10 July 2016

Hot markets for Venture Capital

Venture Capital investment within particular industries is always a good indicator when trying to determine which markets are hot or not.

Using this metric, two such industries, attracting significant VC dollars and competition between VC funds, are:


Sometimes referred to as ride-sharing or more appropriately car-sharing, the form of transportation popularised by Uber - where anybody with a car can become a taxi - is primed for growth, with VC interest not slowing down despite legal challenges and otherwise.

In June, Uber - the pioneer and market leader in the United States and most of the rest of the world - raised $3.5 billion from Saudi Arabia's leading investment fund, which valued the company at a whopping $62.5 billion. This followed a July refinancing, involving banks such as Morgan Stanley and Barclays, which provided a further cash injection of $1.15 billion.

In December last year, Uber's main U.S. competitor, Lyft raised $1 billion from General Motors among others, valuing it at $5.5 billion.

Now a competitor in China has entered the fold. In June, Didi Chuxing raised $7.3 billion from companies including Apple, which valued the company, which hoping to make an Asian dent into Uber's potential dominance, at $28 billion.


It seems this phenomenon, trialled by the likes of Google and Tesla, is moving away from the experimental phase.

Interest is massive in companies innovating in this space, as evidenced by a recent $200 million investment into Zoox by prominent VC funds including Lux and DFJ, which valued the company at $1 billion.

This follows GM's recent acquisition of Cruise Automation, a company also in the self-driving space, for an undisclosed sum.

These are too my hot to handle technology industries right now.


blog comments powered by Disqus