Shaking the MoneyTree TM Q Update

Transcription

1 Shaking the MoneyTree TM Q Update PricewaterhouseCoopers/National Venture Capital Association MoneyTree TM Report based on data from Thomson Reuters HJ Paik Director, Emerging Company Services (213)

2 About the report PricewaterhouseCoopers and the National Venture Capital Association produce the MoneyTree Report, based on data from Thomson Reuters Core measure of equity investments in venture-backed companies in the United States Companies have received at least one round of financing, involving a professional VC firm or equivalent Captures: tranches, not term sheets, foreign VCs, qualified private placement Excludes: debt, bridge loans, recaps, roll-ups, IPOs, PIPEs, leasing, etc. MoneyTree Report in its 21st year Results online at and Shaking the MoneyTree TM Q

3 MoneyTree total investments Annual venture capital investments 1995 Q YTD ($ in billions) $120 $100 $105.0 $80 $60 $40 $20 $8.0 $11.3 $15.1 $21.5 $54.9 $40.9 $22.2 $19.7 $22.9 $23.2 $27.9 $32.1 $30.4 $20.3 $23.4 $29.9 $27.6 $30.1 $49.5 $13.4 $ Q1 # of deals Q Shaking the MoneyTree TM Q

4 MoneyTree total investments: Q Q $16.0 ($ in billions) $14.0 $14.9 $12.0 $13.6 $13.4 $10.0 $10.6 $10.4 $8.0 $6.0 $8.3 $7.5 $7.5 $7.5 $7.0 $7.3 $6.6 $6.7 $6.3 $6.1 $8.1 $8.6 $4.0 $2.0 $ Q1 Q2 Q3 Q # of Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Deals Shaking the MoneyTree TM Q

5 # Deals MoneyTree total investments Quarterly venture capital investments Q Q Total amount invested ($B) $14.9 $13.6 $13.4 $10.6 $10.4 $8.3 $7.5 $7.5 $7.5 $8.1 $8.6 $6.6 $6.3 $6.7 $7.0 $7.3 $6.1 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 ' Average deal size ($M) $7.2 $7.5 $7.4 $7.4 $7.1 $7.5 $6.9 $6.5 $6.5 $7.0 $7.4 $7.4 $10.3 $11.6 $9.7 $13.5 $13.2 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Shaking the MoneyTree TM Q

6 Investments by region: Q ($ in millions) Q Total Investments - $13,420.8 million in 1,020 deals Silicon Valley $ Southern California New England NY Metro Texas Southeast Midwest Northwest DC/Metroplex SouthWest Philadelphia Metro Colorado North Central Sacramento/N.Cal $426.6 $414.9 $400.6 $381.1 $329.9 $267.9 $134.1 $115.6 $94.7 $42.0 $ $ $ Region # of Deals % Change $ from Q4 14 Silicon Valley 323-7% New England % NY Metro % Southern California 94 39% Midwest 90-50% Southeast 68-59% Texas 48-13% DC/Metroplex 38-9% Northwest 30-13% SouthWest % Colorado 23-66% Philadelphia Metro 23-15% North Central 21-25% South Central 9 243% Upstate NY 8 227% Sacramento/N.Cal 3 275% Total -10% South Central Upstate NY $29.7 $22.8 NV = no value in prior quarter NM = not meaningful - $1000 $2000 $3000 $4000 $5000 $6000 $7000 Unknown region totals not included Shaking the MoneyTree TM Q

7 Investments by region Quarterly percent of total U.S. investments Top 5 US regions : Q Q (% of total dollars) 60% 53% 57% Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 50% 45% 45% 44% 40% 30% 20% 10% 0% 17% 14% 13% 10% 9% 9% 9% 9% 10% 9% 8% 8% 7% 8% 5% 3% 2% 3% 3% Silicon Valley Southern California New England NY Metro Texas 3% Shaking the MoneyTree TM Q

