SXSW Pitch 2019: What’s shaping the VC ecosystem?

Photo: Tico Mendoza

From creating virtual universes to transforming how we get from point A to point B, 2019’s SXSW Pitch participants are reimagining the world, shaping both emerging and established industries. This year’s finalists—50 startups selected from 10 technology categories—were chosen from more than 800 applicants. Let’s dive into the fast-growing sectors that define the SXSW Pitch program and highlight some of this year’s finalists.

Artificial intelligence

Artificial intelligence (AI) has been referred to as the new electricity by AI pioneer Andrew Ng, and its building blocks include natural language processing, computer vision and machine learning—which form the basis for many exciting use cases. The technology is still in the implementation stage, but it has attracted significant VC investment with $11B raised across 1,110 deals last year.

Vence, a finalist in this category, is developing a livestock management system to increase stock rate and farm yields. They are automating rotational grazing, creating virtual paddocks and monitoring the health and fertility of animals, increasing revenues and saving money for farmers. Vence recently raised $2.7M in VC funding from Cantos Ventures, Eniac Ventures and others.

To learn more, check out our Vence profile preview.

Augmented and virtual reality

Startups in the AR and VR category have raised more than $1.7M for the last three years. Both hardware and software components have seen considerable advances, though clunky headsets have a way to go before consumers adopt the technology more widely. Still, startups developing opts and displays, haptics and motion-tracking software will likely gain traction moving forward.

BehaviorMe is developing immersive web and virtual reality simulations for behavioral specialists to use in their work. BehaviorMe's simulations enable practitioners to teach life skills to people with Autism Spectrum Disorder and developmental disabilities in an innovative way. The company joined Boost VC in February 2019 and received $70,000 in funding.

To learn more, check out our BehaviorMe profile preview.

Blockchain

Whether a result of the hype or opportunity, venture investment in the blockchain and crypto vertical picked up significant traction in 2018. Capital raised by startups more than tripled from 2017, with $1.6B invested across 212 US deals. Following the rush of interest in Bitcoin and other cryptocurrencies, VCs are doubling-down on crypto-trading and investment platforms.

A finalist in this category, Knowbella Tech built an open-science collaboration platform intended to crowdsource the global scientific community. Their platform, powered by blockchain and the cryptocurrency AnthroTokens, connects researchers around the world. Most recently, Knowbella Tech raised $155,000 of convertible debt financing from undisclosed investors.

To learn more, check out our Knowbella Tech profile preview.

Enterprise and smart data

With widespread digitization across industries, data is more available than ever to enterprises of all sizes. Collecting this data is a good start, but many companies stop short of extracting real value. Companies providing solutions to these enterprises have an opportunity to disrupt major legacy software providers as well as innovate business processes.

Based in Singapore, TransferFi—a finalist in this category—is the provider of a wireless power network intended to reduce wiring complexity and high-power applications. Their network applies a system-level solution to extend range more than 100 meters. In 2018, the company joined Entrepreneur First and received SGD 75,000. 

To learn more, check out our TransferFi profile preview.

Entertainment and content

A 2018 report found that 29.6 percent of homes with TVs in the US did not have a traditional TV subscription, up from 22.6 percent two years prior. This increase is partly due to VC-backed companies that use technologies to deliver content. After record VC investment in entertainment and content in 2017, activity cooled a bit through September 2018—with $885M invested.

Developer of a browser plugin that helps news seekers dive deeper, Acciyo is a finalist in this category. Their application uses natural language processing to analyze users' reading history and populate an interactive, zoomable timeline of articles about the news subject at hand. Acciyo raised $25,000 of VC funding from Rough Draft Ventures on an undisclosed date.

To learn more, check out our Acciyo profile preview.

Health and wearables

Health-focused wearable technologies have proven to be fertile grounds for tech and innovation. Evolving from mechanical devices that track movement and exercise, they perform a variety of complex functions now. Investment in health-related wearables climbed to a high of $1.7B in 2016. At the end of 2018, investment in this space was on pace to reach a new high.

A finalist in this category, Boost Biomes created a platform intended to engineer microbiomes for a sustainable future. Their platform lets users to develop safe, effective naturally occurring microbes that can manage diseases of high-value crops. In 2018, Boost Biomes raised $2.1M in convertible debt financing in a deal led by Nimble Ventures and Viking Global Investors. 

To learn more, check out our Boost Biomes profile preview.

Hyper-connected communities

Communities today are increasingly connected—there were about 20.35 billion connected devices in 2017 with an expected massive increase to 30.73 billion by 2020. Venture capital investment into this sector has remained steadily strong the past few years, and in the first three quarters of 2018 there had been $3.04B of venture capital investments.

Fluidity Technologies, a finalist in this category, are a provider of a hardware control device designed to intuitively move through physical and virtual space. Their device enables users to create self-made custom drones and robots and interact in virtual environments. The company closed on more than $85,000 of product funding via Kickstarter in 2018. 

To learn more, check out our Fluidity Technologies profile preview.

Social and culture

Tech innovation is changing how we interact with the world—from social media applications and tech solutions being used to help marginalized populations reengage with their communities and careers to flexible homebuilding technologies. From an investor’s perspective, these deals are highly risky, but many have the potential of achieving significant financial and social returns.

New Age Meats, a finalist in the social and culture category, developed a cell-cultured meat technology offering meat products without killing animals. Their meat is made from animal cells instead of animal slaughter, benefitting the planet, people and food security. In 2018, the company joined IndieBio and received $250,000. SOSV also invested in the company.

To learn more, check out our New Age Meats profile preview.

Sports and performance

The future of sports has become inextricably tied with technology, particularly data. Data has the potential to provide a competitive edge to athletes and coaches looking to improve their game. By leveraging insights generated by data analysis platforms, athletic performance can be quantified and evaluated, leading to improved results for athletes, managers, and coaches.

Learn 2 Play (L2P) is a finalist in this SXSW Pitch category, and the Cyprus-based startup develops e-sports training programs designed to teach gaming skills. Using industry experts, video lessons and AI, L2P enables all players to improve their gaming skills. The company raised $300,000 of venture funding from chess.com, ru-Net and Buran Venture Capital in 2018. 

To learn more, check out our L2P profile preview.

Transportation and delivery

Attracted by the fast growth and disruptive nature of ridesharing, carsharing, and micro-mobility startups, investors have deployed more VC dollars to shared mobility than any other transportation segment. Tech is impacting industries like freight and delivery, too, as companies work to improve fleet management and optimize routes to decrease emissions and costs.

A SXSW Pitch finalist in this category, Einride manufactures unmanned vehicles. Their vehicles are safe, cost-efficient and emission-free, reducing transportation costs and promoting a cleaner environment. The Swedish company raised SEK 35 million of angel funding from Christian Lagerling, Karin Markides and Mikael Lindblom in 2018.

To learn more, check out our Einride profile preview.