Consumer Technology Trends 2022
Investing in happiness.
Europe’s consumer technology VC
2
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Credits
3 Credits
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While you’re here…
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Contents
5 Contents
1
Introduction
2
Categories
Stabilizing after the shock
Zooming in on major consumer categories
23
Web3
105
Mobility
37
Retail
116
Media
48
Food
126
Gaming
62
Finance
139
Health
75
Insurance
149
Education
84
Travel
94
Housing
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Introduction
6 Introduction
Consumer Technology Trends 2020
Recapping last year’s edition
2020 was a shock year, as the Covid19 pandemic forced all of us to experiment with new things. It will be remembered as a historical tailwind for consumer technology - a catalyst that pushed us across the “online adoption chasm”. The pandemic mostly accelerated pre-existing trends (rather than create new ones). These tailwinds, combined with unprecedented monetary conditions, pushed Tech valuations to new highs. Pockets of excess are visible (unlike in 1999), and the Internet is now the real deal - tech still has a lot of the economy left to eat! The world is currently in an ongoing secular phase of de-institutionalization visible at every layer of our societies and economies.
7 Introduction
Source: Heartcore
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One year later… Stabilizing after the shock.
8 Introduction
Yearly Growth Rate in Key Metrics*
“Online” kept growing, although more modestly.
350%
326%
300%
250% 207% 200%
150%
134% 99%
97%
100%
84%
68%
63%
50%
60%
54%
47%
38%
38%
0% Doordash
Shopify
HelloFresh
Peloton
Zoom
Roblox
Booking.com
-50% 2020
2021
-55%
-100%
Metrics: Doordash: GMV, $M Zoom: Revenues, $M
9 Introduction
Shopify: GMV, $ Roblox: DAUs, M
HelloFresh: Orders Peloton: Revenues, $M Booking Holdings: Revenues, $M
Source: Doordash, Shopify, HelloFResh, Peloton, Zoom, Roblox, Booking ; Analysis: Heartcore
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Covid19
A return to pre-Covid growth rates, from a much higher base.
10 Introduction
Source: Heartcore
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European employees preferences on work-from-home
Remote-work is proving to be a profound shift from the norm.
24% 46%
30%
3-5 days
1-2 days
Never
Percentage of European employees likely to switch jobs if work returns to full-on-site
26% 47%
27%
Likely and very likely
11 Introduction
Source: McKinsey
Neutral
Unlikely and very unlikely heartcore.com
Covid19 had several knock-on effects
12 Introduction
Suppliers' delivery times index a lower index reflects longer delivery times
A year of supply chain disruptions.
60
50
40
30
20
10
0 2007
2009
2011
2013 USA
13 Introduction
Source: HIS Markit
2015
2017
2019
2021
Europe
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Inflation Rate (%)
Inflation is at its highest level in 25 years…
6%
5%
4%
3%
2% Europe USA
1%
0%
-1%
-2%
-3% 2010
14 Introduction
Source: tradingeconomics.com
2012
2014
2016
2018
2020
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Global Venture Capital Funding ($ billions)
…creating the most favorable funding environment we’ve ever seen..
+93% YoY
800
700
671
600
500
+11%
CAGR
400 347
337.3 309.1 300
200
172
176
186
2014
2015
2016
203
100
0
15 Introduction
Source: KPMG Venture Pulse
2017
2018
2019
2020
2021
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…but also resulting in negative implications.
16 Introduction
Source: Financial Times, Sifted, CNN
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In other news…
17 Introduction
Private European Companies Valued Above $1BN
A new joined the European herd every 4 days in 2021!
160
140
+84 companies
120
2.2x YoY
100
80
60
40
20
0 2019
2020 Consumer
18 Introduction
Source: Crunchbase, analysis Heartcore
2021 Other
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Among VCs, Crypto was the theme of the year…
Global venture investment in cryptocurrency companies ($BN, excluding token investments) IN BILLION $ 30
25
20
3.6x YoY 15
10
5
0 2012
19 Introduction
Source: Pitchbook
2013
2014
2015
2016
2017
2018
2019
2020
2021
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…and even fully rebranded to Web3 in 2021.
20 Introduction
Source: Google Trends, Twitter
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Crypto finally became a consumer phenomenon.
21 Introduction
Source: Heartcore
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Annual change in digital ad pricing observed by Common Thread Collective e-commerce merchants in 2021
Apple’s changes to iOS 14 disrupted online advertising.
+150% +140%
+100%
+50% +40%
+0% Google
22 Introduction
Source: Common Thread Collective
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Crypto
Web 3
23
Crypto in 2020
Recapping last year’s edition
At the beginning of the pandemic, the digital assets market was not spared from the wider financial market bloodbath. Bitcoin dropped to $6,400 but was quick to recover. BTC & the rest of the market ended up performing extremely well in 2020, bringing new momentum to the industry. DeFi saw explosive growth (total value rose from $635M to +$40bn) with new and exciting projects emerging quickly, and a solid influx of new entrants in the market. The hype we saw in late 2020 around non-fungible tokens was a brief glimpse of what was to come in 2021. We were very excited by NFTs’ potential to redesign the value chains of various industries (i.e., art, gaming, and the creator economy. The industry was not yet predominantly referred to as “Web3” (our section last year was titled “Crypto”), since the non-financial/non-speculative applications were still relatively few in comparison to today.
24 Web3
Source: Heartcore
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Company
Key fundraising rounds.
25 Web3
Date
HQ
Description Fantasy football game where players can buy, trade, and play with NFT Financial company that builds payment infrastructure for crypto
$ (M)
Type
Investors
Sorare
Sep. 21
FR
MoonPay
Dec. 21
US
BlockFi
Jun. 21
US
Wealth management platform for crypto investors
FTX
Oct. 21
US
Cryptocurrency derivatives exchange
421 $
Series B
Sequoia, Temasek, Ontario Teachers Pension Plan
Celsius Network Oct. 21
US
Cryptocurrency earning and borrowing platform
400 $
Venture
WestCap, Caisse de dépôt et placement du Québec
Ledger
Jun. 21
FR
Hardware wallet for securing crypto assets
380 $
Series C 10T Holdings
BlockFi
Mar. 21
US
350 $
Series D Bain, DST, Pomp, Tiger
Dapper Labs
Apr. 21
CA
305 $
Venture Coatue
Blockchain.com Mar. 21
UK
300 $
Series C DST, Lightspeed, Vy
Bitpanda
Aug. 21
AT
Centralized crypto exchange
263 $
Series C
Dapper Labs
Apr. 21
CA
Maker of blockchain-based digital collectibles CryptoKitties and NBA Top Shot NFT
250 $
Series D Coatue, a16z, GV
Bitpanda
Mar. 21
AT
Centralized crypto exchange
170 $
Series B Valar, DST
Blockchain.com Feb. 21
UK
Provider of a variety of cryptocurrency services to retail and institutional clients
120 $
Venture
OpenSea
Jul. 21
US
Marketplace to collect and sell NFT
100 $
Series B a16z, Coatue
Braintrust
Dec. 21
US
Blockchain-powered freelancer marketplace
100 $
ICO
Coatue, Tiger
OneOf
Jun. 21
US
NFT platform for the music community
63 $
Seed
Sangha Capital, Tezos Foundation
Source: Heartcore Internal Tracker
Wealth management platform for crypto investors Maker of blockchain-based digital collectibles CryptoKitties and NBA Top Shot NFT Provider of a variety of cryptocurrency services to retail and institutional clients
680 $
Series B SoftBank, Atomico, Bessemer, D1
555 $
Series A Tiger
500 $
Series D Third Point, Hedosophia
Valar Ventures, Redo Ventures, LeaBlock, Jump Capital
Moore Strategic, Access Industries, Lightspeed, Lakestar, Eldridge, GV
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Key M&A transactions & IPOs.
26 Web3
Company
Date
HQ
Description
$ (M)
Acquirer
Coinbase
Apr. 21
US
Platform to buy and sell cryptocurrency
RTFKT
Dec. 21
US
Creators of virtual sneakers and collectibles
M&A
Nike
LedgerX
Oct. 21
US
Derivatives exchange platform
M&A
FTX
Source: Heartcore Internal Tracker
86,000 $
Type IPO
Investors Tiger,a16z, Greylock, Initialized Capital a16z, Shrug Capital, Galaxy Digital, GFR Fund, NaHCO3 Lightspeed, GV, Digital Finance Group, MIAX Exchange Group
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Web 3 • • • •
Web 2
Value Created
Web3: the blockchainbased “new era” of the Internet.
Web 1 • • • •
• Participative social web • Dynamic content • Monetization at the application layer
?
Users predominantly consumers of content Static pages No monetization mechanisms
1990
27 Web3
Flow of both information & value (natively) Composability Users as co-owners of networks
Source: Fabric Ventures, Chris Dixon
2025
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While Bitcoin has reached recognition, the Web3 story is only just starting.
1200
# (million) of internet users worldwide
1000
800
600
1M OpenSea Users
10M Metamask Users
+220M traders of crypto worldwide
400
200
75M Coinbase users 0 1992
28 Web3
1994
Source: OurWorldInData.org, DuneAnalytics
1996
1998
2000
2002
2004
2006
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Web3’s development is set to be exponential.
21000
Web3 monthly active developpers
18000 15000 12000 9000 6000 3000 0 Jan-14
Jan-15
Jan-16
Jan-17
Jan-18
Jan-19
Jan-20
Jan-21
Jan-22
Attractive environment for engineering talents
Composability & Open-Source ethos enabling rapid development cycles
29 Web3
Source: Electric Capital
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Alternative Layer 1 chains surged.
Alternative Layer 1 chain’s (L1s) TVL ($,bn) 30
20
10
0 2021 BSC ($15.4B)
30 Web3
Source: Kraken Intelligence, DeFi Llama
2022 SOL ($11 .33B)
LUNA ($18.45B)
AVAX ($11.73B)
FTM ($4.93B)
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$9
8,32bn
$8
Gross Merchandise Value
NFTs experienced astounding growth.
OpenSea & Etsy Quarterly GMV ($, Bn)
6,71bn
$7
$6
$5
3,8bn
$4
3,13bn
3,11bn
3,04bn
$3
$2
$1
0,38bn
0,25bn $0 Q1 21'
Q2 21' Etsy
31 Web3
Source: DuneAnalytics - @rchen8, Etsy Earning Reports, *Q4 21’ Etsy’s projected GMV
Q3 21'
Q4 21 '
OpenSea
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89,7M
100 90 80
Active Buyers
The other reality: a nascent market with a small buyer base.
OpenSea & Etsy Active Buyers (M)
70 60 50 40
1,02M
30 20 10 0 2021 Etsy
32 Web3
Source: DuneAnalytics, Etsy Earning Reports
OpenSea
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Timeline of companies entering the NFT space (2021)
Major brands and tech companies hopped on the bandwagon. JAN
33 Web3
FEB
Source: Activate Media Report
MAR
APR
MAY
JUNE
JULY
AUG
SEP
OCT
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Meanwhile, Web3 native communities are building IP from the ground up.
34 Web3
Source: SnoopDogg Twitter, BAYC Discord
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New financial primitives emerged, dubbed “DeFi 2.0”.
ETH DeFi TVL ($, M) DeFi 2.0
DeFi 1.0
200
160
120
80
40
0 09/20
35 Web3
Source: DeFillama
01/21
05/21
09/21
01/22
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DeFi 2.0’s core focus is to provide “liquidityas-a service”.
The Emerging Protocol Liquidity Spectrum
Liquidity Mining
Short Term Liquidity
36 Web3
Source: Tokemak Medium, Olympus Medium, Messari
Protocol Owned / Rental Liquidity
Long Term Liquidity
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Retail
37
Retail in 2020
Recapping last year’s edition
The pandemic accelerated e-commerce adoption in 2020, with mobile significantly increasing it’s share of digital commerce spending. Amazon continued to expand its market share of US digital transactions, deepening its monopoly on commodity ecommerce. Direct-to-consumer ecommerce sales slowed for the fifth consecutive time, showcasing the a clear chasm between utility and brand harbors. Livestreaming continued to gain popularity as a shopping medium, with China still leading the trend. The pandemic influenced the way consumers discovered and purchased products, turning it into a virtual, immersive experience with celebrities and influencers as curators.