8 Investments by industry: Q ($ in millions) Software Biotechnology Industrial/Energy Media and Entertainment IT Services Financial Services Consumer Products and Services Medical Devices and Equipment Telecommunications Semiconductors Healthcare Services Retailing/Distribution Electronics/Instrumentation Networking and Equipment Computers and Peripherals Business Products and Services Other $1,730.4 $1,360.5 $ $911.1 $520.3 $476.1 $469.2 $366.1 $176.0 $172.8 $107.7 $99.9 $99.6 $71.3 $6.0 $0.2 Q Total Investments - $13,420.8 million in 1,020 deals Industry $5,575.8 # 0f Deals % Change in $ from Q4' 14 Software 434-8% Biotechnology % Media and Entertainment 89-9% Medical Devices and Equipment 69-30% IT Services 68 1% Industrial/Energy % Consumer Products and Services 49-42% Semiconductors 18-31% Telecommunications % Financial Services 16 80% Healthcare Services % Computers and Peripherals 14-93% Electronics/Instrumentation 13-64% Retailing/Distribution 12-9% Networking and Equipment 9-57% Business Products and Services 7-97% Other 2-91% Total 1,020-10% NV = no value in prior quarter Visit for Industry definitions - $2000 $4000 $6000 Shaking the MoneyTree TM Q

9 Investments by industry Quarterly percent of total U.S. investments Top 5 Industries : Q Q (% of Total Dollars) 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 46% 45% 40% 42% 37% Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 14% 13% 13% 10% 10% 9% Software Biotechnology Industrial/Energy Media and Entertainment 11% 20% 9% 10% 8% 8% 5% 6% 7% 5% 5% 5% 4% IT Services 10% Shaking the MoneyTree TM Q

10 Life science investments Percent of total U.S. investments Life science sector Q Q (% of total dollars) 20% 18% 16% Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 15% 19% 17% 18% 16% 14% 14% 13% 13% 12% 10% 10% 10% 8% 6% 4% 6% 5% 6% 4% 3% 2% 0% Biotechnology Medical Devices and Equipment Life Sciences Shaking the MoneyTree TM Q

11 Internet-specific & Software investments Q Q Software investments ($B) $1.5 $ Invested # of deals $2.0 $2.3 $1.9 $1.8 $2.5 $2.1 $2.3 $2.3 $2.3 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 $3.7 $2.9 $4.9 $6.1 $3.8 $6.0 $ Internet-specific investments ($B) $ Invested # of deals $3.2 $3.4 $3.0 $ $1.4 $2.3 $1.7 $1.7 $1.6 $1.9 $1.7 $1.5 $1.3 $1.9 $1.5 $2.5 $ Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 0 Shaking the MoneyTree TM Q

12 Investments by stage of development: Q Q Total Investments - $13,421 million in 1,020 deals ($) in millions $126 Stage of Development # of Deals % Change in $ from Q $4,212 $3,698 Seed Stage 26-32% Early Stage % $5,385 Expansion Stage % Seed Stage Expansion Stage Early Stage Later Stage Later Stage % Total 1,020-10% Shaking the MoneyTree TM Q

13 US Investments by stage: Quarterly Q Q Amount Invested by Stage ($M) 16,000 14,000 $2,804 12,000 Later Stage $3,275 $4,212 10,000 Expansion Stage 8,000 Early Stage 6,000 4,000 Seed Stage 2,000 $2,195 $2,091 $1,663 $2,616 $2,204 $2,366 $2,169 $4,554 $2,980 $2,527 $2,198 $2,668 $2,937 $3,076 $3,326 $6,257 $3,872 $3,509 $3,615 $3,039 $6,334 $5,588 $5,385 $3,698 0 $189 $248 $231 $354 $143 $219 $195 $186 $126 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Shaking the MoneyTree TM Q

14 US Investments by stage: Quarterly Q Q Number of Deals by Stage 1,400 1,200 1,000 Later Stage Expansion Stage Early Stage Seed Stage Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Shaking the MoneyTree TM Q

15 Investments by sequence of financing: Q Q Total Investments - $13,420 million in 1,020 deals ($) in millions $1,817 Financing # of Deals % Change in $ from Q First Sequence % Follow-on 715-6% Total % $11,604 First Sequence Follow-on Shaking the MoneyTree TM Q

16 First sequence financing Investment amount: Q Q First sequence investments $3 ($ in billions) Q1 Q2 Q3 Q4 $3 $2.6 $2 $2 $1 $1.3 $1.6 $1.3 $1.2 $1.3 $1.2 $1.1 $0.9 $1.0 $1.3 $1.3 $1.5 $1.3 $1.8 $1.7 $1.8 $ Shaking the MoneyTree TM Q

