2025消费者互联网现状2025.2

STATEOFCONSUMERINTERNET2025

4

outlook

5

perspectives

Macro

capital

sectorspotlights

Exits

svb》SBiainck。nvaley

ADivisionofFirstcitizensBank

STATEOFCONSUMERINTERNET20252

svb》SBiainck。nvaley

ADivisionofFirstcitizensBank

STATEOFCONSUMERINTERNET20253

Thecompaniesthatwill

definethenextdecadewon’tjustbebuildingbetter

technology,they’llbecreatingexperiencesthatseamlesslyenhanceourdailylives.

WhetherthroughAI,mixed

realityortechnologiesyettoemerge,theconsumermarketwillremaintheultimate

provinggroundforinnovation.”

SincewelastbroughtyouSVB’sStateofConsumerInternetreport,thepromiseofartificialintelligence(AI)hasfannedintoafull-fledgedtechrevolution,fundamentallyreshapingnotjusthowcompaniesbuild

products,butalsohowtheyoperateattheircore.

Whilethelion’sshareof2024VCinvestmentflowedtofoundational

modelsandenterpriseapplications,theconsumerspacerepresentsamassiveuntappedopportunity.Justasmobileinternetcreateda

platformfortransformativeconsumerappssuchasAirbnb,InstagramandUber,weexpecttoseetheemergenceofconsumer-focusedAI

companiesthatprioritizeuserexperienceandaccessibility(page10).

Today’sconsumercompaniesarecompetingforincreasinglysaturatedattentionspans,andscreenfatigueisdrivingmanytoseekoffline

experiences.Thewinnersinthisnextwavemustthreadadelicate

needle—leveragingAI'scapabilitieswhilerespectingusers'growingdesiretodisconnect.

Thetransformationcomesataninflectionpointfortheconsumer

internetsector.Manycompaniesthatweredarlingsofthe2021VCpeaknowfindthemselvesinaperiodofreinvention.Thestaggeringvaluationsthatcharacterizedthaterahavegivenwaytoamoremeasuredreality,

promptingsomeinvestorstopivottheirfocuswhileothersaredoublingdown—albeitwithamarkedlydifferentthesis(page11).

AliciaFuller

SeniorMarketManagerTechBanking

afuller@

Forinvestors,burnefficiencyhasreplacedgrowthasthemetricthatmattersmost.Foundershaverespondedbyslashingspendingand

growingprofitabilitytonear-recordhighs(page13).Whilethishas

allowedsometocontroltheirowndestiny,ithascreatedaloomingchallengeforthesubstantialherdofconsumerinternetunicornsthatgrewuponhighburnandplentifulcapital.Withslowergrowth,thesecompaniesfacelimitedexitopportunities.

M&Aactivityhasyettomaterializeinthewaymanyanticipated.With

fewerfinancialbuyerssteppingup,VC-backedcompaniesthemselvesarebecomingsignificantacquirersofotherstartups(page19).Thistrendcouldleadtofurtherconsolidationintechaswell-fundedunicornsseektodiversifytheirofferingsastheystayprivatelonger.Publicexits,whichhavebeenlargelypaused,couldprovideanothersourceofliquidity.

Revenuemultiplesofventure-backedconsumerIPOshavetickeduptoathree-yearhigh(page20),whichcouldenticesomelate-stage

companiestopursuealisting.

Despitethepresentuncertainty,thelong-termtrajectoryisclear.

Consumerspendingcontinuestorepresentthemajorityofeconomicactivityworldwide,andhistoryhasshownustimeandagainthattechinnovationfindsitsgreatestexpression—anditsmostlucrative

opportunities—inconsumerapplications.Thecompaniesthatwill

definethenextdecadewon'tjustbebuildingbettertechnology,they'llbecreatingexperiencesthatseamlesslyenhanceourdailylives.

svb》SBiainck。nvaley

ADivisionofFrstcitizensBankSTATEOFCONSUMERINTERNET20254

Investment:

socialReignsand

contentlsking

Digitalcontenthasbecomethefuel

thatpowerstheventure-backed

consumersector.Marketingbudgetsthatwereoncedumpedintopaid

searchandadbuysarenowdivertedtoinfluencertestimonials,communitygiveawaysandorganiccampaigns.It’snosurprisethenthatcompaniesinthesocialmediaandcreatortoolsspaceareseeingaboominVCinvestment.

