While the sportswear leader’s focus on direct sales channels helped it amass a sizable digital loyalty program, it wasn’t enough to compensate for the loss of third-party retail customers and the cost of running its own D2C business.

Now, the brand is developing cost-cutting plans, returning to e-commerce marketplaces, and working to grow its NikePlus loyalty program — where members spend significantly more than the average customer.

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The company last raised $115M in 2018 (and did a secondary market transaction in 2021).

It reached unicorn status ($1B+ valuation) in 2017.

The fact that the company didn’t raise in the go-go days of 2020-early 2022 might have been an indication that all was not well.

And as headcount data from CB Insights reveals, the company had been contracting since 2020.

COMPETITION

InVision faced an increasingly competitive design software landscape with 800-pound gorilla Adobe at the top and then the likes of well-run insurgents like Figma and Canva as well.

Adobe acquired Abstract in January 2022. (Adobe attempted to acquire Figma for $20B before the deal fell through due to regulatory hurdles in December 2023.)

Meanwhile, Sketch last raised in March 2019 from Benchmark. The collaborative design startup was bootstrapped prior and its headcount is more stable (only contracting a bit) so it might be a future M&A target by one of the bigger players.

Strategic INITIATIVES

InVision divested at least a portion of the business, selling its Freehand visual collaboration platform to Miro in November 2023.

It’s likely this was part of a larger strategic initiative to sell the company which ultimately didn’t materialize.

Like many other startups, the company was also making minority investments in startups via its $5M InVision Fund established in 2017.

LOOKING AHEAD

Tighter capital markets have placed immense pressure on public and private tech company valuations.

Because investors remain risk-off — especially at the late stages, which account for the majority of today’s unicorns — it makes it more difficult for these companies to raise funding on favorable terms.

In the worst-case scenario, some have shut down altogether — including InVision, which joins a landscape of other fallen unicorns such as Convoy and Olive in recent months.

The post A $1.9B design unicorn is calling it quits appeared first on CB Insights Research.

The deal was killed today following regulatory hurdles.

What’s Figma actually worth today? Based on current comps, Figma’s valuation is between $8.3B and $9.0B.

We break it down below.

REVENUE & VALUATION HISTORY

Figma was valued at $10B in June 2021 when it raised its Series E.

In September 2022, Adobe announced its intention to acquire Figma for $20B.

Per CB Insights, Figma’s ARR in 2022 was $400M-$450M and reportedly growing 100% YoY.

This meant Adobe was paying a price/revenue multiple of 44.4-50x.

Figma is on track for $600M in ARR in 2023, per recent reports — or roughly 50% growth over last year.

COMPS

We’ll use design behemoth and former acquirer Adobe as well as Canva as comps.

Canva was valued at $25.4B in a secondary market transaction led by Coatue Management and Iconiq Capital in August 2023.

As you can see in the screenshot above, Canva is expected to do $1.7B in ARR this year giving it a 14.94x price/revenue multiple based on its most recent financing.

Adobe trades at a price/sales multiple of 13.88x.

Source: YCharts

Valuation RANGES

Assuming Figma does $600M of ARR this year (2023), applying the multiple range of 13.88-14.94x would give a valuation of:

• $8.3B — using Adobe’s multiple
• $9.0B — using Canva’s multiple

Both marks would be a step down from Figma’s 2021 Series E valuation of $10B, following the valuation multiples compression we’ve seen in private tech since 2021.

It’s unclear if Figma will need to raise again soon but it’s likely that its valuation will be below the June 2021 mark — and significantly beneath the $20B Adobe agreed to pay.

It’s also clear that the big tech M&A slump which we’ve been observing is likely to be chilled further with this transaction being scuttled.

The post Figma’s valuation is $8.3B-$9B, a haircut to the $20B Adobe offered appeared first on CB Insights Research.

The space has seen top-tier investors and corporations rush in, including Coatue and Lightspeed Venture Partners. 

Right now, one of the biggest and most well-known players in the genAI image generation space is Midjourney — and it is choosing not to raise capital.

That’s because it doesn’t need to. The company has reportedly hit $200M in annual recurring revenue (ARR) with a team of fewer than 100 employees.

While it is growing its team aggressively, it still has fewer employees than Stable Diffusion developer Stability AI.

However, Stability AI is currently valued at $1B and is reportedly generating modest revenue. So with less than half the team and materially more revenue, it’s clear that Midjourney has a leg up on its larger competitor.

The growth that Midjourney is seeing coupled with its $200M in ARR would create a feeding frenzy in the current genAI investment boom. A 50x multiple on that ARR is very easy to see — giving it a $10B valuation — and it might even be conservative.

However, once again, Midjourney is not looking to raise capital, demonstrating significant clarity of intent on the part of founder David Holz.

