Online marketplaces
entering the next phase.
June 2020
&
Supported by
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Disclaimer.
This report contains
interviews with:
Building and scaling
marketplaces globally
Adevinta’s venture arm
supports entrepreneurs
financially and operationally
Investments & operations:
Pan-European seed stage
venture capital fund
150+ new investments
since 2013
$1.1B+ raised by portfolio since
2013
Selected investments:
Seed stage venture capital fund
in Europe beyond
143 new investments
since 2013
$4.5B raised by portfolio since
2013
Selected investments:
Page / 4
Key takeaways
Online Marketplaces June 2020
Digital adoption has been
rapidly accelerated by Covid-
19 crisis. But the big digital
wave is still ahead of us.
Everything was already moving online. Now
this is happening even faster. Online
marketplaces have a combined value of $814
billion globally. The biggest consumer
categories are still largely undigitised.
Covid-19 has created short-term winners
and losers. But the more structural impact is
that trends that were already under way
have been accelerated. 58% of consumer
marketplaces could be well positioned to
navigate the crisis, while another 23% might
experience a sharp “V-shaped” recovery.
Recent months have shown
how online marketplaces
have become part of society’s
critical infrastructure.
The Covid-19 crisis has demonstrated how
critical online consumer services and
technology are for many aspects of society
and the economy. We’re entering a new
phase in the ongoing evolution of online
marketplace models.
Startups are colliding with the offline world,
its regulations and its laws of physics, which
sometimes impact unit economics. The crisis
may also impact funding sources for
startups, leading to an increased focus on
profitability.
By unlocking supply, the next
generation of marketplaces can
play a role in solving some of
society's most pressing issues.
Mobility – Many European have unveiled big plans
to reduce congestion and expand mobility.
Housing – Shortages, access to home ownership
and sustainability are key themes.
Healthcare – Consumer healthcare is embracing
telemedicine, AI and predictive diagnostics.
Work – Corporates are embracing remote work,
while freelance, gig & passion workers are using
match-making and distribution platforms.
Education – Following Covid-19, the lines are now
blurred between physical and digital classrooms.
Digital adoption is accelerating.
Everything was already moving online. Now this is happening even
faster. Online marketplaces have a combined value of $814 billion
globally. But the real opportunity is still ahead of us. While
segments like travel and fashion have gone digital, the biggest
consumer categories are still largely undigitised. Covid -19 has
created short-term winners and losers. But the more structural
impact is that trends that were already under way have been
accelerated.
SECTION 1
20%
8%
16%
2012
2013
2014
2015
2016
2017
2018
2019
2020
Online Marketplaces June 2020
Source: ONS and US Department of Commerce for online share of retail
1. Stanford/GfK via Benedict Evans
Everything was already moving online. Now, nearly a
decade of change happened in just a few weeks time.
Digital adoption is accelerating
Page / 6
31% United Kingdom
27% United States
Online share of retail sales
7 years
1 month
▪
It used to be books and electronics, now literally
everything is sold and purchased online
▪ Key drivers have been convenience, speed,
selection, safety and after sales & support
▪ Online retail is made up of traditional
eCommerce, but also marketplaces, on-demand
services, direct-to-consumer and other models
▪ Share of retail sales understates things, as
online is part of nearly every buyer journey
▪ Online transactions have become the default for
most people, even when it comes to finding a
spouse: 40% of US couples now meet online (1)
▪ Due to the lockdown, the next decade of digital
adoption happened in the space of a few weeks
▪ People have formed new habits in new
categories like groceries, education and
healthcare
April
Education
✓ Home schooling during lockdown
✓ Adult reskilling driven by changing employment landscape and demand
Groceries, meal kits,
farm-to-table
✓ Consumer habits had been slow to change, but now online grocers can barely
keep up with demand
✓ Meal kits and farm-to-table apps are accelerating
On-demand
(food) delivery
✓ Dining out is partly replaced by ordering in
 Reduced supply as some restaurants are closing

Is premium service viable during recession?

Increased focus on profitability by investors
Fintech
 Capital intensity: marketing (e.g. billboards) to sustain growth
 Lower economic activity due to recession
 Lending: lower margins and rising delinquencies
✓ Demand boost for certain insurance types incl. health
✓ Trading and robo-advisors benefit from volatility
Mobility
 Mobility hit hard across the board, in short term
✓ As cities re-open, increased demand for individualised travel
✓ Cities including Paris and London have unveiled ambitious plans to reduce car
congestion (plus for micromobility)
126%
103%
79%
139%
53%
99%
65%
29%
13%
23%
21%
13%
10%
8%
8%
48%
(31%)
(32%)
(33%)
(43%)
(23%)
(28%)
(28%)
(32%)
(33%)
(39%)
(39%)
(43%)
(52%)
Preply
Google Classroom
ClassDojo
Remind
Brainly
Cortilia
La Ruche qui dit Oui!
Ocado
Picnic
Blue Apron
HelloFresh
Grubhub
Deliveroo
Uber Eats
Postmaes
DoorDash
Glovo
Robinhood
Metro bank
Monzo
Revolut
MoneyLion
SnappCar
Tier
Uber
Lyft
Bird
Share NOW
Lime
Cabify
VOI
Source: Dealroom.co analysis of SimilarWeb data (Google Play)
Page / 7
Digital adoption is accelerating
Online Marketplaces June 2020
Mobile app data shows rapid digital adoption. Especially in areas that were previously slow to
adopt, such as education and groceries.
App downloads: January 2020 vs March 2020 (1)
284%
266%
Source: Dealroom.co and Google Finance data as of May 27 2020
Page / 8
Digital adoption is accelerating
Online Marketplaces June 2020
Changes in consumer behavior are expected to be structural, not just temporary, based on stock
market movements.
% change in share price since January 31
-100%
-75%
-50%
-25%
0%
25%
50%
75%
100%
125%
150%
175%
Meal kits
Pharmacy
Tele health
Pet food
Groceries
Freelancing
Food delivery
Horizontal
Fashion
Furniture
Mobility
Job search
Car search
Travel
Group sale
Property search
Lending
◆ Blue Apron
HelloFresh ◆
Zur Rose ◆
◆ Shop Apotheke
◆ Teladoc
Ping An Good Doctor ◆
◆ Chewy
◆ Zooplus
PetMeds ◆
◆ Ocado
Meituan ◆
◆ Fiverr
Freelancer ◆
◆ Upwork
◆ Delivery Hero
GrubHub ◆
Alibaba ◆
◆ Amazon
◆ Pinduoduo
◆ Boozt Fashion
ASOS ◆ ◆ Farfetch
◆ Home24
Lauritz ◆
Lyft ◆
◆ Uber
Recruit Holdings ◆
◆ DHI Group
◆ Carvana
CarGurus◆
AutoTrader ◆
◆ Scout24
Groupon ◆
◆ MySale Group
◆ TheTrainline
Webjet ◆
Expedia ◆
◆ Booking
Purplebricks ◆
◆ Zillow
Rightmove ◆
◆ EverQuote
OnDeck ◆
Funding Circle ◆
Source: Dealroom.co analysis of marketplace startups. Indicative analysis based on share price movements of public comparable, website and app analytics, news and anecdotal evidence.
Page / 9
Digital adoption is accelerating
Online Marketplaces June 2020
Segments like micro-mobility face short-term impact but might experience a V-shaped recovery
once lockdowns end. Events, restaurants and air travel could face a prolonged impact.
Food delivery
Meal kits
Online groceries
Car sharing
Air travel &
big hotels
Job search
White collar /
Freelance
Restaurant
booking
Telehealth
Offline retail
related
Gaming
Prop tech
Streaming
video/music
55% of startups
Both short term and long
term positive: crisis is
accelerating trend that was
already underway
22% of startups
Expected prolonged impact
with possible L-shaped
recovery
Online
education
23% of startups
Steep decline in usage but
possible V-shaped recovery
once the lock-down ends
Sports at home
Nutrition D2C
food
Non-health
insurance
Mental health
Events
B2B
marketplaces
Micro-mobility
Lending
Expert /
Passion economy
On-demand
office space
Car sales
Structural positive
Prolonged negative
Short-term negative
Short-term positive
Farm-to-table
Alternative trips
(campervans)
Health insurance
Neobanks
Shared mobility
eCommerce
Source: Dealroom.co. Indicative analysis based on share price movements of public comparable, website and app analytics, news and anecdotal evidence.