Thesecompaniessawa33%year-over-year(YoY)increaseinventuredollars,apace4xgreaterthantheincreaseforconsumerinvestmentsoverall.

Al

A:

consumerAlAwaitsIts"uber"Moment

TheemergenceofgenerativeAI

(GenAI)isaplatformshiftas

monumentalastheswitchtomobile

internet.Butseachangesdon’t

happenovernight.Ittookyearsafter

theiPhonelaunchedforconsumer

appslikeUbertocreatethemagical

userexperiences—summoningaridewithaclickofabutton—thatelevatedthetechfromanoveltytoawayoflife.ThesameisnowtrueforAI.Aslarge

languagemodels(LLMs)become

commoditizedandcostsdrop,userexperiencewillbecomeparamount.

Companiesthatbestleveragethistechintoaseamless,intuitive

interfacewillwintheAIrace.

M&A:

MorestartupsAreBuyingstartups

VC-backedcompaniesarequickly

becomingkeybuyersinconsumer

acquisitions.One-thirdofconsumerinternetM&AdealswenttoaVC-

backedbuyerin2024,upfromhalfthatsharefiveyearsago.These

companiesareseizingonlow

valuationsandfiercecompetitiontogobbleuprivalsandaddnew

capabilitiestotheirexistingproducts.Weexpectthistrendtoaccelerateasexistingunicornscontinuetoage,

increasinginvestorpressurefor

liquidity.Theprospectofless

regulatoryscrutinyunderanew

administrationcouldhastendeals.

cashBurn:

RunwayLengthensatthecostofGrowth

Withinvestmentlessplentifulthaninrecentyears,foundersareprioritizingcapitalefficiencymorethanever.

Consumercompanieshavereducedburnbyamedianof30%from2023.Asaresult,profitabilityforallsizesofconsumercompanieshas

increasedtoaneardecadehigh.

Companiesthatnavigateto

profitabilitymaybeinabetterpositiontocontroltheirdestiny,usingVC

strategicallytoaccelerategrowth,ratherthantostayafloat.

oncompanyBurn

“Weusedtolookattherevenuelineitemfirst;now,welookattheburnline

itemfirst.Ifburnexceedsacertainamount,itcanbedisqualifying—thisisrelative—butthebroaderrealityisthatinefficientgrowthisnolongertolerated.Profitablecompaniesarereceivingsignificantlyhighervaluationsthanthosethatareburning.Ifyou'reshapingupforanM&Aoutcome,

incumbentswillnottolerateburn.”

JasonFiedler

ManagingPartner

onAlandthe"AgeofAgents"

“Cominginto2025,we'reenteringthe"AgeofAgents,"whereAIisbeing

empoweredwithgreaterautonomytoactonbehalfofindividualsand

businesses.WhatthismeansisthatAIisnolongerjustassistingexisting

systems;it'sreshapinghowtheyoperate.Whilemanyindustries,ranging

fromhealthcareandeducationtolegalandfinancialservices,havelongreliedon"middlemen"(i.e.,serviceproviders)astranslatorsofcomplexinformation,AIisincreasinglysteppingintoeitheraugmentand,incertaininstances,overtake

thesehumansecurityblankets—faster,cheaper,andoftenmoreaccuratelythanconsumershaveeverimaginedbefore.”

MeeraClarkPartner

ARedpoint

onBalancingGrowthandprofitability

“AIisenablingmoreefficientgrowth.I’veseenconsumercompaniesgettingtoseveralmillioninrevenueonverylowburn.Thatsaid,AIhasleveledthe

playingfieldandcompaniescan’tgetcomplacent—Ibelieveearly-stagecompaniesshouldstillbeburningtoacquire(retentive)users.There’sabalance,butIdon’twantanearly-stagefoundertobesolvingfor

profitabilitybeforethey’vewonthemarket.Formid-tolate-stagecompanies,it’sadifferentgame—atthatpoint,strongmarginsand

profitabilitybecomekey.”

