Seems I have come up with nothing insightful to say about Thursday’s market collapse. So, instead, I’ve redirected my efforts to the all-important task of inputting buzzwords into the Thomson Reuters venture funding database, hoping to find something insightful there.
Based on preliminary results, I’ve come up with this: Businesses that put the word “intelligence” in their business description are raising remarkable sums of venture capital.
Clearly, it must be the smart thing to do.
So far this year, 87 companies that describe their business as involving intelligence have raised $2.6 billion. That’s a major jump from the same period last year, when venture capitalists invested just $527 million in 89 companies with the term in their business descriptions.
What’s behind the momentum? Based on conversations with a few people in the analytics space, I’d put it down to the fact that we’re generating more data than ever, and desperately figuring out what do with it. With the rise of cloud infrastructure, we figured where to put it – in someone else’s data center. But with that, we’ve created the virtual world equivalent of having everything stuffed into some far-away storage locker, knowing someday we’ll actually have to sort through it.
Companies that help pick out the treasures from terabytes in storage are raising some serious capital.
For instance, Palo Alto, Calif.-based Palantir Technologies, a Founders Fund-backed developer of data analysis software that it sells to businesses and intelligence agencies, raised $50 million in a May round, according to an SEC filing. In the last five years, its raised $187 million.
More recently, Provo, Utah-based Domo, a business intelligence application provider founded by Josh James (former CEO of analytics provider Omniture, sold to Adobe for $1.8 billion), raised $33 million July from Benchmark Capital. And HubSpot, a service for marketers that includes lead intelligence and analytics, raised $32 million in a June round backed by Sequoia Capital, Google Ventures and Salesforce.com.
Of course, “intelligence” wasn’t the only business description buzzword popular among companies that raised venture capital funding this year. I also checked out the stats business
descriptions including “cloud,” “analytics,” “social media” and “game” with results in the slideshow below (Note: There was some overlap as many companies used several of the buzzwords in their descriptions):
[slide title=”Social Media”]
Companies with “social media” descriptions that raised VC this year: 75
Capital raised: $422 million
Notable deals: Social media marketing provider Buddy Media raised $54 million this month from backers including Bay Partners, GGV Capital, Insight Venture Partners and Institutional
Companies with “social media” descriptions that raised VC in the same period last year: 66
Capital raised: $488 million
Notable deals: Jive Software, a developer of social media applications for business, raised $30 million from Sequoia Capital and Kleiner Perkins Caufield & Byers.
Companies with “game” descriptions that raised VC this year: 78
Capital raised: $628 million
Notable deals: Berlin-based game developer Wooga raised $21 millin in a May round backed by Balderton Capital, Highland Capital Partners and Tenaya Capital.
Companies with “game” descriptions that raised VC in the same period last year: 74
Capital raised: $400 million
Notable deals: Raptr, developer of a ”social game discovery platform,” raised $15 million from backers including Accel Partners and Tenaya Capital.
Companies with “analytics” descriptions that raised VC this year: 138
Capital raised: $800 million
Notable deals: Marin Software, a provider of search management analytics and applications for advertisers, raised $16 million in a march round backed by Benchmark Capital, Crosslink Capital, Duff Ackerman & Goodrich and Focus Ventures.
Companies with “analytics” descriptions that raised VC in the same period last year: 133
Capital raised: $896 million
Notable deals: Host Analytics, a provider of corporate performance management software, raised $15 million last year from Advanced Technology Ventures, StarVest Partners and Trident Capital.
Companies with “cloud” descriptions that raised VC this year: 139
Capital raised: $1.1 billion
Notable deals: Box.net, the Palo Alto-based provider of online file storage and sharing services, raised $56 million in two funding rounds this year backed by Andreessen Horowitz, Draper Fisher Jurvetson, Emergence Capital Partners, Meritech Capital Partners, Scale Venture Partners and U.S. Venture Partners.
Companies with “cloud” descriptions that raised VC in the same period last year: 102
Capital raised: $636 million.
Notable deals: Cloud.com, a developer of cloud computing infrastructure and management software, raised $19.8 million last year from Index Ventures, Nexus Venture Partners and Redpoint Ventures. Citrix bought the company in July in a transaction reportedly valued at $200 million or more.
Companies with “intelligence” descriptions that raised VC this year: 87
Capital raised: $2.6 billion
Notable deals: Palo Alto-based Palantir Technologies, a developer of data analysis software that it sells to businesses and intelligence agencies, raised $50 million in a May round.
Companies with “intelligence” descriptions that raised VC in the same period last year: 89
Capital raised: $527 million
Notable deals: cVidya Networks, an Israeli developer of “revenue intelligence systems” for telecom and media customers, raised $10 million from backers including Battery Ventures and Carmel Ventures.