1. Based on the number of venture-backed marketplaces.
Page / 10
Digital adoption is accelerating
Online Marketplaces June 2020
55% of consumer marketplaces could be well positioned to navigate the crisis, while another
23% might experience sharp recovery.
55%
Net positive
6,104 startups
Consumer health (590)
Education (340)
Gaming (115)
Groceries (90)
Delivery (560)
eCommerce (1,269)
White-collar / freelance (140)
Passion economy (70)
23%
Short-term impact
(V-shaped recovery)
2,561 startups
Proptech (544)
Lending (232)
Banking and insurance (120)
Micro-mobility (109)
22%
Prolonged impact
(L-shaped recovery)
2,447 startups
Travel (836)
Shared mobility (830)
Events (367)
Blue collar gigs (320)
Source: Dealroom.co analysis of public statements
Page / 11
Digital adoption is accelerating
Online Marketplaces June 2020
Many startups have shown agility to pivot, providing value beyond the immediate crisis.
Category
Pivot
Ride-sharing
Groceries and medicine (1-hour delivery)
Ride-sharing
Uber Direct (pharmacies and pet shops)
Uber Connect – P2P courier service
Micro-mobility
Scooters for food and medicine delivery
App now shows take-out options
Restaurant ordering (B2B)
Help restaurants launch direct-to-consumer programs
Restaurant booking
Reserve grocery shopping appointments
Accommodation booking
Online Experiences
Launched long-term rental
Book local experiences
'Beat the Crowds’: mitigate over-tourism
Book a musician for events
Personalised music messages by popular artists
Re-sale fashion
Posh Stories: video shopping
Page / 12
Digital adoption is accelerating
Online Marketplaces June 2020
Nearly 90% of consumer spending goes to housing, healthcare, food, mobility and education.
Most markets are still largely offline, but seeing rapid digital adoption, driven by Covid-19.
Consumer spending
Europe
Global
Global startup & scaleup activity
Digital Offline
Housing
Rent & mortgage 65%, Interior &
maintenance 16%, Energy 18%
Already researched online but still transacted offline. New models like
iBuying and fractional ownership could help digitise further
Health
Gov’t funded 64% (1), Insurance
premiums 22%, out-of-pocket 14%
Rigid market, but Covid-19 has opened the floodgates to innovate fast
Food
Groceries 53%, Alcohol &
tobacco 30%, Restaurants 17%
Was slow to migrate online (<10%) but now digitising fast
Mobility
Car purchase 34%, Fuel &
maintenance 56%, Public 10%
Consumers still spend 90% on car ownership. The remaining 10% of
mobility is mostly booked online.
Education
Gov’t funded 87% (1)
Out-of-pocket 13%
Education still 90%+ offline but starting to digitise
Lockdown could instigate rapid systemic change
Travel
Flights 33%, Packaged
travel 33%, Hotel 33%
Online penetration around 50%. But even “offline” part is mostly
researched online and booked via email/phone
Fashion
Online penetration around 1/3 in most developed countries. But social
distancing has moved business online
$3.1T
$1.9T
$2.4T
$1.2T
$1.0T
$0.6T
$0.6T
$8.2T
$7.8T
$6.0T
$5.0T
$5.0T
$3.0T
$2.2T
Source: Dealroom analysis based on data from Eurostat and World Bank
1.
Government funded is added to consumer spending here since consumers still decides/influences where to buy healthcare
2.
Estimate based on top-10 most valuable companies in the sector. Combination of public and private valuations
Covid-19 impact
Covid-19 impact
Covid-19 impact?
Covid-19 impact?
Page / 13
Digital adoption is accelerating
Online Marketplaces June 2020
Online marketplaces have combined value of $814 billion globally. But the real
opportunity is ahead of us. Housing, health and education are still mostly untapped.
Consumer spending
Europe
Global
Global startup & scaleup activity
VC invested since ‘13 Combined market cap (2)
Housing
Rent & mortgage 65%, Interior &
maintenance 16%, Energy 18%
Health
Gov’t funded 64% (1), Insurance
premiums 22%, out-of-pocket 14%
Food
Groceries 53%, Alcohol &
tobacco 30%, Restaurants 17%
Mobility
Car purchase 34%, Fuel &
maintenance 56%, Public 10%
Education
Gov’t funded 87% (1)
Out-of-pocket 13%
Travel
Flights 33%, Packaged
travel 33%, Hotel 33%
Fashion
$3.1T
$1.9T
$2.4T
$1.2T
$1.0T
$0.6T
$0.6T
$8.2T
$7.8T
$6.0T
$5.0T
$5.0T
$3.0T
$2.2T
Source: Dealroom analysis based on data from Eurostat and World Bank
1.
Government funded is added to consumer spending here since consumers still decides/influences where to buy healthcare
2.
Estimate based on top-10 most valuable companies in the sector. Combination of public and private valuations
$21B
$13B
$58B
$95B
$2B
$35B
$27B
$66B
$46B
$178B
$181B
$9B
$168B
$57B
Lending/Investing
Income from
assets
Reschooling
Remote working
Gig & passion
economy
Jobs marketplaces
Source: Eurostat (EU28) and Dealroom analysis
It’s not just about spending money online. The digital consumer is managing work,
banking and (re)schooling also online.
Digital adoption is accelerating
Online Marketplaces June 2020
Page / 14
Housing
Food
Health
Mobility
Education
Travel
Fashion
Communication
Services
Recreation
$17 trillion
expenses & savings
$17 trillion income
(work and other)
Wages
Freelance work
Social benefits
Income from assets
Net savings
$12 trillion
expenses
◀ Banking & financing ▶
€35tn in assets
€7tn debt (77% mortgages)
European households
Marketplaces entering the
next phase.
The Covid-19 crisis has demonstrated how critical online
consumer services and technology are for many aspects of
society and the economy. We’re entering a new phase in the
ongoing evolution of online marketplace models. Startups are
colliding with the offline world, its regulations and its laws of
physics, which sometimes impact unit economics. The crisis
may also impact funding sources for startups, leading to an
increased focus on profitability.
SECTION 2
Page / 16
The evolution of online marketplace models
Online Marketplaces June 2020
Marketplaces have continued to evolve in order to unlock new markets.
1990s
2000s
2005-2010
2010-2015
2015
Next?
Gen Z
Responsible consumption
Regulated services
B2B marketplaces
Passion economy(1)
Mobile-first video
shopping
Aggregate supply
Vertical specialisation ….
…. ongoing quest for new niches …
Transactional marketplaces
On-demand & location-based …
… super apps
Managed marketplaces
???
‘98
‘05
1. A term coined by a16z
‘06
Page / 17
The evolution of online marketplace models
Online Marketplaces June 2020
As innovation pushes boundaries, the definition of “marketplace” is being stretched.
Demand
Customer
acquisition
Listings
Transaction incl.
payment
Logistics
& software tools
Own inventory
Production
Supply
Listings
Homes, cars,
jobs, horizontal
Transactional
marketplaces
Travel, delivery,
freelance
Full-stack
marketplace
On-demand
services
Market maker
(iBuying)
Temporary trade
on the books
Homes, cars,
jobs, products
eCommerce
Fashion, groceries
Direct-to-
consumer
Cosmetics, food,
banking, wellness,
lifestyle, eyewear
✓ Asset light, profitable
 Low revenue per user
✓ Still asset light, higher take-rate
 Possible long-term strategic disadvantage
✓ Control over user-experience
 Operational risk, requires market density
✓ Create new supply, verify quality
 Capital intensity & risk, requires homogenous market
✓ Same-day delivery of goods, control over user experience
 High capital intensity, low margins
✓ Own entire product identity / experience / sometimes with physical stores
 High capital intensity, limited assortment
Traditional marketplaceNew age marketplaceCompeting B2C modelsSource: Dealroom.co
$4B
$6B
$5B
$7B
$7B
$9B
$11B
$21B
$11B
$14B
$22B
$18B
$12B
$26B
$22B
$36B
$41B
$25B
$29B
$54B
$40B
$58B
$74B
$56B
2014
2015
2016
2017
2018
2019
2020
Page / 18
The evolution of online marketplace models
Online Marketplaces June 2020
Mega-rounds ($100M+) and record funding have become the norm in recent years, driven by
an abundance of venture capital. Expectation that we’ll see much less of them in 2020.
