IP O

2018

-IP O

2020

heartcore.com


Large cities are embracing bikes. +15% additional bike lanes in Paris have been added during the pandemic

(E)-bikes are unlocking real change for urban mobility.

Raised $128M in September 2021

115 Mobility

Source: Techcrunch, Crunchbase, El Pais

Raised $19M in February 2021

Over 200,000 customers

heartcore.com


Media

116


Recapping last year’s edition

Media in 2020 2020 was TikTok’s year. The social network grew to more than 700M users worldwide and even overtook Instagram in terms of engagement metrics. Social giants like Facebook were further unbundled into vertical social platforms. We also predicted that social media and direct commerce will continue to converge, and they did exactly that. The adult content app Only Fans was a notable example of a platform that rose to popularity without traditional venture funding.

117 Media

Source: Heartcore

heartcore.com


Key fundraising rounds.

118 Media

Da te

HQ

Discord

Sep. 21

US

Reddit

Aug. 21

Squarespace

Company

$ (M)

Type

Video and text application for communities

500 $

Series H

US

Online communities and forums

400 $

Series F Fidelity

Mar. 21

US

Building and hosting website company

300 $

Venture Tiger, Accel, General Atlantic, D1

Reddit

Feb. 21

US

Online communities and forums

250 $

Series E Vy

Patreon

Dec. 21

US

online subscription platform that connects creators with fans

200 $

Series C

Picsart

Sep. 21

US

Photo and video-editing application

130 $

Series C SoftBank

Lightricks

Sep. 21

US

Photo and video-editing application

130 $

Series D Insight, Hanaco, Goldman Sachs

Dice

Sep. 21

UK

Live event discovery and booking platform

122 $

Series C SoftBank, Future Shape, blisce

Discord

Jan. 21

US

Video and text application for communities

100 $

Series H GreenOaks

Clubhouse

Jan. 21

US

Audio-first social network

100 $

Series B a16z

Cameo

Apr. 21

US

Platform that lets fans pay for personalized videos from celebrities

100 $

Series C e.ventures, GV, Amazon

StreamElements

Sep. 21

US

Provider of video engagement and monetization tools for streamers

100 $

Series B SoftBank, Paypal

Overtime

Apr. 21

US

Platform producing sports-focused content for sports fans

80 $

Series C Black, Sapphire Sport

VRChat

Jul. 21

US

Social virtual reality platform

80 $

Series D Anthos, Makers Fund, GFR

Source: Heartcore Internal Tracker

Description

Investors Dragoneer, Baillie Gifford, Coatue, Fidelity

Tiger, Woodline, Wellington, Lone Pine, NEA

heartcore.com


Key M&A transactions & IPOs.

119 Media

Company

Date

HQ

Description

$ (M)

Type

Acquirer

297 $

M&A

Square

Tidal

Mar. 21

US

Subscription-based music and podcast streaming service

Wondery

Jan. 21

US

Network to create immersive podcasts

M&A

Amazon

Breaker

Jan. 21

US

Social broadcasting application

M&A

Twitter

Bettylabs

Apr. 21

US

Platform creating live audio experiences

M&A

Fite

Apr. 21

US

Live-event streaming platform for sports and entertainment

M&A

Podz

Jun. 21

US

Podcast discovery platform via bite-sized highlights of podcasts

M&A

Moonbug

Nov. 21

UK

Digital entertainment company for children

M&A

Source: Heartcore Internal Tracker

Investors Sprint, Scottish National Investment Bank Visa, PayU, Stripes, Generation Investment Management, Threshold, QED Investors Y Combinator, ACE & Company, Betaworks

Lightspeed, M13, Google, Maveron, Spotify Amazon Alexa Fund, Precursor Ventures Earlybird, LAUNCHub Ventures, Teres Triller Capital M13, Canaan Partners, Charge Ventures, Spotify humbition Next Felix Capital, The Generation RaineGroup, Fertitta Media Capital, GS Growth

heartcore.com


Everyone is a creator. The internet gave rise to billions of content “creators”. Anyone with a mobile phone can create and share high-quality content just with a few clicks and swipes – this ginormous global audience means that monetization across platforms can be a lucrative business (even across more “niche” social media channels). Being a creator is undoubtedly an integral part of the Gen Z generation, with 29% of them considering achieving “YouTuber” status as an aspirational career goal. The creator economy is here to stay, and we will continue seeing the convergence of one’s “passions” with their “work”.

