Startup

This Week’s Top Seed Companies to Watch — Banked, GraphCMS, Daily, ReturnLogic, Zynbit

We see about 5,000 startups each week, and I want to give you a glimpse into how we at e.ventures think about trending tech companies and tracking new investment opportunities. In this post, I’m highlighting top tech companies that have announced or raised a seed round within the past week.

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Happy Tuesday!

Just as a reminder, we are having our e.ventures Analytics Webinar this Thursday at 9 am PT. The webinar will touch on our Core Ratio methodology and will go into detail on how one builds the Core Ratio in Excel. We are close to filling our 300 seat count on Zoom, so please subscribe ASAP if of interest. Link Here.

Other industry news:

Intel acquires real-time public transit app Moovit for $900M. Moovit raised a total $132M in venture funding with its first round being led by Gemini Israel Ventures and BRM Capital in April 2012.

Zoom acquires Keybase to bring end-to-end encryption at scale to video conferences. Keybase only raised one Series A of $11M which was led by Andressen Horrowitz in July 2015.

Here are my top seed investments from the last week:

Banked

EVA Growth Index:
No external sources showing growth

Product:
API-first platform for bank-to-bank online payments

Investors:
Force Over Mass Capital, Backed VC

Total Raised:
$4.8M

Business Model:
0.1% fee on transaction volume. No minimums. No monthly charges

Comparables:
Klarna

X-Factors:
1. Bank authenticated payments, which results in a lower-cost solution with faster payouts

2. The CEO Co-Founded 10X, a UK based fintech company with over 230 employees

Thoughts:
Paying 3% for online merchants makes very little sense. Banking eliminates 97% of these fees. This is a network effect business. The more merchants, the more customers, and vice versa.

GraphCMS

EVA Growth Index:

Product:
Headless content management system for GraphQL to power digital products in real-time

Investors:
Peak Capital, Paua Ventures, Richmond View Ventures

Total Raised:
$3.73M

Business Model:
Monthly SaaS subscription ranging from $39 to $399 per project

Comparables:
Prisma, Contentful

X-Factors:
1. Leveraging an already large and growing GraphQL ecosystem

2. Enterprise-ready at this stage is a major attribute

Thoughts:
They already have 30,000 teams using the product across orgs such as Unilever and Discovery. You can see the consistent growth in the EVA index.

Daily

EVA Growth Index:

Product:
API-enabled video chat and calling solution that can be easily embedded into any app or software product

Investors:
Freestyle Capital, Y-Combinator

Total Raised:
$7.2M

Business Model:
SaaS subscription with a base fee and variable fee driven by call minutes used

Comparables:
Zoom, Skype

X-Factors:
1. API-first platform built for developers

2. The Co-Founder and CEO was formerly the CEO of Oblong Industries, a video conferencing solution vendor

Comparables:
With the rise of remote work, one can imagine a world where a two-way video is built into the apps themselves. Online healthcare is a focus of theirs and where there appears to be the most opportunity presently.

ReturnLogic

EVA Growth Index:

Product:
End to end returns management and re-marketing platform for ecommerce stores

Investors:
Cultivation Capital, Amplify.la, Stout Capital, SaaS Ventures, Robin Hood Ventures, Ben Franklin Technology Partners

Total Raised:
$4.1M

Business Model:
SaaS subscription starting at $300 per month

Comparables:
Returnly, Loop Returns

X-Factors:
1. Returns are a core part of the ecommerce supply chain. Current ecommerce software vendors have neglected this part of the workflow

2. Potentially rising return rates as people order more from home

Thoughts:
Excited to see how this market shakes out. Shopify may end up owning this space, but as of right now, they are leaving this flank exposed.

Zynbit

EVA Growth Index:

Product:
AI-enabled Salesforce integration that pulls data autonomously out of emails to enrich accounts/profiles

Investors:
River SaaS Capital

Total Raised:
$1.75M

Business Model:
SaaS subscription ranging from $59 to $999 per month

Comparables:
N/A

X-Factors:
1. Still a massive market opportunity. Sales people focus their time on closing deals, rather than updating salesforce. As a result, there is poor visibility into the status of accounts

2. This is the second company that the CEO has built, which focuses on pulling data out email

Thoughts:
We use Streak as a CRM, due to the fact that it is tied at the hip with Gmail. It is not perfect, but it makes it easier to attach an email to an “account.” Zynbit is doing this autonomously as a way to improve sales operations.

>> See last week’s Seed Companies to Track >>

https://medium.com/eventuresvc-news/this-weeks-top-seed-companies-to-watch-checkly-finom-wise-littledata-5d52631a6b1f

Brendan Wales is a Partner at e.ventures, a global venture capital firm investing in consumer and software companies from early to growth. Since joining e.ventures in 2012, he has been a Seed or Series A investor in Segment, Shipt, HousecallPro, Fetch Rewards, Test.ai, and Shopmonkey.

You can connect with Brendan on LinkedInTwitter, or by following him on Medium.

What is the EVA Growth Index?
The EVA Growth index is a composite of third-party data sources around a company’s website traffic. The vertical green lines in the charts represent a point in time where the company raised outside capital.