LauraChauPartner

onRisk

“Overthelastfiveyears,thewaythatinvestorshavebeenthinkingabout

handicappingriskhasshifted,andperspectivesonriskitselfhavechanged.We

wentthroughaperiodwherefirmswithoutdeepconsumerinvesting

experiencedippedtheirtoesintotheconsumermarket,andthatdistortedbothassetpricesandthedefinitionofsuccessforaconsumercompany.Asconsumerbusinessesscaledrapidly,somesawthemassoftware-likemodels.”

MattNugentPartner

》

STATEOFCONSUMERINTERNET20255

Source:SVBinterviews.

Macro

STATEOFCONSUMERINTERNET20256

TheUSconsumeriscaughtinatug-of-warbetween

exuberanceandrestraint.Optimismiscreepingback,

butinflation,risingdebtandincomedisparitiesare

draggingitbackdown.Disposableincomeisrecovering,butlower-incomehouseholdsremaindisproportionatelyaffectedbytherisingcostofliving.Debtpressuresare

alsomounting,withmissedpaymentsontherise,signalingfinancialstrainformanyhouseholds.

Whileconsumersentimenthasreboundedfromits2022lows,itremainsshaky.Concernsaboutinflationand

economicuncertaintyleaveconsumersnavigatinga

challengingenvironment.Meanwhile,spendingpatternsrevealagrowingdivide:higher-incomehouseholdsare

drivingdiscretionaryspending,buoyedbywealthandjobstability,whilelower-incomegroupsfocusonessentials.Thisbifurcationrepresentsasignificantshiftfromthe

moreuniformspendinggrowthseenacrossincome

groupsbetween2018and2021.Evenstockmarket

optimismreflectsthisdivide,in2024,expectationsweresharplysplitbyincome,mirroringbroaderdisparitiesinspendingbehavior.

Theunevenfinanciallandscapeacrossincomelevels

isdampeningbroaderconsumergrowthandleavingkeysectorsdependentonasmaller,wealthieraudiencetosustainmomentum.

svb》SBiainck。nvaley

ADivisionofFirstcitizensBank

yoychangeinDisposableIncomevs.yoychangeinInflationusconsumersentimentIndexedto100inJan'201

YoYChangeinDisposableIncome

YoYPercentagePointChangeinInflation

6.3

5.1

3.53.3

3.1

0.9

3.6

3.1

2.9

3.4

0.3

-0.6

-0.6

-1.2

-3.9

2023

-5.5

2017

2018

2019

2020

2021

2024

2022

wideningIncomeGapskewsspendingchangeinRetailspendingbyusHouseholdIncome(2018-o)

91

88

80

72

70

72737770676570

60

67

62

ConsumerSentimentIndex

Consumerconfidenceisupnearly45%fromtherecentlow.

100

100

96

72

50

2019202020212022202320242025

creditshowscracks;MissedpaymentsRise

percentageofusHouseholdDebt90+DaysDelinquentvs.Expectations

25%

20%

15%

10%

5%

0%

-5%

LowIncomeMiddleIncomeHighIncomeMeanHouseholdProbabilityofMissingaDebtPaymentintheNext3Months

ShareofBalance90+DaysDelinquent:CreditCardsConsumerLoans

16%

14%

12%

10%

8%

6%

2018201920202021202220232024

2018201920202021202220232024

Notes:1)ConsumerSentimentisfromtheUniversityofMichigan:ConsumerSentiment(UMCSENT)index,retrievedfromFederalReserveEconomicData(FRED).IndexedtoJanuary2020.

7

STATEOFCONSUMERINTERNET2025

Source:FederalReserveBankofSt.Louis,NewYorkFederalReserve,USBureauofLaborStatistics,USBureauofEconomicAnalysis.

