VENTURE CAPITAL MARKET REVIEW ISSUE III (July, 26 – August, 1, 2014)

The end of July on the world venture market became a period of big events: Google paid $1 billion for Twitch service, Apple prepares for the new round of fight with Amazon, web-retailer, in his turn, opens Indian market with $2 billion investments.Twitter continues shopping, and the most attractive startups are highly niche.

M&A. Google pays $1 billion for Twitch

Internet-giant Google announces a new buy: gamers video site Twitch costs $1 billion. Service allows to upload PlayStation and Xbox video for free. Gamers can start translation from their consoles by one-button click or by voice command.

Responsible for YouTube department plays the main role in this deal. By the way, Google bought YouTube for more than $1.5 billion in 2006. Since that deal, Twitch became the most expensive purchase for Google corporation.

Twitch boasts 50 million visitors and more than a million uploads per month. More than a half of all visitors spend more than 20 hours per week on the site. Twitch auditorium doubled during last two years.

M&A. Apple merged BookLamp startup

Apply acquired book recommendation service BookLamp. Startup is a recommendation service that uses special algorithm. Apple is believed to have paid between the $10 million and $15 million.

Idaho-based BookLamp is well-known for Book Genome book searching platform. It is able to extract few main topics that can characterize book, and give you advices what books are suitable or not suitable for you because of your preferences.

This algorithm can be used for book search in iBook software. That’s how Apple can compete Amazon with its X-Ray. Amazon’s service just mark some defined terms and symbols.

M&A. Twitter purchased Madbits startup

Micro-blog service Twitter announced ts new purchase: Madbits image search startup. Deal amount is undisclosed.

Image search technology was developed by two Facebook Al Lab ex-students: Clément Farabet and Louis-Alexandre Etezad-Heydari. As said, they succeeded to create the visual technology that understand, define and extract needed information form any data amount.

Twitter users upload great amount of graphics daily. At the same time, its really hard – sometimes, impossible – to find data needed. So new Twitter purchase will be a really glorious variant.

M&A. Palantir buys Poptip

Social startup and large data-company working with state agencies can be a strange couple, nevertheless Palantir buys Poptip. Details are undisclosed. Palantir management announced that startup will continue development of innovation products for commercial segment data analysis.

Poptip is about corporate Twitter communication improvement. Earlier startup released the software that allows companies to conduct a surveys through Facebook and Twitter. Among Poptip’s clients – more than 60 top brands, such as Budweiser, Spotify and L’Oreal.

Poptip was founded in New York in 2012. Its investors: Lerer Ventures, RSE Ventures, SoftBank Capital and angel David Tisch.

INVESTMENT. Amazon invests $2 billion into Indian e-commerce

One of the worlds’ online-retail leaders, Amazon announced its intention to invest funds into Indian business development due to great possibilities of local e-commerce market.

As Jeff Bezos said, Amazon considers India as a really great market, where company can expect sales amount of $1 billion in a short time. Earlier Amazon management didn’t kept silence about its plans. But on July, 29 biggest local competitor, Flipkart, announced the $1 billion attraction.

Competition on the Indian market is enhancing due to quick growth of segment. Experts consider market to grow to $23 billions in about four years.

Amazon started local resource one year ago and now sales more than 18 million goods: among it< electronics, clothing and books. Flipkart is the biggest Indian online-marketplace, company was founded by former Amazon employees in 2007.

INVESTMENT. Founders Fund will support scientific startups

Founders Fund is known for its support of entrepreneurs who have radical and unusual ideas, among them – Counsyl, Planet Labs, Hampton Creek and SpaceX. Last week fund announced its interest towards aeronautics, biotechnology and other high-tech spheres.

Founders Fund is not the first Silicon valley-based structure to invest into promising scientific startups. So, Atlas Venture sponsored biology and anatomy, Google Ventures recognizes life science as one of five directions of a highest priority.

STARTUP. Easy Taxi attracts $40 million funding

Phenomen Ventures fund hold an investment round for Easy Taxi startup, that succeed to attract $40 million. Second round participant was Tengelmann Ventures. Tengelmann Groups’ investition department.

Whole investment amount was $77 million. Rocket Internet accelerator announced that funds would be used for Easy Taxi promotion in developing countries. It is accelerator’s strategy – to market successful and promising startups where they have no competitors.

During 2014, Easy Taxi app included more than 150 thousand drivers into database. Nowadays common number is more than 185 thousand.

App was launched three years ago and today is available in 160 cities of 30 countries all over the world.

STARTUP. Vaizra Capital gave Coub $2.5 million

Moscow-based video creation service Coub announced attracting $2.5 million investment funds for Vaizra Capital – venture fund owned by former Vkontakte stakeholders Mirilashvili and Leviev.

The whole investment amount was $3.5: first million startup got from Phenomen Ventures and Venture bothers funds in 2013.

Attracted funds would be spend for the international expansion. Coub has already opened New York office and new employees has started negotiations with American editions, PR-activity and content management.

Coub reports about 50 million users monthly. Project team heads by Gladkoborodov bothers together with Mikhail Tabunov.

STARTUP. Lfe.SREDA invests $1.5 million in Settle startup

Ukrainian Advice Wallet team announce the attraction of $1.5 million for mobile payments service Settle from Life.SREDA venture fund.

Service will be chained to bank card, registration will be held through social network account. Service will help to pay the bills and to make orders. Also service allows to make p2p-transactions, look through menus, divide the bills and collect bonuses.

Business-model means commission for every transaction.

STARTUP. Tickets Cloud attracted RUR 4.5 million

Tickets Cloud, the platform for single ticket space organization for B2B-segment, announced the RUR 4.5 million (about $126 thousand) attraction from Moscow Seed Fund and Starta Capital Investment Company. Platform release is expected September. 2014.

Except them, IMI.VC Investment Company and business-angel Alexander Borodich participated.

STARTUP. PumpUp got $2.4 million investments

PumpUp company received $2.4 million investment funds to increase the team and to widen the users auditory. Funds also would be invested into applications development. Now PumpUp can bother about two million users.

Project is the social network where people share pictures related to sport and healthy lifestyle. 90% of all community members are women. Phil Jacobson, company co-founder, believes that community serves the vital purpose of healthy and positive lifestyle promotion.

Investment round was held by General Catalyst Partners jointly with Freycinet Investments, Azure Capital Partners and few business-angels. PumpUp company earlier attracted funds from Communitech HYPERDRIVE (February, 2013) and form few business-angels (September, 2013).

PumpUp application is available for gadgets under iOS and Android.

TECHNOLOGY. Proteus Digital Health gets $52 million

California-based Proteus Digital Health company developed the system that informs doctor if patient took medication and – also – report biometric data to physicians.

Tiny sensor patient swallows together wit pillows send all the information. Sensor is made from magnesium and copper that react and sent data to special sensor at the patient’s waist.

Data is sent to tablet or smartphone by Bluetooth connection, gadget send data to physician. Nowadays the test is provided by American and British doctors. Company doesn’t announce the release date.