CB Insights - not hot: Amazon M&A

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Last year, we looked into the staggering amount of money piling into Amazon’s Fulfilled by Amazon (FBA) and Shopify merchant roll-ups.

In Q2’21 alone, funding to companies that buy and scale brands that sell on Amazon hit $1.2B. 

It was very reminiscent of the Groupon craze where all sorts of copycats got founded and then, well…we know how that ended.

Our question at the time was: how does the roll-up fever end? 

It certainly looks like that bubble might be bursting. 

Some Amazon aggregators have paused acquisitions, while Thrasio (over $3B raised b/w equity & debt) has begun layoffs and replaced its CEO.

What are some other overheated spaces where we can expect a correction in the future? 

See our #2 pick below.

All-seeing AI 

The era of machine learning has arrived. 

In this 27-page report, we look at the top AI trends to watch in 2022, key vendors operating in these markets, and corporate innovation in the space. 

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• The race to dominate AI chips and the new innovations poised to shake up the space

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Piling in

Overheated sector #2: HR software for remote employees.

The space has seen over $4B in financing in just the last 24 months.

Trailing revenue multiples for many are still hovering around 20x.

See the companies on CB Insights here with a small sampling below.

Live from the factory floor

Manufacturing tech funding hit $2B in Q1’22 for the third time in the last year. 

Funding was up slightly year-over-year, suggesting confidence in overcoming widespread shortages in commodities, components, and labor.

Get all the details in our client-only State of Advanced Manufacturing Q1’22 report.

Picture day for the newbies

More than half of 2021’s food & meal delivery funding went to early-stage startups.

The newcomers are bringing customers increased assortment, fresher food, and faster delivery times with solutions like group buying, curbside ghost kitchens, and more. 

We map them out across 7 categories here.

CNBC. Kate Rooney (@Kr00ney) reports on a16z’s new $4.5B crypto fund and cites CB Insights data.

Fortune. Declan Harty (@declanharty) discusses Coinbase’s future and cites CB Insights research.

Business Insider. April Joyner (@aprjoy) uses CB Insights data to cover how investors are doubling down on Web3.
 

P.S. We’re hiring a product manager for our research productivity team. This role is fully remote within the US. Apply here.

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