17 First sequence financing Number of deals: Q Q First sequence deals 500 Q1 Q2 Q3 Q Shaking the MoneyTree TM Q

18 Number of First-Time vs. Follow-On Deals US Venture Capital deals 2010 Q YTD Number of Deals ,573 2,683 2,640 2,825 2, ,095 1,357 1,326 1,426 1, Q1 YTD Follow on First sequence Shaking the MoneyTree TM Q

19 First sequence financing Percent of total U.S. investments: 2011 Q YTD 40% 35% 30% 33% 33% 34% 33% 30% 34% 34% 35% 31% 34% 36% 33% 30% 32% 33% 34% 30% 25% 20% 19% 20% 15% 10% 18% 17% 14% 16% 17% 18% 16% 17% 17% 17% 12% 13% 16% 17% 14% 5% 0% % of Total Dollars % of Total Deals Shaking the MoneyTree TM Q

20 Quarterly percent of total first sequence dollars Stage of development Stage of Development Q Q (% of first sequence dollars) 80% 70% Q1 '14 60% Q2 '14 Q3 50% '14 Q4 '14 40% Q1 '15 30% 20% 10% 9% 7% 11% 5% 5% 71% 50% 50% 47% 73% 11% 25% 24% 41% 19% 9% 17% 16% 8% 3% 0% Seed Stage Early Stage Expansion Stage Later Stage Shaking the MoneyTree TM Q

21 Quarterly percent of total first sequence deals Stage of development Stage of Development Q Q (% of first sequence deals) 80% 70% Q1 '14 60% Q2 '14 Q3 '14 50% Q4 '14 40% Q1 '15 30% 71% 64% 69% 68% 75% 20% 10% 12% 11% 12% 9% 8% 11% 15% 12% 18% 14% 7% 10% 7% 5% 4% 0% Seed Stage Early Stage Expansion Stage Later Stage Shaking the MoneyTree TM Q

22 , ,077 1,080 1,184 1,113 1,777 2,502 First sequence deals in seed & early stage companies 1995 Q YTD % 62% 63% 67% 72% 74% 74% 70% 76% 73% 70% 70% 72% 72% 74% 76% 79% 81% 83% 90% 79% 82% 80% 70% 60% 50% 40% % 20% 10% 0 0% Seed stage Seq 1 Deals in Seed/Early Stage % of Total Seq 1 Deals Early stage Shaking the MoneyTree TM Q

23 Median deal size vs. mean deal size Quarterly total U.S. investments: Q Q ($ in millions) $16.0 $14.0 $13.5 $13.2 $12.0 $10.0 $10.3 $11.6 $9.7 $8.0 $6.0 $6.2 $7.0 $6.1 $6.2 $7.2 $7.5 $7.4 $7.4 $7.1 $7.5 $6.9 $6.5 $6.5 $7.0 $7.4 $7.4 $4.0 $2.0 $2.8 $3.0 $2.6 $2.7 $2.5 $3.0 $2.9 $2.5 $2.8 $2.9 $2.1 $2.0 $2.3 $2.4 $2.6 $2.5 $3.1 $3.4 $3.0 $3.9 $4.1 - Median Deal Size Mean Deal Size Shaking the MoneyTree TM Q

24 $385.0 $577.5 $435.4 $597.3 $448.2 $641.3 $519.0 $597.5 $656.4 $552.6 $599.8 $887.7 $878.0 $844.9 $712.6 $959.6 $896.9 $727.1 $698.6 $621.0 $802.9 $721.2 $806.5 $1,384.4 $1,919.6 SoCal MoneyTree total investments: 2009 Q ($ in millions) $2,000.0 $1,800.0 $1,600.0 $1,400.0 $1,200.0 $1,000.0 $800.0 $600.0 $400.0 $200.0 $ Q1 Q2 Q3 Q4 # of Deals Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Shaking the MoneyTree TM Q