38 Retail
Source: Heartcore
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Company
Key fundraising rounds.
HQ
Description Acquirer and operator of Amazon FBA businesses Platform buying up brands selling on Amazon and scaling them
$ (M)
Investors
Feb. 21
US
Berlin Brands Group
Sep. 21
DE
Heyday
Nov. 21
US
Platform acquiring, incubating & launching brands
550 $
Series C Raine, Premji, General
SellerX
Dec. 21
DE
Acquirer and operator of Amazon businesses
500 $
Series C Sofina, BlackRock
Vinted
May 21
EE
Second-hand clothes marketplace
303 $
Series F
LTK
Dec. 21
US
Creator-driven marketplace
300 $
Series D SoftBank
StockX
Jan. 21
US
Marketplace for sneakerheads
275 $
Series E Altimeter, Tiger
Elevate Brands Jul. 21
US
Acquirer and operator of Amazon FBA businesses
250 $
Venture FJ Labs, Novel TMT
Heroes
Sep. 21
UK
Acquirer and operator of Amazon SMBs
200 $
Mar. 21
FR
Second-hand luxury fashion marketplace
178 $
Series H Kering, Tiger
Sep. 21
FR
Second-hand luxury fashion marketplace
178 $
Series I SoftBank
Olsam Group
Sep. 21
UK
165 $
Series A Apeiron, Elevat3, North Wall
PatPat
Aug. 21
US
160 $
Series D SoftBank
Eobuwie
Jul. 21
PL
Footwear and accessories marketplace
130 $
Venture SoftBank
Razor Group
Nov. 21
DE
Acquirer and operator of e-commerce brands
125 $
Series B Fortress, 468, Presight
D1 Brands
Aug. 21
US
Amazon FBA sellers turned aggregators buying, building, and growing e-commerce brands
123 $
Series A
Otrium
Apr. 21
NL
Marketplace helping clothing brands sell end-of-season items
120 $
Series C BOND, Index, Eight Roads
Source: Heartcore Internal Tracker
Acquirer and operator of Amazon businesses and other D2C ecommerce brands E-commerce platform selling baby and matching family outfits
750 $
Type
Thrasio
Vestiaire Collective Vestiaire Collective
39 Retail
Date
700 $
Series D Advent, Oaktree PE
Debt
Bain Capital
EQT, Accel, Insight, Lightspeed, Burda Principal Investments
Crayhill Capital Management
CoVenture, Crossbeam, ID8 Investments
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Company
Key M&A transactions & IPOs.
40 Retail
Date
HQ
$ (M)
Type
Poshmark
Jan. 21
US
Marketplace for second-hand clothing
3,000 $
IPO
Rent the Runway
Oct. 21
US
E-commerce website allowing women to rent designer apparel and accessories
1,700 $
IPO
BarkBox
Jun. 21
US
Subscription-based e-commerce for dog lovers
1,600 $
IPO
Hims & Hers
Jan. 21
US
D2C products for skincare, erectile dysfunction, and hair loss
1,600 $
SPAC
The Honest Company
May. 21
US
Shopping platform offering baby, personal care, and beauty products
1,400 $
IPO
ThredUp
Feb. 21
US
Fashion resale marketplace enabling individuals to buy and sell clothing for women and children
1,300 $
IPO
Owlet Baby Care
Jul. 21
US
Baby health monitors maker
1,100 $
IPO
Topshop
Feb. 21
UK
Women’s fashion and new season trends brand
400 $
M&A
Winc
Nov. 21
US
Wine marketplace where wine drinkers can get wine recommendation according to their taste
171 $
IPO
Depop
June. 21
US
Mobile application for users to buy and discover new fashion
170 $
M&A
Etsy
Pricerunner
Nov. 21
US
Shopping comparison platform helping customers to judge between trending products and pricing
118 $
M&A
Klarna
Mall Group
Nov. 21
CZ
E-commerce platform across Central and Eastern Europe
M&A
Allegro
Essential
Feb. 21
US
Mobile and home devices maker
M&A
Nothing
Source: Heartcore Internal Tracker
Description
Acquirer
Investors Inventus, Mayfield, Uncork Bain Capital, Kleiner Perkins, Highland Capital Partners, TCV Lerer Hippeau, 500 Startups, Resolute Ventures Forerunner, Maverick, Thrive
Asos
General Catalyst, ICONIQ, Lightspeed, M13, Dragoneer Redpoint, trinity Ventures, Upfront Ventures, Highland Capital Ventures Eclipse Ventures, Eniac Ventures, RTP Arcadia Group, Leonard Green & Partners Bessemer, Amplify.LA, 500 Startups, Crosscut Ventures HV, Balderton, Creandum, Octopus Ventures, General Atlantic, Future Fifty Creades AB
Playground, Redpoint, Tencent heartcore.com
Peak lockdown, retail closures, unprecedented e-commerce adoption
40%
Reopening
30% 20% 10%
US
Jul-21
Nov-21
Mar-21
Nov-20
Jul-20
Mar-20
Jul-19
Nov-19
Mar-19
Jul-18
Nov-18
Nov-17
Mar-18
Jul-17
Mar-17
Jul-16
Nov-16
Mar-16
Jul-15
Nov-15
Mar-15
Nov-14
Jul-14
Mar-14
Jul-13
Nov-13
Mar-13
Jul-12
Nov-12
Nov-11
Mar-12
Jul-11
0% Mar-11
After a boost in 2020 and normalization in 2021, ecommerce is back to its old growth curve.
Ecommerce share of US and UK retail sales (in %)
UK
US ecommerce sales (in $B) Sept. 2021: $850B Sept. 2019: $556B
900
600
300
0 Mar-17
41 Retail
Sep-17
Mar-18
Sep-18
Source: US Census Bureau, ONS, The New Consumer, Ben Evans
Mar-19
Sep-19
Mar-20
Sep-20
Mar-21
Sep-21
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Capital raised by FBA aggregators (in $B)
FBA aggregators witnessed a big momentum.
12.50
10.00
7.50
5.00
2.50
0.00 01/2020
05/2020 Thras io
09/2020 Berlin Brands Group
01/2021 Perch
Heyday
05/2021 SellerX
09/2021
01/2022
Other Aggregators
Keith Rabois is building the Wayfair for all product categories
42 Retail
Source: Crunchbase, OpenStore , Heartcore analysis
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Shein App
Fast fashion’s aggressive protagonist.
Worldwide search interest 100 80 60 40 20 0 2004-01
2006-12
2009-11
2012-10 SheIn
43 Retail
Source: Google Trends, Ben Evans, CB Insights Note: Data as of Jan 2022
Zara
2015-09
2018-08
2021-07
H&M
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Transactions of secondhand fashion and family items in Europe
The continued rise of the circular economy.
Transaction value in €B
Share of target audiences in %
20
100%
18
90%
16
80%
14
70%
12
60% We are here
10
50%
8
40%
6
30%
4
20%
2
10%
0 2018
0% 2019
2020
Gen Zers
2021
2022
Millennials
2023
2024
Baby Boomers
2025
2018 2019 2020 2021 2022 2023 2024 2025 Gen Zers
Millennials
Baby Boomers
The following companies raised a combined value of $3.8B1:
44 Retail
Source: McKinsey, Crunchbase 1 Cumulative raise since inception of respective company.
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Closet share (in %) 100%
Welcome to the closet of the future.
3%
4% 4%
9%
90% 7% Rental (Rent the Runway)
4%
18%
11%
80%
Secondhand market share to grow by 9 points over the next 10 yers, more than any other sector.
5% Resale (Vinted, thredUP)
8%
70%
12% Amazon Fashion 60% 9%
Direct to Consumer (Ocean’s Apart, Allbirds)
Fast fashion market share to stay roughly flat over the next 10 years.
50% Fast Fashion (Zara, SheIn, H&M) 40% “Old school retailers”. Includes: department stores (Macy’s), midpreiced specialty (Gap), off-price (Primark) and other retailers (QVC)
84%
67% 30% 53% 20%
10%
Lack of differentiated offering in department stores vs. online channels causes the segment to diminish over time.
0% 2010
45 Retail
Source: ThredUp *Note: Analysis by ThredUp, category estimates might be biased.
2020
2030
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Purchase decisions need better recommendations and curation.
Curated is an e-commerce platform, leveraging category experts to assist shoppers with high-consideration purchases.
Wirecutter is a product review and recommendation platform, curated by an in-house editorial team.
$140M raised (Forerunner, Greylock)
Acquired by The New York Times in 2016 for €30M
Trustpilot is a free and independent review platform. $200M raised, pre-IPO (Northzone, Index)
46 Retail
Source: Crunchbase, Heartcore analysis
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Key trend: vertical specific platforms for the creator economy.
Explosion of the creator toolset
Upstream from e-commerce, the industry is changing dramatically. This will have an impact on the companies and brands that are launched over the next decade. Podcasters
Content & Newsletters
Design
Video Creators
Creator CRM
Real Estate Gaming
47 Retail
Source: Heartcore analysis
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Food
48
Food in 2020
Recapping last year’s edition
A former laggard of online adoption, Food was one of the categories most positively impacted by Covid19. The penetration of online groceries went up >3x (from a low base) across Europe and the US. Meal deliveries also had a strong year (c. 2x) as offline restaurants were forced to close during lockdown. We weren’t expecting to see a single winning model in online-grocery, but rather an “unbundling” of the offline supermarket model from the 1980s into a variety of online models based on demographics and use-cases. Covid19 unleashed large amounts of spare capacity from restaurant operators. Thus, we predicted that next big thing in meal delivery would be the launch of delivery brands that capitalize on that existing capacity and leverage culturally relevant IP. We were excited by the progress made in cellular agriculture, particularly the novel hybrid approach to lab-grown proteins (part plant-based, part cells). The main question here remains around timing…
49 Food
Source: Heartcore
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Company
Key fundraising rounds.
50 Food
Date
HQ
Description On-demand everyday essentials delivery platform On-demand everyday essentials delivery platform
$ (M)
Type
Investors
GoPuff
Dec. 21
US
GoPuff
Mar. 21
US
GoPuff
Aug. 21
US
On-demand everyday essentials delivery platform
Gorillas
Sep. 21
DE
On-demand and fast grocery delivery platform
810 $
Series C Delivery Hero, Coatue, DST
Flink
Dec. 21
DE
On-demand and fast grocery delivery platform
750 $
Series C DoorDash, Mubadala Capital
Picnic
Sep. 21
NL
Online supermarket
600 $
Series D Bill & Melinda Gates Foundation Trust
Getir
Jun. 21
TR
Grocery delivery app
550 $
Series D
Wolt
Jan. 21
FI
Food delivery platform
530 $
Series E ICONIQ
Impossible Foods
Dec. 21
US
Plant-based meat company
500 $
Series E Mirae
Glovo
Apr. 21
ES
On-demand delivery platform
450 $
Series F Lugard Road, Luxor
Nature’s Fynd
Jul. 21
US
Vegan protein startup
350 $
Series C SoftBank, Blackstone
Perfect Day
Oct. 21
US
Animal-free dairy producer
350 $
Series D
Weee!
Mar. 21
US
Online grocery delivery offering Hispanic and Asian food products
300 $
Series D DST, Blackstone, Tiger
Getir
Mar. 21
TR
On-demand food and essentials delivery company
300 $
Series C Sequoia, Tiger
Bowery Farming
Jun. 21
US
Vertical farming copany
300 $
Series C Norwest, Blackstone, Breyer
Gorillas
Mar. 21
DE
On-demand and fast grocery delivery platform
290 $
Series B Coatue, DST, Tencent
Instacart
Mar. 21
US
Grocery delivery platform
265 €
Venture a16z, Sequoia, D1 Capital
Source: Heartcore Internal Tracker
1,500 $
Series H Guggenheim Partners
1,100 $
Series G D1
1,000 $
Series H
Guggenheim Investments, Blackstone, Hedosophia, Adage
Tiger, Sequoia, Silver Lake, DisruptAD, Mubadala
Temasek, Canada Pension Plan, Horizons Ventures
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Key M&A transactions & IPOs.
