The traditional media are paying more attention to the economy’s recent share ( Canal 3/24 , El Pais , El Mundo , etc.), and true to want to have specific data to know how important it can become the collaborative consumption.
In a money-obsessed society and possessions, it is not surprising that a common question from reporters is“what value is the industry share?”
Most collaborative consumption enthusiasts are well aware that money is only one way to assess the movement, but still, these are valid questions for those seeking to report on or invest in the growth of collaborative consumption.
So we decided to investigate. The following is a summary of venture capital investments in the collaborative consumption in 2011. It is not exhaustive, but it shows that investments in this area soared in 2011.
What will happen in 2012? The investments have continued this year, for example by investing in Wheelz Zipcar , a company car rental P2P targeted at universities. However it can be difficult to reach the levels of 2011 with investment of US $ 112 million in Airbnb, representing almost 50% of venture capital investments in the collaborative consumption throughout 2011. It begs the question, is it possible an investment of a similar amount in 2012?
When the recession hit in late 2007, many experts predicted that people would change their consumption habits, and they were right. A response to the financial pressure was the resurgence of the old practices of exchange, barter, rent and sharing. Some incumbents were adapted to facilitate these transactions, plus many entrepreneurs created new online platform to share safely and simply.
The success of pioneers like Airbnb aroused the interest of investors and caused a slow but steady trend of funding for P2P services and collaborative consumption. Then, in 2011, investments Shot and could see quite remarkable in various types of cases collaborative services. Below an overview of some of the most notable investments are reflected, although not exhaustive.
In early March 2011, onefinestay announced US $ 3.7 million Series A round of funding from the venture capital firm Index Ventures. In June, the company based in Berlin Wimdu , grossed US $ 90 million from European investors . And in July, the startup Airbnb allowing space rental received US $ 112 million round of Series B financing , bringing the total funding of the company was US $ 119.8 million. And in a surprising move, Couchsurfing company was once a “nonprofit” It became a B-Corporation (profit but with a focus on social benefit) and raised US $ 7.6 million.
In May 2011, ThredUP , the exchange project known children’s clothing, raised US $ 7 million in Series B funding from Redpoint Ventures and Trinity Ventures and Brian Swette; meanwhile TurningArt , a company that aims to use Netflix model for the art market, secured $ 750,000 in venture capital mainly NextView Ventures. In August, the rental company Rentcycle got a first round of investment of US $ 1.4 million . To remove any doubt about the value of exchange projects, in March 2011 Toygaroo , a recent toy rental service received US $ 200,000 from important companies such as ABC’s Shark Tank.
Loans between individuals continued to expand its muscle with Lending Club in August 2011 announced that it received US $ 25 million in financing round Series D by Union Square Ventures and investors already present in the company. Prosper announced a round of US $ 17 million of Eric Schmidt and DFJ, reached a total of US $ 75 million invested in the company. In the field of learning, also in August 2011, Skillsharemade a public investment of US $ 3.1 million in funding round series A.
Industry leader Zipcar raised US $ 174 million in April 2011 through its initial public offering (IPO),surpassing its original target of US $ 75 million . Although it is not a business financing, the IPO of Zipcar, along with that of HomeAway in June 2011 it helped heat the scope of collaborative consumption.
Despite the dominance of Zipcar, there are still many opportunities and niches for other car companies and shared paths. In September 2011, GetAround announced an investment of US $ 3.4 million , with the participation of Netflix founder Marc Randolph and Matt Mullenweg of WordPress. Also in September,Zimride a shared shuttle, up US $ 6 million in a financing round led by Mayfield Fund, bringing its total funding to around US $ 7.2 million. In October 2011, RelayRides , a rental service for cars P2P hours grossed US $ 13 million in a financing round of Serie A.
Gigwalk , coworking application that allows companies to hire mobile workers and assign tasks based on your location, raised US $ 1.7 million in September. Just before the end of the year, TaskRabbit announced the investment of US $ 17.8 million by LightSpeed Ventures, Allen & Co., and Tornante Co. (the venture capital firm of Michael Eisner, former CEO of Disney).
Although the bulk of the money invested is received by a relatively small number of companies, and that the total figures are likely to represent only a small percentage of venture capital investment in general, new companies in this field are reinventing an industry of thousands million (depending on how you define) and with a lot of growth:
Entrepreneur.com As reported in late 2011 , the market for rental products (Rentcycle, AnyHire) is now valued at US $ 85 million, the rental market areas (Airbnb, CouchSurfing) at US $ 80 million Industry Shared travel (Zimride, Liftshare) US $ 117 million. In addition, the US market for car-sharing (Zipcar, Getaround) is expected to grow to 1.4 million users in 2012, compared with 600,000 in 2011; and research firm Gartner has estimated that in 2013, will be US $ 5 billion provided through loans from P2P (Zopa, Prosper), not to mention the billions invested in crowdfunding sites like Kickstarter and IndieGoGo.
