CB Insights: VC-backed web properties – a $5B year

InsightaaS: While ATN tends to focus on posts commenting on the use of IT in business settings, we do occasionally ‘cross over’ to look at issues that are important to the supplier community as well. Today’s feature, from CB Insights, is likely of interest to all ATN readers, as the health and growth of web-based businesses is important to many different stakeholders in the IT value chain.

Today’s post, “Accel Partners Ranks as Top Investor in the Alexa 1000 Most Trafficked Websites,” reviews deal activity around highly active web properties. CB Insights research finds that “over the last five quarters, 2000+ VC deals have taken place in the Internet sector,” adding that VC-based startups raised nearly $5.25 billion in the first three quarters of 2014. A handful of deals have greatly impacted this figure (Indian eCommerce firm Flipkart’s $1B round chief among them), but the overall trend is towards an increasing diffusion of funding: more than 25% of funded firms are based outside the US (especially in China and India, but also in Brazil, Canada and Israel), nine major industry sub-categories (ranging from news and social to music and auctions) are included, and one dozen received more than $100 million in new funding. Clearly, the VC community is becoming more attuned to the needs and opportunities associated with web-based businesses, which should help both these businesses and the VC investors to realize increasing returns in the future.

Over the last five quarters, 2000+ VC deals have taken place in the Internet sector. Interestingly, just under 9% of the top 1000 web properties globally (as measured by Alexa) are owned by an unexited venture-backed startup. Using CB Insights Performance Metrics data, we dug into the Alexa 1000. The highlights below:

  • 86 VC-backed startups are ranked in the top 1000 global websites
  • $5.24B – The amount of funding that VC-backed startups that ranked among the top 1000 have reeled in the first 9 months of 2014.
  • News/Discussion & Social – The top two sub-industries for startups in the top 1000.
  • 66% – Companies based in the U.S.
  • Accel Partners – The investor in the highest number of companies in the top 1000 web ranks

Funding booms – $5.24B invested in 2014 YTD

Using CB Insights financing and web traffic data, we analyzed financing and investor trends among the venture-backed companies ranked highly on Alexa…

VC-backed startups that ranked among the top 1000 web properties saw funding boom in 2014, including a record $2.78B invested across 18 deals in Q3 2014. The spike in funding was driven by popular Indian eCommerce site Flipkart‘s $1B Series G from investors including Tiger Global, Naspers and GIC. Other firms that raised huge funding rounds over the three-month period included Houzz ($165M), Box ($150M) and Chinese ad listing portal Ganji.com ($200M).

Of note, 12 of the companies in the Alexa 1000 ranging from Netshoes to AirBnB raised a $100M+ round in the first nine months of 2014.

Read the entire post on the CB Insights website: Link



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