51 Food
Company
Date
HQ
Description
$ (M)
Type
Acquirer
Investors Tiger, DST, 83North, EQT Ventures, ICONIQ, Coatue
Wolt
Nov. 21
FI
Food delivery platform
8,100 $
M&A
DoorDash
The Bountiful
May 21
US
Vitamin and supplement seller
5,750 $
M&A
Nestle
BodyArmour
Nov. 21
US
Sport drink seller
5,600 $
M&A
Drizly
Feb. 21
US
Wine and liquor delivery platform
1,100 $
M&A
Vivera
Apr. 21
NL
Plant-based meat company
408 $
M&A
JBS
Hu Kitchen
Jan. 21
UK
Paleo-inspired, low processed food restaurants
361 $
M&A
Mondelez
Delivery Hero
Jun. 21
DE
Wine and liquor retail chain
170 $
M&A
Glovo
Lola Market
Sep. 21
ES
Traditional food delivery platform
M&A
Glovo
Mercadao
Sep. 21
PT
Fast grocery delivery marketplace
M&A
Glovo
Source: Heartcore Internal Tracker
Dr Pepper Snapple Coca-Cola Group, The CocaCola Company Tiger, FJ Labs, Polaris Partners, Avenir Uber Growth Capital
Mondelez, Bullish, Sonoma Brands Insight Venture Partners, Point Nine Capital, Luxor Capital Group
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Grocery Online Penetration in Select Countries (%)
The penetration of online groceries stabilized.
14.00%
12% 12.00%
11.50% 10.20%
10.00%
9.90%
8.00% 6.50% 6.00% 4.30% 4.00%
2.00%
0.00% UK
US 2019
52 Food
Source: Earnest Research, ONS
2020
2021
heartcore.com
Quickcommerce was quick to consolidate.
Five companies seem to have distinguished themselves by their amounts of funding IN MILLION $ 4,000
$3,600M
3,500 3,000 2,500 2,000 1,500
$1,100M
1,000 500
$1,100M
$750M $430M
0
+
+
+
Heartcore portfolio
53 Food
Source: Heartcore, Crunchbase
heartcore.com
Retailers and delivery platforms are moving to quick-commerce.
Quick-commerce
low/mid throughput + low/mid gross margins
+
+
Grocer
Delivery platform
high gross margin
high gross margin
Partnerships established in 2021
54 Food
Source: Heartcore
+
+
+
+
+
+
heartcore.com
Unbundling continues with a few segments picking up momentum.
55 Food
Full-stack online grocers
Food-waste grocers
Ethnic grocers
$600M (Bill & Melinda Gates)
$225M (Accel, SoftBank)
$225M (Accel, SoftBank)
$119M (Index, Partech, Quadrille Capital)
$110M (Insight, Norwest Venture Partners)
$6M (FJ Labs, Picus Capital, M13, Firstminute)
$223M (Kinnevik AB, SoftBank, Prosus Ventures)
$43M (Accel, Octopus Ventures, VNV Global)
$15.5M (Creandum, Project A Ventures, Force Ventures)
Source: Heartcore, Crunchbase
heartcore.com
We think that the next 5 years will consist of a universal “roll out” of existing online grocery models in most markets, followed by a “refinement” of these products.
56 Food
Delivery Platforms
Say hello to digital restaurant franchises!
Asset-light, high-margin and strong network effects. Have created tremendous value over the past 10 years but are now reaching maturity (focus on profitability, expanding into e.g., groceries)
Heartcore portfolio
Digital Restaurant Franchises Franchise restaurant brands, purpose-built Tech and supply chain to kitchen operators. Asset-light, highmargin businesses with strong economies of scale and network effects.
Kitchen Operators
Operate kitchens (real estate and staff). Become franchisees of digital restaurant franchises. Asset-heavy, lower-margin business.
57 Food
Source: Heartcore
heartcore.com
2021 was a huge year for cellular agriculture… Meat
$267M
Dairy
$345M
$350M
Other
$34350
$6M
Heartcore portfolio
$85M
58 Food
Source: Heartcore, Crunchbase
$15M
$120M
$42M
heartcore.com
…and 2022 could be even bigger - thanks to regulation.
59 Food
Bloomberg’s Tasting of Gourmey’s cultivated foie-gras
Source: Bloomberg, The Good Food Institute, Businessweek
heartcore.com
Costs are collapsing & efficiency is increasing fast.
An illustration: Gourmey’s KPIs (redacted)
Concentration of the most expensive input (high correlation with COGS)
Yield
20x
increase in 2y
2019
60 Food
Source: Gourmey, Heartcore
2020
0%
2021
2022
2023
heartcore.com
This is due to a technological paradigm shift.
2010’s
2020’s
Primary cells (taken directly from tissue through biopsies)
Pluripotent stem cells (have the capacity to self-renew and turn into any cell type)
x No use of food science Use of food science (to recreate flavors and textures)
100% cell-based
Hybrid approach
Cheaper, faster, more versatile and tastier 61 Food
Source: Heartcore
heartcore.com
Finance
62
Recapping last year’s edition
Finance in 2020 The crowd went up against Wall Street, with unprecedented growth for neobrokers and explosive growth for social investing. Robinhood saw unprecedented growth, the “meme”-stock was born, we went through a SPAC frenzy like never before and valuations went through the roof as everyone became an equity trader. 2020 was a banner year for neobanks. Vast funding rounds were motivated by strong growth, and user counts are now larger than many of the old incumbents. The one thing missing is profitability; that path was deemed unclear as financial “supermarkets” were created without offering the most profitable product lines of traditional banking.
63 Finance
Source: Heartcore
Company Robinhood
Key fundraising rounds.
64 Finance
Date
HQ
Description Consumer stock brokerage to buy and sell US stocks, options, and ETFs Mobile broker providing investments opportunities
$ (M) 3,400 $
Type
Investors
Venture/ Ribbit, Sequoia, a16z, NEA, Index, Debt ICONIQ Sequoia, Accel, Creandum, Thrive Series C Capital, TCV, Founders Fund
Feb. 21
US
Trade Republic May. 21
DE
N26
Oct. 21
DE
Mobile banking solution provider
900 $
Series E Third Point, Coatue, Dragoneer
Revolut
Jul. 21
UK
Mobile banking solution provider
800 $
Series E SoftBank, Tiger
Mollie
Jun. 21
NL
Payment service provider
800 $
Chime
Aug. 21
US
Challenger bank with no minimum balance, monthly fees, or overdraft fees
750 $
Klarna
Jun. 21
SE
E-commerce payment solutions platform
639 $
Varo Bank
Sep. 21
US
Mobile banking solution provider
510 $
Better.com
Apr. 21
UK
Online mortgage originator company
500 $
Monzo
Dec. 21
UK
Digital-only bank platform and marketplace
500 $
Starling Bank
Mar. 21
UK
Zopa
Oct. 21
UK
TradingView
Oct.21
US
Zepz
Sep. 21
Upgrade
900 $
Blackstone Growth, EQT Growth, Series C General Atlantic, Alkeon Capital, HMI Capital, TCV Sequoia, SoftBank, General Atlantic, Series G Tiger, Dragoneer SoftBank, Adit Ventures, Honeycomb Venture Asset Management, WeastCap Group Lone Pine, Declaration Capital, Series E Eldridge, Berkshire, BlackRock PE
SoftBank
Coatue, Alpha Wave Ventures, the Abu Dhabi Growth Fund Fidelity, Qatar Investment Authority, Series D RPMI Series H
Mobile banking platform offering personal, joint and business accounts Provider of peer-to-peer loans and other financial services Provider of charts, tools and social networking for investors
300 $
Pre-IPO SoftBank, Chimera, IAG
298 $
Series C Tiger
UK
Money transfer service
292 $
Series E Farallon Capital, Leapfrog, TCV
Nov. 21
US
Provider of credit and mobile banking
280 $
Series F Coatue, DST
Greenlight
May 21
US
Credit card provider for children
260 $
Series D a16z, TTV Canapi, Wells Fargo, BOND
Public.com
Feb. 21
US
Investing platform to build a portfolio of stocks, ETFs, and crypto
220 $
Series D Accel, Greycroft, Lakestar
Source: Heartcore Internal Tracker
376 $
heartcore.com
Company
Key M&A transactions & IPOs.
65 Finance
Date
HQ
Description
$ (M)
Type
Toast
Sep. 21
US
Restaurant management platform including 17,50 $ payment solutions 0
IPO
Remitly
Sep. 21
US
Mobile payment service to make money transfers
6,900 $
IPO
EngageSmart
Sep. 21
US
Customer engagement and payment software company
4,200 $
IPO
Acquirer
Bessemer, Tiger, Greenoaks, American Express Ventures, TPG, Durable Capital Partners Visa, PayU, Stripes, Generation Investment Management, Threshold, QED Investors General Atlantic, Summit Partners
Blend
Jul. 21
US
Digital lending platform for mortgages, consumer loans, and deposit accounts
4,000 $
IPO
Robinhood
Jul. 21
US
Consumer stock brokerage to buy and sell US stocks, options, and ETFs
3,200 $
IPO
EngageSmart
Sep. 21
US
Customer engagement and payment software company
4,200 $
IPO
Blend
Jul. 21
US
Digital lending platform for mortgages, consumer loans, and deposit accounts
4,000 $
IPO
Robinhood
Jul. 21
US
Consumer stock brokerage to buy and sell US stocks, options, and ETFs
3,200 $
IPO
CurrencyCloud Jul. 21
UK
Cloud-based platform for B2B cross-border payments
963 $
M&A
Visa
Invoice2go
Jul. 21
US
Payment services provider for freelancers and SMBs
625 $
M&A
Bill.com
MineralTree
Oct. 21
US
Online account payable automation software for finance professionals
500 $
M&A
LendInvest
Jul. 21
UK
Marketplace platform for property finance
353 $
IPO
Source: Heartcore Internal Tracker
Investors
Coatue, Tiger, General Atlantic, Canapi Ventures, Greylock, Founders Fund, 8VC, Emergence Ribbit, Sequoia, a16z, NEA, Index, ICONIQ, Salesforce Ventures General Atlantic, Summit Partners Coatue, Tiger, General Atlantic, Canapi Ventures, Greylock, Founders Fund, 8VC, Emergence Ribbit, Sequoia, a16z, NEA, Index, ICONIQ, Salesforce Ventures Visa, Anthemis, Sapphire, Xange, Notion Capital, Atlas Venture, GV Accel, OCV, Ribbit
Eight Road Partners, Global Great Hill Partners, .406 Payments Ventures, First Data Atomico, GP Bullhound, Future Fifty, JP Morgan, HSBC Bank heartcore.com
Acquirers, Payments, Processors, and Networks have outperformed the S&P 500 in TSR since 2011
The payments industry is an outperforming giant.
Average annual TSR June 2011 – June 2021 (%)
TSR index: June 2011 = 100
1200
26 Acquirers and
payments processors
900
25 Networks 20 Overall
payments
600
15 S&P 500 13 Issuers
300
11 Bank Index June 2011
June 2011
June 2011
June 2011
June 2011
June 2011
June 2011
June 2011
June 2011
June 2011
June 2011
Selection of VC-backed payments champions Heartcore portfolio
66 Finance
Source: S&P Capital I; BCG Value Science Center; BCG analysis - Boston Consulting Group Note: Total shareholder return (TSR), share prices and market capitalization are as of June 2021
heartcore.com
Companies dedicated to payments are cropping up in every vertical.
67 Finance
Restaurants
Salary
Crypto
Other
heartcore.com
BNPL share of ecommerce payments mix by country (2020)
We are nowhere near maturity for BNPL.