Americansnowspendmorethansevenhoursadayonscreens,withsocialmediaaloneconsumingaround2.5hoursdaily.PlatformslikeTikTokaredrivingthistrend,withAmericanusersspendingnearlyanhouraday

watchingvideos.Socialmedia’sdominanceisclear,

rankingonlysecondtostreamingservicesinUSin-apprevenuein2024.

However,consumersareapproachingdigitalfatigue.

Appretentionratesarefalling,withlessthan3%ofusersremainingactiveafter30days,demonstratinghow

difficultitistoholdconsumerattentioninan

oversaturatedmarket.Withscreentimeatsaturation

andappretentionratessliding,socialmediaand

streamingplatformsdominateattentionspans,leaving

limitedopportunityfornewappstobreakthrough.For

consumerinternetcompanies,therealchallenge

isn’tjustcapturingdownloads,it’salsofindingwaystostandoutinamarketwhereattentionis

fragmentedandcompetitionforconsumermindsharehasneverbeenmoreintense.

Holidayspendingtellsasimilarstoryofshifting

consumerbehavior.Onlineandnon-storesalesgrewbynearly9%in2024,indicatingthatconsumersare

increasinglyprioritizingdigitalspending,evenasoverallbudgetstighten.

svb》SBiainck。nvaley

ADivisionofFirstcitizensBank

socialMediaDominatesscreenTime

Average30DayRetentionRatesforiosAppsbycategory2

20192024

TopcategoriesbyTotalTimespent(Hours)onMobileDevicesintheusin20241

MostUsed

App

YoYChange

News

ShoppingHealth&FitnessFinance

Food&DrinkEntertainment

Travel

ProductivityLifestyleGamingSocial

0%3%6%9%12%

SocialMedia

183.9B

3%

Browsers

28.5B

2%

SocialMessaging

23.5B

2%

Music&Entertainment

6.7B

2%

Film&TVStreaming

5.7B

3%

Binge,scroll,BUY

TOP10AppcategoriesbyInApppurchaseRevenueintheusin20241

Holidayspending:AJolttoJumpstart2025?valueofusHolidayseasonRetailsales,AdjustedforInflation3

$1.1T

$1.0T

$900B

$800B

$700B

$600B

Onlineandnon-

storesaleswere

up8.6%in2024to$296.7B.

1

2

3

4

5

6

7

8

9

10

Film&TVStreamingSocialMediaDatingApps

CloudStorage Books&Comics Music&PodcastsSportsEntertainmentPhotoEditing

Gyms&FitnessAIChatbots

36%

33%

13%

22%

20%

9%

16%

-6%

12%

177%

$5.4B

YoYchange

$3.8B

$2.3B$1.3B

$1.3B

$1.1B $0.8B$0.5B

$0.5B$0.5B

2006200820102012201420162018202020222024

Notes:1)iOSandGooglePlaycombined.Revenueisgross—inclusiveofanypercenttakenbytheappstores.2)Minimumof50,000globalinstallsperapp,perquarterinquestion;averageexcludesstatisticaloutliers.3)2024holidayretailsalesareanestimate.

8

STATEOFCONSUMERINTERNET2025

Source:SensorTower,AppsFlyerData,NationalRetailFederationandSVBanalysis.

capital

STATEOFCONSUMERINTERNET20259

svb》valeyNotes:1)VCinvestmentinconsumercompanieswithintheAI/machinelearning(ML)verticaland“AIassistant”asakeywordinPitchBook.

ADivisionofFirstcitizensBankSource:PitchBookData,Inc.andSVBanalysis.STATEOFCONSUMERINTERNET202510

consumerAl

Plateauwillbereachedin:

●0-2years●5-10years

2-5yearsMorethan10years

AIAssistants

ClassroomAI

GenAIforVideo

AutonomousRideshare

Gambling

HouseholdRobots

●Autonomous

Vehicles

AutonomousAirTravel

Expectations

Subscription

BoxesMealKitsFoodDelivery

DatingApps

RideshareAppsSocialMedia

Platforms

Abusydadbookingthefamilyvacation,abodybuilder

optimizinghermealplan,anauthortranscribinghernextthriller—chancesare,there’sanAIappforthat.

