Archive for the ‘Funding’ Category

The Real Mythical Creatures of the Collaborative Economy: Centaurs, Unicorns, and Pegasus


Mythical_ver2_F2 -2
Above: Version 1.1, with updated data. Version 1.0 is available here.

Collaborative Economy valuation is through the rainbow-beaming clouds. These highly funded, fast-growing, media-hounded startups are the portfolio darlings of any venture capital firm, while this crowd-based, on-demand, collaborative category enables people to access resources from peers using efficient mobile devices.

The Collaborative Economy market has received a total of $25 billion in investor funding, but not all companies are equal. Using the “mythical” creature lexicon of Silicon Valley, we’ve sorted Collaborative Economy startups based on highest valuation. We didn’t even include the “Little Ponies” that are valued at $10 million – $100M as the list would be in the hundreds.

Working with VC Dave McClure of 500 Startups, who has been championing a number of these fun terms, we constructed this handy little chart so you could see which startups have achieved high valuations.

Is this space over-funded? Over-valued? I’m sure that’s the case for some of these companies, as frothy tech markets are a normal part of the startup scene. The difference between these startups and prior years is that they are generating revenue from every transaction. In fact, most startups take a 10 to 15% cut from every transaction in the marketplace. One danger of over-valuation means that acquisition becomes near impossible, with the most obvious exit being an IPO.

If the valuations are incorrect, kindly leave a comment below, and I’ll amend the database. We plan to  eventually publish an updated version.

Related resources:

(And yes, we know the plural of Pegasus is Pegasi.)

The Collaborative Sharing Economy has Created 17 Billion-Dollar Companies (and 10 unicorns)


I partnered with VentureBeat’s market intelligence arm (VB Profiles) to further develop data on the funding, valuation, and employment impacts to the growing Collaborative Economy, this post originally was posted on VentureBeat’s website written by John Koetsier of VB Insight, I’ve republished their content, to share the key findings and you can find a summary of the research here.


Sharing is big business. Big big business.

There are now 17 billion-dollar companies with 60,000 employees and $15 billion in funding in the sharing or collaborative economy, according to Jeremiah Owyang and VB Profiles, a market intelligence firm partly owned by VB. That includes the venerable eBay, founded in the dim mists of technological antiquity, and relative newcomers Etsy, Chegg, WeWork, Airbnb, and — of course — Uber.

Uber uber alles, right?

billion-dollar sharing economy companies

While most of the startups are relatively recent — many became billion-dollar companies in less than four years — they have their roots in tough times, Owyang says.

“Many of these startups birthed from the trough of the 2008 recession,” he told me via email. “The startups received unreported friends and family money, then got market traction with adoption, then were able to seek out traditional investors, resulting in the investment boom a few years later.”

Owyang classifies collaborative economy companies in a honeycomb rubric with 12 core verticals or categories, including transportation (where Uber and Lyft belong), space (where Airbnb sits), and goods (where he’s placed Etsy and eBay). Interestingly, the largest number of billion-dollar companies are in those three spaces, plus a fourth: money, which features LendingClub, FundingCircle, Prosper, and TransferWise.

sharing economy honeycomb

Other spaces, such as utilities, municipal, health, food, and corporate, have yet to see any kind of billion-dollar players.

Interestingly, eight of the 17 are based in California, while 12 of the 17 are U.S.-based. That preponderance may not last, Owyang says.

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“While these startups are often based in the SF area, they often serve global national markets,” he says. “Ola is an India-based ride sharing company that is well-funded, and existing Chinese tech companies are building their own versions which means that publicly funded data is unlikely to be surfaced. France’s BlaBlaCar recently received $100 million of funding which they used to purchase a competitor, earning them the title of largest ride sharing company in Europe.”

Perhaps the most unusual thing about the space?

The collaborative or sharing economy has received $15 billion in funding — more than the entire social networking space that has spawned giants like Facebook, Twitter, Snapchat, and more. If that’s any indicator, the collaborative economy is still in its infancy, and many more billion-dollar companies (and unicorns) are coming soon.