25% 23%
20%
19%
15% 15% 12%
10%
9% 8% 7% 5%
5%
4% 2%
2%
2% 1%
68 Finance
Source: WorldPay Global Payments Report
nd Ire la
in Sp a
an d Po l
y Ita l
Fr an ce
UK
Be lg iu m
k De nm ar
Ne th er la nd s
la nd Fin
ay No rw
an y G er m
Sw
ed en
0%
heartcore.com
Why would you invest in stocks if you can own a piece of Enigma? Nascent asset classes are being created by startups
69 Finance
Collectibles
Fine Art
Music Royalties
Football Cards
Raised: $109m (Accel, Upfront, Social Leverage)
Raised: $110m (Left Lane Capital, Galaxy Interactive)
Raised: $71m (Founders Fund, Paradigm, a16z)
Raised: $739m (Benchmark, SoftBank, Accel)
Source: Company websites, Crunchbase
heartcore.com
Business model innovation is needed as PFOF is being challenged.
Watchdogs in the EU and the US are clamping down on PFOF. The practice was banned in the UK in 2012
Dependence on PFOF varies between trading platforms (%-share of total revenue)
79% 70 Finance
50%
3%
Sources: Net Interest, ESMA, Reuters, Company filings, Bloomberg, David The Rubenstein Show
0% heartcore.com
S&P SPAC Index underperformed all benchmarks in 2021 (indexed, %-change)
SPACtacular returns were nowhere to be seen.
140
130
120
110
100
90
80
70
60 2021/01 S&P 500 Top 50
+25.44%
71 Finance
Source: S&P Global
2021/04 S&P 500 Growth
+23.70%
2021/07 S&P SPAC Index (USD)
-3.47%
2021/10 S&P 500 Value
+20.35%
2022/01 S&P 500
+22.29%
heartcore.com
European and US neobanks had another year of big raises in 2021 ($m)… 1000
US & European neobanks had another banner year…
900
900
800
800
750
700 600
510
500
475 376
400 300
210
200
193
100 0
… Creating a herd in which unicorns are no longer that rare ($bn valuation) 35
33
30 25 25 20 15 10 5
9 4.5
2.5
1.9
1.9
1
0
72 Finance
Sources: TechCrunch, Forbes, Crunchbase
heartcore.com
…with even bigger prizes in sight as emerging markets leapfrog into neobanking.
HQ
Year Founded
Funding & Last Valuation
Selected Investors
2013
Total funding: $2.3bn Valuation: $38bn
Sequoia, Berkshire Hathaway, Goldman Sachs, DST Global, TCV
2016
Total funding: $129.5m Valuation: $14.5bn
Goldman Sachs, Horizon Capital, Baring Vostok Capital Partners
2019
Total funding: $91.5m Valuation: $550m
Valar Ventures, Target Global, Entrée Capital
Neobanks in emerging markets have amassed customers like no one else (m users) 50
48
Emerging
40
EU/UK 30 18
20
18
7
10
5
3
1
Starling
Kuda
0 Nubank
73 Finance
Tinkoff
Revolut
Source: Crunchbase, Valuation as of January 14th 2021, company filings
N26
Monzo
heartcore.com
The next frontier of neobanks are striving for financial inclusion.
Heartcore portfolio
Migrants Raised: $46m (Valar, Heartcore, Avid)
Raised: $55m (DST, Accel, Lightspeed India)
Family / Youth
Creators & Freelancers
74 Finance
Raised: $3.1m (Bessemer, Point72 Ventures)
Source: Company websites, Crunchbase
Raised: $557m (Bond, a16z, Owl)
Raised: $402m (a16z, Tiger, QED Investors)
Raised: $21m (Fintech Collective, EQT Ventures)
Raised: $46m (CRV, USV, Coatue)
Raised: $191m (General Catalyst, Stripe, Coatue)
Raised: $80m (Target Global, Foundation Capital)
Raised: $6.1m (EQT Ventures, 468 Ventures)
Raised: $8m (Discovery Ventures, Addition)
heartcore.com
Insurance
75
Insurance in 2020
Recapping last year’s edition
2020 was the year when investors fully started appreciating the vast opportunity of disrupting the insurance industry. A market worth $2.8 trillion in Europe and the US alone with <10% online penetration, and on the podium for the worst NPS of any industry (-11). Valuation multiples rose to stratospheric levels with Lemonade trading at >80x sales, way in excess of other tech darlings at the time. Insurance had proven to be a tough nut to crack. Most models had to reinvent themselves from initial attempts as their unit economics were against them from the start. Two business models dominated the startup scene in insurance: the monoliners and the bundlers. Insurance distribution followed in the footsteps of finance as embedded insurance gained increased traction.
76 Insurance
Source: Heartcore
heartcore.com
Company
Key fundraising rounds.
77 Insurance
Date
HQ
Description
$ (M)
Type
Investors
Wefox
Jun. 21
DE
Digital insurance company
650 $
Series C Target, OMERS, G Squared
Clearcover
Apr. 21
US
Affordable car insurance company
200 $
Series D Eldridge, American Family, OMERS
Ethos
May 21
US
Life insurance provider
200 $
Series D General Catalyst, Sequoia, Accel, GV
The Zebra
Apr. 21
US
Insurance comparison marketplace
150 $
Series D Weatherford, Accel
Oscar Health
Jan. 21
US
Health insurance company
140 $
Series I
Sidecar Health Jan. 21
US
Personalized health insurance platform
125 $
Series C Drive, Menlo, BOND, Tiger
Leocare
Dec. 21
FR
Multi-equipment contract insurer
110 $
Series B Eight
Ethos
Jul. 21
US
Life insurance provider
100 $
Series D SoftBank
Insurify
Sep. 21
US
Insurance comparison platform
100 $
Series B Motive Partners
Ladder
Oct. 21
US
Life insurance company
100 $
Series D Thomvest, OMERS
Marshmallow
Sep. 21
UK
Full-stack car insurance carrier
85 $
Series B Passion, Investec, SCOR
Jerry
Aug. 21
US
Car insurance comparison company
75 $
Series C
Bestow
Jan. 21
US
Affordable life insurance provider
70 $
Series C Breyer, Valar, NEA
YuLife
Jul. 21
UK
Gamified life insurance company
70 $
Series B Target Global, Eurazeo, Latitude
CLARK
Jan. 21
DE
Insurance platform
69 $
Series C Tencent, White Star
Kin
May 21
US
DTC home insurance company
64 $
Senator Investment Group, Hudson, Series C University of Chicago, Allegis NL Capital
Get Safe
Oct. 21
DE
Digital insurance provider
63 $
Series B EarlyBird, Abacon Capital
Source: Heartcore Internal Tracker
Dragoneer, Baillie Gifford, Coatue, Founders Fund, Khosla, Lakestar, Tiger
Goodwater, Bow Capital, Kamerra, Highland, Park West Asset,
heartcore.com
Key M&A transactions & IPOs.
Company
HQ
Description
$ (M)
7,900
Type
Acquirer
Investors Coatue, Lakestar, Tiger, General Catalyst, Founders Fund, Khosla, Fidelity
Oscar Health
Mar. 21
US
Health insurance company offering individual and family plans, medicare advantages, and small group products
Allstate
Jan. 21
US
Multi-product insurance company
2,800
$
M&A
Metromile
Oct. 21
US
Pay-per-mile auto insurance provider
500
$
M&A
NEA, Index, Social Capital, G Squared
Hippo Insurance
Aug. 21
US
Homeowner insurance company
SPAC
Ribbit Capital, Dragoneer, Lennar Ventures, ICONIQ
SPAC
Flourish Ventures, Commerce Ventures, Senator Investment Group
Kin
78 Insurance
Date
Jul. 21
US
Source: Heartcore Internal Tracker
Homeowner insurance company
IPO
Blackstone
heartcore.com
180% 160% 140% 120% 100% 80% 60% 40% 20%
Metromile
Root
Lemonade
Hippo
Oscar Health
Goosehead
1 04 /1 2/ 20 2
20 21 04 /1 1/
04 /1 0/ 20 21
04 /0 9/ 20 21
20 21 04 /0 8/
04 /0 6/ 20 21 04 /0 7/ 20 21
04 /0 4/ 20 21 04 /0 5/ 20 21
04 /0 2/ 20 21 04 /0 3/ 20 21
0% 04 /0 1/ 20 21
Reality called. 2021 offered sharp resets in valuations for the high-fliers…
U.S. Neoinsurers underperformed the S&P 500 Index in 2021 (%-change)
SP500 Index
Multiples compressed dramatically between 2021 highs and January 2022 90x
84x
60x
46x 37x
30x
21x
18x
12x 3x
2x
6x
1x
0x
79 Insurance
Source: Google Finance, company filings, Koyfin Note(s): Share price data for 21/1/1 – 22/1/1; MCAP/Sales multiples (x, LTM) from 2021 high and 2022/1/9
heartcore.com
Average CAC shot up for Lemonade y/y (in US$)
Will it ever work beyond initial go-to-market audiences?
300
291
+45%
250 196
200 150 100 50 0
CAC first 9 months 2020
CAC first 9 months 2021
While loss ratios imply lesser quality customers 2020 91.3%
100% 81.6% 80% 60%
2021
79.6%
72.0%
77.0%
56.7%
40% 20% 0%
80 Insurance
Source: Company filings Note(s): Quarterly CAC has been triangulated using marketing spend over new inflow of customers. Directionally correct estimate.
heartcore.com
The opportunity remains huge despite the recent sell-off.
$2,800B
<10%
-11
Market in EU/UK +US (Life & Non-Life)
Online penetration in Europe
Industry NPS in Europe (second worst category before car rentals..)
80% Recurring revenues
81 Insurance
Source: Statista, Lumoa, Heartcore
Avg. yearly premium retention
heartcore.com
It’s easier being a monoliner in the U.S. than Europe.
Annual premiums for single services in US and Europe (US$)
$2,400-4,00
$1,500-1,700
$760-850
$160-220 Heartcore portfolio
82 Insurance
Source: Company websites, Heartcore research Note: Premiums derived comparable person in the US and Europe
heartcore.com
It used to be about cars and homes, but now it’s about life and death.
“Online life insurance” searches in the USA
100 90 80 70 60 50 40 30 20 10 0 1/5/20
4/5/20
Founded: 2016 Total funding: $406m 2021 funding: $300m Investors: Sequoia, General Catalyst, SoftBank
83 Insurance
7/5/20
10/5/20
Founded: 2015 Total funding: $194m 2021 funding: $100m Investors: OMERS, Lightspeed Venture Partners, Canaan Partners
Source: Crunchbase data, news articles, Google Trends
1/5/21
4/5/21
Founded: 2016 Total funding: $137.5m 2021 funding: $70m Investors: Valar Ventures, NEA, Core Innovation Capital
7/5/21
10/5/21
1/5/22
Founded: 2016 Total funding: $87m 2021 funding: $70m Investors: Target Global, Creandum, Latitude, Eurazeo
heartcore.com
Travel
84 Travel
Recapping last year’s edition
Travel in 2020 The travel sector took the hardest hit from the pandemic, suffering a net loss of 900m international arrivals in 2020. We expected a strong increase in travel once restrictions were lifted as a result of pent-up demand, which has only partially held true for the year of 2021. A megatrend manifested itself during the pandemic: outdoor and adventure trave exploded, with VC money pouring into RV rental marketplaces and campsite booking services. Airbnb's IPO was big news for travel in 2020, and we predicted that the company is on track to become a full-fledged OTA.
85 Travel
Source: Heartcore
heartcore.com
Key fundraising rounds.