Conciergeapplicationsaresproutingupascompanies

seektobringmoreseamlessuserexperiencestothe

horsepowerofLLMs.VCinvestmentinAIassistants

jumped6xinthelastyear,to$1.3B.Whilethisisa

fractionoftheoverallinvestmentthatenterprise

Autonomous

PackageDelivery

GigEconomyToolsRobo-TravelAdvisorsWellnessAI

AR/VR

Play-to-EarnGaming

GenAI

forText

Online

Marketplaces

PersonalizedMarketing

SocialSales

GenAIforImages

●

CustomerChatbots

Mobile

Gaming

InnovationTriggerPeakExpectationsDisillusionmentSlopeofEnlightenmentPlateauofProductivity

applicationsandfoundationalmodelsareattracting,theopportunitiesforconsumerusescouldonedaydwarfthemarketcapofthecurrentincumbents.

HOWMay(A)IHelpyou?

USVCInvestmentinAIAssistants1

AVS:BackintheDriver'sseat

UsvcInvestmentinAutonomousconsumerMachines

Onthehypecurveforconsumertechnologies,there’sa

Dollars

Dollars

Deals

Deals

hollowingoutofthemiddlerightnow.Manyusecasesareeithernearingtheirpeakofproductivity—andthus,havelessgrowthpotential—oraresoearlyintheir

$6.6B20

80

$1.3B

49

41

38

$539M

$430M141414

$205M

$34M$57M$72M

Notable

2018201920202021202220232024Companies

24

22

$6.5B

21

14

$3.0B

$3.5B

10

$1.4B

$0.2B$0.3B

2018201920202021202220232024

cruise

ZENNIHOME

Notable

Companies

developmentthatmassadoptionisstilladistantvision.Someofthesetechnologies,suchasautonomous

vehicles,havemassivemarketopportunity,butscale

remainselusive.Autonomousvehiclecompanies

received$6Bin2024,upfromjust$500Minthepriortwoyearscombined.Thesector,whichhaslongpromisedtodeliveradriverlessfuture,gainedneededtractionin

10

2024.Waymoprovidedfourmilliondriverlessrides,4x

morethanitsprevioustotal.Yetthe16-year-oldcompanystillhasalongwaytogobeforeitchallengesthelikesofUber,whichprovidesaboutamillionridesperhour.

VCDivide

TheconsumerVClandscapeisfracturing.Big-name

firmsarereallocatingtoenterprisetech,leavingsmallerfundstoredefinethefutureofconsumerinvesting.

In2024,consumerinternet’sshareofVCinvestment

dollarsaccountedforjust5%oftotalVCdollarsfromthetop100mostactivefirms.2Boththeshareofdealsanddollarsgoingtoconsumercompaniesfromthesefirms

havebeensteadilydeclining,reflectingagrowingdividebetweengeneralistandconsumer-focusedfunds.

AsgeneralistVCspivottoenterprisetech,consumer-

focusedfundsarenolongerjustconcentratedonmore

traditionalventure-backedconsumerproductssuch

asconsumergoods.Instead,theyareredefiningwhatit

meanstobea“consumer”company.Today’sconsumermarketextendsbeyondphysicalgoodstoincludeAI,digitalexperiences,marketplacesandevensports—areasthatalignwithaparadigmlessreliantoncapitalsubsidizinggrowth.

Consumerhealthandfitnessnowdominatesconsumer-focusedVCportfoliosasthedemandforwellness

solutionssurges.Incontrast,non-foodconsumergoodslikeclothingandbeautyhaveseentheirshareofdealsplummet,frombeingthemostcommoninvestmentsin2019totheleastin2024.