1Bn

>70M

60M

Monthly Users

Group admins of active groups

Monthly Users

🎶 >55M

36M

12M

Hobby musicians (US&EU)*

Channels with >5 subscribers

Users

9M

>7M

💪 >5M

Active streamers

Publishers who earn income

Professional coaches (US)**

*Played an instrument in the past 12 months **Estimated via LinkedIn & Numbers from Kajabi, Thinkific, Udemy and Teachable Sources: Instagram Mention Report, Facebook Newsroom, America’s New Creative Economy Report, Forbes, Business Insider

120

Media

heartcore.com


However, few creators can monetize & even less can make a living

121

Media

90% of all streams are shared between the top 1% of artists (43 thousand artists)

The top 1% of streamers generate over half of the revenues and are in favour of beneficial pay-out splits

The top 10 profiles earn 20M in annual pay-outs (~20% of all pay-outs)

2.2M streams necessary to reach the minimum wage

Building the picks and shovels for creators Monetizing Fandom

New ways of business

Backend

Existing Fans

Live Streaming / Shopping

CRM / Analytics

New Fans

NFT / Art

Payments / Banking & Benefits

Source: The Wallstreet Journal, Axios.com, intellectual property office UK, RollingStone.com

heartcore.com


Console Sales per Year by Brand (2017-2021)

VR is creeping into the masses

30

25

20

15

10

5

0 2018Oculus 2019 2020 2021

122

Media

2017 2018 Xbox 2019 2020 2021

2017 2018 Plays2019 tation 2020 2021

Source: Jack Soslow: Xbos, Playstation and Nintendo’s sales data are scraped from vgchartz.com & Oculus sales are estimated with mobile app downloads

2017 2018 Nintendo 2019 2020 2021

heartcore.com


Average Monthly Hours Spent Per User on Top Social apps in the US (2017-2021)

TikTok is winning the eyeball game.

25

19.6

20

19.5 19.6

19.4 18.6

16.6

16

+45% 15 13.3 11.2

+75%

10.3 9.4

10 7.6

5

0 2018

123

Media

2019

2020

2021

Source: AppAnnie State of Mobile 2022

2018

2019

2020

2021

2018

2019

2020

2021

2018

2019

2020

2021

heartcore.com


Discovery

Consumption

Youtube uses TikTok tactics to catch up with Spotify. ”Roxanne” reached 30 million Spotify streams within two weeks of going viral in October

124 Media

heartcore.com


Clubhouse downloads per month (worldwide) 12000000

Clubhouse was a flash in the pan.

10000000 8000000 6000000 4000000 2000000

20 21 -1 1 20 21 -1 2 20 22 -0 1

4 20 21 -0 5 20 21 -0 6 20 21 -0 7 20 21 -0 8 20 21 -0 9 20 21 -1 0

3

20 21 -0

2

20 21 -0

1

20 21 -0

20 21 -0

-1 2

-1 1

20 20

-1 0

20 20

20 20

20 20

-0 9

0

Clubhouse created feature FOMO

125

Media

Source: Sensortower

heartcore.com


Gaming

126


Gaming in 2020

Recapping last year’s edition

Gaming, already on a strong upward trajectory from previous years, was one of the categories most positively impacted by Covid19. Consumers of all ages spent an increasing amount of time (+34%) and money (+20%) on gaming when various entertainment options were no longer available (theaters, bars, concerts etc.) Across sub-segments, mobile growth was the most impressive (spend up 26%, downloads up 33% YoY) with five titles crossing the symbolic threshold of $1bn in store revenue. As the world shut down, players increasingly socialized online through video games. Similarities between games and social networks made it clear that the “Metaverse” would soon become a hot space. Blockchain gaming was a nascent industry subsegment. Video games - as a value catalyst for long-lasting IP franchises - paired with crypto's potential to capture value, led to early promising projects leveraging NFTs (Top Shots, Sorare).

127 Gaming

Source: Heartcore

heartcore.com


Company

Key fundraising rounds.