86 Travel
Company
Date
HQ
Description
Type
Investors
TripAdvisor
Mar. 21
US
TravelPerk
Apr. 21
ES
AllTrails
Dec. 21
US
Peek
Jan. 21
US
Travel and tourism booking marketplace
80 $
GetYourGuide Feb. 21
US
Online platform for booking tours, attractions, and activities worldwide
80 $
Hipcamp
Jan. 21
US
Platform for booking campsites
57 $
Series C BOND, Index
Holidu
May 21
DE
Vacation booking platform
45 $
Series D 83North, Prime Ventures, EQT
Getaway
Feb 21
US
Cabins in rustic locations rental platform
42 $
Series C Certares
Exoticca
Aug. 21
ES
Multi-day package tours specialist
30 €
Series C Mangrove, Aldea
Roadsurfer
Jul. 21
DE
Camper rental platform
28 $
Series B HV, Heartcore
Cabana
Jul. 21
US
Platform to book trips and vans
10 $
Series A Craft, Goldcrest
Surfa
Dec. 21
US
Platform to find a trip advisor a book trips
Source: Heartcore Internal Tracker
Travel guidance platform
$
Travel platform providing travels and expense management services for business travelers Mobile application for people to explore the outdoors with hand-curated trail maps, reviews and, user recordings
300 $
Post-IPO TCV
160 $
Greyhound Capital, Target, Series D LocalGlobe, Heartcore, DST, Felix, Kinnevik AB, Spark Capital, 14W
150 $
5$
PE
Permira
Series C WestCap, Goldman Sachs Debt
Seed
UnitCredit Group
Forerunner, Heartcore
heartcore.com
Key M&A transactions & IPOs.
87 Travel
Company
Date
HQ
Description
$ (M)
Type
Acquirer
Investors
Journy
May 21
US
Travel planning service that pairs traveler with a trip designer
M&A
Hopper
Menlo, Pear VC, Techstars, Caviar, Resolute Ventures
Inspirock
Oct. 21
US
Mobile application providing day-to-day plan of activities at various destinations on the user’s personalized itineraries
M&A
Klarna
MakeMyTrip.com
PlacePass
Oct. 21
US
Digital marketplace helping travelers find, compare, and book activities
M&A
Mapify
Jun. 21
DE
Social marketplace connecting travelers
M&A
Weekend.com Jan. 21
DE
Travel application for weekend getaway
M&A
Source: Heartcore Internal Tracker
Marriott International, Wilson Sonsini Goodrich & Rosati Haus Capital, HomeToGo MairDumont Ventures Hopper
trivago
Travelzoo, Vilauma
heartcore.com
Global performance of the travel industry across different travel segments (skift index)
Cautiously optimistic and creeping back to normal…
120
100
80
60
40
20
0 Jan-20
Apr-20
Jul-20
Macroeconomics
88 Travel
Source: Skift
Oct-20 Traveler Activity
Jan-21 Lodging
Apr-21 Flight
Jul-21
Oct-21
Car Rental
heartcore.com
Outbound departures from Europe & CCA (in million trips)
2022: pent up demand is set to drive a strong H2.
900
600
741
768 692
300 521
305 245
234
2020
2021
0 2018
2019
Skift recovery assumption
89 Travel
Source: Skift, Heartcore Analysis
2022
2023
2024
Heartcore estimate
heartcore.com
Great opportunities are created through adversity.
Heartcore portfolio
Founded Total amount raised
Highlight
90 Travel
Source: Crunchbase, Skift
2008
2009
2009
$5.9B (pre-IPO)
$890M
$835M
Largest tours and activities marketplace in the world
Largest vacation rental company in the US
Most valuable travel company in the world
heartcore.com
Domestic vs. International travel spending 2020 vs. 2021
The bridge to recovery: domestic travel sees continuous demand.
+43%
+30%
+19%
+49%
+16%
-25%
+40% +26%
+38% +4%
Domestic spend
91 Travel
Source: WTTC
International spend
heartcore.com
Outdoor travel emerges as a strong trend from COVID tailwinds.
“Hiking Boots” Google search volume in the U.S.
100 90 80 70 60 50 40 30 20 10 0 2004-01
92 Travel
Source: Google Trends
2007-01
2010-01
2013-01
2016-01
2019-01
2022-01
heartcore.com
Travel intermediation is on the rise and travel agents are making a comeback.
New conception of travel agencies and intermediaries
Origin provides personalized, end-to-end travel experiences. Inspiration, planning, and booking in one place.
Thatch’s mobile app enables travel creators to curate, share and sell travel guides and planning services.
$5M total raised (Project A, Cavalry)
$5M total raised
Heartcore portfolio
Fora is “Compass for travel agents” - a business-in-a-box that allows any knowledgeable, well-traveled person to become a travel agent. $5M total raised (Forerunner, Heartcore)
93 Travel
Source: Crunchbase, Heartcore Analysis
Easol provides software for travel merchants, a “Shopify” for travel experiences. Opens up direct bookings for even the smallest operators. $30M raised (Notion, Tiger)
heartcore.com
Housing
94
Housing in 2020
Recapping last year’s edition
This was a year that saw large amounts of capital being pumped into companies that democratize homeownership - either by helping first-time buyers break into the real estate market or by giving owners the ability to sell existing properties more easily.
The rise of work-from-home undoubtedly changed demand patterns in housing. The notion of “home” became more important, and we saw an increase in people investing in more heavily in furniture and interior design. Covid also contributed to the growth of the digital-nomad lifestyle and increased demand for short-term apartment rentals. Moreover, we saw increased regulatory scrutiny around short-term rentals as cities struggled to address the increasing supply shortages for long-term lets.
95 Housing
Source: Heartcore
heartcore.com
Key fundraising rounds.
96 Housing
Company
Date
HQ
Divvy Homes
Aug. 21
US
Lessen
Dec. 21
US
Landis
Aug. 21
US
Flyhomes
Jun. 21
Ribbon
Description Real estate platform facilitating rent-to-own home purchases Marketplace that connects real estate owners to property services
$ (M)
Type
200 $
Debt
Investors Tiger, Caffeinated, a16z, GGV Capital, GIC, Moore Specialty
170 $
Series B Fifth
Platform helping renters to become homeowners
165 $
Series A Sequoia, Arrive, Dreamers VC, Signia
US
Homebuying platform
150 $
Series C Norwest
Sep. 21
US
Homeownership platform
150 $
Series C
Homeward
Jun. 21
US
Platform helping people to buy homes faster
136 $
Debt
Pacaso
Sep. 21
US
125 $
Series C
Divvy Homes
Feb. 21
US
110 $
Series A a16z
HomeLight
Sep. 21
US
Orchard
Sep. 21
US
Home buying and selling company
Sundae
Jul. 21
US
Real estate marketplace focused on distressed properties
80 $
Reali
Aug. 21
US
Homeownership platform
75 $
Bungalow
Sep. 21
US
Online marketplace for residential real estate
75 $
Clikalia
Dec. 21
ES
Digital real estate platform for home buying and selling
70 $
Cover
Oct. 21
US
Modular home builder
60 $
Source: Heartcore Internal Tracker
Real estate platform that helps people buy and co-own a second home Real estate platform facilitating rent-to-own home purchases Platform matching home-sellers with real estate agents
100 $
Debt
100 $
Series D
Greenspring, Greylock, Bain Capital Ventures, NFX YC Continuity, a16z GFC, Greycroft, SoftBank, Fifth Wall, Gaingels
Zeev, Group 11, Stereo, Menlo Accomplice, FirstMark, Revolution, First American, Juxtapose
Series C Fifth Wall, General Global Capital Zeev Ventures, Akkadian Ventures, Signia Ventures Deer Park Road, Coatue, Khosla, Series C Founders Fund, Atomico Debt
Debt
Fifth Wall
Series B Gigafund
heartcore.com
Key M&A transactions & IPOs.
97 Housing
Company
Date
HQ
Description
$ (M)
Type
Compass
Apr. 21
US
Platform for renting, buying, and selling real 8,000 $ estate assets
IPO
Vacasa
Dec. 21
US
Platform helping homeowners selling, 4,400 $ buying, and managing their vacation homes
IPO
Offerpad
Sep. 21
US
Platform for buying and selling homes
IPO
Starcity
Jun. 21
US
Platform providing co-living options for renters in expensive cities
M&A
WeWork
Oct. 21
US
Provider of flexible workspaces
SPAC
Source: Heartcore Internal Tracker
3,000 $
Acquirer
Investors SoftBank, Fidelity, Thrive Capital, Founders Fund Silver Lake, Riverwood Capital, Level Equity Management LL Funds, BlackRock
Common Living
NEA, Kima, Y Combinator, Reshape, Urban Us SoftBank, Goldman Sachs
heartcore.com
It is becoming increasingly hard to become a homeowner.
House prices, wages and rents in the EU (Indexed)
140
House price
135 130 125 120
Wages
115
Rent
110 105 100 95 90 2011
2012
2013
2014 Rents
2015
2016 HPI
2017
2018
2019
2020
2021
Nominal Wages
Index levels (2010 = 100), 2010Q1-2021Q2, Labour cost index / Source: Eurostat
98 Housing
heartcore.com
Housing is becoming society’s dividing line.
99 Housing
heartcore.com
PropTechs could help solve the housing crisis.
Democratizing homeownership through financial innovation Cheaper, faster fabrication of houses
Integrated Property Development, leveraging pre-fab systems
100 Housing
heartcore.com
Real estate platforms are going full stack.
V1
V2
V3
Real Estate Listings
Real Estate Listings
Real Estate Listings
Agent tools
Agent tools
Agent tools
Agent Network
Agent Network
Mortgage Broker
Mortgage Broker
Instant Offer
Instant Offer (iBuyer)
Financial Services (Mortgage, Deposit)
101 Housing
heartcore.com
Median Purchase Price (Phoenix, 2021 in $)
Is the iBuyer model working?
$520,000 $480,000
Zilllow continued to pay top-dollar after the market cooled off
$440,000 $400,000 $360,000 $320,000 $280,000
Jan
Feb
Market
Mar
Abr
May
Opendoor
Jun
Offerpad
Jul
Aug
Sep
Zillow
iBuyer Gross Profit Margins over time (%) 20.0% 15.0% 10.0% 5.0% 0.0% -5.0%
OpenDoor
Offerpad
Zillow
-10.0% -15.0% -20.0% -25.0%
102 Housing
FY19
FY20
Source: mikedp.com | Financial reports: OpenDoor, Offerpad, Zillow
1Q21
2Q21
3Q21
heartcore.com
Home price appreciation since January 2020 in the US (in %)
35 30
The grass is greener in the countryside...
Car-dependent
25 20 15 10
Transit-dependent
5 0 Ja n
Feb
Mar
Apr
May
Jun
-5
Jul
Aug
Sep
Oct
Nov
Dec
Ja n
Feb
2020
Mar
Apr
May
2021
Demand for Second Homes in the US (Indexed)
250
200
150
100
50
0 Dec Jan Feb Mar Apr May Jun
Jul
2020
Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Jul
Aug Sep
2021
Indexed at pre-pandemic months: Jan-Feb 2020
103 Housing
Source: Redfin – Demand Index
heartcore.com
Democratizing access to second homes. Buys villa for e.g. $2m
Sells for $2.4m (20% liquidity premium) to 8 new owners Manages property for monthly fee (ca $100 p.m. + expenses and other cost)
104 Housing
heartcore.com
Mobility
105
Recapping last year’s edition
Mobility in 2020 Demand for public transport and shared mobility plunged during the pandemic. On the other hand, private vehicle usage had a renaissance due to consumers deferring to new/used car purchases. The race for a mobility ”super app” continued, and micro mobility providers such as Tier and Lime consolidated via a wave of M&A. Anything “electric” was the hero of the mobility industry last year. Shared mobility was set to rebound, while the electrification of private vehicles was just getting started. Notably, electric edged towards the price of nonelectric cars since the demand for petrol cars and E-Bikes was so high.
106 Mobility
Source: OICA, Carwow
heartcore.com
Company
Key fundraising rounds.