All 17 collaborative economy billion-dollar companies

One thing that these often counter-cultural startups won’t do is totally upend our capitalistic one-percenter economy.

“It’s worth noting that the early hope that this sharing market would foster altruism and a reduction of income inequality can now be refuted,” Owyang says. “The one percent clearly own the sharing startups, which means this is continued capitalism — not idealistic socialism.”

The 10 “unicorns” among the 17 billion-dollar sharing economy companies? Owyang defines those as the companies that are still private.

They include:

  • Prosper: $1.7B
  • Ola: $1B
  • Uber: $40B
  • Instacart: $2B
  • Lyft: $2.5B
  • WeWork: $5B
  • TransferWise: $1B
  • Airbnb: $10B
  • FundingCircle: $1B
  • Kuaidi Dache: $8.8B

The full Collaborative Economy ebook is available at VBprofiles.

How Investors are Sharing their Money into the Collaborative Economy


The raw data for this article is available in a publicly-shared database in this Google Sheet, which you can access to see additional details.

VCs, investors, and banks have increased their bets on the Sharing/ Collaborative Economy in greater amounts than ever before. The Collaborative Economy is an economic model that uses commonly available technologies to enable people to get what they need from each other. You’ve likely heard of the sharing economy, crowdfunding, P2P lending, the Maker Movement and cryptocurrencies. Each of these is a part of this emerging economy.

I’ve met with many investors to find out what they like about this space. They’re generally seeking fast-growing, two-sided marketplaces of buyers and sellers, riders and drivers, and hosts and guests that involve frequent revenue transactions. Just as eBay and Craigslist own none of the products offered on their sites, these new startups use technology to find idle assets and connect buyers to them, reducing costs for all parties.

While dozens of smaller startups are winning A rounds in the size of $2-10m on average, there have been two extremely large funding into startups: Uber has raised over $2.7B resulting in a market valuation of $41B (not including the recent debt financing), and a recent round funding of $530M into Lyft, bringing their valuation to over $2B. But let’s look beyond the headlines to see the broader trends of funding into this developing market and to understand how this money has been deployed:

Graphs: How Investors are Sharing their Money into the Collaborative Economy:

Collaborative Economy Funding, March 2015
Above: Let’s first define the scope and give examples. This market enables people to get what they need from each other, often not from traditional commerce methods.

Collaborative Economy Funding, March 2015

Above: A snapshot of this market shows over 200 startups funded, with $32M deployed to the average startup, not including outliers Airbnb, Uber, and Lyft

Total: Collaborative Economy Funding, March 2015
Above: Total of all funding is a whopping $11 Billion funded

Over time: Collaborative Economy Funding, March 2015
Above: Funding has increased year-over-year.

Top: Collaborative Economy Funding, March 2015
Above: Uber, Lyft, and Airbnb have clinched the most funding. This does not include Uber’s recent billions of debt financing.

Industry: Collaborative Economy Funding, March 2015
Above: Transportation funded above all other industries as expensive, idle goods can be more efficiently deployed.

Size of Round: Collaborative Economy Funding, March 2015
Above: Not all rounds are equal, most startups have received an A-round, and a few have received a large over $50m

Context: Collaborative Economy Funding, March 2015
Above: Social Networks, the first market of digital sharing, raised only half the amount of the Collaborative Economy.

The Risk: Collaborative Economy Funding, March 2015
Above: This influx of funding poses risks to the ecosystem.


What it Means:
Looking beyond the raw data, what do these trends tell us about this market?