Want to dive deeper into image generation and generative AI more broadly? Check out the following resources:

• The state of generative AI in 7 charts
• Which investors are leading the charge in generative AI?
• 95+ early-stage companies using AI to create and edit digital content

The post With $200M in revenue, Midjourney could be worth $10B appeared first on CB Insights Research.

The liquidation preference on all rounds was 1x, so there were no onerous terms.

Which institutional and angel investors made money?

Everyone who invested in Loom’s Series B round or earlier won in this deal.

That includes:

• Kleiner Perkins (Series A investor)
• Sequoia Capital (Series B)
• Point Nine (Seed)
• General Catalyst (Seed)
• Long Journey Ventures (Seed)
• 1517 Fund (Seed)
• Slack Fund (Seed)

And that also includes a whole host of angel investors, as you can see in the investor table below from Loom’s CB Insights profile.

In the current climate, most unicorns would gladly take an outcome like this given the “great valuation reset” that is ongoing right now.

Who else might be worth a look in the video sharing/collaboration space?

Loom has many comps — and most have much smaller valuations, as the CB Insights chart below demonstrates.

So, how much did the Loom founders make as a result of the $975M acquisition by Atlassian? $56M each.

Here’s some napkin math.

Per CB Insights cap table data, the team owned ~40% of the company.

Let’s assume half of that is the option pool (20%).

That leaves 20% for founders.

Loom’s $130M Series C round came with a 1x liquidation preference. When that is taken out of the $975M acquisition price tag, $845M is left.

$845M x 20% = $169M.

There are 3 founders of Loom, so if they take an even split, that leaves $56M each.

Another notable detail is that the best “accelerator” in the world not named Y Combinator initially backed Loom. Learn more about the Thiel Fellowship’s remarkable success in this brief.

The post Which investors won big on Loom’s $975M acquisition by Atlassian? appeared first on CB Insights Research.

Across retail functions, generative AI — which covers AI technologies that generate entirely new content — could boost productivity in the retail and CPG industries by an estimated 1-2% of global revenues, amounting to $400B – $660B each year, per McKinsey. Cost reduction across departments could eventually make goods cheaper for consumers.

For now, many retail-specific generative AI solutions aim to improve digital shopping operations, engagement, and conversion. These include making 3D images for e-commerce product pages, writing personalized marketing emails at scale, and targeting search results and suggestions on e-commerce sites.

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The post The generative AI in retail market map appeared first on CB Insights Research.

For example, ad spend in the mobile gaming industry alone is projected to grow 10% this year, generating $6.3B. Top investors are jumping on the opportunity. Andreessen Horowitz (a16z) announced a $600M fund called GAMES FUND ONE in May 2022. 

Seventeen percent of all the deals a16z participated in last year went to the gaming & entertainment industry, and 79% of these deals were early-stage.  

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The post Analyzing a16z’s gaming & entertainment investment strategy: Where did the VC place its biggest bets in 2022? appeared first on CB Insights Research.

The streaming service generated $31.6B in revenue in 2022. It also claims to represent around 5% of total direct-to-consumer entertainment spending. 

However, the company is still transforming its business model to pull ahead in the intense competition between social media, gaming, and streaming giants in the entertainment arena. 

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The post Could Netflix be the next Disney? How the streamer is betting on ads and gaming to become an entertainment powerhouse appeared first on CB Insights Research.

With content demand on the rise, brands and retailers face the additional challenge of creating a sufficient amount of quality content across different platforms to engage and convert users. As a result, they are turning to new solutions to create, manage, and distribute content at scale.

Generative AI developments are only propelling the space forward. Content creation and distribution solutions are quickly incorporating GenAI to expedite content creation and creative processes at an unprecedented rate.

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The post AI is accelerating digital content creation. Which technologies should brands prioritize to keep up? appeared first on CB Insights Research.

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The post 139 companies helping marketers tap into the growing retail media networks opportunity appeared first on CB Insights Research.

Most companies in the virtual photoshoots space are focused on fashion, using virtual models for styling and envisioning clothing on different body types. AI-generated models save money by eliminating the need to hire external talent. 

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The post How generative AI can help brands create virtual photoshoots appeared first on CB Insights Research.

Nowhere is that more visible than the Super Bowl, which has long been the advertiser’s golden opportunity to reach a broad audience of captivated US consumers. Last year’s event drew an estimated 112M TV viewers, and brands paid up to $7M for a 30-second ad slot.

To stand out from the pack, TV advertisers are turning to a range of emerging technologies to make ads that have the potential to go viral, deliver a strong return on ad spend (ROAS), and reach entirely new audiences. 

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The post The Future of the Super Bowl Ad: How tech like generative AI is automating TV ad creation & production appeared first on CB Insights Research.

Its stories and characters are among the most beloved — and the most lucrative — in the world. Mickey Mouse is the top licensed character franchise globally. Disney pulled in $82B in total revenue in FY2022, driven largely by the value of its intellectual property (IP). 