107 Mobility
Date
HQ
Description
$ (M)
Type
Investors
713 $
Series E
Sequoia, Tekne Capital, Ghisallo Capital, G Squared, D1 Capital, Naya
Bolt
Aug. 21
EE
Transportation platform providing ridehailing, micromobility, and food delivery services
FlixMobility
Jun. 21
DE
Transportation company
650 $
Series G Canyon, General Atlantic, Permira
CarNext
Jul. 21
NL
Platform to buy and lease used cars
400 $
Venture TDR Capital, Goldman Sachs
Tier Mobility
Oct. 21
US
Ride-sharing solutions platform
200 $
Series D SoftBank
Motorway
Dec. 21
US
190 $
Series C Index, ICONIQ
Bolt
Jan. 21
EE
150 $
Series D D1
Rad Power Bikes
Feb. 21
US
D2C electric bikes and bike accessories manufacturer
150 $
Venture
VanMoof
Sep. 21
NL
Company that designs and sells electric bikes
128 $
Series C Hillhouse, Norwest, Felix, Balderton
BlaBlaCar
Apr. 21
FR
Carpooling platform
115 $
Pre-IPO VNV Global, Otiva JF AB, FMZ
Voi
Dec. 21
SE
Micro-mobility start-up providing electric scooters
115 $
Series D Raine, VNV Global
Virtuo
May 21
FR
Car-on-demand services provider
96 €
Series C AVP, Bpifrance, H14
Vay
Dec. 21
DE
Company working on a driverless mobility service
95 $
Kinnevik, Coatue, Eurazeo, Atomico, Series B La Famiglia, Creandum, Visionaries Club, Project A
Dott
Apr. 21
NL
Transportation platform for electrical scooters and bikes
85 $
Series B Sofina
Cake
Sep. 21
SE
Electronics motorcycle maker
60 $
Series B AMF, Creandum, Headline
Motorway
Jun. 21
US
Used-car marketplace for professional car dealers
48 $
Series B Index, BMW, Unbound
Voi
Aug. 21
SE
Micro-mobility start-up providing electric scooters
45 $
Series C The Raine Group, VNV Global
Metropolis
Feb. 21
US
AI and computer vision company to modernize parking
41 $
Series A 3L, Slow, Dragoneer
Beep
Jun. 21
US
Developer of autonomous vehicles
38 $
Venture Intel, Blue Lagoon
Source: Heartcore Internal Tracker
Used-car marketplace for professional car dealers Transportation platform providing ridehailing, micromobility, and food delivery services
T. Rowe Price, Vulcan Capital, Fidelity, Durable, Morgan Stanley
heartcore.com
Key M&A transactions & IPOs.
108 Mobility
Company
Date
HQ
Description
$ (M)
Type
Acquirer
1,100 $
M&A
Uber
Cazoo
Drizly
Feb. 21
US
Wine and liquor delivery platform
Drover
Jan. 21
UK
Car subscription service for new and used cars
M&A
Auto1
Jan. 21
DE
Used-car trading platform
IPO
Cazoo
Mar. 21
UK
Used car marketplace
Autodoc
Apr. 21
DE
Online spare auto parts retailer
Bird
May 21
US
Electric scooter company
AramisAuto
Jun. 21
FR
Online car dealer
Source: Heartcore Internal Tracker
SPAC
Investors Tiger, FJ Labs, Polaris Partners, Avenir Growth Capital Shell Ventures, Cherry Ventures, Target, Partech, Autotech Ventures, RTP Global Allianz X, Deutsche Bank, Polar Light Ventures Stride.VC, dmg ventures, BlackRock, D1 Capital Partners, General Catalyst
IPO SPAC IPO
Target, Idinvest, Sequoia, Index 360 Capital, Serena
heartcore.com
Global vehicle car production (in millions)
Dude, where’s my car?
80
-23%
60
40
20
0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Renault Zoe – Waiting time Aug 2020: 3 months Dec 2021: 6 months 109 Mobility
Source: OICA, Carwow
VW ID3 – Waiting time Aug 2020: 3 months Dec 2021: 9-12 months heartcore.com
Average used car price in the US (2020-2022)
Used cars, so hot right now.
$32.500
$30,000
$27.500
$25,000
$22.500
$20,000
$17.500 Jan 2020
May 2020
Sep 2020
Jan 2021
IPO at $5.6Bn valuation
Raised $300M at $3.3Bn valuation 110 Mobility
Source: Cargurus, Techcrunch
May 2021
Sep 2021
Jan 2022
SPAC at $5.5Bn valuation
Raised $190M at >$1Bn valuation
Raised $283M at $1.8Bn valuation heartcore.com
EVs have just 1/3 of the parts of conventional vehicles making them "easier" to build than a petrol car
Cars are losing their place as a status symbol.
Parts needed, by fuel type
Car brands founded after/before 2001*
68% 68% (95) (95)
32% 32% (45) (45)
30 000
11 000
Gasoline
EV
Founded before 2001
Founded after 2001
*with planned production by 2023 111 Mobility
Source: Goldman Sachs, Heartcore
heartcore.com
Market share of new cars in the EU by fuel type 60%
EVs are finally becoming mainstream 2021 saw another crazy year for EVs, both in consumer demand and in capital markets. For the first time in history, EV sales surpassed diesel sales. With EV model and infrastructure maturity, as well as government incentives and consumer demand, this growth track is set to continue over the next few years. Public markets, on the other hand, might have gotten a bit ahead of themselves…
40%
20%
0%
Q1 Q2 Q3 Q4 2018 2018 2018 2018 Petrol
Market cap in Tn USD*
$1.23Tn 112 Mobility
Q1 2019
$0.47Tn
Source: acea, Yahoo finance, *as of 31st December 2021
Q2 2019 Diesel
Q3 2019
Q4 Q1 Q2 Q3 Q4 Q1 2019 2020 2020 2020 2020 2021 HEV
Q2 2021
Q3 2021
ECV
Global car sales 2020
0.5M
25.6M heartcore.com
EV charging is moving "to the edge”.
Expected charging demand from passenger vehicles in Europe (Twh)
100
Expected number of public charge points by technology in Europe
2000
13% 75
14%
1500
45% 50
1000
55%
25
0
0 2020
2030
2025
Private
113 Mobility
73%
500
Source: Boston Consulting Group
Public
2020
Slow Charge
2025
Fast charge
2030
High-power charge
heartcore.com
Micro mobility companies are going public and multimodal.
2017
2021
Pr e
2017
114 Mobility
Pr e
IPO
2018
2020
Pr e
-IP O
2020
-IP O
2018
-IP O
2020
heartcore.com
Large cities are embracing bikes. +15% additional bike lanes in Paris have been added during the pandemic
(E)-bikes are unlocking real change for urban mobility.
Raised $128M in September 2021
115 Mobility
Source: Techcrunch, Crunchbase, El Pais
Raised $19M in February 2021
Over 200,000 customers
heartcore.com
Media
116
Recapping last year’s edition
Media in 2020 2020 was TikTok’s year. The social network grew to more than 700M users worldwide and even overtook Instagram in terms of engagement metrics. Social giants like Facebook were further unbundled into vertical social platforms. We also predicted that social media and direct commerce will continue to converge, and they did exactly that. The adult content app Only Fans was a notable example of a platform that rose to popularity without traditional venture funding.
117 Media
Source: Heartcore
heartcore.com
Key fundraising rounds.
118 Media
Da te
HQ
Discord
Sep. 21
US
Aug. 21
Squarespace
Company
$ (M)
Type
Video and text application for communities
500 $
Series H
US
Online communities and forums
400 $
Series F Fidelity
Mar. 21
US
Building and hosting website company
300 $
Venture Tiger, Accel, General Atlantic, D1
Feb. 21
US
Online communities and forums
250 $
Series E Vy
Patreon
Dec. 21
US
online subscription platform that connects creators with fans
200 $
Series C
Picsart
Sep. 21
US
Photo and video-editing application
130 $
Series C SoftBank
Lightricks
Sep. 21
US
Photo and video-editing application
130 $
Series D Insight, Hanaco, Goldman Sachs
Dice
Sep. 21
UK
Live event discovery and booking platform
122 $
Series C SoftBank, Future Shape, blisce
Discord
Jan. 21
US
Video and text application for communities
100 $
Series H GreenOaks
Clubhouse
Jan. 21
US
Audio-first social network
100 $
Series B a16z
Cameo
Apr. 21
US
Platform that lets fans pay for personalized videos from celebrities
100 $
Series C e.ventures, GV, Amazon
StreamElements
Sep. 21
US
Provider of video engagement and monetization tools for streamers
100 $
Series B SoftBank, Paypal
Overtime
Apr. 21
US
Platform producing sports-focused content for sports fans
80 $
Series C Black, Sapphire Sport
VRChat
Jul. 21
US
Social virtual reality platform
80 $
Series D Anthos, Makers Fund, GFR
Source: Heartcore Internal Tracker
Description
Investors Dragoneer, Baillie Gifford, Coatue, Fidelity
Tiger, Woodline, Wellington, Lone Pine, NEA
heartcore.com
Key M&A transactions & IPOs.
119 Media
Company
Date
HQ
Description
$ (M)
Type
Acquirer
297 $
M&A
Square
Tidal
Mar. 21
US
Subscription-based music and podcast streaming service
Wondery
Jan. 21
US
Network to create immersive podcasts
M&A
Amazon
Breaker
Jan. 21
US
Social broadcasting application
M&A
Bettylabs
Apr. 21
US
Platform creating live audio experiences
M&A
Fite
Apr. 21
US
Live-event streaming platform for sports and entertainment
M&A
Podz
Jun. 21
US
Podcast discovery platform via bite-sized highlights of podcasts
M&A
Moonbug
Nov. 21
UK
Digital entertainment company for children
M&A
Source: Heartcore Internal Tracker
Investors Sprint, Scottish National Investment Bank Visa, PayU, Stripes, Generation Investment Management, Threshold, QED Investors Y Combinator, ACE & Company, Betaworks
Lightspeed, M13, Google, Maveron, Spotify Amazon Alexa Fund, Precursor Ventures Earlybird, LAUNCHub Ventures, Teres Triller Capital M13, Canaan Partners, Charge Ventures, Spotify humbition Next Felix Capital, The Generation RaineGroup, Fertitta Media Capital, GS Growth
heartcore.com
Everyone is a creator. The internet gave rise to billions of content “creators”. Anyone with a mobile phone can create and share high-quality content just with a few clicks and swipes – this ginormous global audience means that monetization across platforms can be a lucrative business (even across more “niche” social media channels). Being a creator is undoubtedly an integral part of the Gen Z generation, with 29% of them considering achieving “YouTuber” status as an aspirational career goal. The creator economy is here to stay, and we will continue seeing the convergence of one’s “passions” with their “work”.
1Bn
>70M
60M
Monthly Users
Group admins of active groups
Monthly Users
🎶 >55M
36M
12M
Hobby musicians (US&EU)*
Channels with >5 subscribers
Users
9M
>7M
💪 >5M
Active streamers
Publishers who earn income
Professional coaches (US)**
*Played an instrument in the past 12 months **Estimated via LinkedIn & Numbers from Kajabi, Thinkific, Udemy and Teachable Sources: Instagram Mention Report, Facebook Newsroom, America’s New Creative Economy Report, Forbes, Business Insider
120
Media
heartcore.com
However, few creators can monetize & even less can make a living
121
Media
90% of all streams are shared between the top 1% of artists (43 thousand artists)
The top 1% of streamers generate over half of the revenues and are in favour of beneficial pay-out splits
The top 10 profiles earn 20M in annual pay-outs (~20% of all pay-outs)
2.2M streams necessary to reach the minimum wage
Building the picks and shovels for creators Monetizing Fandom
New ways of business
Backend
Existing Fans
Live Streaming / Shopping
CRM / Analytics
New Fans
NFT / Art
Payments / Banking & Benefits
Source: The Wallstreet Journal, Axios.com, intellectual property office UK, RollingStone.com
heartcore.com
Console Sales per Year by Brand (2017-2021)
VR is creeping into the masses
30
25
20
15
10
5
0 2018Oculus 2019 2020 2021
122
Media
2017 2018 Xbox 2019 2020 2021
2017 2018 Plays2019 tation 2020 2021
Source: Jack Soslow: Xbos, Playstation and Nintendo’s sales data are scraped from vgchartz.com & Oculus sales are estimated with mobile app downloads
2017 2018 Nintendo 2019 2020 2021
heartcore.com
Average Monthly Hours Spent Per User on Top Social apps in the US (2017-2021)
TikTok is winning the eyeball game.