  • Bigger than Social Networks. It is astounding that these startups have been funded by more than twice the amount raised by consumer social networks like Facebook, Instagram, Friendster, YouTube and Myspace. This is a very large market, and it is disrupting traditional business models.
  • These startups are trying to find those niches. Take transportation, for example: BlaBlaCar is spreading across Europe and Asia, Lyft is focused on the United States (India and China have produced their own versions), Sidecar is adding package delivery and Uber is spreading globally.
  • Transportation, disrupted. Transportation has received the most funding as this market is ripe for disruption: cars, boats, and planes are often expensive, cities are becoming dense, and these assets are infrequently used by their owners.
  • Not all will last, but this market is not going away. While these startups won’t all last, they are trying to establish themselves in their niche markets. With all of the funding being poured into them, it means that they are not all going to go away – at least not for the next few years.
  • Some of these startups are in a conundrum. For those that will stand the test the time some have taken on incredible amounts of funding, and now must balance out the needs of the community (their customers who rely on their service for their livelihood) as well as return money back to their investors within 5-10 years.

Funding Comparison: Social Networks vs Collaborative Economy


Collaborative Economy rivals popular Social Network funding
Social networks were the first phase of digital P2P. They enabled anyone to create media and then share it. The Collaborative Economy is the second phase. It enables anyone to create goods and share what they already own. So, how similar or different are the funding amounts for these two movements? This post provides some insight.

There are many ways to compare industries. I’ve conducted analysis on: adoption rates, attitudes, growth rates, and, in tech-heavy industry, funding rates. While investors have often known to be wrong, funding indicates bullish attitudes based on financial analysis and gut reaction to new markets. It’s a metric we must analyze.

If you want to see the full perspective of funding, advance to the Google Sheet of Collaborative Economy funding. Please note that there are multiple tabs.

To produce this comparison, we gathered publicly available information about consumer-facing, popular social networks, like Facebook, Twitter, and LinkedIn (and 17 others) to find out how much money a mature market, complete with winners, losers, and IPOs, has been funded. Next, we gathered public data about funding in the Collaborative Economy (Uber, Airbnb, Indiegogo, and hundreds others) to see what we could find.

A few analysis notes:

  • Popular social networks are reported to have been funded by $5.4 billion over the last decade. Mostly “consumer” Collaborative Economy startups that enable the sharing of goods, services, food, money and vehicles, have been funded $6.8 billion
  • If you compared, percentage wise, the Collaborative Economy has been funded 26% more than popular social networks.
  • This isn’t an apples-to-oranges comparison: There are few fewer social networks (we looked at 20) than Collaborative Economy startups (we tabled 497). There is no public data for many social networks that died by the wayside lack.
  • Often, funding in early stages is not reported, so it’s impossible to ever truly know what the total funding amount for many companies. Early seed and angel rounds aren’t typically reported.
  • While social networks aren’t likely to be funded significantly greater, I expect that many Collaborative Economy startups are going to receive significantly more funding.
  • I didn’t tally up enterprise social business software funding (community platforms, social media management systems) as there isn’t comparable software for the Collaborative Economy …yet.

This doesn’t mean that all Collaborative Economy startups will succeed. Markets often only have room for three players – not like the dozens of transportation players currently available. It could also mean that Collaborative Economy companies need to be more resource-intensive to lift off the ground. It certainly means that investors, many who funded social networks, are also bullish on this next phase of P2P sharing.




18% Social Business Software Achieved a Material Event –VCs Not Required


Executive Summary
Research has found that out of 55 Social Business Startups that a majority (69%) have received early and late stage funding, averaging $14m in total funding.  A significant 31% have not taken investor funding, which we’ve listed 6 reasons ranging low costs of operations, self-funding, VC avoidance, and market saturation of startups.  18% of startups had achieved a material event (acquired or IPO) and of them, 40% we’re not funded.  Expect three macro trends in 2013 including: 1) Startups focus on business value to battle software giants, 2) Investors hot on SMMS market, but wary of vendors who lack differentiation, and 3) As Social Business Software market matures, expect growth in late stage investments

Research Background
I’m continuing industry analysis of Social Business Software funding and will do a series of data cuts from my sample of 55 software vendors to tease apart trends, insights, and built a forecast for what is to come. First, read part one on The State of Social Business Software (including methodology of this study), which dissects into funding amounts, averages, and frequency of funding rounds.  I interact with VCs, startup entrepreneurs, software giants, brand buyers, press and media to obtain multiple points of view.