svb》SBiainck。nvaley

ADivisionofFirstcitizensBank

consumerFundsclosedHit7-yearLOWUSVCFundswithconsumerasaListedFOCUSArea1

ClosedAnnouncedFundsAnnounced

395

$67B

313

292

245

208

$31B$23B

182

201

144

$29B

$25B

$25B

$25B

$8B

$8B

$20B

$23B$30B$65B$27B$15B$9B

20172018201920202021202220232024

TraditionalconsumerFadesFromview

consumer'sshareofvcFromtheTOP100MostActiveFirms2

DealsDollars

33%

25%

25%

25%

23%

24%24%

21%

20%

20%

19%

18%

22%

21%

15%

11%

20%

15%

12%

12%

5%

7%

20142015201620172018201920202021202220232024

consumer-Focusedvcschangecourse

casestudy:cohortAnalysisofvcDealsandRankingofconsumersubsectorsbyDealcount

ConsumerInternetOtherSectors

stripes

Consumer-

FocusedVCs

26%

37%

50%

74%

63%

50%

42%

48%

36%

58%

52%

64%

201920202021202220232024

1

2

3

4

5

201920202021202220232024

Health

&Fitness

Marketplaces

EdTech

E-Commerce

Enablement

Non-FoodConsumerGoods

43%

50%

60%

0%

0%

YoYChangein

USVCDeals

Notes:1)IncludesUSVCfundswithconsumerasonestatedareaoffocus,oftenamongotherareas.2)ConsumerisdefinedaccordingtoSVB’sproprietarytaxonomy.

11

STATEOFCONSUMERINTERNET2025

Source:Preqin,PitchBookData,Inc.andSVBanalysis.

DealsFallFlat

Consumersectorinvestmenttrendsareshiftingasmegadealsaremakingacomeback,capturingalargershareof2024’sinvestmentdollars.Whilesmallerdealsfade,

investorsareprioritizingcompaniesthatdon’tjustuseAI,butarefundamentallybuiltaroundit.

Overalldealcountshaveplungedsince2021,highlightingamoreselectiveinvestmentenvironment.Investorsare

consolidatingcapitalintofewer,higher-convictionbets.Yet,withinthisslowdown,consumerAI’smomentumisaccelerating.MentionsofAIinconsumerearningscallshaveskyrocketed,reflectingitsgrowingroleinthesector.Amongconsumercompaniesfundedin2024,nearlyone-thirdincorporatedAIintotheirproductoffering,upfrom18%in2023.

TheAIdisruptionhascreatedaforkintheroadfor

consumer-focusedVCs.Somefirms,suchasAndreesenHorowitz,aretransitioningawayfromtraditional

consumerinvestmentsentirelytofocusexclusivelyon

consumerAI,whileothersareleaningintoareasseenaslessdisreputablethanAI,suchassportsleaguesand

consumerstaples.

BeyondAI,thestateofconsumerinternetreflectsa

broaderrecalibration.Theeraofflowingcapitalhasgivenwaytoamoredisciplined,profitability-drivenapproach.

svb》SBiainck。nvaley

ADivisionofFirstcitizensBank

-DealsRebound

consumervcDealsandDollars,consumerMega-Dealcapitalasapercentageofvc-BackedconsumerDeals1

AIMentionsinNotableconsumerInternetEarningsTranscripts2

700

557

600

500

400

300

200

100

0

20202021202220232024

CapitalInvestedDealCount

PercentageofCapitalinDealsOver$100M

$51B

3.6K

4.0K

2.8K

$22B

2.7K

2.5K

$33B

2.4K

2.2K

2.1K

$23B

$23B

$15B

$13B

27%

$14B

47%

25%

42%

57%

46%

42%

43%

20172018201920202021202220232024

consumerAlInvestmentshareReachesHighsshareofAIcapitalInvestedinconsumerDeals

ShareofConsumerAICapital

31%

consumerDealcountsplungesince2021Index:usconsumerDealcount(2019=100)

SeedABCD

180

160

140

120

100

80

60

40

20

0

201920202021202220232024

26%

17%

18%15%

12%

9%

9%

20172018201920202021202220232024

Notes:1)ConsumerdealsclassifiedbySVB’staxonomyincludedigitalcompaniesspanninge-commerce,entertainmentandmarketplaces.

2)IncludesAI-relatedkeywordswithinearningstranscriptsfor15ofthelargestpublicconsumertechcompaniesincludingAmazon,Meta,NetflixandGoogle.

