Marketing and expertise
Data received as the result of the project analysis:
Over 2019, the number of agreements in the world venture market reduced by 23% (from 30 350 in 2018 down to 23 472 in 2019). A similar decrease happened with the volume of investment. In 2018, the total funds invested in startups was 325 billion dollars, while in 2019 it was 258.8 billion dollars. The market volume was reduced by 20%. The last time such a low volume of transactions was observed five years ago. In Europe, slightly different tendencies are observed. Here, the reduction of transactions was almost 26%. In 2019, there were 5 777 transactions against 7 794 in 2018 (excluding exits). However, the number of transactions increased significantly and set a new record of $39.9 billion (growth by 28%). Reduction of metrics can be the result of operations slowdown in China after trade wars. In Europe, venture capital investments showed mixed results under the negative influence of Brexit, for instance. However, in 2019, 135 unicorns appeared. Investors invested the most in eCommerce, AI, healthcare, logistics, and financial services.
The volume and cost of corporate venture transactions remained stable at the level of 5 418 transactions a year. According to KPMG, in 2020, the total venture investment reached $80.8 billion.
In 2020, SaaS projects became the most popular among startup founders — 9% of respondents develop such projects. AI technologies took second place compared to last year, EdTech and Hardware took third and fourth places correspondingly.
Startups see direct sales (56%), subscriptions (18%), and income on transactions (8%) as main sources of income. More than a third of startups do not earn profit from their startups yet — over a year, the number of such projects went up by 4%. 18% of startups managed to earn up to $13 894 in a year. The percentage of startups earning from $13 894 to $138 940 and more than $138 940 remains the same for the third consecutive year and is 22% and 16% correspondingly.
This year, contests have taken the first place in the list of the most effective search for investors after third place a year ago. Friends' recommendations took the second line. Investor base mailing shows the lowest result. This fact emphasizes the importance of personal live contact.
More than half of startups (66%) collected only one round since their inception. Two rounds raised 24% of financed companies, three and more — 10% of companies. For 54% of companies, the last round was a Seed one. Round A got 13%, round B — 6%.
The volume of investment 70% of respondents managed to collect correlates with the expectations of a third of them — up to $300 000. 15% of companies collected from $300 000 to $1 million, 13% of startups collected from $1 to $5 million. Only 2% of companies have more than $5 million.
In 2019, 230 transactions were made. Compared to 2018, the reduction was 1,5 times. This affected all categories of venture projects, except for the expanding ones. The average bill increased in all segments from Seed to A/B/C rounds. As the result, the investment volume growth in the venture market became 13% or $868.7 million compared to the previous year.
At the Seed stage, the average transaction doubled from $0.1 million to $0.2 million; at the stage of startup the transaction price went up by three times — from $0.3 million to $1.1 million. The number of transactions was reduced by 34 units for the first category, and 30 units for the second category. It happened as the result of accelerator activity. At the Seed stage, the percentage fall was 30%, and at the startup stage — 38%.
Seed-staged projects and startups showed a two-fold investment increase (up to $26.1 million and up to $50.4 million correspondingly) in relative terms. This growth was ensured by accelerators suggesting the significance of the given projects on the worldwide venture market.
In 2019, sales of solutions realizing AI technologies reached $139.3 million, which is 48.2% more than a year before. 49% of expenses in the AI market are spent on the investment in computing powers to process and store big data volumes. 28% are software expenses. Market experts predict that this investment will double by 2023 due to the increasing number of AI-based app.
The total volume of transactions in the sharing economy was $11.9 billion, that is 46% more than the previous period. The market volume, without the C2C sales that correspond to the eCommerce in this research, is $3.15 billion.
At the end of 2019, the world big data analysis market was estimated at $41.85 billion. According to analysts’ predictions, it will go up to $115.13 billion with an average dynamic of 11.9% from 2020 to 2028.
During the next decade, blockchain technology can ensure the world GDP growth by $1.76 trillion by 2030. It is 1.4% of the total world GDP.
Last updated