Europe ▶
North America ▶
Asia ▶
Global VC investment in marketplaces
Source: Dealroom.co
Other ▶
???
$1B
Series E
$400M
Series F
$271M
Series B
$250M
Series D
$206M
Growth Equity
$231M
Series D
Europe
North America
Rest of World
$2.6B
Growth Equity
$2.3B
Growth Equity
$1.3B
Growth Equity
$1.3B
Growth Equity
$1B
Series H
$1B
Late VC
$3.3B
Growth Equity
$3B
Series F
$1.5B
Series H
$1.5B
Series D
$1B
Series G
$800M
Series D
$1B
Growth Equity
$800M
Growth Equity
$575M
Series G
$568M
Series D
$550M
Series C
$800M
Series D
Asia
Page / 19
The evolution of online marketplace models
Online Marketplaces June 2020
Abundance of venture capital led to the rise asset-heavier models. The pendulum may swing
back to asset-light models.
Asset-lighter
Asset-heavier
Food delivery
Used cars
Mobility
Media
Banking
Healthcare
Housing
Travel
Jobs
Second-hand fashion
Inspired by a slide from Sonali de Rycker (Accel Partners) presented at the Marketplaces Conference 2018
Deliveroo (London)
Deliveroo (group)
Delivery Hero
Grubhub
Just Eat
Takeaway
Airbnb
Asos
Farfetch
Booking.com
Yoox
Zalando
Rightmove
Uber / Lyft
Uber ridesharing
WeWork
(80%)
(60%)
(40%)
(20%)
–
20%
40%
60%
80%
–
10%
20%
30%
40%
50%
60%
70%
80%
90%
The evolution of online marketplace models
Unlike asset light marketplaces, full-stack marketplaces often have challenging unit
economics. And there’s a renewed push for profitability in venture capital markets.
Page / 20
Online Marketplaces June 2020
% Operating profit margin
(sales minus all operating costs)
% Contribution margin
(sales minus cost of goods,
sales & marketing)
Source: Dealroom.co analysis of company financial statements
Traditional marketplaces
✓ Lower upfront capital
✓ Rapidly scalable
 Inferior user experience
Full-stack marketplaces
✓ Superior user experience
✓ Stronger moat (= defensible)
 Challenging unit economics
eCommerce
✓ Greater control over logistics
 Thin (but positive) margins
 Inventory risk
Sustainable lifestyle &
circular economy
Future of work &
passion economy
Regulated services
Teaching
Page / 21
The evolution of online marketplace models
Online Marketplaces June 2020
New marketplace models focus on unmet demand from Gen-Z / millennials and unlock
scarce supply, such as in regulated services and programming.
Source: Dealroom.co
Food waste reduction
Meat alternatives
Recycling
Clothes
Shoes and accessories
Other products
Nursing
Retail / Hospitality workers
Veterinary
Baby-sitters
Programming
Freelance
Podcasting & publishing
Mobility in a jam?
Large parts of mobility have been brought to a near -
standstill, resulting in thousands of layoffs, due to the
Covid-19 crisis. But what will the recovery look like? Many
European cities including Paris and London have unveiled
ambitious plans to reduce congestion. This means
expanding transportation options, to relieve public
transport. European households spend 91% of
transportation costs ($1.2 trillion) on car ownership. This
will likely drastically change over the next ten years.
SECTION 3
Online Marketplaces June 2020
Source: Dealroom.co and Google Finance data as of May 27 2020
Uber vs. Lyft rivalry: the tables have turned in Uber’s favour
(for now), thanks to its diversified logistics approach.
Mobility in a jam?
Page / 23
Share price performance
January 31
Uber (USA)
$59B market cap (-6%)
Lyft (USA)
$10B market cap (-34%)
Grubhub (USA)
$5B market cap (+6%)
Takeaway.com (Netherlands)
$16B market cap (+12%)
Delivery Hero (Germany)
$18B market cap (+20%)
▪ Food logistics share prices are up
▪ Uber outperforming Lyft thanks to its Uber Eats
platform. Uber has approached GrubHub with a
takeover offer
▪ Uber invested in micro-mobility platform Lime for
$170M (70% below last round) and merged it with
JUMP. Micro-mobility could experience a sharp
recovery once economies re-open
▪ Demand for on-demand passenger rides has
plummeted. Recovery still uncertain: could be V-
shaped or L-shaped
▪ Both Lyft and Uber have announced significant
layoffs: 1,000 and 3,500 staff respectively
-80%
-60%
-40%
-20%
0%
20%
40%
19 Nov
03 Jan
17 Feb
02 Apr
17 May
Source: Dealroom.co and Google Finance as of May 27 2020
Page / 24
Mobility in a jam?
Online Marketplaces June 2020
Mobility platforms have a combined market value of over $250 billion, of which 84% from ride
hailing and on-demand logistics.
Ride hailing
On-demand
logistics
Car
marketplaces
Micro-mobility
Long distance
mobility
Sharing /
Subscription
Combined market cap of
top-10 companies
$156B
$60B
$23B
$8B
$6B
$4B
Examples
Avoid shared mobility
X
V
X
Avoid public transport
V
V
V
V
X
V
Working from home
V
X
Online Marketplaces June 2020
Source: Dealroom analysis of Eurostat and Department of Transportation (UK) data
1. Department of Transportation of The United Kingdom (2018). NHTS data for USA
Car use has exploded since the 1950s, driven by universal
car ownership – and more recently by ride hailing.
Mobility in a jam?
Page / 25
1952 1957 1962 1967 1972 1977 1982 1987 1992 1997 2002 2007 2012 2017
Cars ▶
Rail ▶
Bus ▶
Other ▶
Distance travelled (in billion kilometers) by modal in the UK (1)
▪ Since 1952, car travel has grown 13x while
there’s been no growth in public transport
(trains & buses)
▪ Car ownership has become universal driven by
welfare, while cars are kept idle 90% of the time
▪ ~60% of car trips are less than 8 km (1)
▪ Since 2012, ride hailing apps have possibly
added to congestion in many cities
▪ 40% of trips are for leisure, 27% for
commuting/business
▪ Morning commute into dense cities is already
much less dependent on cars. During peak
hours morning commute , only 6% of distance
travelled is via car
▪
In dense metro areas the balance is shifting
away from cars. Cities including Paris and
London have unveiled ambitious plans to
reduce car congestion
210
808
24%
78%
Impact from
ride hailing?
Impact from
congestion charge
in London
78% of distance
travelled and 62%
of trips in the UK
Online Marketplaces June 2020
Source: Dealroom.co, Lufthansa report, Sifted.eu
Governments can restrict emissions-heavy car use, but need
to facilitate greener alternatives.
Mobility in a jam?
Page / 26
–
50
100
150
200
250
300
Walking
Bike/eBike
Tram/train
Scooter
Bus
Car
Airplane
Carbon emissions by modal
eScooter
Traditional
scooter
eBus
Diesel bus
Plug-in-hybrid
Gasoline car
Long-haul
Short-haul
▪ Cars and airplanes perform worst in terms of
harmful emissions including CO2
▪ Significant gains can be maid by switching to
greener versions of same model (e.g. scooter
to eScooter)
▪ Despite some backlash, eScooters are greener
than most alternatives
▪ Early reports suggest eScooters can replace
cars in a third of trips. Often combined with
public transport. In the US, one in three car
trips are less than two miles long
▪ Governments can restrict car use but need to
provide alternatives
▪ Train and eBus are much better than flying
Grams of CO2 per kilometre per passenger
$0.4T
$0.7T
$0.1T
$1.2T
Page / 27
Mobility in a jam?
Online Marketplaces June 2020
While mobility apps have gone mainstream, European households still spend 91% of
their transportation budget on car ownership.
$1.1 trillion spending on car
ownership: opportunity to
transition to more efficient
modes of transport
Fuel & maintenance ▶
Purchase ▶
Public transport,
taxis, ride-hailing ▶
Source: Dealroom analysis of Eurostat and Department of Transportation (UK) data
1. Department of Transportation of The United Kingdom (2018), NHTS data for USA
Expenses
Annual household expenditure on
transportation
Car sharing
Car hailing
Scooter sharing
Bike sharing
eBikes
Page / 28
Mobility in a jam?
Online Marketplaces June 2020
As economies re-open, will dense metro areas become even more congested, or less?