Screen Shot 2013-01-10 at 5.15.31 PM
Above: Figure indicates that while two-thirds were funded, a large set of social business software vendors were not funded, a rate greater than I expected to see.

Of Social Software Startups Funded, Most Raised less than $10m
Above: Of the two-thirds who were funded, a majority of them raised a small amount of money, most commonly under $10m, a paltry amount compared to funding rounds in other tech categories in prior decades.

Screen Shot 2013-01-10 at 5.15.14 PM
Above:  The industry ratio of 18% of startups achieve a material event, still holds as an industry benchmark.  I found that consumer based startups may have a lower rate of material event, but with larger returns.   Interestingly, 40% of those who achieved a material had no public records of funding from angel, seed, or venture investors.

Key Data Points
After cutting/comparing/probing this data sample of Social Business Startups (not consumer startups like Facebook, Instagram, Twitter) the following data points were discovered:

  • A total of 55 Social Business Software Vendors were selected for this sample set.
  • 17 (31%) did not take funding per our searchers on public websites, press releases, S-1 filings and Crunchbase.
  • 38 (or 69%) were funded in public records listed as Angel, Seed, or various Venture Rounds
  • Of the 55 startups, 17 we’re not funded, and the majority who we’re funded (16) received less than $10m in total funding
  • 7 startups were acquired by larger corporations (Buddy Media/Radian6 to Salesforce, Context Optional to Adobe, Viture/Involver to Oracle, etc)
  • 3 startups achieved IPO (Liveworld, Bazaarvoice, Jive)
  • A total of 10/55 (18%) of startups have achieved a material event.
  • 6/10 (60%) of the startups who achieved a material event (IPO, Acquired) were funded.
  • Of the 6 startups who achieved a material event, they averaged total funding amount of $26.3 million.
  • Of the 6 startups who achieved a material event, the largest round raised was Buddy Media’s D-Round at $54 million.

Material Events, defined, debated.
For the purposes of this report I’m defining a material event such as an acquisition by another company or IPO for publicly traded shares.  There have been many arguments made that successful companies do not need a material events, if they can yield consistent dividends to investors.  The challenge is that the venture model requires multiples returned per fund to LPs in order to raise monies for future funds.  VCs tell me “You’re only as good as your last fund” and with fund management being 5-10 years, there’s a time clock on returns, causing pressure on executive teams to achieve a material event.  It’s also worth noting that in some cases, an acqusition occurs because a company is distressed and is auctioned as a fire sale.

Nearly One-Third of Startups Avoided Funding
While over 2/3rds of startups took funding, a surprising 17 (31%) did not take funding in the form of seed, angel, or venture funding (A, B, C, D, rounds).  This number is shockingly high, as in previous decades tech startups were dependent on Sand Hill investors to anoint companies to market.  Today’s market has changed and startups are not dependent on VCs.  Even of those who achieved a material event, 4/10 (40%) did not have funding.  There are six primary drivers why entrepreneurs have confided in my why they don’t take funding

Six Reasons why Startups Don’t Obtain Investor Funding
In near future, I’ll post why 60% of startups prefer funding, surprisingly, it’s not just about the money.  

