Correlation Ventures released a report this week on the distribution of returns in venture investing - we'd recommend checking it out! The data is a great reminder of how VC is a hits-driven business. As illustrated above, the majority of VC-backed companies that have exited in the past decade (went out of business, acquired, or IPOed) didn't return the capital invested. Only 4% of companies generated a 10x+ return! 

news 📣

📱Apple announcements. Apple held its annual hardware event on Tuesday, unveiling a new iPhone, iPad, and Watch. The new iPhone will come in three editions (11, 11 Pro, and 11 Pro Max), and features an upgraded camera and longer battery life. Also notable - all new hardware purchases will include a year-long subscription to Apple TV Plus.

🏢 WeWork IPO update. We're still not quite sure what to expect from the WeWork IPO -  the company reportedly lowered its valuation target again to $10-20B. This a big drop from the last private round at $47B, and from last week's estimate of $20B.  WeWork is looking to raise $3B through the IPO, and SoftBank has committed to invest another $750M+ (despite allegedly encouraging the company to delay the IPO). 

📝 CA challenges gig economy. California's legislature passed AB5, a bill that will require gig economy platforms (and others) to classify their workforce as employees instead of independent contractors. This is a costly proposition, as it requires these platforms to pay their workers minimum wage and provide benefits. Uber has already announced that it considers its workforce exempt from this legislation. 

👄 SmileDirectClub goes public. Clear aligner company SmileDirectClub had a tough first day of trading this Thursday, closing down 28% from the IPO price. It was the worst debut thus far this year for a U.S. company valued at $1B+, though the stock bounced back 12% on Friday. While SDC is growing quickly, it's spending a lot on marketing and operating in a competitive space, sparking investor concerns that the company may be overvalued.

💳 Stripe launches corporate card. Payment processing company Stripe continues to expand into new business lines - after launching a cash-advance service last week, Stripe is now debuting a corporate card.  While Stripe's rewards aren't as compelling as those offered by companies like Brex (which has already given $100M back to startups), Stripe may have an underwriting advantage with data from its existing user base. 

The war against vaping continues, with President Trump announcing this week that he plans to ban the sale of flavored e-cigarettes, which have been particularly popular with teens. This would be a major blow to VC-backed companies JUUL and PAX. A recent survey found that 25% of American high schoolers reported vaping in the last 30 days, though some are now asking their peers to stop after a mysterious outbreak of lung disease. 

what we're following 👀

Ro's founder responds after competitor Hims copied the company's online visit flow. 

The NYT investigates how Apple's apps (suspiciously) top the charts in the App Store. 

A look at a new wave of startups reinventing therapy for millennials and Gen Zers. 

Samsung launches Airdresser - a smart closet that cleans and straightens clothes for you. 

We've featured a lot of startups in Accelerated over the past year, and wanted to give you an update on a few that have since announced funding rounds!

🎮 Fad Mania (meme-based mobile games) graduated from YCombinator. 

🛍️Neighborhood Goods (D2C brand physical stores) raised an $11M Series A from GFC. 

🚘Rally Rd. (investments in collectible cars) raised a $7M Series A from Upfront Ventures.

🏥Ethos (online life insurance) raised both a $35M Series B and a $60M Series C!

💼Heroes (video-based recruiting for Gen Z) raised a $1.4M seed round. 

🍭Lolli (cash back via crypto) raised a $2.25M seed round. 

👟StockX (streetwear marketplace) raised a $110M Series C from DST Global. 

🗒️Perksy (Gen Z market research) raised a $4M seed from Bain Capital Ventures. 

💰Sweatcoin (crypto rewards from exercise) raised a $5.5M seed round. 

🙎Genies (next gen social avatars) raised a $10M Series A from NEA and Foundation. 

🎓Knack (P2P college tutoring) raised a $1.5M seed round from Precursor Ventures. 

🎙️Wondery (podcast network) raised a $10M Series B from Waverley Capital. 

These are just the rounds we can publicly disclose - if you're interested in keeping up with Accelerated-featured companies, let us know and we can include news as it is announced! 

Bessemer Venture Partners is recruiting for the new Bessemer Fellows program, launching in summer 2020. Fellows will be matched with a Bay Area tech startup for an 8-12 week internship, as well as programming and events at the Bessemer office.

You need to be a third year undergrad student to apply, and the firm is specifically looking for students interested in engineering, product, data science, finance, or business roles. Apply here by January 31, 2020!

puppy of the week 🐶