128 Gaming

Da te

H Q

Description

$ (M)

Investors

Epic Games

Apr. 21

US Publisher of proprietary games like Fortnite

Sorare

Sep. 21

FR

Fantasy football game where players can buy, trade, and play with NFT

680 $

Series B SoftBank, Atomico, Bessemer, D1

Roblox

Jan. 21

US

Online game platform and game creation system

520 $

Series H Altimeter, Dragoneer, a16z, Tiger

Jam City

Sep. 21

US Mobile games publisher

350 $

Venture Netmarble, Kabam, Fortress

Voodoo

Aug. 21

FR Mobile games developper

266 €

Series E Groupe Bruxelles Lambert

Tilting Point

Jul. 21

US Free-to-play games publisher

235 $

ProbablyMonsters Sep. 21

US AAA video games studio

200 $

Dream Games

Jul. 21

TR Mobile puzzle games studio

Mythical Games

Nov. 21

US

Rec Room

Dec. 21 US Professional eSports organization

Jackpocket

Nov. 21

US

Rec Room

Mar. 21

US Professional eSports organization

Video game engine for player-owned economies

Mobile application to play official state lottery games

Platform that invites game makers to build, share, and play online games

1,000 $

Type

PE

General Atlantic

Series A LKCM Headwater

155 $

Series B Index, Makers Fund, Balderton

150 $

Series C a16z, D1

145 $

Series D Coatue, Sequoia, Index

120 $

Series D Left

100 $

Series D Sequoia, Index, Madrona

100 $

Series C XN, SoftBank, LVP

Venture Lightspeed, Insight, Anthos

Manticore Games Apr. 21

US

1047 Games

Sep. 21

US Video games studio

100 $

Tripledot Studios

Apr. 21

UK Mobile games studio

78 $

Source: Heartcore Internal Tracker

Venture Sony, T. Rowe Price, BlackRock, KKR

Series A Lightspeed

heartcore.com


Key M&A transactions & IPOs.

129 Gaming

Company

Date

HQ

Description

$ (M)

Type

Acquirer Electronic Arts

Glu Mobile

Apr. 21

US

Mobile games developer and publisher

2,100 $

M&A

Playdemic

Jun. 21

UK

Social game studio for mass market audiences

1,400 $

M&A

Sumo Group

Jul. 21

UK

AAA-rated video games developer

1,270 $

M&A

Hutch Games

Jan. 21

UK

Mobile racing games developer

375 $

M&A

Stunlock Studios

Jul. 21

SW Video games developer

Housemarque

Jun. 21

FI

Mediatonic

Mar. 21

US

Downpour Interactive

Apr. 21

US

Blade

May 21

FR

Unit 2 Games

Jun. 21

UK

NEA, WarnerMedia, GGV Capital, Tencent AXM Venture Capital, Electronic Arts The North West Fund Tencent Modern Times Backed VC, Index, Group Initial

M&A

Tencent

M&A

Sony

M&A

Epic Games

M&A

Facebook

Cloud gaming service

M&A

Jezby Ventures

Sharing platform designed to create games

M&A

Facebook

Independent video games developer Mobile and video games developer and publisher Developer of multi-player games for the virtual reality world

Investors

Coffee Stain Studios

Frog Capital, Future Fifty, Synova

Makers Fund Shasta Ventures, GSR Ventures, Pioneer Square Labs, Outpost Capital EQT Ventures, Play Ventures, Business Finland

BigBox VR

Jun. 21

US

VR development studio

M&A

Facebook

Reworks Oy

Sep. 21

FI

Mobile games studio

M&A

Playtika

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

Source: Heartcore Internal Tracker

heartcore.com


350

Market Size ($, bn)

Gaming is now bigger than all other media categories combined.

400

338bn

300

335bn

250

200

166bn

150

86bn

100

48bn

50

35bn

0 Gaming

130 Gaming

Source: BITKRAFT, Naavik

Linear TV

On Demand Media

Box Office

Music

heartcore.com


Global Consumer Spend in Video Games (exc. China, $, bn)

Gaming growth cycles are propelled by technology shifts.

100 90 80 70 60 50 40 30 20 10 0 1979

1984

1989

1994

Arcade

Console

1999 PC

2004

2009

2014

Mobile

Global Consumer Spend in Recorded Music (exc. China, $, bn) 45 40 35 30 25 20 15 10 5 0 1979

1984 8 Track

131 Gaming

Source: MatthewBall.vc, Galaxy Interactive

1989 Vinyl

1994

Cas settes

1999 CDs

2004 Digital (owned)

2009

2014

2019E

Digital (Streaming)

heartcore.com


Global Consumer Spending in Mobile Games ($, bn)

Mobile kept performing very well in 2021.

