Would you bet millions of dollars on the return of a corporate trip? It does not matter. Andreessen Horowitz, Addition and Elad Gil are anyway.
This week, the trio conducted a nine-figure funding round at TripActions, a software company that helps other companies book and manage corporate travel. But the news is (always) more than the number. I see the growth of TripActions as a signal to travel startups, which have been facing the brunt of the impact of the pandemic. We've heard the market is emerging again, but the fact that investors poured in a $ 5 billion rise adds another layer of conviction.
TripActions, like many travel startups, fired hundreds of employees at the start of the pandemic as the coronavirus froze business travel. It hasn't returned to pre-pandemic levels yet, but a company spokesperson said a more distributed working class could increase corporate travel. If you don't have to travel every day, maybe you don't mind taking a flight once a month.
Here's why this might be good news: Distributed work and corporate travel are not mutually exclusive categories. For founders in the remote workspace, this is a key leeway to consider as we wait for post-pandemic consumer behavior to be impacted. So often, founders claim their startup is remote or bankrupt, and while that might make for a good headline, it's clear everyone will come out of this period with a different mindset.
Read on as we discuss Plaid's new investment in early stage founders, the Israeli startup ecosystem, and telemedicine in two different ways. Also, here's your weekly reminder that you can find me @nmasc_and send me tips on early stage startup funding at [email protected]
Plaid takes notes from Y Combinator
Last week, I joked that the 'Plaid for X' startups will live on, even as the company ended its Visa merger plans for $ 5.3 billion. This week, Plaid announced an accelerator to power Plaid for startups X. You can't make this stuff up.
What do you need to know: Finrise, born as an idea in an internal hackathon last summer, will help three to five entrepreneurs with underrepresented backgrounds navigate by starting a fintech business. There is no capital involved, but there is Plaid mentoring, a bootcamp, and access to a network of investors.
Etc: It should come as no surprise that Plaid is building her own incubation program. Fintech as a sector is booming. The latest fintech data dive shows that unreleased fintech unicorns are now worth the all-time high. The "unicorn effect" is affecting the average ratings and size of the deal.
And in case other industries feel left out, VCs invested $ 428 million in U.S.-based startups every day in 2020.
Telemedicine enters a 'unique and high-growth period'
In our latest investor survey, eight healthcare-focused venture capitalists talked about the future of digital health.
What you need to know: Telemedicine is not only growing in demand, it is growing in definition. Investors have looked into the future of digital health financing, how the Biden administration will affect their portfolio companies, and how to balance opportunities with incentives in an emotional sector like this. Here's how Nan Li, CEO of Obvious Ventures, puts the opportunity into action:
[This is] absolutely not a blip! We are heading towards a unique and high-growth period in the healthcare industry where many aspects of the healthcare ecosystem are being rebuilt. From insurance underwriting, to disease-specific standards of care, clinical staffing patterns, to patient coordination and triage ... every aspect of healthcare is fair game for innovative companies to tackle. This is a drastic expansion from the days when healthcare technology was confined to "healthcare IT," the sale of software to hospitals and the increased focus on investment reflects this generational opportunity.
Etc: Another investor survey for you this week: 6 investors on 2021 mobile gaming trends and opportunities.
Speaking of public markets
Up, up and away is the only way to formulate the performance of the recent IPOs.
Here's what you need to know:Etc: Sign up for The Exchange, a weekly newsletter written by our IPO and public markets reporter Alex Wilhelm.
Around ProWellTech
The inimitable Drew Olanoff, one of the first authors of ProWellTech, joined the team to develop our community offering for our Extra Crunch subscribers. He's coming up with some exciting ways to help you connect with the TC team, the best founders in the industry, and decision makers at startups. If you have thoughts, annoy him!
Extra Crunch Live is making a comeback in a big way in 2021. We'll be interviewing VC / founder duos about how their Serie A offerings have fared, and Extra Crunch members will have a chance to get live feedback on their pitch deck. You can check our plans for ECL in 2021 right here or click this form to submit your submission. Episodes air every Wednesday at 3pm ET / 12pm PT starting in February.
For the whole week
On ProWellTechThe Israeli startup ecosystem is at the forefront in a year of change
Instacart is eliminating the jobs of unionized workers
Eight Roads Ventures Europe promotes Lucile Cornet as a partner
Alphabet closes Internet balloon company Loon
On Extra Crunch15 steps to raise funds for a new venture capital or private equity fund
How VCs in Asia and Europe invested in 2020
How and when to build marketing teams at deep tech companies
After a slew of media and VC stories this week, the Equity team had to weigh up the future of journalism now that A16z is launching its own publication. I won't reveal our footage, but the title should give you a hint.
Other topics we covered included a flurry of mobility news, a Nigerian edtech startup, and a GPS story that's far more fascinating than the 400 pages it takes to get to the final product.
Listen here and remember we also have a popular Monday morning schedule to get you ready for the week.
Okay, until next week!