25
19.6
20
19.5 19.6
19.4 18.6
16.6
16
+45% 15 13.3 11.2
+75%
10.3 9.4
10 7.6
5
0 2018
123
Media
2019
2020
2021
Source: AppAnnie State of Mobile 2022
2018
2019
2020
2021
2018
2019
2020
2021
2018
2019
2020
2021
heartcore.com
Discovery
Consumption
Youtube uses TikTok tactics to catch up with Spotify. ”Roxanne” reached 30 million Spotify streams within two weeks of going viral in October
124 Media
heartcore.com
Clubhouse downloads per month (worldwide) 12000000
Clubhouse was a flash in the pan.
10000000 8000000 6000000 4000000 2000000
20 21 -1 1 20 21 -1 2 20 22 -0 1
4 20 21 -0 5 20 21 -0 6 20 21 -0 7 20 21 -0 8 20 21 -0 9 20 21 -1 0
3
20 21 -0
2
20 21 -0
1
20 21 -0
20 21 -0
-1 2
-1 1
20 20
-1 0
20 20
20 20
20 20
-0 9
0
Clubhouse created feature FOMO
125
Media
Source: Sensortower
heartcore.com
Gaming
126
Gaming in 2020
Recapping last year’s edition
Gaming, already on a strong upward trajectory from previous years, was one of the categories most positively impacted by Covid19. Consumers of all ages spent an increasing amount of time (+34%) and money (+20%) on gaming when various entertainment options were no longer available (theaters, bars, concerts etc.) Across sub-segments, mobile growth was the most impressive (spend up 26%, downloads up 33% YoY) with five titles crossing the symbolic threshold of $1bn in store revenue. As the world shut down, players increasingly socialized online through video games. Similarities between games and social networks made it clear that the “Metaverse” would soon become a hot space. Blockchain gaming was a nascent industry subsegment. Video games - as a value catalyst for long-lasting IP franchises - paired with crypto's potential to capture value, led to early promising projects leveraging NFTs (Top Shots, Sorare).
127 Gaming
Source: Heartcore
heartcore.com
Company
Key fundraising rounds.
128 Gaming
Da te
H Q
Description
$ (M)
Investors
Epic Games
Apr. 21
US Publisher of proprietary games like Fortnite
Sorare
Sep. 21
FR
Fantasy football game where players can buy, trade, and play with NFT
680 $
Series B SoftBank, Atomico, Bessemer, D1
Roblox
Jan. 21
US
Online game platform and game creation system
520 $
Series H Altimeter, Dragoneer, a16z, Tiger
Jam City
Sep. 21
US Mobile games publisher
350 $
Venture Netmarble, Kabam, Fortress
Voodoo
Aug. 21
FR Mobile games developper
266 €
Series E Groupe Bruxelles Lambert
Tilting Point
Jul. 21
US Free-to-play games publisher
235 $
ProbablyMonsters Sep. 21
US AAA video games studio
200 $
Dream Games
Jul. 21
TR Mobile puzzle games studio
Mythical Games
Nov. 21
US
Rec Room
Dec. 21 US Professional eSports organization
Jackpocket
Nov. 21
US
Rec Room
Mar. 21
US Professional eSports organization
Video game engine for player-owned economies
Mobile application to play official state lottery games
Platform that invites game makers to build, share, and play online games
1,000 $
Type
PE
General Atlantic
Series A LKCM Headwater
155 $
Series B Index, Makers Fund, Balderton
150 $
Series C a16z, D1
145 $
Series D Coatue, Sequoia, Index
120 $
Series D Left
100 $
Series D Sequoia, Index, Madrona
100 $
Series C XN, SoftBank, LVP
Venture Lightspeed, Insight, Anthos
Manticore Games Apr. 21
US
1047 Games
Sep. 21
US Video games studio
100 $
Tripledot Studios
Apr. 21
UK Mobile games studio
78 $
Source: Heartcore Internal Tracker
Venture Sony, T. Rowe Price, BlackRock, KKR
Series A Lightspeed
heartcore.com
Key M&A transactions & IPOs.
129 Gaming
Company
Date
HQ
Description
$ (M)
Type
Acquirer Electronic Arts
Glu Mobile
Apr. 21
US
Mobile games developer and publisher
2,100 $
M&A
Playdemic
Jun. 21
UK
Social game studio for mass market audiences
1,400 $
M&A
Sumo Group
Jul. 21
UK
AAA-rated video games developer
1,270 $
M&A
Hutch Games
Jan. 21
UK
Mobile racing games developer
375 $
M&A
Stunlock Studios
Jul. 21
SW Video games developer
Housemarque
Jun. 21
FI
Mediatonic
Mar. 21
US
Downpour Interactive
Apr. 21
US
Blade
May 21
FR
Unit 2 Games
Jun. 21
UK
NEA, WarnerMedia, GGV Capital, Tencent AXM Venture Capital, Electronic Arts The North West Fund Tencent Modern Times Backed VC, Index, Group Initial
M&A
Tencent
M&A
Sony
M&A
Epic Games
M&A
Cloud gaming service
M&A
Jezby Ventures
Sharing platform designed to create games
M&A
Independent video games developer Mobile and video games developer and publisher Developer of multi-player games for the virtual reality world
Investors
Coffee Stain Studios
Frog Capital, Future Fifty, Synova
Makers Fund Shasta Ventures, GSR Ventures, Pioneer Square Labs, Outpost Capital EQT Ventures, Play Ventures, Business Finland
BigBox VR
Jun. 21
US
VR development studio
M&A
Reworks Oy
Sep. 21
FI
Mobile games studio
M&A
Playtika
Sulake
Jan. 21
FI
Virtual worlds and social networking games
M&A
Azerion
Movida, SoftBank
Mayhem
Jan. 21
US
Platform bringing together gamers through live experiences
M&A
Niantic
Accel, Afore, NextGen
Source: Heartcore Internal Tracker
heartcore.com
350
Market Size ($, bn)
Gaming is now bigger than all other media categories combined.
400
338bn
300
335bn
250
200
166bn
150
86bn
100
48bn
50
35bn
0 Gaming
130 Gaming
Source: BITKRAFT, Naavik
Linear TV
On Demand Media
Box Office
Music
heartcore.com
Global Consumer Spend in Video Games (exc. China, $, bn)
Gaming growth cycles are propelled by technology shifts.
100 90 80 70 60 50 40 30 20 10 0 1979
1984
1989
1994
Arcade
Console
1999 PC
2004
2009
2014
Mobile
Global Consumer Spend in Recorded Music (exc. China, $, bn) 45 40 35 30 25 20 15 10 5 0 1979
1984 8 Track
131 Gaming
Source: MatthewBall.vc, Galaxy Interactive
1989 Vinyl
1994
Cas settes
1999 CDs
2004 Digital (owned)
2009
2014
2019E
Digital (Streaming)
heartcore.com
Global Consumer Spending in Mobile Games ($, bn)
Mobile kept performing very well in 2021.
100
90
80
70
$52.3B 60
$47.6,0B
+9,9%
50
40
+16,6%
30
20
$37.3B
$31.9B 10
0 2020
2021 Google Play
132 Gaming
Source: SensorTower
App Store
heartcore.com
Major video game titles are becoming Metaverse platforms.
133 Gaming
Source: Google Image
heartcore.com
Crypto & NFTs will play a critical role in enabling Metaverse economies.
Issues with current Virtual Goods solved with NFTs
Virtual Goods • Various formats • Replicable at will • Illiquid • No end-user ownership • Confined to a single ecosystem • No utility
134 Gaming
Source: BITKRAFT
NFT’s • Universal digital representation • Proof of scarcity • Portable on any marketplace • Interoperable by design • (Financial) asset utility
heartcore.com
Axie Monthly Active Users
550k
600000
2.5M
2500000
500000
2000000
400000
MAUs
Registered Users
Early innings of that shift are already visible.
The Sandbox Registered User Base
300000
1500000
1000000
200000
100000
80k
500000
10k 0
0 2020
135 Gaming
2021
Source: DappRadar, ActivePlayers.io, The Sandbox Medium
Dec. 20'
Dec. 21'
heartcore.com
Blockchain Gaming enables player-owned gaming ecosystems.
FUT (FIFA Ultimate Team) vs Sorare value chain Cash Developer
Players
Items kept in game
Game Ecosystem
Virtual Items Cash Developer
Players NFTs
Rewards (Play to Earn)
P2P trading Players
136 Gaming
Source: Nicolas Julia Twitter account
Game Ecosystem
“Play to Earn” is not a definitive recipe for success.
Axie Infinity daily earning potential* ($) $140.00
$120.00
$100.00
Philippines daily avg. wage
$80.00
$60.00
$40.00
$20.00
$0.00 January
February
March
April
May
June
July
Augus t September October
*SLP-USD derived earnings, MMR averaged (1100-1500-2200 MMR levels)
137 Gaming
Source: Naavik
heartcore.com
Web3 gaming development phases prediction
From “Play to Earn” to “Play and Earn”.
Earn-first Games
Phase 1
138 Gaming
Source: Mechanism Capital
AAA-like earn-first Games
Play-first Games
Phase 2
Phase 3
heartcore.com
Health
139
Recapping last year’s edition
Health in 2020 Covid19 was a massive catalyst for the adoption of telemedicine and other digital health services. The rise of vertically integrated telehealth services caused headaches for the "incumbent" horizontal telehealth providers. The ability to drive better patient outcomes through specialization enables those new players to co-exist with general telehealth providers. Telehealth providers like Kry expanded offline, while other companies like One Medical went the other way and built offline practices combined with digital patient journeys.
140 Health
Source: Heartcore
heartcore.com
Company
Key fundraising rounds.
141 Health
Date
HQ
Ro
Mar. 21
US
Cityblock
Sep. 21
US
Hinge Health
Nov. 21
US
Honor
Oct. 21
US
Senior care platform and network
370 $
Carbon Health
Jul. 21
US
Healthcare provider
350 $
Series D Blackstone
Kry
May 21
SW Telehealth service provider
312 $
Series D CPP, Fidelity
Hinge Health
Jan. 21
US
Virtual physical therapy sessions for customers with back and joint pain
310 $
Series D Coatue, Tiger
Capsule
May 21
US
Digital pharmacy
300 $
Series D
Cerebral
Dec. 21
US
Online mental health services provider
300 €
Series C SoftBank
Forward Health Mar. 21
US
Membership-based health care system provider
225 $
Series D Founders Fund, SoftBank
DispatchHealth Mar. 21
US
On-demand urgent medical care service
200 $
Series D AltaIR, Tiger
Cityblock
Apr. 21
US
Primary care platform targeting the lowincome medicare populations
192 $
Series C Tiger, Maverick, General Catalyst
Sword Health
Dec. 21
US
Digital solution provider for the treatment of musculoskeletal pathologies
189 $
Series D Sapphire
Monogram Health
Jun. 21
US
Platform helping consumers manage chronic kidney disease
160 $
Series B TPG, Frist Cressey
SonderMind
Aug. 21
US
Mental healthcare therapy
150 $
Series C
Papa
Nov. 21
US
Platform connecting college students to senior citizens for companionship and assistance
150 $
Series D SoftBank, TCG, Tiger
Oscar Health
Jan. 21
US
Health insurance company
140 $
Series I
Twin Health
Oct. 21
US
Digital metabolic care company
140 $
Series C ICONIQ, Sequoia India, Perceptive
Source: Heartcore Internal Tracker
Description Telehealth platform operating digital health clinics for men and women Primary care platform targeting the lowincome medicare populations Platform for chronic joint and back pain combining an application, a wearable and a remote health coach
$ (M)
Type
500 $
Series D
400 $
Series D SoftBank
400 $
Series E Tiger, Coatue Debt
Investors General Catalyst, FirstMark, Dragoneer, Seven Seven Six
Baillie Gifford, Prosus, a16z, Thrive
Durable, Baillie Gifford, T. Rowe Price, Whale Rock Capital
Drive Capital, Premji Invest, General Catalyst, Partners Group, F-Prime
Dragoneer, Baillie Gifford, Coatue, Founders Fund, Khosla, Lakestar, Tiger
heartcore.com
Key M&A transactions & IPOs.