Source: Dealroom analysis. Numbers mostly based on various McKinsey mobility reports. Re-opening is not a projection of prediction but more an illustration / mental framework to assess the different impacts.
Kilometers travelled (indexed)
in a dense metro area
30
40
15
5
5
45
60
40
60
5
10
15
100
135
Pre Covid-19
Peak lock-down
(80-90% traffic
reduction)
Re-opening in
2020 (pre vaccin)
McKinsey
Seamless Mobility
scenario for 2030
Cars ▶
Rail & bus ▶
Ride hailing & taxis ▶
Walking & biking ▶
Risk that car use
increases
post lock-down
(but limited capacity)
1/3 of commuters
want to avoid
public transport
Cycling already more
popular post Covid-19
Reduction in
car use
◀ Transition to
robo-taxis & shuttles
Better public
transport back
to normal
◀ Micro-mobility
(private and shared)
Entering crisis
Transition to new normal
Work from
home impact
EUROPEAN VC INVESTMENT
AMERICAS
EUROPE
ASIA
Micro-mobility
Mobility
Car sharing /
renting
Long distance
Page / 29
Mobility in a jam?
Online Marketplaces June 2020
Urban landscapes are changing fast. Mobility platforms have been sprawling.
Source: Dealroom.co
$6M
$17M
$32M
$46M
$259M
$375M
2014
2015
2016
2017
2018
2019
$74M
$40M
$166M
$140M
$471M
$135M
2014
2015
2016
2017
2018
2019
$10M
$19M
$42M
$41M
$140M
$79M
2014
2015
2016
2017
2018
2019
$145M
$273M
$164M
$40M
$299M
$986M
2014
2015
2016
2017
2018
2019
Online Marketplaces June 2020
Page / 30
Changing mobility for good
Interview with Lawrence Leuschner, CEO and co-founder
Why did you decide to start TIER Mobility?
Our mission is to change mobility for good. TIER Mobility was
started to make an impact and change the way people move
and commute in cities. After decades of debating about the
need for a mobility transition, we now have actually started to
bring a new form of emission-free mobility to the cities.
There have been reports that scooters don’t last very long (1-2
months?). What’s the sustainable future of scooters?
These reports were related to US-providers in their early days,
but never applied to our scooters. The current generation of
TIER-Scooters last for approx. 24 months. The lifespan is
increased due to the unique system of maintenance and
repair that we established from the very beginning. Switching
to scooters with swappable batteries allows us to change
batteries without vans. This is a game-changer in terms of
sustainability. Furthermore, we established a unique process
for continued use of our scooters by launching myTIER, i.e.
selling refurbished scooters to customers. Overall, we pursue
a very holistic approach. As of today, TIER is carbon neutral as
a company - I’m proud that we are setting the mark here.
What do the unit economics look like for TIER?
TIER achieved positive CM1 (gross profit) across all markets
across the full year in 2019. Our best-in-class unit economics
were driven by our focus on operational expertise and
extending scooter lifetime. We are already seeing further cost
optimisations from swappable battery scooters. We saw a
50% reduction in operating costs through 2H 2019. We also
advanced in reaching our goal to be EBITDA positive.
Are eScootersa substitute for cars, or for public transport,
walking and cycling?
An independent opinion poll from YouGov just found that
33% of German e-scooter users replaced car trips. I think this
is encouraging given that we have only just started, and we
are in the early days of building a multi-model offering that
will include more use cases for urban commuters.
The landscape in Europe seems very competitive. Will
consolidation happen like it did in food delivery for example?
Consolidation will happen, that’s for sure. In food delivery, it
took a couple of years until consolidation happened to a
larger extent, so let’s see how things will unfold in our space.
With the global lockdown, the way we move has completely
changed - how does this affect TIER?
Clearly the reduced movement in cities has challenged many
providers. However, TIER has a very strong and cost effective
operational set up that has enabled us to keep our scooters
on the streets in most cities, where other providers have had
to withdraw. At TIER we have focused on doing our part
tosupport - we are proud to have handed out1.3 million free
minutesto essential workers to travel safely in our cities.
We believe that micro mobility plays a crucial part of Covid
recovery, especially to prevent car-based recovery that will
put unnecessary pressureon infrastructure and environment.
We are strong believers that urban mobility will change and
that consumers and cities will look for flexible and green
transport options - that also enablesocial distancing.
Year founded
2017
2017
2018
2018
2018
2018
2018
HQ
USA
USA
Germany
Sweden
Germany
Germany
Netherlands
Total equity
funding
€706M
€627M
€55M
$136M
$136M
€65M
€50M
Estimated
employees
1,400+
1,100+
400+
400+
500+
70+
90+
Estimated rides
(since launch)
2M
15M
18M+
1.5M
-
Cities (#)
120+
100+
33
30
60+
14
4
Countries
(names)
USA, Argentina, Australia, Austria,
Belgium, Brazil, Bulgaria, Canada,
Chile, Colombia, Czech Republic,
Denmark, Finland, France,
Germany, Greece, Hungary, Israel,
Italy, Mexico, New Zealand, Norway,
Poland, Portugal, Romania,
Singapore, South Korea, Spain,
Sweden, Switzerland, UAE, UK
USA, United
Kingdom, Portugal,
Spain, France,
Germany, Italy,
Israel, Poland, Chile,
Sweden, Austria,
Belgium
Portugal, Spain,
France, Italy,
Belgium, Germany,
Norway, Sweden
Portugal, Spain,
France, Germany,
Austria, Denmark,
Norway, Sweden,
Finland
Germany, France,
Spain, Austria,
Switzerland, Belgium,
Norway, Sweden,
Denmark, Finland,
UAE
Portugal, Spain,
France, Austria,
Denmark
France, Italy,
Belgium,
Online Marketplaces June 2020
Source: Dealroom.co
1. Excludes the numbers for JUMP bikes
The main micro-mobility players are relatively young, but well capitalised.
Mobility in a jam?
Page / 31
Acquisition of Circ
Jan 2020
(1)
Autonomous trucks
Source: Dealroom.co
Page / 32
Mobility in a jam?
Online Marketplaces June 2020
The hardware is changing too: autonomous driving is still far away but would obviously
be a game changer for mobility and mobility marketplaces, along with electric vehicles.
EV charging infrastructure
Autonomous cars
Vehicle cyber security
Car connectivity
▪ 80% of top 10 manufacturers plan highly autonomous vehicles
▪ Truck platooning on the road expected by 2022
▪ >40% of models announced by 2021 will have electric powertrains
▪ Cars becoming more connected
Source: Dealroom.co
Page / 33
Mobility in a jam?
Online Marketplaces June 2020
Marketplaces are innovating not just mobility itself, but the entire mobility value chain.
Car
manufacturing
Fuel
Insurance
Maintenance
& services
Used car
sales
Distribution
& financing
Parking
Housing: unlocking the
world’s #1 consumer market.
Housing is the #1 household expense (mortgage, rent,
maintenance, energy). People already look for properties
online, but the rest of the market is ripe for innovation.
Fractional ownership and iBuying are slowly changing that.
Housing shortages, inaccessibility to home ownership and
sustainability are key themes.
SECTION 4
Online Marketplaces June 2020
Source: Dealroom.co
Until recently, online real estate was almost entirely about property search. But
iBuyers and online brokers have quickly become a major category.
Unlocking real estate
Page / 35
Fractional ownership €1B
Source: Dealroom.co for private . Yahoo Finance for public market cap data as of May 16 2020.
Page / 36
The digitisation of consumer markets
Online Marketplaces June 2020
Innovative models removing friction such as iBuying have quickly become a main category of real
estate marketplaces.
Home search
iBuying
Co-living and co-
working
Online brokers
Mortgages
Fractional
ownership
Top 10 Combined
market cap of
segment
$27B
$17B
$10B
$9B
$3B
$1B
Select examples
Opportunities
• Consumers seek
liquidity
•
Improve consumer
experience (digital
house-viewing)
•
Improve house sale
efficiency
• Companies reconsider
purpose of HQ and opt to
flexible working space
•
Improve consumer
experience (digital house-
viewing)
• Facilitate government-
backed loans
• Finance growing SMEs
and take market share
from banks
Challenges
• Discretionary
spending decreases
• Social distancing
continues
• Discretionary spending
decreases
• Tenants fail to pay rent
and end contracts
• Social distancing
continues
• Risk appetite goes
down in economic
downturn
• Borrowers fail to pay-
back
• Borrowers fail to pay-
back
Online Marketplaces June 2020
Source: Dealroom.co and Google Finance data as of May 27 2020
Short term liquidity in real estate has been badly effected
during the pandemic, reflected in proptech share prices.
