CB Insights - homebuyer’s remorse

Hi there, 

Here is this week in charts.

Super apps. Mobile commerce has exploded over the last decade, thanks in part to a host of payment and checkout services that have made it easier for consumers to shop on their phones. On the back of this upswing, companies enabling payments (among others) are layering on additional money management features and services to drive growth and keep users around. Asia has been a hotbed for this trend, with a number of digital wallets here evolving into successful one-stop-shop super apps. We look at how super apps will be the dominant fintech strategy of the next decade.

Made in America. The manufacturing sector employs just 8% of the US’ nonfarm workforce, down from over one third 70 years ago. As manufacturing productivity has increased, the need for workers has decreased. And of course manufacturing has shifted overseas — though some of it is now returning due to reshoring. Efforts to bring overseas manufacturing back to the US are gaining steam as corps look to reduce reliance on foreign nations and establish secure supply chains. New manufacturing technologies that increase productivity will be key to remaining competitive.

Feeding frenzy. In 2021, investors funneled billions into startups via mega-rounds — or deals over $100M. This flood of cash helped mint more than 500 startups valued at $1B+. We’re now turning the corner on the mega-round frenzy. While around $6 out of every $10 in funding came via mega-rounds in 2021, under half of Q2’22’s global funding total came from these big checks. It gives new light to what might be called the foie gras’ing of startups.

Parity in the USA. €1 = $1 for the first time since 2002. Fears that a recession will hit Europe particularly hard — alongside pressure from an energy crisis and the war in Ukraine — have sent the euro tumbling. Surprisingly, investment to tech startups in Europe held relatively strong in the second quarter — dipping just 13% from Q1’22, with 2 out of 3 deals going to early-stage companies. Though pain in the US and Asian private markets may signal what’s in store for Europe. 

Say no to the home. Homebuyers in the US are backing out of deals at the highest rate since the pandemic began. In June, 15% of pending home sales fell through. As the housing market slows, some homebuyers have more room to negotiate. Others are canceling purchases as rising mortgage rates make some homes no longer affordable.

Round and round. Where do we start? 
 

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