Reason Description What Entrepreneurs Don’t Tell Anyone
1) Self Funded In most cases where I see self-funded startups, often the executive team are self-funding from prior wins as a serial entrepreneur. This means more money for them, control. In some cases, the serial entrepreneurs I’ve met are doing this company both for personal accomplishment, fun, and are no longer driven by monetary gain alone.
2) Company Too Early Stage A large portion of startups in our sample set were early stage, (many in SMMS market) who do not yet need expansion and growth funds. In some of these crowded markets, they’re struggling to get favorable terms as first time entrepreneurs, slow growth, or in a crowded market.
3) Low Costs to Start Company Today’s startup needs a few 10′s of thousands of dollars to get going, with recurring SaaS licence revenues, they can sustain after one year of landing a few key brands. Cloud technologies, open source, virtual workforces, and overseas developers make today’s startup a low cost.
4) Seek Lifestyle Company Often a controversial discussion in tech circles, many entrepreneurs want to avoid pressures of a material event put on them by investors Being an entrepreneur is tough work, when your company does well, the board may want the founder out, requiring them to go to beach get board, and get itch to restart. An addictive, never ending cycle.
5) VC Avoidance Unfavorable terms, pushy board members, or lack of value-add cause entrepreneurs to shudder. Additionally, the time required to pitch, negotiate, expose secret plans, and deal with new influencers on board a risk if they don’t see eye-to-eye. Many serial entrepreneurs confide that they’ve been burned by VCs in the past, and as a result seek to avoid them as long as possible.
6) The Startup is a Bust Some startups are clones, unoriginal, and will not succeed and VCs simply know a failure when they see it.  In fact, we track 28 SMMS vendors in the active market. Entrepreneurs are prone to bluntly admitting this.  Instead, expect euphemisms such as “strategic roadmap pivot to respond to changing market conditions”. ahem.


Market Trends: 2013 Social Business Software and Funding
 Expect three macro trends in 2013 when it comes to social business software, their buyers, investors and last year’s activity, they include:

  • Startups focus on business value to battle software giants. Have At the high level, social business startups must focus on value creation and market domination as after the rash of M&A in 2012 (Adobe, Oracle, Salesforce, Google), this has left an opening for independents to build value while blue chip software companies re-tool and figure out their suite strategy up until the second half of 2013.  With the IPO exit taking a major beating from Facebook, Groupon, Zynga, and questionable results from Bazaarvoice, social business startups must focus on recurring revenues through business value to clients.
  • Investors hot on SMMS market, but wary of vendors who lack differentiation.  While the brand monitoring, community platform, ratings and reviews space has already consolidated, VCs look at SMMS market, despite a handful of acquisitions.  My time on Sand Hill road has yielded excitement and hesitation from VCs examining the fast growing –yet crowded– social media management systems space.  Expect SMMS vendors who can achieve market differentiation and integration with larger blue chip software players to be ideal for investor funding –our findings indicate the market is not strong at differentiation.
  • As Social Business Software market matures, expect growth in late stage investments.  There’s room for independent players who’ve not yet been acquired to land and expand their enterprise clients, some claiming 400 year over year growth in revenue run rates as social licenses are spread enterprise-wide.  As these companies seek funding to grow in international markets, hire seasoned enterprise sales and account teams and acquire smaller competitors, they’ll need late stage investing over $10m, which bolsters overall valuation before a material event.

Future reports to come: We’ll explore status of top funded investments, which VCs are most active in funding Social Business Software, and other data cuts.

The State of Funding in Social Business Software


Executive Summary:
Social Business Software vendors (Startups that offer social technology software and solutions for corporations to use to interact with employees, customers, and partners) have raised on average $14m with the most common round being an A-Round at $5.2m.  A few vendors have received large D-Rounds, however most are receiving $5-10m rounds from a series of investors.  Brands must ask vendors at least 5 questions on who and how this money is and will be used, to understand the strategy before buying.

[Funding in social business software is an indicator of a Vendor's potential to quickly accelerate to meet the needs of corporate customers]

Why this Research: 
As an Industry Analyst, I look at The Three Spheres of Web Strategy of the market to understand it: 1) Consumer behavior (who brands want to reach 2) Brand appetite (customers of software vendors) 3) Technology providers (those who aid brands, like these players).  On a weekly basis I interact with Brands, Media, Software Vendors, and Media to exchange information.  I wanted to bring some hard data to the conversation on the funding aspect which fits in the technology sphere.

[Investor relationships with software vendor shape the direction by providing guidance, network access, and may guide a 'material event']

Total Funding of Social Business Software is $765 across a 55 select Vendors

Above: Figure 1 indicates that across these 55 startups, the total funding amount was $765. Please read method and scope below to understand this is not the full space.

Screen Shot 2013-01-06 at 9.41.56 AM
Above: Figure 2 indicates that on average, Social Business Software vendors have raised $14m in funding.