Unlocking real estate
Page / 37
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
29 Nov
29 Dec
28 Jan
27 Feb
28 Mar
27 Apr
Share price performance
January 31
Zillow (USA)
$13B market cap (+21%)
Redfin (USA)
$3B market cap (+20%)
Rightmove (UK)
$6B market cap (-15%)
Purplebricks (UK)
$121M market cap (-66%)
▪ According to Zillow, new listings are down
39% YoY. For high-end homes the listings
are down 46%
▪ Rightmove and Zoopla listings started to
increase again as of 18 April 2020. Still far
from pre-Covid levels
▪ Web traffic is returning to pre-Covid levels
Last valuation(1)
Total equity funding
Founding Year &
Location
Number of metro areas in operation
Has Trade-in program
$3.8B / Series F
$1.5B
2014 / San Francisco
21
$1.0B
$435M
2015 / New York
7
Yes
$1.0B / estimate
$363M
2015 / Gilbert, USA
12
Yes
$2.9B / public
$136M
2006 / Seattle
Entered iBuying: 2017
10
$12.9B / public
$87M
2005 / Seattle
Entered iBuying: 2018
21
$105-158M / estimate
$85M
2015 / London
1 (London)
$83M / estimate
$14M
2017 / Madrid
3
$88-132M / estimate
$32M
2017 / Milan
2 (Milan and Rome)
$62-92M / estimate
$21M
2017 / Barcelona
3
$53-80M / estimate
$15M
2017 / Helsinki
7
$105-158M / estimate
$23M
2016 / Paris
1 (Paris)
Online Marketplaces June 2020
Source: Dealroom.co
1. Private valuations are based on Dealroom’s estimate.
US-based iBuyers are well capitalized compared to their European counterparts.
Unlocking real estate
Page / 38
Online Marketplaces June 2020
What made you decide to start Kodit?
Even though residential real estate is the largest asset class
in the world, the way people buy and sell homes has not
really changed in decades. The normal process of
transacting in homes is time consuming, expensive and
there is a high level of stress and uncertainty involved for
people on both sides of the deal. We felt that technology
would allow us to completely reinvent the process and
provide a radically improved customer experience. It is a
huge opportunity but at the same time a very complex and
multidimensional challenge. I guess that is why I started the
company and got so obsessed with it.
How does Koditwork? What’s the difference with
Opendoor?
We give home sellers fair, fast, and data-based cash offers
on teir homes and offer home buyers move-in ready
homes. We operate in eight different cities in three
European countries. Kodit buys apartments in any
condition, as long as it suits the mass affordable market
segment that we serve. Our technology allows us to
accurately assess home value and liquidity pre- and post-
renovation, which together with our renovation budgeting
tools allow us to derive the right purchase offer and
renovation scope to maximise annualised unit return on a
deal by deal basis. There are a few key differences between
Koditand Opendoor, mainly deriving from differences in
market structure and consumer behaviour in Europe vs the
US. With this I mean that the European real estate markets
are much more heterogeneous and hence less transparent
than in the US, European real estate agent fee levels are in
most places lower than in the US, and Europeans are not as
prone to pay for convenience. For those reasons, we do not
charge our customers any separate fees, so what you see is
what you get, it's all in the price we offer home sellers. What
underlines our success is our ability to, more often than not,
offer home sellers close to full market price and still
maintain very strong unit economics. So, simply put, the
vast majority of our customers are not selling to us only
because of the convenience, but we offer them a better
price than what they are able to get on the public market.
That is a very compelling offering to home sellers.
What did you learn works and what doesn’t when it comes
to iBuyingof real estate?
We have learned a lot and we still are on a very steep
learning curve. One of the key success factors for iBuyers
(and many other full stack startups) is how well you
combine complex real world operations with technology. I
would say that combining tech and ops is the area where
we have learned the most and keep learning every day. As a
practical example, we have learned that liquidity models
are equally, if not more, important than valuation models.
Assessing each unit on these parameters and executing the
business model across all purchase conditions are needed
to operate the model at scale in Europe. Thanks to
continuously investing way more into tech than our peers in
Europe, we are able to stay ahead of the pack.
Page / 39
iBuyers reinventing the process of home purchase
Interview with Kalle Salmi, CEO and co-founder
Source: Dealroom.co
The created value by fractional ownership marketplaces remains relatively small,
but the application of blockchain would accelerate growth in the space.
Unlocking real estate
Page / 40
Location
Year founded
Total funding
Type
USA
2013
$111M
Loan
Germany
2014
$65M
Loan
UK
2014
$29M
Loan & Equity
USA
2013
$27M
Loan & Equity
UK
2010
$16M
Loan & Equity
Estonia
2013
$1.4M
Loan
Other
First wave:
•
Illiquidity of real estate market: large upfront capital
requirements and regulations for investing abroad
• Marketplaces have facilitated asset-backed lending
and investing, which has brought some transparency
Second wave:
• Blockchain will speed up tokenization of real estate
assets and enable seamless transactions of ownership
•
It will also lower the transaction costs and settlement
time
• Smart contracts and easy ID verification
Online Marketplaces June 2020
Page / 41
Bridging the gap in property finance
Interview with Marek Pärtel, Founder and CEO
Online Marketplaces June 2020
What motivated you to start EstateGuru?
With a background in real estate as both an investor and
developer, I often saw that banks were reluctant, slow or
unwilling to finance a property deal, even when the
business plan was solid. It was clear to me that there should
be an alternative financing platform to empower
entrepreneurs and support their projects.
Have you considered including a sustainability component
to your product?
We recently started thinking about how we could integrate
Sustainability Development Goals into our product. We
might collaborate with other financial institutions in future,
as we offer a great distribution channel to find borrowers
who also want to make a positive impact. We could also
offer better terms for projects with a sustainable approach
and give our investors opportunities to have an impact on
making our world a greener and cleaner place for all.
How do you see fractional ownership evolving and what
role canblockchain play?
We have been looking at blockchain for some time, but
currently, it will not add value to our business model. In our
process, we work with notaries, who are not on blockchain
yet. If the registry of properties is digitized and incorporates
blockchain, then it will make sense. Blockchain is just part
of the solution. It is easy to tokenize a property but I am not
familiar with a blockchain solution for the ownership
structure and transactional part of the process. In the
future, we might use blockchain to offer fractional
ownership to our growing customer base, but we will start
with countries that have digitized the property registry.
Do you plan to partner with fintechs?
Yes, absolutely. We are developing a product that will
integrate with Neobankslike N26, Moneseand Revolut.
Challenger banks are looking for alternative revenue
streams, and we could benefit from tapping into their
customer base when originating loans. We have already
integrated many fintechswith our platform from property
data, AML and other fields to improve the efficiency of
underwriting, credit scoring and speed of service.
What’s next for Estate Guru?
Our strategy is to become a cross-border lender. This year
we are expanding to Germany, Spain and the UK. Our goal
is to build a Pan-European ecosystem of property finance
and investments to facilitate €5 billion worth of loans
annually by 2025. We need to grow our retail and
institutional base as well as work with Neobanks. Currently,
90% of our investors are retail clients but we plan to grow
the institutional investor base to the point where it
comprises up to 70-80% of the total.
What scaling challenges does the Coronavirus crisis create?
The challenge is twofold. Firstly, the general contraction of
the economy means that there may be fewer people
available to borrow money as construction and real estate
development slow down under government restrictions.
Luckily, the countries where we have a presence are
already relaxing measures, and we expect borrower levels
to exceed what they were before the crisis. As our loans are
also used to release equity from existing properties, our
platform with its 50,000 strong investor base is a perfect
source of capital for generating in turbulent times.
Secondly, investor nervousness is understandable as
people take a ‘wait-and-see’ approach to the economy.
Fortunately, investors realise that in times like these, loans
secured by real estate offer a far more stable investment
than the stock market or commodities. The situation
pushes us to be even more digital and we were recently
part of a fully online notarized property transaction in
Estonia, which we believe to be the first of its kind in the
world.
