Is D2C doomed?

D2C was one of the highlights of 2021 as increasingly high funding rounds were raised through early-stage companies. A year on, as people are back to physical stores, the market looks quite different.

Since 2021, combined enterprise value for public D2C startups has taken a steep 66% fall. Publicly traded Fintech startups have fallen 35%, Transportation 27% and Health 10% in the same time frame.

Future growth of startups also isn’t immune, combined venture capital funding for Q3 2022 is at similar levels to the height of the pandemic in 2020, which was the lowest investment volume since 2017. The scenario is similar for megarounds and early-stage investment.

While data on D2C startups might not be the best, it's not all bad news. We are seeing a flight to quality, investors are being more diligent in their investments. In D2C, this movement is even stronger. These startups will need to differentiate themselves in generating consumer base with product education and entertainment to create sustainable businesses in the future.

On Dealroom.co you can find 700+ D2C startups by clicking the button below 👇

700+ D2C Startups

In other news:

📈 Reddit NFT Marketplace off to a good start. Since release their NFT marketplace in July, over 2.5M Reddit Vault Wallets have been opened. For reference, OpenSea, one of the leading NFT marketplaces globally, has 2.3M wallets in its platform. - CoinDesk

❌ Made.com face being crushed. Shares of the company fell 93% after potential talks of emergency funding or buyers fell through. - Financial Times

📉 Amazon stock slumps 13%. The company released new financial results & forecasts for the forth quarter, both under market predictions. Consumers going back to in-store buying and "macroeconomic headwinds" are behind the results according to Amazon. - CNBC

⚖️ Another hit to gig economy marketplaces. New Zealand has ruled in favor of Uber treating their drivers as employees. This is a specific case and does not apply to the rest of the company's fleet in the country, but can open a precedent for future rulings. The news also comes close to the US seeking to change how gig workers are classified. - TechCrunch

Latest marketplace deals:

Selected this week:

🇦🇪 Emerging Markets Property, a Dubai-based owner of several classifieds platforms in MENA and South Asia regions, has raised a $200M at a $1B valuation. The capital will be used to focus on UAE development and the groundwork for an upcoming IPO.

🇺🇸 CharterUp, an Atlanta charter bus marketplace, has raised a $60M Series A round in its first funding round. Founded in 2018 the startup already has an annual run rate of $150M. The funds will be used in go-to-market strategies across the country.

🇺🇸 HealthJoy, a Chicago-based telemedicine platform, has raised a $60M Series D round. The investment will be directed at expanding the products the company offers and increasing data partnerships to deliver better engagement.

Other promising marketplace deals:

🇨🇳 Plum, a Beijing-based second-hand fashion marketplace, has raised a $100M Series C round.

🇮🇳 Udaan, an India-based B2B consumer goods marketplace, has raised $120M in convertible note and debt. The startup is reportedly preparing for an IPO in the next 18 months.

Explore 100+ funding rounds of the last week.

Notable exits:

🇮🇩 BliBli, the Jakarta-based e-commerce platform, has exited with a $513M IPO.

Explore 20 exits of the last week.

Tip of the week

📉 Marketplaces Q3 2022 Update

Online marketplace startups, like most of the industry, have had a tricky Q3.

$13.6B in VC funding was raised by marketplaces, down by over a third (-35%) compared to Q2, and 2 thirds year on year (-67%). This is, however, marginally less than the slump in other key sectors such Fintech, Transportation & Enterprise Software.

Want more insights? Access the full report for more on funding, enterprise value shocks and leading names in the sector in the Marketplaces Q3 2022 Update.

Access the full report

Job opportunities

🇳🇱 At Dealroom.co we are hiring a Graphic Designer and 8 other roles.

Discover 60k+ jobs openings at marketplace startups. (login for full results)

Dive in

📈 Top 100 Marketplaces to Watch

🔋Energy marketplaces keeping the lights on

📉 Marketplaces Q3 Report

🗓 Marketplaces H1 2022

Christopher V. Dobereiner

Innovation Analyst
Dealroom

Not a subscriber yet?

Subscribe here

This is Dealroom's weekly marketplaces newsletter. Get more industry-specific intelligence on the evolving world of online marketplaces, emerging trends, and game-changing startups. Delivered on Wednesdays.