100

90

80

70

$52.3B 60

$47.6,0B

+9,9%

50

40

+16,6%

30

20

$37.3B

$31.9B 10

0 2020

2021 Google Play

132 Gaming

Source: SensorTower

App Store

heartcore.com


Major video game titles are becoming Metaverse platforms.

133 Gaming

Source: Google Image

heartcore.com


Crypto & NFTs will play a critical role in enabling Metaverse economies.

Issues with current Virtual Goods solved with NFTs

Virtual Goods • Various formats • Replicable at will • Illiquid • No end-user ownership • Confined to a single ecosystem • No utility

134 Gaming

Source: BITKRAFT

NFT’s • Universal digital representation • Proof of scarcity • Portable on any marketplace • Interoperable by design • (Financial) asset utility

heartcore.com


Axie Monthly Active Users

550k

600000

2.5M

2500000

500000

2000000

400000

MAUs

Registered Users

Early innings of that shift are already visible.

The Sandbox Registered User Base

300000

1500000

1000000

200000

100000

80k

500000

10k 0

0 2020

135 Gaming

2021

Source: DappRadar, ActivePlayers.io, The Sandbox Medium

Dec. 20'

Dec. 21'

heartcore.com


Blockchain Gaming enables player-owned gaming ecosystems.

FUT (FIFA Ultimate Team) vs Sorare value chain Cash Developer

Players

Items kept in game

Game Ecosystem

Virtual Items Cash Developer

Players NFTs

Rewards (Play to Earn)

P2P trading Players

136 Gaming

Source: Nicolas Julia Twitter account

Game Ecosystem


“Play to Earn” is not a definitive recipe for success.

Axie Infinity daily earning potential* ($) $140.00

$120.00

$100.00

Philippines daily avg. wage

$80.00

$60.00

$40.00

$20.00

$0.00 January

February

March

April

May

June

July

Augus t September October

*SLP-USD derived earnings, MMR averaged (1100-1500-2200 MMR levels)

137 Gaming

Source: Naavik

heartcore.com


Web3 gaming development phases prediction

From “Play to Earn” to “Play and Earn”.

Earn-first Games

Phase 1

138 Gaming

Source: Mechanism Capital

AAA-like earn-first Games

Play-first Games

Phase 2

Phase 3

heartcore.com


Health

139


Recapping last year’s edition

Health in 2020 Covid19 was a massive catalyst for the adoption of telemedicine and other digital health services. The rise of vertically integrated telehealth services caused headaches for the "incumbent" horizontal telehealth providers. The ability to drive better patient outcomes through specialization enables those new players to co-exist with general telehealth providers. Telehealth providers like Kry expanded offline, while other companies like One Medical went the other way and built offline practices combined with digital patient journeys.

140 Health

Source: Heartcore

heartcore.com


Company

Key fundraising rounds.

141 Health

Date

HQ

Ro

Mar. 21

US

Cityblock

Sep. 21

US

Hinge Health

Nov. 21

US

Honor

Oct. 21

US

Senior care platform and network

370 $

Carbon Health

Jul. 21

US

Healthcare provider

350 $

Series D Blackstone

Kry

May 21

SW Telehealth service provider

312 $

Series D CPP, Fidelity

Hinge Health

Jan. 21

US

Virtual physical therapy sessions for customers with back and joint pain

310 $

Series D Coatue, Tiger

Capsule

May 21

US

Digital pharmacy

300 $

Series D

Cerebral

Dec. 21

US

Online mental health services provider

300 €

Series C SoftBank

Forward Health Mar. 21

US

Membership-based health care system provider

225 $

Series D Founders Fund, SoftBank

DispatchHealth Mar. 21

US

On-demand urgent medical care service

200 $

Series D AltaIR, Tiger

Cityblock

Apr. 21

US

Primary care platform targeting the lowincome medicare populations

192 $

Series C Tiger, Maverick, General Catalyst

Sword Health

Dec. 21

US

Digital solution provider for the treatment of musculoskeletal pathologies

189 $

Series D Sapphire

Monogram Health

Jun. 21

US

Platform helping consumers manage chronic kidney disease

160 $

Series B TPG, Frist Cressey

SonderMind

Aug. 21

US

Mental healthcare therapy

150 $

Series C

Papa

Nov. 21

US

Platform connecting college students to senior citizens for companionship and assistance

