After yesterday’s look into the rather lackluster speed of investment into e-commerce-focused start-ups this year, a couple of VCs sent in notes that added useful context.


So today let’s go over why the speed of e-commerce startup fundraising has been so milquetoast in 2020. The Exchange explores start-ups, markets and money. You can read it every early morning on Additional Crunch, or get The Exchange newsletter every Saturday. To frame the oddity of e-commerce start-ups not raising a flood of money during what are historic boom times, we kept in mind Walmart’s staggering online sales development in Q2, which TechCrunch’s Sarah Perez broke out into a separate piece. Today, for a soup├žon more, Target reported its Q2 revenues. Its results are similar to Walmart’s own, if a lot more extreme.

The American merchant reported that its”shop comparable “sales were up 10.9 %in the quarter, which was rather excellent. But Target likewise reported that its” digital similar sales grew 195%,”which is staggering. Target’s income mix moved from 7.3% digital in its year-ago quarter to 17.2% in its latest.

Damn.

If you have actually been around the web recently, you can’t help but trip over more data detailing this remarkable minute in e-commerce history– there are years of modification occurring in just a quarter’s time. For a taste, former Andreessen citizen Benedict Evans has some fantastic information on U.S. and U.K. e-commerce growth, and here’s yet another terrific chart to chew on.

It goes on and on. The e-commerce boom is genuine, and the start-up funding funk is as well, per the information we ingested the other day via CB Insights. What gives? GGV’s Jeff Richards had a concept, and we talked with Canaan’s Byron Ling as well. We’ve also done a little digging into some of the biggest, recent e-commerce rounds to get some flavor on who is raising in the space. Ready?

Why e-commerce VC isn’t going directly up

If you remember, our thesis the other day was that, possibly, the kill zone theory often presumed concerning Amazon meant that the e-commerce space is less investable than we ‘d otherwise imagine and that because some things are “sorted” to a degree, there is less green space readily available in the sector for startups to tackle.

Littles that might be right.

Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.