Tomasz Tunguz Blog · 2015-07-26 · 3966d

Consumer Startups Command Disproportionate Share of Late-Stage Venture Funding

Consumer startups dominate megaround (>$40M) funding, capturing 50% of late-stage private investment dollars compared to only 30% in overall VC markets. This disparity stems from consumer company IPOs achieving 5x larger median market capitalizations ($2.5B) versus software companies ($400M), attracting aggressive investor pursuit of outsized returns.

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Metrics in this report

Airbnb Capital Raised

1.0$B

minimum

travel vertical megarounds (recent years)

Consumer IPO Median Market Cap

2.5$B

median

US VC-backed IT consumer IPOs since 2012 (8 companies, 3 years)

Consumer IPO Median Market Cap (Excluding Facebook)

2.2$B

median

US VC-backed IT consumer IPOs since 2012 excluding outliers

Consumer Megaround Capital Share

50%

proportion

megaround funding (>$40M)

Consumer Total VC Market Share

30%

proportion

total US venture investment market

Finance Megaround Capital Share

4%

proportion

megaround funding (>$40M)

Infrastructure Megaround Capital Share

7%

proportion

megaround funding (>$40M)

Logistics Sector 24-Month Megaround Capital

7.1$B

total

Uber, Lyft, Postmates, Shyp combined

Relative Capital Advantage (Consumer vs Software)

3x

multiplier

late-stage private vs total market allocation

Software IPO Median Market Cap

0.4$B

median

US VC-backed software IPOs since 2012 (32 companies, 3 years)

Software Megaround Capital Share

40%

proportion

megaround funding (>$40M)

Software Total VC Market Share

60%

proportion

total US venture investment market

Uber Capital Raised

6.1$B

total

24-month logistics sector funding