150 $

Series D SoftBank, TCG, Tiger

Oscar Health

Jan. 21

US

Health insurance company

140 $

Series I

Twin Health

Oct. 21

US

Digital metabolic care company

140 $

Series C ICONIQ, Sequoia India, Perceptive

Source: Heartcore Internal Tracker

Description Telehealth platform operating digital health clinics for men and women Primary care platform targeting the lowincome medicare populations Platform for chronic joint and back pain combining an application, a wearable and a remote health coach

$ (M)

Type

500 $

Series D

400 $

Series D SoftBank

400 $

Series E Tiger, Coatue Debt

Investors General Catalyst, FirstMark, Dragoneer, Seven Seven Six

Baillie Gifford, Prosus, a16z, Thrive

Durable, Baillie Gifford, T. Rowe Price, Whale Rock Capital

Drive Capital, Premji Invest, General Catalyst, Partners Group, F-Prime

Dragoneer, Baillie Gifford, Coatue, Founders Fund, Khosla, Lakestar, Tiger

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Key M&A transactions & IPOs.

142 Health

Company

Date

HQ

Description

$ (M)

Type

Clover

Jan. 21

US

Health coverage for US seniors

7,000 $

SPAC

Babylon

Oct. 21

US

Quick access to healthcare through a mobile application

4,200 $

IPO

23andMe

Feb. 21

US

AAAAt-home DNA testing company

3,500 $

SPAC

Hims & Hers

Jan. 21

US

D2C brand for erectile dysfunction, & hair loss products

1,600 $

SPAC

Talkspace

Jun. 21

US

Online therapy platform

1,400 $

IPO

Owlet Baby Care

Jul. 21

US

Health monitor allowing parents to view their child’s vital signs in real time

1,100 $

IPO

Lemonaid Health

Oct. 21

US

Telemedecine platform

400 $

M&A

Doctor On Demand

Mar. 21

US

Mobile application to book visits with healthcare providers

M&A

Ginger

Sep. 21

US

On-demand mental health service

M&A

Jour

Sep. 21

FR

Journaling application to help teens and adults battling with mental illness

M&A

Source: Heartcore Internal Tracker

Acquirer

Investors First Round, Greenoaks, Sequoia Kinnevik AB, Hoxton Ventures, AlbaCore Capital GV, NewView, Sequoia

Forerunner, Maverick, Thrive Revolution, Norwest Venture Partners, Spark Capital, SoftBank Techstars, Eclipse Ventures, Eniac Ventures OTV, Sierra Ventures, Hikma Ventures, Third 23andMe Kind Venture Capital, Artis Ventures Lerer Hippeau, Grand Round General Atlantic, Health ACME Capital, Goldman Sachs Blackstone, Bessemer, Headspace Cigna Ventures, Next Play Ventures True Ventures, Alan Secocha Ventures

heartcore.com


New regulation is paving the way for healthcare innovation.

State of regulation of telemedicine in Europe

Accelerated legislative changes during Covid

Allowed but no specific regulation in place

Previously allowed + Regulation/Laws /Reimbursement in place

143 Health

Source: Heartcore Research

heartcore.com


E-prescriptions will have their eCommerce moment.

Online penetration of RX revenue and eCommerce penetration in other verticals

40%

38%

35%

30%

28%

25%

20%

18%

15%

13%

10%

5% 1% 0%

RX mail order penetration

144 Health

Cosmetics & Beauty eCommerce Penetration 2021

Willingnes s to purchase Medicine fully online

Apparel & Accessories eCommerce Penetration 2021

Sources: ABDA, TLV.se, Iqvia, Digital.health 3/19 – Das E-Rezept und der Versand von Rx-Arzneimitteln, Statista, Globalxetfs.com, Samkeppni.is – Online Pharmacy Markets Report

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We are in the midst of a mental health crisis.

Percentage of U.S. youths with a major depressive episode in the past year

20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0%

2004 2005 2006 2007 2008 2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Employer distributed mental health crystalizes as an effective channel due to easier adoption and monetization

145 Health

Source: Statista, Crunchbase

$300M Series C

$190M Series C

$200M Series C

$3.5M Series Seed

heartcore.com


Can psychedelics tackle the problem?

Number of publications & trials about Psychedelics 1200

1000

Research publications 800 Post-Hippie-era ban

600

400

200

Trials 1946 1948 1950 1952 1954 1956 1958 1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

0

$950M Market cap

146 Health

$500M Market cap

Source: National Library of Medicine Bethesda, Crunchbase

$750M Market cap

heartcore.com


Diseases associated with a disruption in microbiome balance

Microbiome: The Swiss army knife in Health?