Encouraged by the initial success of companies like Airbnb, LendingClub, Zipcar and TaskRabbit, collaborative consumption companies have begun to emerge around the world. Gradually, the venture capitalists, as well as traditional investors have joined and They have supported these efforts to make all assets more accessible to citizens as quickly as possible.
The short answer is no. Although the amount of the investment is a good way to gauge market sentiment in the collaborative consumption, it does not quantify in any way the positive impact that this industry has on local economies, the environment and quality of life of people .
To understand the full impact of the sharing economy , it is necessary to take into account the solid waste disposed, reducing carbon emissions, the relationships created and increased citizen access to resources, to name a few factors.
In any case, it is the volume of money invested alerting the market that a transition is occurring, which in turn indicates to governments and other powerful economic entities must investigate, and hopefully support the change. When these entities realize that it is better for them to participate in the paradigm shift, rather than resist, change can be accelerated.
In late 2011, Ron Conway, a legendary investor, called the collaborative consumption “mega-trend”, comparing it in size and scope to social networks (Facebook) and real-time data (Twitter). Entrepreneur magazine followed suit by naming d the collaborative commerce for start-ups in 2012. Since then“second warmest industry” Shasta, Menlo, Redpoint and other prominent venture capitalists have begun to invest in this market.
Investors seem confident that the exchange economy is here to stay, and that many are not sure at one point about putting your money at risk, funding for collaborative projects seems to be considered a good bet.
To get a better idea of what types of collaborative consumption are prepared to grow in 2012 and beyond, Shareable met Craig Shapiro, founder and executive director of the Collaborative Fund.
According to Shapiro, the rapid expansion of companies like Airbnb, and TaskRabbit Kickstarter is a great indicator that “people feel at ease to work together,” and that users will favor services to enable them to do so more efficiently .
“The property will not disappear, but attitudes are changing ownership,” Shapiro said. People value things more experience, rather than being able to put them on a shelf. This will give way to what Shapiro calls a trend toward collaborative thinking in 2012.
“I’m anxious to see the growth of startups that find new connections between online and offline life,” Shapiro said. “As companies strive to get valuable information from mountains of data increasing, I see that the average consumer trying to make sense of the noise is the fragmentation of their online presence.”
“But it works both ways,” he said. “Online communities can help improve our lives offline.” One example is Simple (formerly BankSimple). Our banking and finance (traditionally linked to the offices of life) can transform an online user experience very exquisite, helping us to understand our daily purchasing habits and avoiding the fees that plague the service user and traditional banking which accumulate large profits. “
When it comes to determining what attracts investors to the business of sharing, Shapiro says is not just a large user base and a family model. Those who recognize that the market is moving in a new direction are looking for companies that show the core values of collaboration: creativity, transparency, responsibility and accountability to the community and investors.
“These values are changing the way in which employers work with employees, companies work with clients and individuals work together,” Shapiro said. Because the essence of the sharing economy is on strengthening people-to-person connections, it is important that companies can demonstrate how your brand will create and maintain those connections.
Instead of focusing on market size or market potential, or even the idea itself, the Collaborative Fund first assesses the company team.
“We consider every opportunity to startup making us two questions: 1) Can we add value to our team initiative, in addition to our outstanding group of investors (ie, Nicholas Negroponte – the founder of the MIT Media Lab, Brendan Synnott – founder of Bear Naked Chuck Templeton – founder of OpenTable), and 2) If the company is very successful, is it going to be the world using this “?
For advocates of collaboration, this approach both the tangible and intangible value of collaborative consumption companies, it is a comforting warranty. Investors focused goals, as Collaborative Funds can help prevent falls collaborative industry in the same spiral uncontrolled profit that the economy is still struggling to recover.
This article is a translation of the original published in Shareable.net recently and focuses mainly on the American market.
As we discussed in a previous article ( “Investing more in having less” ), in Spain many of the initiatives of collaborative consumption have not yet managed to attract outside investors. One of the few exceptions isBla € 7.5 million invested by Accel Partners and investors already present as Jesse and Spanish Cabiedes & Partners. Leave a comment if you know more and add them to the article.
In Europe in 2011 there were some other investments: tourism experiences based in Berlin Gidsy received US $ 1.4M by Sunstone Capital and other investors, the French crowdfunding kisskissbankbank € 700,000 by XAnge , with a similar model to Airbnb 9flats received investment (unpublished) bringing the total to € 10 million , the French alittlemarket € 2 million by XAnge , copines Vestiaire of 7.5M € by Balderton and Ventech, and € 1.3 million of LoveHomeSwap ( about £ 850,000).