How is EstateGuruadapting to recent market and
behavioural shifts?
We’re maintaining focus on our core strengths and not
panicking. Our stress tests show that our investors’
outstanding loan portfolios have a sufficient buffer to
overcome this crisis. Furthermore, most of our loan
collaterals are related to the residential segment, where the
negative effect of the crisis has been the lowest, as living
spaces remain a primary need for humans. We closely
monitor the macroeconomic and real estate market
situations, and we have been and will remain conservative
in making credit risk decisions. To reflect the changing
environment we have slightly raised interest rates and
tightened our already strict credit policy, but in truth, it is
mostly business as usual at EstateGuru.
Healthcare: 10 years of
change has happened in a
few weeks.
Consumer healthcare, heavily regulated, is increasingly
embracing telemedicine, AI, connectivity and predictive
diagnostics. A trend started by pressures from ageing
populations, spiralling costs and staffing shortages, has
been accelerated by the pandemic.
SECTION 5
Online Marketplaces June 2020
Source: Dealroom.co
Consumer healthcare startups have a combined value of $68 billion which is still
small compared to the overall market opportunity.
What’s next in consumer healthcare?
Page / 43
Online Marketplaces June 2020
Source: Dealroom.co and Google Finance data as of May 27 2020.
Unsurprisingly, digital consumer healthcare demand has
skyrocketed since the onset of the pandemic.
What’s next in consumer healthcare?
Page / 44
▪ Doctolib surveyed its customers and
74% of doctors said they’d continue
using video consultation after the
pandemic passes, and so did 80% of
patients
▪
Increased competition from
unconventional players such as
Apple, Google and Zoom
▪ Non-Covid healthcare takes a big hit
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
140%
160%
29 Nov
29 Dec
28 Jan
27 Feb
28 Mar
27 Apr
Share price performance
January 31
Livongo (USA)
$5B market cap (+140%)
Zur Rose (Switserland)
$2B market cap (+60%)
Shop Apotheke (Netherlands)
$1B market cap (+120%)
Ping An Good Doctor (China)
$14B market cap (+51%)
Teladoc (USA)
$12B market cap (+80%)
Source: Dealroom.co
Page / 45
What’s next in consumer healthcare?
Online Marketplaces June 2020
Healthcare is among the least digitized industries. But for some areas, Covid-19 has
forced 10 years of change in a matter of weeks.
Ageing population
Staffing and funding shortages
Governments starting to embrace
technology, make room for innovators
Connectivity and AI change the game in
diagnostics and prevention
Data collection & AI
Pre-emptive & remote monitoring
Breakthroughs in drug discovery and
treatments
Pharmacies
Telemedicine & online booking
Drug development with AI
Genomics
Diagnostics
Connected health sensors
Online Marketplaces June 2020
Source: Dealroom.co
1. Sensor Tower, when available.
What’s next in consumer healthcare?
Page / 46
Consumer booking apps are going mainstream, allowing for instant access to
information and service.
Others
Founded
2007
2014
2014
2013
2011
2013
Funding
$223M
$900M
$244M
$267M
$140
$635M
Valuation
$1.8B
$7.5B
$926M / estimate
$1.1B
$528M / estimate
$2.0B
Booking
V
V
V
V
Telemedicine
V
V
V
V
AI help
V
V
SaaS for doctors
V
V
Pharma
V
V
Countries
USA
China
Nordics, France, UK, Spain
France, Germany
Poland, Turkey, Spain,
Italy, Czech Republic,
Mexico, Brazil, Colombia,
Argentina and Chile
UK, Rwanda, Canada
to expand in: USA, China, Middle
East
App downloads(1)
265M
1,2M
1.2M
Online Marketplaces June 2020
Page / 47
The patient journey could be simple
Interview with Mariusz Gralewski, CEO
Why did you start Docplanner?
When I started university I moved to a new city and tried to find a
doctor. The process made me start digging into the market and I
realized it was very non-transparent and fragmented, one of the
least digitised sectors of all. In our markets, waiting times are
super long, doctors often spend more time looking at a
computer than the patient, data entry is repetitive, and paper is
still in heavy use.We believed the whole patient journey could be
simple and fun! With Docplannerpatients can search for a
doctor, read opinions and make a booking online on the
marketplace. For doctors and healthcare facilities we provide
calendar management software to help manage their patient
flow and reduce no-shows while helping them generate
additional revenue. Our software now includes advanced
features such as electronic health records, doctor chat and pre-
appointment check-in, all intended to make the patient
experience more “human” and practices more efficient.
Which are your top markets and why? What are the key
differences between countries where you operate?
We are focused on Brazil, Poland, Mexico, Turkey, Italy and Spain.
We found that these countries had many similarities. However,
differences do exist, which make opening subsequent markets a
challenge. For example, Spain has a high adoption of private
health insurance which means providers receive a smaller cut for
each appointment and have less motivation to market
themselves to these patients. It also adds some complexity to
marketplace search with patients wanting to filter for their
specific insurance. Then there are differences in local regulations
which make software features difficult to launch across multiple
markets. For example, our e-prescription plug-in in Poland will
need to be adjusted to comply with rules in other markets.
It’s been said that there has been 10 years of progress in
healthtechadoption in a matter of weeks, would you agree?
For us this has absolutely been he case. We launched a video
consultation feature in our SaaS a few weeks into the Covid-19
outbreak and the adoption has been amazing. While doctors in
our markets were traditionally hesitant to move away from in-
person consultations and telemedicine was a tiny fraction of total
bookings in normal times, Covid has turned this upside down.
For example, when we worked on telemedicine pilots before
Covid, only a handful of doctors were interested in taking part.
And actually none of them successfully completed the pilot
stage. All of them waited for the “perfect case” or the “perfect
patient” for a remote consultation. And there was always some
feature missing or a reason not to do it. After Covidhad hit, we
offered a super simple, rather MVP-ishremote visit functionality
to doctors in Italy, and during one day we had 500 of them signed
up to the service. Today, almost a half of our 70,000 doctor clients
have adopted online consultations as a form of healthcare
delivery, largely out of necessity (clinics were closed), and we
process tens of thousands of such bookings daily. While we are
seeing the return of in-person bookings as clinics re-open, online
bookings still continue to grow. Long-term we expect that 20-
30% of all consultations will remain in the online format. The
skew towards telemedicine will be especially prevalent in
specialisations where physical interaction is not essential such as
psychiatry, psychology and dermatology. Remote visits can also
be a great solution for follow-up consultations in most other
specialisations.
Finally, it’s important to note that the pandemic pushed many
governments to change regulations and allow telemedicine on a
broad scale, which was hard to imagine even in January.
Healthtechstartupsseem more crucial than ever, what role do
you see them playing during the pandemic?
Healthtechstartupsare central to solving many issues during the
pandemic, especially in maintaining social distancing. The
obvious example of this is telemedicine discussed above. We are
happy to support remote patient-doctor interactions and proud
of becoming one of the major global players in this space in a
matter of weeks.
Another example is helping doctors and clinics keep their waiting
rooms relatively empty, while being able to serve a similar
number of patients. To do that they need to give up walk-in
waiting rooms and switch to scheduled meetings so patients
don’t wait in and around the doctor’s office. This is basically what
Docplannerwas created for - offering a digital agenda with online
booking, automatic reminders, etc.
A final example is triaging patients so they know whether they
can stay at home (possibly treating themselves with simple over-
the-counter drugs) or if they should contact a doctor, and if this is
the case, whether the telemedicine format will suffice, or an in-
person visit is recommended. The triage can be done with the
help of AI tools or by simple instant online communication with a
GP or a nurse. Finally, due to the nature of the crisis, healthcare
has seen a major strain on its resources (people, materials, etc.)
and so optimization in the form of digitization is playing a key
role in making better use of these limited resources.
The future of work has
become… just work.
The rise of freelance, gig & passion workers means a
growing share of workers relying on match-making and
distribution platforms for income as they work from home.
Working from home creates a level playing field for
freelancers and passion economy.
SECTION 6
Online Marketplaces June 2020
Source: Dealroom.co
1. ISA stands for Income-sharing agreement – a scheme where the students pays % of income after graduation instead of upfront tuition fee.
Online job markets are dominated by LinkedIn and Indeed globally, and regionally
by dominant local job portals.
The future of work & education
Page / 49
(1)
Online Marketplaces June 2020
Source: Dealroom.co and Google Finance data as of May 27 2020.