Depression

Autism

30000

Breathing issues (COPD)

25000

Dermatological issues

Alzheimer Oral health

# of Research publications

Cardiovascular (Heart)

20000

Obesity Asthma Diabetes

15000

Cancer

10000

Joint pain (Rheuma)

5000

19 5

6 19 61 19 64 19 66 19 68 19 70 19 72 19 75 19 77 19 79 19 81 19 83 19 85 19 87 19 89 19 91 19 93 19 95 19 97 19 99 20 01 20 03 20 05 20 07 20 09 20 11 20 13 20 15 20 17 20 19 20 21

0

147 Health

Source: National Library of Medicine Bethesda, The Human Microbiome: A New Frontier in Health (University of California)

heartcore.com


Supply of healthcare workers is a bottleneck and an opportunity

HeyJobs HeyIndex (#Actively Jobseeking/ Vacancies) in Healthcare vs. Overall (Germany)

2.5

2.0

2.0

1.5

1.5

1.0

1.0 0.8

0.8

0.8 0.6

0.6 0.5

0.4

0.4

0.4

0.3

All Industries Healthcare

0.0 1/2021

2/2021

3/2021

4/2021

5/2021

6/2021

7/2021

8/2021

9/2021 10/2021 11/2021 12/2021

$400M Equity funding

$150M Series D

$225M Series D

$24M Series A Heartcore portfolio

148 Health

Source: Heyjobs, Gist Healthcare, Axel Springer

heartcore.com


Education

149


Education in 2020

Recapping last year’s edition

Covid-19 was a major tailwind for EdTech due to forced adoption. Teachers and students alike hopped on online learning platforms and while scrambling to accustom to distance learning. The largest private EdTech companies at the end of 2020 were almost all tutoring companies, and active in China or India. Life-long learning became an even clearer long-term trend in education. New EdTech verticals addressing different demographics and fields of application saw early adoption, like corporate upskilling and casual education.

150 Education

Source: Heartcore

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Company

Key fundraising rounds.

151 Education

Date

HQ

Description

$ (M)

Type

Investors

Course Hero

Dec. 21

US

Online learning platform

380 $

Series C Wellington, Sequoia

GoStudent

Jun. 21

AT

Tutor marketplace

244 $

Series C DST Global, Tencent, Dragoneer

MasterClass

May 21

US

Provider of video-based courses from professionals

225 $

Series F

Multiverse

Sep. 21

UK

Online apprenticeship program provider

130 $

Series C D1, BOND

Outschool

Oct. 21

US

Marketplace of live online classes for kids

110 $

Series D Tiger, BOND, Lightspeed

Class

Aug. 21

US

Virtual classroom integrating with Zoom

105 $

Series B SoftBank

Brainly

Jan. 21

PL

Open Classrooms

May 21

FR

Outschool

Apr. 21

US

GoStudent

Apr. 21

Lingoda

Peer-to-peer learning platform for homework Platform offering certification courses to its members

Fidelity, Baillie Gifford, Balyasny, Eldridge

80 $

Series D Learn Capital, General Catalyst

80 $

Series C Lumos

Marketplace of live online classes for kids

75 $

Series C Tiger, Coatue, USV

AT

Tutor marketplace

70 $

Series B Coatue, Left Lane, DN Capital

Apr. 21

DE

Online language school

67 $

StuDocu

May 21

NL

Student knowledge exchange platform

50 $

Series B Partech

Udemy

Nov. 21

US

Online learning platform

50 $

Series G Mindrock Capital

Code academy

Feb. 21

US

Coding class provider

40 $

Series D Owl, Prosus, USV

LearnWorlds

Jul. 21

GR

Platform for creating and selling online courses

32 $

Series A Insight

Outlier

Apr. 21

US

Online provider of intro-level college courses

30 $

Series B GV, Unusual, GSV

Source: Heartcore Internal Tracker

PE

Summit Partners, Mountain

heartcore.com


Key M&A transactions & IPOs.