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The post Unbundling Disney: How technology is reshaping the entertainment industry appeared first on CB Insights Research.

For example, those focused on market research can discover relevant tech solutions in our market research & consumer insights market map, determine which markets to prioritize with our corresponding MVP framework, and decide which companies are ideal for partnerships or investments using our market-specific ESP Vendor Rankings, like this one covering consumer survey solutions.

Looking ahead to 2023, our predictions include:

• As new social media and virtual platforms emerge, creating digital content that engages and converts — particularly 3D content — will become a greater priority. We anticipate that AI will increasingly be used to automate content creation.
• The fragmentation of the digital advertising space and current macro challenges will compel marketing teams to be more particular about where they spend their money. Amid this shift, we expect that retail media networks and connected TVs will be big winners of marketing spend in 2023.
• Brands and retailers will continue to leverage partnerships as a low-cost method for experimenting with web3 and metaverse tech and identifying the best engagement strategies for the future. 

As 2023 approaches, we brought together our top digital engagement research in the curated list below.

DIGITAL CONTENT

• Expanding on Sequoia’s generative AI market map: The 250 companies driving generative AI forward
• [Client Research] MVP Technology Framework: Digital Content for Consumer & Retail
• [Client Research] 171 companies helping brands scale and automate their digital content offerings
• [Client Research] 95+ early-stage companies using AI to create and edit digital content

MARKETING TECH

• Unbundling Meta: How the tech giant’s digital advertising business is being disrupted
• [Client Research] Unbundling TikTok: How influencer marketing and the creator economy are getting disrupted
• [Client Research] Tech Market Map Report: Retail Media Networks
• [Client Research] These 14 technologies are helping retailers build out their media networks — here are the ones to prioritize
• [Client Research] Tech Market Map Report: Loyalty & Retention Tech in Consumer & Retail
• [Client Research] 10 technologies that strengthen customer loyalty and retention — and the ones retail leaders should prioritize now
• [Client Research] 125 companies using tech to enhance market research & consumer insights
• [Client Research] Prioritizing 11 technologies driving more effective market research & consumer insights
• [Client Research] These 134 companies are transforming how brands & retailers acquire customers
• [Client Research] Prioritizing 11 technologies making customer acquisition easier and faster for retail leaders
• [Client Research] Analyzing 7-Eleven’s growth strategy: How the world’s largest convenience chain is improving customer experience and engagement

CUSTOMER SERVICE TECH

• The Future of the Post-Purchase Experience: How technology is transforming the way we shop
• [Client Research] 54 companies using AI to automate customer service interactions
• [Client Research] Tech Market Map Report: Customer Service in Consumer & Retail
• [Client Research] MVP Technology Framework: Customer Service for Consumer & Retail Leaders
• [Client Research] Analyzing Twilio’s growth strategy: How the cloud giant is shaping the future of business communications
• [Client Research] Why consumer & retail leaders are prioritizing agent support tools
• [Client Research] Why consumer & retail leaders are prioritizing business messaging solutions
• [Client Research] Why consumer & retail leaders are prioritizing communications platform-as-a-service solutions
• [Client Research] Why consumer & retail leaders are prioritizing AI-enabled chatbots
• [Client Research] Why consumer & retail leaders are prioritizing customer feedback management

MEDIA AND ENTERTAINMENT

• What L’Oréal, Nike, and LVMH are doing in Web3
• 100+ Web3 companies building the future of the internet
• The metaverse could be tech’s next trillion-dollar opportunity: These are the companies making it a reality
• The Big Tech in Metaverse Report: How Meta, Qualcomm, and Microsoft are building the metaverse
• These 95+ AR/VR companies hint at what the metaverse has in store
• Metaverse of madness: 13 big industries the rise of virtual worlds could disrupt
• Analyzing the NBA’s business growth strategy: How the basketball league is investing in technology to better engage with fans
• [Client Research] The Future of Human-Machine Interactions: How technology is becoming more immersive, accessible, and empathetic
• [Client Research] Analyzing Microsoft’s metaverse strategy: How the tech giant is building a gaming empire
• [Client Research] 70+ early-stage startups shaping the future of consumer wearable technology
• [Client Research] Analyzing Qualcomm’s growth strategy: How the semiconductor giant is building for the metaverse and next-gen digital technologies

The post Our top digital engagement research and trends to watch appeared first on CB Insights Research.

For brands and retailers, this represents an expanding opportunity to reach consumers on a variety of platforms. Nearly 3 out of 4 Gen Z consumers surveyed by HubSpot say they primarily discover new products on social media, for example. 

But creating digital content that engages and converts across platforms requiring different formats — square pictures, short videos, etc. — remains a major challenge for brands. Further, consumers increasingly expect hyper-relevant content that is personalized to their needs and preferences.

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