25 Southern California investments by industry: Q Q Total: $1,919.6 ($ in millions) Industrial/Energy $1,004.1 Software Media and Entertainment $198.6 $317.0 Industry # of Deals % Change $ from Q Biotechnology Consumer Products and Services Healthcare Services IT Services Retailing/Distribution Medical Devices and Equipment Networking and Equipment Financial Services Telecommunications Electronics/Instrumentation Computers and Peripherals Business Products and Services $74.8 $48.5 $34.2 $26.0 $18.6 $14.7 $8.3 $3.4 $3.0 $2.7 $2.0 $165.3 Software 46-70% Biotechnology 9 129% Media and Entertainment 8 161% Consumer Products and Services 7-11% Industrial/Energy 5 44,016% Medical Devices and Equipment 4-3% Healthcare Services 3 NV% IT Services 3 176% Retailing/Distribution 2 NV Telecommunications 2-76% Networking and Equipment 1 NV Financial Services 1-33% Electronics/Instrumentation 1 NV Computers and Peripherals 1-31% Business Products and Services 1-92% Total 94 39% NV - no value in prior quarter NM - not meaningful $0.0 $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 $700.0 $800.0 $900.0 $1,000.0 $1,100.0 Shaking the MoneyTree TM Q

26 Los Angeles investments by industry: Q ($ in millions) Industrial/Energy Q Total: $1,476.7 $1,004.1 Media and Entertainment $197.9 Software IT Services $34.2 $140.1 Industry # of Deals % Change $ from Q Consumer Products and Services Retailing/Distribution Biotechnology Networking and Equipment Healthcare Services Telecommunications Electronics/Instrumentation Computers and Peripherals Medical Devices and Equipment Business Products and Services $26.9 $26.0 $16.0 $14.7 $6.5 $3.4 $3.0 $2.7 $0.7 $0.5 Software 24-84% Media and Entertainment 7 225% Consumer Products and Services 5-57% Industrial/Energy 4 NV IT Services 3 194% Retailing/Distribution 2 NV Telecommunications 2-76% Biotechnology 1 20% Networking and Equipment 1 NV Healthcare Services 1 NV Electronics/Instrumentation 1 NV Computers and Peripherals 1-31% Medical Devices and Equipment 1 NV Business Products and Services 1-92% Total 54 33% NV - no value in prior quarter NM not meaningful $0.0 $250.0 $500.0 $750.0 $1,000.0 Shaking the MoneyTree TM Q

27 Orange County investments by industry: Q ($ in millions) Q Total: $172.8 Software $66.9 Consumer Products and Services $47.9 Industry # of Deals % Change $ from Q Healthcare Services Medical Devices and Equipment $16.0 $42.0 Software 14-46% Consumer Products and Services 2 NV Healthcare Services 2 NV Medical Devices and Equipment 2 5% Industrial/Energy 1 NV Total 21 11% NV - no value in prior quarter NM not meaningful Industrial/Energy NM $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 Shaking the MoneyTree TM Q

28 San Diego investments by industry: Q Q Total: $270.2 ($ in millions) Biotechnology $149.3 Software $109.9 Financial Services Medical Devices and Equipment Media and Entertainment $2.0 $0.7 $8.3 Industry # of Deals % Change $ from Q Biotechnology 8 172% Financial Services 1 NV Media and Entertainment 1-77% Medical Devices and Equipment 1-50% Software 8 238% Total % NV - no value in prior quarter NM - not meaningful $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 Shaking the MoneyTree TM Q

29 SoCal venture capital firms: Q investments Venture capital firm Location Investments Upfront Ventures Los Angeles 9 Frost Data Capital San Juan Capistrano 8 Qualcomm Ventures San Diego 8 Wavemaker Partners Santa Monica 7 Correlation Ventures LP San Diego 5 Tech Coast Angels Los Angeles 4 Queensbridge Venture Partners LLC Los Angeles 3 CrossCut Ventures Management LLC Manhattan Beach 3 Double M Partners LP Brentwood 3 RINCON VENTURE PARTNERS L P Santa Barbara 3 J. F. Shea Co Inc Walnut 2 Revolution Ventures LLC San Diego 2 venture51 Capital Fund LLP Encinitas 2 Karlin Ventures Los Angeles 2 31 Other Firms 1 each Shaking the MoneyTree TM Q