Workplaces and workforces are going through their biggest
change in a generation.
The future of work & education
Page / 50
▪ Hiring has slowed down
▪ Meanwhile, freelance platforms are up: Fiverr
is at an all time high ($1.9B market cap) after
posting strong Q1 results and giving a positive
outlook
▪ Working from home levels playing field for
freelancers?
-100%
-50%
0%
50%
100%
150%
200%
2 Dec
31 Dec
29 Jan
27 Feb
27 Mar
25 Apr
24 May
Share price performance
January 31
Fiver (Israel)
$2B market cap (+144%)
Upwork (USA)
$1B market cap (+36%)
Freelancer (Australia)
$239M market cap (+10%)
Recruit Holdings (Japan )
$52B market cap (-26%)
162M
>300M+
648M
685M
2017
2027
Online Marketplaces June 2020
Source: Mix of data from Upwork (USA data, and 2027 projections), McKinsey (USA & Europe status quo data) and assumptions by Dealroom.co
1.
IPSE
2.
TUC & University of Hertfordshire
162 million independent workers in the USA & Europe earn ~$3 trillion per year. That’s 20-
30% of the total workforce, which could approach/exceed 50% within the next ten years.
The future of work & education
Page / 51
Growth drivers:
▪ 42% of millennials (18-34) work freelance.
Millennials will form 75% of the global
workforce by 2025
▪ The number of independent workers in the
European Union rose by 24% between 2008
and 2015, from 7.7 to 9.6 million (1). The gig
economy in the UK doubled in size between
2016 and 2019. It now comprises 4.7 million
workers (2)
▪ The Intuit 2020 Report estimated that 80% of
large corporations plan to increase the use of
freelancers in the coming years
▪ Rise of freelancers earning $1M (Passion
Economy)
The rise of freelance workers
(USA plus Europe)
20-30%
Freelance
Employees
Freelance could increase
to >50% of workforce,
according to Upwork
Freelance
Independent workers today
▪ 20-30% of workforce in USA &
Europe, including freelance and gig
economy (=162M people)
▪ On average, work 17 hours per week
and make $20-25 per hour.
▪
Implies $1.3 trillion earnings in USA
and another ~$1.5 trillion earnings in
Europe
>50%+
Employees
Need to better match supply & demand.
War for top talent.
Skills mismatch & reschooling need.
University degree losing importance.
Student debt crisis.
Online Marketplaces June 2020
Source: Dealroom.co
Changing workplace: repetitive work is automated, talent is re-trained and better
matched with employers, even remotely. Covid-19 will accelerate those trends.
The future of work & education
Page / 52
Jobs search:
Source candidates:
Distributed teams:
Reschooling:
Courses:
Get inspired:
Automation:
Source: Dealroom.co
Page / 53
The future of work & education
Online Marketplaces June 2020
As the job market slows due to recessionary pressures, vertical job marketplaces will play a
major role in the rehiring process, with more efficient and cost-effective matching.
Hospitality
Retail
Healthcare
Software
Construction
Online Marketplaces June 2020
Source: Dealroom.co
Match-making is expanding from gig-economy to passion economy.
The future of work & education
Page / 54
Passion
economy
White collar /
experts
Blue collar
Listings & search
Transactional & match-making
Full-stack
Salary
Vertical integration
Healthcare/nurses:
Programming:
Freelance:
Experts:
Search:
Tasks:
Riding:
Hospitality:
Publish your content:
Sell your courses:
Teach:
Podcasting
Photography
Online Marketplaces June 2020
Why did you start Medwing?
A few things came together: My experience building HR
software, conversations with friends and family who work
in hospitals and the extensive media coverage on the
significant staffing shortage in healthcare. For healthcare
staff, the picture is not much better. They are typically
overworked and the industry is not as attractive as it used
to be, meaning fewer workers are entering healthcare.
According to the WHO there will be a shortage of 18 million
healthcare professionals globally by 2030. MEDWING was
born out of this bleak situation. Our mission is to solve this
shortage of healthcare workers across the globe.
How does Medwingwork? What's the business model?
MEDWING is a community that connects healthcare
professionals with job opportunities in hospitals, care
homes or doctor offices. Our unique matching logic finds
the best job opportunities for anyone who wants to work in
healthcare. Candidates register on our platform and tell us
their preferences. From healthcare institutions we collect
what it is like to work there as well as available
opportunities. With better matching we improve resource
allocation, reduce churn and increase job satisfaction. For
candidates, our service is simple, time-saving and free. For
employers, our service solves their biggest challenge:
finding and keeping employees. Going forward, we see
MEDWING as being the partner for both candidates and
employers. For candidates, this means assisting them with
payment services, affordable housing, childcare services so
they are able to continue working in the industry. For
employers this means integrated services such as shift
managing tools or internal staffing pool solutions.
How do you see the healthcare recruitment space evolve
going forward? How do you see the role of the government?
Recruiting in healthcare has changed dramatically over the
last couple of years and it will continue to evolve. The
power in the market has fundamentally shifted from
employers to the candidates. Too often, hospitals just wait
for candidates to call – with a firm belief that candidates will
come to them. But the times have changed! Good
candidates do not call but get called. Putting expensive ads
on a job board is not going to work any either –it’s outdated.
Searching through hundreds of job ads with the same
content, even with the nicest company profiles is just not a
convenient service. On the contrary, it is time consuming,
unpleasant and even worse, it does not guarantee the best
outcome. Standalone online marketing campaigns very
quickly get expensive, since the portion of generated traffic
an individual hospital can use is just too small. Matching
and platform solutions will be able to attract enough
volume, structurally generate the best matches, and offer
the best service at the lowest price for the whole industry.
Role of government? Structurally, healthcare is typically
publicly run. Certain changes can be done by individual
institutions (for example more stability in shift planning for
employees). However, certain things like funding, wages
and qualification recognition can only be tackled at a
government level. MEDWING can help in providing a united
voice for nurses and doctors to voice concerns directly with
governments, and become a partner to help governments
improve working conditions and employee satisfaction and
hence (indirectly) improve health system outcomes.
Which countries do you operate in today? Where does
Medwingplan to expand next?
MEDWING currently operates in Germany, France and the
UK. We plan to expand our services across Europe, and
even further. We always try everything out on a small scale
first. As soon as we know that it works, we roll it out in other
countries. We are also expanding our range of candidate
services around specialised roles, as well as assisting
institutions in their recruitment efforts. Our mission is to
solve the global healthcare staffing shortage and to
improve access to healthcare provision for everyone in the
world. So this is just the beginning.
What impact has Covid -19 had on healthcare recruitment?
Recruiting in healthcare has changed dramatically over the
last couple of years and it will continue to evolve.
Healthcare recruiting needs to modernise, now more than
ever given the situation unfolding around the globe.
Page / 55
Solving the shortage of 18 million healthcare professionals
Interview with Johannes Roggendorf, MD and co-founder
Education: a degree of
disruption
The accepted definition of formal education is broadening,
and the lines are now blurred between digital and physical
classrooms. With even Cambridge University fulfilling
lectures online, alternative skills providers, new formats and
competitive price points come into play.
SECTION 7
Online Marketplaces June 2020
Source: Dealroom.co and Google Finance data as of May 27, 2020
EdTech startups saw a surge in usage during Covid-19, but
what happens when students go back to campus?
What’s next for education?
Page / 57
▪ Convert freemium users
▪ Some households lack technology to access
remote learning
▪ Established schools move curriculum online
Opportunities
▪ The pandemic has forced hundreds millions of
students to learn from home, putting tech
companies at the forefront of making remote
education possible
▪ Push towards remote learning
▪
Intensive Bootcamp learning model gained
momentum
Challenges
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
29 Nov
3 Jan
7 Feb
13 Mar
17 Apr
22 May
Share price performance
January 31
Chegg (USA)
$7B market cap (+49%)
K12 (USA)
$1B market cap (+49%)
PluralSight (USA)
$3B market cap (+6%)
Online Marketplaces June 2020
Source: National Center for Education Statistics, National Association of Colleges and Employers, U.S. Department of Labor
Adjusted for inflation
Traditional universities are becoming increasingly
unaffordable. US tuition fees outpace salaries.
What’s next for education?