12

STATEOFCONSUMERINTERNET2025

Source:PitchBookData,Inc.andSVBanalysis.

AsVCinvestmentdwindled,graduationratesstarted

toslide.Tokeepfromsputteringoutontherunway,companieshaveadjustedtheirburn,butnotwithoutconsequencestogrowth.

Consumergraduationrateshavehistoricallybeen

lowerthanothersectors.Forexample,seedtoSeriesAgraduationratesfor2020werefivepercentagepoints

lowerthantheinnovationeconomyatlarge.TheselowergraduationrateshaverecentlybeencompoundedbyalowersupplyofVCdollars.Today,graduationratesarelessthanaquarterofwhattheywerein2020.

Withtheaddeduncertaintyofraisingafutureround,

companieshavefocusedonbeingcapitalefficientandreducingburn.Asaresult,profitabilityforallsizes

ofconsumercompanieshasincreased,nearingthe

highestlevelinthelastdecade.Consequently,runwayimprovedinrecentquartersdespitelimitedinvestment.

Thesideeffectsofimprovedprofitability,reducedburnandextendedrunwayincludelowergrowthrates.

Consumercompanies,moresothanothersectors,

dependonmarketingspend,sellingproductsatalossandotheraggressivesalesstrategiestodrivegrowth.Buttheseareoftennotcompatiblewithafocuson

profitability,sogrowthrateshavestagnatedatthelowestpointinthelastdecade.

svb》SBiainck。nvaley

ADivisionofFirstcitizensBank

seedtoseriesAcumulativeGraduationRates

Usvc-Backedconsumer:MedianMonthsofcashRunway

$10M-$25M$25M-$50M$50M+

20%

15%

10%

5%

0%

2023

2024

2020

2019

2021

2022

30

25

20

15

10

5

0

Q1Q3Q1Q3Q1Q3Q1Q3Q1Q3Q1Q3Q1Q32018201920202021202220232024

0369121518212427303336Months

GrowthspiralsascompaniescutBurn

UsvcBackedconsumer:MedianchangeinBurnandRevenueGrowth1

profitabilityNearAll-TimeHighs

UsvcBackedconsumer:MedianEBITDAMargin2

$10M-$25M$25M-$50M$50M+

RevenueGrowth

60%

50%

40%

30%

20%

10%

0%

2018

2019

2021

2020

2022

20242023

0%

-5%

-10%

-15%

-20%

-25%

-30%

-35%

-40%

-45%

-50%

Q1Q3Q1Q3Q1Q3Q1Q3Q1Q3Q1Q3Q1Q32018201920202021202220232024

-40%-30%-20%-10%0%10%20%30%40%

MedianYoYChangeinBurn

Notes:1)Revenuecalculatedatthecurrentrunrateofrevenueannualized.2)MedianEarningsBeforeInterestTaxesDepreciationandAmortization

13

Source:PitchBookData,Inc.,SVBproprietarydataandanalysis.STATEOFCONSUMERINTERNET2025

sector

spotlights

STATEOFCONSUMERINTERNET202514

stakesEvolution

ThegamingandesportslandscapesareevolvingasVCsadapttonewmarketrealities.Thistransitionreflects

deeperchallengesinthegamingindustry.Saturated

markets,longdevelopmentcyclesandplayerretention

strugglesaremakingearly-stagegamingatoughersell.

Whilegamestudiosandinfrastructurestillreceive

funding,thesedaysmaysoonbebehindusasinvestors

prioritizemorescalableopportunities.Inamarket

floodedwithlookalikeofferings—manyofwhichtake

yearstodevelop—acquiringusersisalreadyachallenge,butkeepingthemhookedlongenoughtobuild

sustainablerevenueisprovingevenharder.

Asthelandscapeshifts,sodoinvestorpriorities.

TraditionalconsumerVCsarebroadeningfromcore

gaminginvestmentstoincludesportsleaguesandlotterycompanies.Atthesametime,gamblinggamescontinuetogrow,withsportsbettingnowlegalin38states.The

growingaccessibilityofmobilebettingnotonlyappealstouserslookingforconvenience,