CB Insights - Peloton gets wrecked

Hi there,

Here is this week in charts.

LatAm express. Amid a record year for global payments funding & deals, LatAm payments startups in particular saw a rush of capital. Funding and deals more than doubled to reach record highs, primarily driven by rounds to Brazil-based companies. Clients can see how US payments startups fared, exit tallies, top deals, and more in this report. 

Boomerbook. Facebook’s number of daily active users decreased for the first time in its 18-year history last quarter. Competition from rival apps like TikTok has drawn away younger users. The company also warned that Apple’s privacy changes will take a $10B chunk out of its revenue this year. Meta’s shares sank this week upon the news as investors remain skeptical of its plans to build the metaverse.

Gone mental. Funding to mental health tech startups more than doubled YoY in 2021.This was driven largely by the need to build out digital solutions targeting mental health — an area of healthcare that has gained momentum during the pandemic. The majority of 2021 deals were early-stage, indicating there’s room for growth in the mental health tech space.

Oof. Peloton’s performance in 2021 was the worst of all Nasdaq 300 companies, with a total shareholder return of -76%. Activist investor Blackwells Capital, which owns almost a 5% stake in the company, released a searing presentation (including the above chart) arguing the company had been “grossly mismanaged” amid the rise of fitness tech. The firm claims the recent CEO shift doesn’t go far enough, calling the board to “immediately put Peloton up for sale.” We asked for your thoughts on potential M&A contenders on Tuesday and got some great ideas, which we’ll share soon.

Guacamole! Guac-guacamole! Prices for avocados from Mexico’s top Hass avocado-producing region have reached a 20-year high at approximately $26 a 9-kilo box. Super Bowl demand and ongoing supply chain & labor headaches have contributed to the fruit’s inflation. Plus, Americans have a big appetite for guacamole. Consumption of the delicious dip has doubled in 10 years (as of 2020) to reach 9 pounds per capita. But not to worry, no shortages are foreseen — there was a bumper avocado crop last year.

It’s a monstrosity. This is an interesting idea looking at homework time vs. GDP vs. happiness but unfortunately, the execution is garbage. BTW, I’m in the camp of more homework is good for kids.
 

I love you.

Anand

@asanwal

P.S. You’ve got 6 days left to apply for the AI 100 awards. It takes < 3 mins. Fame & fortune await you.

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