Despite market turmoil, technology gains persist across industries
Each year, TrueBridge analyzes the next billion dollar startups to shed light on the trends shaping the next wave of industry disruptors. Last year, we discussed how the convenience and innovation of digital alternatives have transformed what began as a pandemic-era necessity into a preference for consumers and a competitive advantage for businesses. . 2022 represents a very different macro-economic environment, where having an innovative product and a large and growing market opportunity may not be enough for long-term success.
This year’s Next Trillion-Dollar class of startups are building the products needed to position themselves for success — and they’re doing so as relatively well-capitalized companies. Almost all companies raised funds in 2021 and/or 2022, giving them a path to growth in a period marked by downturns, structured terms and the required proof of a clear path to profitability. .
The lion’s share of places on this year’s list are made up of Fintech, Insurtech and Productivity startups that aim to modernize and disrupt traditional industries. Startups providing technology solutions are poised to succeed as they capitalize on persistent customer demand in today’s macro environment. They are also continuing a multi-year trend that has been accelerated by the Covid pandemic, as technological advancements have enabled a dramatic shift in the way we all live, work and interact.
Read on to learn more about this year’s Next Trillion-Dollar startups and the industries where they’re bringing a new dose of innovation.
Fintech: Persistent Momentum
For several years, hype and money have flooded the fintech scene in many parts of the world. Today’s environment looks very different, with early drops from many of the hottest titans who not long ago grabbed the headlines with their seemingly no-holds-barred offering. end of record valuations. However, the expansion of the industry’s reach since its inception, combined with the growing maturity of fintech products available in the market, likely means that the sector has the momentum to withstand the market conditions we are currently witnessing. Witness 0x Labs, Equitybee, and Novo, three companies that are breaking the traditional payments and finance mold, earning them spots as Next Billion-Dollar Startups.
· 0x laboratories is a developer of an open protocol designed for decentralized exchange on the Ethereum blockchain. Its technology is important infrastructure for the emerging crypto-economy, enabling a new financial stack that is more efficient, transparent, and fair than systems of the past. 0x enables the peer-to-peer exchange of tokenized assets such as NFTs, which prove ownership of a unique digital item. In April 2022, the company raised a $70 million Series B funding round led by Greylock. News of their Series B came shortly after Coinbase chose 0x to power their recently launched social NFT marketplace.
· EquityBee has developed a stock option financing platform intended to provide employees of startups with the financing they need to exercise their stock options. While stock options can be a life-changing reward for employees when their business is doing well, not all start-up employees have the funds to fully exercise the options available to them. EquityBee solves this problem by providing a marketplace for employees to connect to capital from a network of investors to fund the process. Last year, EquityBee raised a $55 million Series B round led by Group 11, which also led EquityBee’s seed and Series A rounds.
· new is a banking platform that powers simple business checking accounts, bringing small business banking into the modern era with easy-to-use tools for on-the-go founders. As of January 2022, Novo had 150,000 small and medium business (SME) customers and collectively had $5 billion in lifetime transactions. Along with that momentum came significant funding – Novo raised $90m Series B funding at a $700m valuation in 2022, led by new investor Stripes.
Insurtech: reshaping the customer journey
As businesses and individuals seek to reinvent everyday systems in the digital age, insurtech companies have grown in scale and stolen market share from legacy legacy vendors by offering users value sustainable and digitally integrated. With their ability to reach consumers and businesses directly, rather than employing the model of traditional independent agents and brokers, insurtech companies have appealed to younger generations with systems more compatible with digital trends in today. Cowbell Cyber, Insurify, and Kin Insurance are leading that charge, earning their spot as three of this year’s Next Trillion-Dollar startups.
· Cyber Cowbell is the leading provider of cyber insurance for SMEs, offering standalone cyber coverage tailored to the unique needs of each of its customers. Their technology leverages AI for continuous risk assessment and underwriting, providing policyholders with a closed-loop approach to risk management. In March 2022, Cowbell raised funding led by Anthemis Group. At the time of the round, Cowbell revealed that it had developed the largest cyberinsurance distribution network in the United States with more than 14,000 producers, expanding its monitored risk pool to more than 23 million companies, or 70 % of US SMB market.
· To assureThe platform helps users compare auto, home and life insurance quotes online in one place. The company developed AI to make insurance shopping simple, affordable and hassle-free. Insurify Founder and CEO Snejina Zacharia was inspired to create a better insurance shopping experience following a minor car accident that led to skyrocketing auto insurance rates. Insurify raised a $100m Series B funding round led by Motive Partners in September 2021.
· Kinship insurance: Parents’ insurance is the developer of an online insurance platform designed to provide simple, personalized and affordable home insurance. The company’s direct-to-consumer platform uses data and technology to determine how best to insure homes where insurance is harder to come by, especially in areas prone to extreme weather and fires. Kin Insurance closed an $82 million Series D round in March 2022, led by QED.
Productivity: reorganize the workplace with automation and collaboration tools
With hybrid and remote working policies now the norm and growing pressure on employers to provide greater flexibility and a better work-life balance, it’s no wonder that several companies among next billion dollar startups offer seamless solutions to both improve the management of remote teams and automate mundane, repetitive processes. Firstbase, Fountain, Instawork, and LinkSquares are just a few of the many fast-growing 2022 Next Billion Dollar Startups in this space.
· First base is a remote team management platform designed to help businesses set up, manage, maintain and recover all the physical equipment remote workers need to be successful at home. From laptops and peripherals to desks, chairs, lamps, and more, Firstbase improves organizations by helping them enable work capabilities from anywhere. The company raised a $50 million Series B funding round led by Kleiner Perkins in March 2022.
· Fountain The all-in-one, high-volume recruiting platform helps the world’s largest companies find the right people with smart, fast, and seamless recruiting. Founded in 2014, Fountain began with a vision to disrupt applicant tracking systems, which are often designed for salaried employees when much of the global workforce is made up of hourly workers. Fountain’s bespoke solution is designed to keep hourly workers in mind and connected throughout the application process. In June 2022, the company raised an $85 million Series C funding round led by SoftBank and B Capital.
· Instagram has developed an online job market designed to connect local businesses with qualified hourly professionals. The company is a leader in modernizing the hiring and payment of hourly workers, and usage of their platform has exploded since the pandemic as workers turn to flexible work options. Instawork raised $60m in a Series C funding round in 2021, led by Craft Ventures.
· LinkSquares is a developer of a legal document analysis platform designed to identify key data and responsibilities in contracts. The company’s AI-powered contract management platform provides its clients with everything they need to quickly draft, execute and analyze contracts. Its flexible automation platform gives customers better visibility and collaboration. In March 2022, the company raised a $100 million Series C funding round led by G Squared.
While pandemic-era trends have fueled the hypergrowth of many startups, this year’s Next Trillion-Dollar startups are poised to continue growing despite challenging market conditions by developing innovative products that continue to disrupt and challenge. advancing traditional industries.