Screen Shot 2013-01-06 at 9.32.20 PM
Above: Figure 3 indicates that on average, the average funded round is the A-Round.


Market Findings:  
After probing the data for hours, I found some interesting trends in the market worth notating.

  • Total Funding across these 55 active vendors is $765m.  with most funding occurring in last few years however some vendors like Lithium have been present for over a decade.  This is a relatively small amount of funding in the VC space, as some giants like Andreessen Horowitz are managing over $1b for a fund, and my  finger to the air estimate is that many a Sand Hill VC average around $400m per fund in my space.
  • Funding is significantly smaller compared to consumer cousins.  For comparison, Facebook received a total of $2.2b of funding, and Groupon with $1.14b  and Zynga with $860m.  I’d argue that the returns on B2B players revenue (on a percentage basis) may be higher.  While bluechipper Facebook is on track for a potential $4b runrate, but Zynga and Groupon have questionable destinies.  Furthermore, the startup costs for Social Business Software vendors is low with open software, cloud infrastructure, and sometimes virtual workforces.
  • On average, vendors raised $14m across all rounds.  On average, these startups took a relatively modest amount of revenue over the lifetime of their companies.  While the scope of startups includes both established and early stage, $14m is a relatively modest amount when software salaries, the high rent in coastal cities, and compared to consumer startup giant funding, is relatively small.  Many vendors boast annual revenue streams of about $5m-$10m of SaaS best repeatable revenues in my interactions over past 5 years, with exceptions on both ends.
  • The A-Round is most commonly funded round.  The A-Round investments lead the back, 8 of the total 88 investment events (33%) were at the A-Round at $5.2m.  This crucial round demonstrates to the investors that they’ve received corporate traction in an addressable market, and are ready for faster growth to keep up.   For further momentum, the most common round was a B-Round which comprises of 22 of 88 events, (25%).  Although there are fewer D rounds, the average value exceeded $42m, a goliath size readying the company for a material event.
  • D-Rounds lead the largest portion of overall funding dollars. This later stage fund is often ‘double down’ money by VCs who look for companies that have proven their mettle and are ready for expansion at a rapid pace. (product, sales, territory, aboard offices and M&A), or are preparing for sale to third parties (Salesforce, Oracle, IBM, Adobe have rapidly entered this space).  In some cases, late stage dollars increase overall value of software firm to raise valuation amounts before a material event.
  • Confusion over terminology of funds makes tabulating not clear. The amorphous term “Venture Round” spanned funding that was pre-A and even post-C (like Gigya).  In some cases, some vendors received only 1 round of funding and titled it Venture Round, which could be assumed as A.  In some cases Venture Round was an extension of a A-C round (Gigya’s latest large round was listed as a venture round, post-C), and while that data is likely listed in the S-1, I chose not to dive into it to dissect for purposes of this industry level data.
  • Only 18% of Startups had a Material Event (M&A, IPO).  For some startups the mecca is a reaching a material event, which would involve M&A or IPO. While it may seem like there’s been a rash of M&A activity, in this particular data set, only 7 of the 55 vendors (12%) have been acquired and a notable IPO of Bazaarvoice with the media questioning the performance of stock, also LiveWorld went IPO nearly a decade ago.  So that’s 10 materials events out of 55 companies, a 18% rate. Granted, a few vendors that were acquired did not make this list, but overall, there’s been few material events. (edits made to this section, see footnotes)

Five Questions Brands Must Ask Software Vendors
Brands are making million dollar commitments to these software vendors, and often their careers, and quality of worklife will pin on choosing the right vendors.  Beyond features and functions, buyers must pay attention to the root of funding as it shows financial stability, ability to grow, and credibility from third party investors who also believe in the company. As vendors pitch brands their software and services, it’s important to carefully pay attention to the slide on funding, as it helps to give an anchor point on where the firm has come from, and how fast they may grow in the future.