142 Health
Company
Date
HQ
Description
$ (M)
Type
Clover
Jan. 21
US
Health coverage for US seniors
7,000 $
SPAC
Babylon
Oct. 21
US
Quick access to healthcare through a mobile application
4,200 $
IPO
23andMe
Feb. 21
US
AAAAt-home DNA testing company
3,500 $
SPAC
Hims & Hers
Jan. 21
US
D2C brand for erectile dysfunction, & hair loss products
1,600 $
SPAC
Talkspace
Jun. 21
US
Online therapy platform
1,400 $
IPO
Owlet Baby Care
Jul. 21
US
Health monitor allowing parents to view their child’s vital signs in real time
1,100 $
IPO
Lemonaid Health
Oct. 21
US
Telemedecine platform
400 $
M&A
Doctor On Demand
Mar. 21
US
Mobile application to book visits with healthcare providers
M&A
Ginger
Sep. 21
US
On-demand mental health service
M&A
Jour
Sep. 21
FR
Journaling application to help teens and adults battling with mental illness
M&A
Source: Heartcore Internal Tracker
Acquirer
Investors First Round, Greenoaks, Sequoia Kinnevik AB, Hoxton Ventures, AlbaCore Capital GV, NewView, Sequoia
Forerunner, Maverick, Thrive Revolution, Norwest Venture Partners, Spark Capital, SoftBank Techstars, Eclipse Ventures, Eniac Ventures OTV, Sierra Ventures, Hikma Ventures, Third 23andMe Kind Venture Capital, Artis Ventures Lerer Hippeau, Grand Round General Atlantic, Health ACME Capital, Goldman Sachs Blackstone, Bessemer, Headspace Cigna Ventures, Next Play Ventures True Ventures, Alan Secocha Ventures
heartcore.com
New regulation is paving the way for healthcare innovation.
State of regulation of telemedicine in Europe
Accelerated legislative changes during Covid
Allowed but no specific regulation in place
Previously allowed + Regulation/Laws /Reimbursement in place
143 Health
Source: Heartcore Research
heartcore.com
E-prescriptions will have their eCommerce moment.
Online penetration of RX revenue and eCommerce penetration in other verticals
40%
38%
35%
30%
28%
25%
20%
18%
15%
13%
10%
5% 1% 0%
RX mail order penetration
144 Health
Cosmetics & Beauty eCommerce Penetration 2021
Willingnes s to purchase Medicine fully online
Apparel & Accessories eCommerce Penetration 2021
Sources: ABDA, TLV.se, Iqvia, Digital.health 3/19 – Das E-Rezept und der Versand von Rx-Arzneimitteln, Statista, Globalxetfs.com, Samkeppni.is – Online Pharmacy Markets Report
heartcore.com
We are in the midst of a mental health crisis.
Percentage of U.S. youths with a major depressive episode in the past year
20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0%
2004 2005 2006 2007 2008 2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Employer distributed mental health crystalizes as an effective channel due to easier adoption and monetization
145 Health
Source: Statista, Crunchbase
$300M Series C
$190M Series C
$200M Series C
$3.5M Series Seed
heartcore.com
Can psychedelics tackle the problem?
Number of publications & trials about Psychedelics 1200
1000
Research publications 800 Post-Hippie-era ban
600
400
200
Trials 1946 1948 1950 1952 1954 1956 1958 1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
0
$950M Market cap
146 Health
$500M Market cap
Source: National Library of Medicine Bethesda, Crunchbase
$750M Market cap
heartcore.com
Diseases associated with a disruption in microbiome balance
Microbiome: The Swiss army knife in Health?
Depression
Autism
30000
Breathing issues (COPD)
25000
Dermatological issues
Alzheimer Oral health
# of Research publications
Cardiovascular (Heart)
20000
Obesity Asthma Diabetes
15000
Cancer
10000
Joint pain (Rheuma)
5000
19 5
6 19 61 19 64 19 66 19 68 19 70 19 72 19 75 19 77 19 79 19 81 19 83 19 85 19 87 19 89 19 91 19 93 19 95 19 97 19 99 20 01 20 03 20 05 20 07 20 09 20 11 20 13 20 15 20 17 20 19 20 21
0
147 Health
Source: National Library of Medicine Bethesda, The Human Microbiome: A New Frontier in Health (University of California)
heartcore.com
Supply of healthcare workers is a bottleneck and an opportunity
HeyJobs HeyIndex (#Actively Jobseeking/ Vacancies) in Healthcare vs. Overall (Germany)
2.5
2.0
2.0
1.5
1.5
1.0
1.0 0.8
0.8
0.8 0.6
0.6 0.5
0.4
0.4
0.4
0.3
All Industries Healthcare
0.0 1/2021
2/2021
3/2021
4/2021
5/2021
6/2021
7/2021
8/2021
9/2021 10/2021 11/2021 12/2021
$400M Equity funding
$150M Series D
$225M Series D
$24M Series A Heartcore portfolio
148 Health
Source: Heyjobs, Gist Healthcare, Axel Springer
heartcore.com
Education
149
Education in 2020
Recapping last year’s edition
Covid-19 was a major tailwind for EdTech due to forced adoption. Teachers and students alike hopped on online learning platforms and while scrambling to accustom to distance learning. The largest private EdTech companies at the end of 2020 were almost all tutoring companies, and active in China or India. Life-long learning became an even clearer long-term trend in education. New EdTech verticals addressing different demographics and fields of application saw early adoption, like corporate upskilling and casual education.
150 Education
Source: Heartcore
heartcore.com
Company
Key fundraising rounds.
151 Education
Date
HQ
Description
$ (M)
Type
Investors
Course Hero
Dec. 21
US
Online learning platform
380 $
Series C Wellington, Sequoia
GoStudent
Jun. 21
AT
Tutor marketplace
244 $
Series C DST Global, Tencent, Dragoneer
MasterClass
May 21
US
Provider of video-based courses from professionals
225 $
Series F
Multiverse
Sep. 21
UK
Online apprenticeship program provider
130 $
Series C D1, BOND
Outschool
Oct. 21
US
Marketplace of live online classes for kids
110 $
Series D Tiger, BOND, Lightspeed
Class
Aug. 21
US
Virtual classroom integrating with Zoom
105 $
Series B SoftBank
Brainly
Jan. 21
PL
Open Classrooms
May 21
FR
Outschool
Apr. 21
US
GoStudent
Apr. 21
Lingoda
Peer-to-peer learning platform for homework Platform offering certification courses to its members
Fidelity, Baillie Gifford, Balyasny, Eldridge
80 $
Series D Learn Capital, General Catalyst
80 $
Series C Lumos
Marketplace of live online classes for kids
75 $
Series C Tiger, Coatue, USV
AT
Tutor marketplace
70 $
Series B Coatue, Left Lane, DN Capital
Apr. 21
DE
Online language school
67 $
StuDocu
May 21
NL
Student knowledge exchange platform
50 $
Series B Partech
Udemy
Nov. 21
US
Online learning platform
50 $
Series G Mindrock Capital
Code academy
Feb. 21
US
Coding class provider
40 $
Series D Owl, Prosus, USV
LearnWorlds
Jul. 21
GR
Platform for creating and selling online courses
32 $
Series A Insight
Outlier
Apr. 21
US
Online provider of intro-level college courses
30 $
Series B GV, Unusual, GSV
Source: Heartcore Internal Tracker
PE
Summit Partners, Mountain
heartcore.com
Key M&A transactions & IPOs.
152 Education
Company
Date
HQ
Description
$ (M)
Type
Coursera
Mar. 21
US
Online education platform that partners with universities and organizations to offer classes
4,300 $
IPO
Udemy
Oct. 21
US
Online learning platform
4,000 $
IPO
Duolingo
Jul. 21
US
Language-learning education platform
3,700 $
IPO
Nerdy
Sep. 21
US
Direct-to-consumer platform developed for 1,700 $ live online learning
IPO
Code academy
Dec. 21
US
Online platform to learn employable digital skills
525 $
M&A
Epic
Jul. 21
US
Platform for books, eBooks, and educational technology
500 $
M&A
Clever
May 21
US
Digital learning platform designed for K-12 schools
500 $
M&A
Busuu
Oct. 21
US
Mobile application for language learning
436 $
M&A
CreativeLive
Oct. 21
US
Online classrooms for entrepreneurs
M&A
Kenzie Academy
Mar. 21
US
Online learning platform for tech skills
M&A
Source: Heartcore Internal Tracker
Acquirer
Investors NEA, Kleiner Perkins, GSV, SEEK, G Squared, Learn Capital Tencent, Insight Partners, Norwest Venture Partners General Atlantic, CapitalG, NEA, Kleiner Perkins, Drive Capital
Index, Kleiner Perkins, Union Square Ventures, Prosus, Owl SkillSoft Ventures, Y Combinator Reach Capital, Maven Capital, Rakuten BYJU’S Capital, 500 Startups, Menlo Ventures Lightspeed, Sequoia, Founders Fund, Y Kahoot! Combinator, GSV GP Bullhound, Future Chegg Fifty Greylock, GV, GSV, Felicis Ventures, Social Fiverr Capital Southern New Rethink Education, Hampshire Learn Capital, 500 University Startups
heartcore.com
COVID’s impact on education: digitalization and disruption.
153 Education
Credits: Picture 1: OLIVIER DOULIERY - AFP - Getty Images | Picture 2: https://unsplash.com/photos/UNc-Xtmh7Zw Picture 3: unsplash.com ID: Y8TiLvKnLeg | Picture 4: AFP
heartcore.com
Indexed stock prices of biggest Chinese EdTech stocks
China’s ban of for-profit education made EdTech stocks collapse.
150
100
50
0 Jan 2020
Mar 2020
TAL Education Group
154 Education
Source: Business Insider Markets, Yahoo Finance
May 2020
Jul 2020
New Oriental Education & Technology Group
Sep 2021
Nov 2021
GSX Techedu
heartcore.com
Consumer spending on education in real terms (2000=100)
Fundamental change is happening outside the US and Europe.
2018, $Bn 400 68 9 300 273
200
134 100 290
0 2000
2005 USA
155 Education
Source: Oxford Economics
Europe
2010 World
China
2015 Vietnam
India
heartcore.com
Life-long learning is the new normal.
Kindergarten
156 Education
Elementary School
High School
University
Work
Retirement
heartcore.com
Past Future
Mix and match: The unbundling and rebundling of higher education.
157 Education
heartcore.com
Completion rates of online courses
Re-discovering the power of social learning.
100%
75%
s
50%
25%
0%
MOOCs
158 Education
Content + social
Source: Heartcore Research, Reich (MIT), UPenn – GSE Study, Wes Kai (AltMBA) & Stephanie Habif
heartcore.com
Image Credits Slide 23: Unsplash Image Slide 37: Unsplash Image Slide 42: Screenshot from Openstore homepage Slide 43: Screenshot from Shein App Slide 48: Unsplash Image Slide 62: Unsplash Image Slide 69: https://rallyrd.com/collections/ Slide 76: https://www.expatica.com/fr/finance/insurance/car-insurance-in-france-184625/ Slide 84: Unsplash Image Slide 99: Financial times, Business Insider, Dutchnews.nl Slide 109: Renault Zone Image (left): Autobild.de Slide 113: VW ID3 (right): https://avtonam.ru/ Slide 104: : Unsplash Image Slide 105: https://unsplash.com/photos/nRKve7ZMIPk Slide 114: a) bird.co b) Mashable.com c) smarttransport.org d) tier.app e) wikiwand.com f) techcrunch.com g) electrive.com h) retaul-fmcg.ro Slide 116: Unsplash Image Slide 124: Thumbnail from Youtube, Channel: Tik Tok It - Roxanne Tik Tok Dance Slide 126: Unsplash Image Slide 139: AJ_Watt via CNBC Slide 149: Unsplash Image Slide 153: Credits: Picture 1: Olivier Douliery - AFP- Getty Images | Picture 2: https://unsplash.com/photos/UNc-Xtmh7Zw Picture 3: unsplash.com ID: Y8TiLvKnLeg | Picture 4: AFP
159 Credits
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