CB Insights - market caps on sale

Hi there,

Here is this week in charts.

ABCs of healthcare. Big tech cos in the US are attacking healthcare with wads of cash and product releases. Google’s parent Alphabet appears to have the biggest ambitions. The company and its funding arms have backed $1.7B in healthcare VC deals so far this year (compared to $100M in total for its fellow tech giants). As it looks to make its mark on the multi-trillion-dollar market, Alphabet is focusing on everything from wearables to healthcare AI.

Going once, going twice. The ultrafast delivery sector, which has seen a wave of shutdowns and retreats, is facing another challenge on the road to profitability: players continue to rely heavily on giving customers discounts. US-based Gopuff discounted nearly 30% of its orders in April. Outside of the US, Turkey-based Getir discounts upwards of 80% of its orders in Germany and France. As VC funding starts to dry up, getting customers to cough up the true cost of quick delivery will be a tall order.

VC university. From Airbnb to Stripe to Coinbase, some of the most recognizable names in tech have one thing in common from their early days as startups: seed funding from Y Combinator. YC has become one of VC's most well-known names through its non-traditional approach to venture funding. Since 2005, the accelerator/seed-stage fund has backed 3,000 startups. YC has scaled up its batch size by roughly 20% per year — which would put it on course to back nearly 1,400 companies a year by 2025.

How low can you go? Every company named in the chart above had a market cap over $20B at one point — and 10 of them topped $50B. Companies like Coinbase, which has seen its stock fall 80% so far this year, would need to increase 400% to get back to where they were. A similarly tough lesson applies to startups trying to justify their last financing valuation.

Feeling squeezed. When is it a good time to buy a home? A record percentage of consumers (79%) surveyed by Fannie Mae say “not now.” High home prices and rising mortgage rates have pessimism at an all-time high.

Out in the wild. This incomprehensible pie chart graphic is an absolute waste of space.
 

I love you.

P.S. How are corporate VCs adjusting to market conditions? We’re unpacking key trends live next week. Sign up here.
 

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