  1. How much have you raised and from whom?  What other software companies are in the VCs portfolio are related?  Find out who has invested and look at their websites for a track record of successful investing in enterprise software.  They’re often key advisors, or make connections for the startup, you’ll want to know every angle.
  2. What is that money going to be used for?  How have you used it in the past? How will this help customers? As you look under the hood, find out how they’ve used investor dollars in the past, and look for key acceleration points, if you don’t see this, raise a red flag.  For recent funding, ask how they’ll strategically use this.
  3. Do these investors advise your company on a frequent basis? Are they on the board?   Ask specifically what each round was used for, and what were the business impacts.  As firms raise new money, have a frank discussion on how they’ll use it going forward.
  4. So you raised a big ton of money, are you going to sell the company? If a vendor has raised significant money as a later stage, have a frank discussion on their exit, while IPO is no longer attractive in today’s market conditions, we’ve seen a number of acquisitions occur which will impact customers.
  5. You haven’t raised much at all, why?  If a company has not raised much funding, find out why and how.  Question if they’re going to match growth rates with competitors who have cash on hand to do expansions and potentially purchases of competitors.  In some cases, vendors have inability to raise much money, due to VCs passing up on the deal, due to issues, it’s key you track this.

Methodology and Scope

First, we developed a data set of vendors based on feedback from my initial vendor set who we hear about from clients, press, and VCs, as well as took in input from Altimeter’s research team. Then, I commissioned a researcher to conduct public research to collect all this data with sources and I vetted data content.

This research was conducted across 55 social vendors spanning 6 sub-categories including: Social Media Management Systems (like Sprinklr, Hootsuite, Buddy Media), Social Commerce (Bazaarvoice), Social Integration (Gigya, Janrain, Echo), 2 Gamfication (Badgeville, Bunchball), Community Platforms (Lithium), Listening (Radian6, Social Bakers). A majority of the sample set are SMMS vendors who are the most active funded at this time.  The time tables on these funding notes typically span 1-5 years, but there are records of some longer term vendors that were included that have been funded over 10 years ago.

This study does not include funding from consumer startups Facebook, Twitter, Groupon, Zynga who all leave these other vendors dwarfed with total funds amassed.  This is only a sample of 55 vendors out of 100s, the total sample size was intentionally limited vendors on my ‘coverage radar’.

I’d like to thank the following people for their assistance:  Jennifer Jones for her guidance on the VC landscape, Nadim Hossain (seasoned Social Business Exec), Blake Bartlett (Battery Ventures), Andrew Jones (Altimeter Researcher), Christine Tran (Altimeter Researcher), Julie A for data research.

Social Business Software Vendors Evaluated (55):

  • Actiance
  • AddThis
  • Alterian
  • Argyle Social
  • Arktan
  • Awareness Networks
  • Badgville
  • BazaarVoice
  • Buddy Media
  • BumeBox
  • Bunchball
  • Campalyst
  • Context Optional
  • Converseon
  • ConverSocial
  • CoTweet
  • Curata HiveFire
  • Dialog Solutions
  • Echo (
  • Engage Sciences
  • Expion
  • Extole
  • FALCON Social
  • FeedMagnet
  • Friend2Friend
  • Gigya
  • HearSay Social
  • Hootsuite
  • HYFN8
  • Janrain
  • Jive
  • Lithium
  • LiveFyre
  • Liveworld
  • Mass Relevance
  • Meltwater Buzz
  • Nielsen Buzzmetrics
  • Radian6
  • Shoutlet
  • Sociable Labs
  • Social Bakers
  • SocialVolt
  • Spredfast
  • Sprinklr
  • SproutSocial
  • Syncapse
  • Targeted Group
  • Telligent
  • ThisMoment
  • TigerLily
  • Tracx
  • UberVU
  • Vitrue
  • WildFire

Future Data Cuts I’ll explore:

Funding across category types, top VCs funding Social Business Space, profile of the top 5 Funded Social Business Software startups.   Please check out my full body of research to learn more about my coverage.

(Update: I discovered another material event after posting this, and have updated these numbers to correctly list 18% –prior was incorrectly listed at 16%, Jan 10, 2013)