152 Education

Company

Date

HQ

Description

$ (M)

Type

Coursera

Mar. 21

US

Online education platform that partners with universities and organizations to offer classes

4,300 $

IPO

Udemy

Oct. 21

US

Online learning platform

4,000 $

IPO

Duolingo

Jul. 21

US

Language-learning education platform

3,700 $

IPO

Nerdy

Sep. 21

US

Direct-to-consumer platform developed for 1,700 $ live online learning

IPO

Code academy

Dec. 21

US

Online platform to learn employable digital skills

525 $

M&A

Epic

Jul. 21

US

Platform for books, eBooks, and educational technology

500 $

M&A

Clever

May 21

US

Digital learning platform designed for K-12 schools

500 $

M&A

Busuu

Oct. 21

US

Mobile application for language learning

436 $

M&A

CreativeLive

Oct. 21

US

Online classrooms for entrepreneurs

M&A

Kenzie Academy

Mar. 21

US

Online learning platform for tech skills

M&A

Source: Heartcore Internal Tracker

Acquirer

Investors NEA, Kleiner Perkins, GSV, SEEK, G Squared, Learn Capital Tencent, Insight Partners, Norwest Venture Partners General Atlantic, CapitalG, NEA, Kleiner Perkins, Drive Capital

Index, Kleiner Perkins, Union Square Ventures, Prosus, Owl SkillSoft Ventures, Y Combinator Reach Capital, Maven Capital, Rakuten BYJU’S Capital, 500 Startups, Menlo Ventures Lightspeed, Sequoia, Founders Fund, Y Kahoot! Combinator, GSV GP Bullhound, Future Chegg Fifty Greylock, GV, GSV, Felicis Ventures, Social Fiverr Capital Southern New Rethink Education, Hampshire Learn Capital, 500 University Startups

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COVID’s impact on education: digitalization and disruption.

153 Education

Credits: Picture 1: OLIVIER DOULIERY - AFP - Getty Images | Picture 2: https://unsplash.com/photos/UNc-Xtmh7Zw Picture 3: unsplash.com ID: Y8TiLvKnLeg | Picture 4: AFP

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Indexed stock prices of biggest Chinese EdTech stocks

China’s ban of for-profit education made EdTech stocks collapse.

150

100

50

0 Jan 2020

Mar 2020

TAL Education Group

154 Education

Source: Business Insider Markets, Yahoo Finance

May 2020

Jul 2020

New Oriental Education & Technology Group

Sep 2021

Nov 2021

GSX Techedu

heartcore.com


Consumer spending on education in real terms (2000=100)

Fundamental change is happening outside the US and Europe.

2018, $Bn 400 68 9 300 273

200

134 100 290

0 2000

2005 USA

155 Education

Source: Oxford Economics

Europe

2010 World

China

2015 Vietnam

India

heartcore.com


Life-long learning is the new normal.

Kindergarten

156 Education

Elementary School

High School

University

Work

Retirement

heartcore.com


Past Future

Mix and match: The unbundling and rebundling of higher education.

157 Education

heartcore.com


Completion rates of online courses

Re-discovering the power of social learning.

100%

75%

s

50%

25%

0%

MOOCs

158 Education

Content + social

Source: Heartcore Research, Reich (MIT), UPenn – GSE Study, Wes Kai (AltMBA) & Stephanie Habif

heartcore.com


Image Credits Slide 23: Unsplash Image Slide 37: Unsplash Image Slide 42: Screenshot from Openstore homepage Slide 43: Screenshot from Shein App Slide 48: Unsplash Image Slide 62: Unsplash Image Slide 69: https://rallyrd.com/collections/ Slide 76: https://www.expatica.com/fr/finance/insurance/car-insurance-in-france-184625/ Slide 84: Unsplash Image Slide 99: Financial times, Business Insider, Dutchnews.nl Slide 109: Renault Zone Image (left): Autobild.de Slide 113: VW ID3 (right): https://avtonam.ru/ Slide 104: : Unsplash Image Slide 105: https://unsplash.com/photos/nRKve7ZMIPk Slide 114: a) bird.co b) Mashable.com c) smarttransport.org d) tier.app e) wikiwand.com f) techcrunch.com g) electrive.com h) retaul-fmcg.ro Slide 116: Unsplash Image Slide 124: Thumbnail from Youtube, Channel: Tik Tok It - Roxanne Tik Tok Dance Slide 126: Unsplash Image Slide 139: AJ_Watt via CNBC Slide 149: Unsplash Image Slide 153: Credits: Picture 1: Olivier Douliery - AFP- Getty Images | Picture 2: https://unsplash.com/photos/UNc-Xtmh7Zw Picture 3: unsplash.com ID: Y8TiLvKnLeg | Picture 4: AFP

159 Credits

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