Page / 58
2.8x
2.4x
1.2x
1.0x
1.0x
1987
2004
2016
Public university tuition fees
Private university tuition fees
Early career salaries
Minimum wage
▪
In the USA, tuition fees have
massively outpaced salaries in
recent years
▪ Meanwhile, concerns arise whether
university is best preparation for
today’s workplace
▪ As universities move online, social
and network benefits are lost
▪
In Europe, less of a direct
comparison as university is more
affordable, but the ROI question
remains.
Source: Dealroom.co
Page / 59
What’s next for education?
Online Marketplaces June 2020
Following Covid-19, the lines are now blurred between physical and digital
classrooms.
Access to learning materials on-demand
Using video to maximize student
achievements
Mentoring becomes more important
Interactive learning materials
Personalized and tailor-made curriculum
for maximum impact
Promote student collaboration
Guide self-discovery and student
engagement
Mentoring & Tutoring
Online learning platforms
Gamified learning
AI-driven learning
P2P knowledge sharing
Knowledge sharing & Collaboration
Student assessment and engagement
Children / Primary school
High school
University and Adults
▪ Adaptive learning
▪ Engaging video content, slide shows, activities
and assessments
▪ Digital-first academic support and accessibility
▪ Smart assessment
▪ New types of curriculum in specialised areas such
as languages, science or coding
▪
Increase online courses from traditional
institutions
▪
Income-sharing agreements: Study now, pay later
▪ Bootcamps to get learners ‘job ready’ in new
professions
Innovative teaching methods
Source: Dealroom.co
Page / 60
What’s next for education?
Online Marketplaces June 2020
EdTech companies are helping schools and teachers to keep classes running during
the crisis.
Gamified learning
Assessment and feedback
Job training and bootcamps
Online lectures
Online tutoring
Online learning
Career planning
Online Marketplaces June 2020
What opportunity did you see that made you start
Brainly?
The main reason was I just thought it would be so cool if I
had a product like this when I was in high-school! When we
started we were initially just focussing on Poland, but soon
we realised that we were addressing a global problem.
There are more than a billion students worldwide, and
every student needs help in learning. We want Brainly to
help all of them.
What have been the biggest challenges you’ve faced on
your scaling journey so far?
There are the typical challenges you hear about; taking a
company from 10 to 30 people, 30 to 100, and 100 to 200.
But another challenge for us was maybe the timing of
monetization. There are a lot of free tools out there, and our
mission is to help students with learning, so we want to
keep our free product very helpful, but at some point we
have to turn on monetization.
Brainly is one of the standout companies in a new wave of
Polish startups. What’s it been like leading that charge?
I can name many bigger businesses than us in Poland! I feel
that we're doing our job and we're very proud of it, but
we're very humble and there are lots of other businesses
doing great things. We have a number of initiatives where
we try to share knowledge of what we do. And I'm always
up for having a conversation with a founder that's looking
to go global or raise, it’s a supportive community. But we
still have a lot to prove, even just in Poland.
The Covid-19 lockdown has changed where and how we
spend our time? How has it changed the way we learn?
The Coronavirus crisis caused schools to close, but I think
the government made a wise decision that learning should
continue. The switch from offline to online learning
happened within a week or two. I think this change is here
to stay. Maybe not immediately, but long-term, the share of
online education is going to increase dramatically levels,
and that's the opportunity for companies like ours.
What impact has the lockdown had on your metrics over
the last few months?
In many markets we've seen user numbers increase 100-
500% year on year. We've also seen much higher levels of
activity from users. Historically it was students who used
Brainly, but now parent use has increased dramatically. I
only see a great tail-wind for online education, even if
hopefully this pandemic will soon be gone.
There wasn't much attention on online learning, and that's
changing. We think that some of that will stay, but no one
can know for sure.
How can edtechcompanies replicate the social aspects of
offline learning?
We don't believe that all learning will move online. School
does a great job in moving everyone in the same direction.
Some students go slower or faster than the average school
pace and this is where the opportunity lies for online
education. But the forming of social connections is super
important. Students tell us that they miss their friends and
miss collaborating on projects - all of these behaviours that
form social connetions. Schools are going to re-open, and
it's what everyone wants. But we've definitely seen during
this time that Brainly is an online community. We have
expert supervision of course, but there is a lot of student
interaction. Students ask questions, and help each other,
and for a lot of people stuck at home it has helped to have
those interactions with people outside of their normal
circles. We see ourselves playing a role in covering that
need, but I believe that face-to-face interaction is still super
important.
Page / 61
Collaborative online communities can empower students
Interview with Michał Borkowski, CEO and co-founder
Online Marketplaces June 2020
Page / 62
The meteoric rise of Lambda School, the Income Share Agreement based coding school
The meteoric rise of Lambda School
What is Lambda?
Founded in 2017 by Austen Allred. Backed by Y-
combinator, Bedrock. Total funding of $44 million
What does it do?
Trains people to be software engineers for free in
exchange for a share of future income (e.g. an Income-
share agreement). Share typically is 17% for 2 years
(applicable only when annual gross income is above
$50k). Income Share Agreements (ISAs) are available
only to students living in the USA.
How big is it?
2,700+ students enrolled as of 2019, and growing at 10
percent a month. In 2019 increased lifetime earnings by
$945 million. Lambda intends to enroll 10K students in
2020, which implies $300M in ISAs.
Why is it interesting?
University model is failing students. Model could
possibly solve skills mismatch $1.5 trillion student debt
market. 40% of student borrowers are expected to
default by 2023. The average student debt for college
graduates is $29k.
Who else does ISAs?
Universities: Purdue University, University of Utah,
Clarkson University
(Online) courses: Make School, IronHack, General
Assembly
Business loans: Uncapped, Pioneer
Employees
Launched in San
Francisco with 1 6-
month course.
Backed by Y-
combinator
Increased course
offering following
Seed & Series A
Expand in Europe
and Canada, and
offer courses on
cybersecurity
following Series B
Source: Dealroom.co
73
216
252
554
806
1,000
1,210
2017
2018
2019
2020
Focus on remote
learning
environments.
Transition to live
entirely-online
programs.
Source: Dealroom.co and Edly
Page / 63
What’s next for education?
Online Marketplaces June 2020
Lambda intends to enrol 10K students in 2020, which implies $300M in ISAs. That
would create a market share of around 50%.
Total value of new Income-sharing agreements in the USA
$4M
$8M
$31M
$125M
$250M
$500M
2015
2016
2017
2018
2019
2020
Location
Year founded
Total funding
General Assembly
Immersive workforce training
New York
2011
$154M
Lambda School
Trains people to be software engineers
San Francisco
2017
$48M
Make School
Project-based software education
San Francisco
2012
$15M
Springboard
Data Science and UX training
San Francisco
2013
$13M
IronHack
Coding and web design bootcamp
Madrid
2013
$7M
Pathrise
Mentorship for tech jobs
Berkeley
2017
$4M
Thinkful
Data science and UX training
New York
2012
$80M acquisition
by Chegg in 2019
App Academy
Web development school
New York
2012
N/A
Companies offering Income-sharing agreements
Page / 64
Methodology.
Venture capital investment
Investment numbers refer to venture capital
investment rounds such as seed, series A, B,
C, etc and growth equity rounds. It excludes
debt or other non-equity funding, lending
capital, grants and ICOs
Buyouts, M&A, secondary rounds, and IPOs
are treated as exits and not included in
funding data.
Investment rounds are sourced from public
reports including press releases, news,
filings and verified user-submitted
information.
Valuation
Company valuations are based on their
market capitalisation if public or, if private,
latest transaction value, which is either
announced or estimated by Dealroom based
on market-based assumptions.
Share prices are updated to May 27, 2020
Data source
Dealroom’s proprietary database and
software aggregate data from multiple
sources: harvesting public information,
user-generated data verified by Dealroom,
data engineering. All data is verified and
curated with an extensive manual process
Most underlying data from the report is
available online via dealroom.co
For more info please visit dealroom.co or
contact support@dealroom.co
Online Marketplaces June 2020
Discover the world’s most promising companies.
Ivan Draganov
Marketplaces
Ivan.draganov@dealroom.co
Laura Rodriguez
Healthtech
laura@dealroom.co
Lotf Belych
Fintech
lotf@dealroom.co
Daniel Cavallari
Startup Ecosystems
daniel.cavallari@dealroom.co
Matteo Renoldi
Energy
matteo.renoldi@dealroom.co
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