30 Venture capital firms: Q investments in SoCal Venture capital firm Location Investments Frost Data Capital CA,San Juan Capistrano 8 Upfront Ventures CA,Los Angeles 7 Wavemaker Partners CA,Santa Monica 6 Kleiner Perkins Caufield & Byers LLC CA,Menlo Park 4 New Enterprise Associates, Inc. CA,Menlo Park 3 First Round Capital PA,Philadelphia 3 Double M Partners LP CA,Brentwood 3 Tech Coast Angels CA,Los Angeles 3 Trinity Ventures LLP CA,Menlo Park 2 Accel Partners & Co Inc CA,Palo Alto 2 Polaris Venture Partners MA,Waltham 2 Canaan Partners CA,Menlo Park 2 Bessemer Venture Partners NY,Larchmont 2 Carrick Capital Management Company LLC CA,San Francisco 2 True Ventures CA,Palo Alto 2 Frazier Management LLC WA,Seattle 2 Alta Partners CA,San Francisco 2 RINCON VENTURE PARTNERS L P CA,Santa Barbara 2 Bain Capital Venture Partners LLC MA,Boston 2 CrossCut Ventures Management LLC CA,Manhattan Beach 2 Karlin Ventures CA,Los Angeles 2 InterWest Partners LLC CA,Menlo Park 2 Domain Associates LLC NJ,Princeton 2 Draper Fisher Jurvetson CA,Menlo Park Other Firms 1 each Shaking the MoneyTree TM Q

31 Q Most active U.S. venture investors VC Firm Location Number of Deals New Enterprise Associates, Inc. Menlo Park, California 29 Kleiner Perkins Caufield & Byers LLC Menlo Park, California 26 First Round Capital Philadelphia, Pennsylvania 20 Andreessen Horowitz LLC Menlo Park, California 19 Atlas Venture Cambridge, Massachusetts 18 Sequoia Capital Menlo Park, California 16 Bessemer Venture Partners Larchmont, New York 16 True Ventures Palo Alto, California 16 Polaris Venture Partners Waltham, Massachusetts 15 Google Ventures Mountain View, California 13 Accel Partners & Co., Inc. Palo Alto, California 13 Canaan Partners Menlo Park, California 13 Battery Ventures LP Boston, Massachusetts 13 Khosla Ventures LLC Menlo Park, California 13 Redpoint Ventures Menlo Park, California 12 Data Collective LLC San Francisco, California 12 RRE Ventures LLC New York, New York 12 Innovation Works, Inc. Pittsburgh, Pennsylvania 12 Draper Fisher Jurvetson Menlo Park, California 11 Foundation Capital LLC Menlo Park, California 11 Ben Franklin Technology Partners Southeastern PA Philadelphia, Pennsylvania 11 Greycroft Partners LLC New York, New York 10 Lightspeed Management Company LLC Menlo Park, California 10 InterWest Partners LLC Menlo Park, California 10 Shaking the MoneyTree TM Q

32 Analysis of venture-backed IPO and M&A activity Date Total M&A Deals Average M&A deal size ($M)* Number of IPOs** Total Offer Amount ($M) Average IPO Offer Amount ($M) , , , Q Q , Q , Q , , Q , Q , Q , Q , , Q , Source: Thomson Reuters and National Venture Capital Association *Only accounts for deals with disclosed values **Includes all companies with at least one U.S. VC investor that trade on U.S. exchanges, regardless of domicile Shaking the MoneyTree TM Q

33 Venture capital fundraising Year First Time Funds Follow-On Funds Total Number of Funds VC Raised ($M) , , , , YTD ,043.0 Quarter Q ,040.0 Q ,133.4 Q ,185.7 Q ,802.3 Q ,043.0 Source: Thomson Reuters & National Venture Capital Association Data current as of April 9, 2015 Shaking the MoneyTree TM Q

34 HJ Paik Director, Emerging Company Services (213) Data is current as of April 14, PricewaterhouseCoopers and the National Venture Capital Association have taken responsible steps to ensure that the information contained in the MoneyTree Report has been obtained from reliable sources. However, neither of the parties nor Thomson Reuters can warrant the ultimate validity of the data obtained in this manner. Results are updated periodically. Therefore, all data is subject to change at any time PricewaterhouseCoopers LLP. All rights reserved. In this document, PwC refers to PricewaterhouseCoopers LLP, which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.