Venture Ecosystem FactBook: New York

Transcription

1 Venture Ecosystem FactBook: New York 2017

2 Credits & Contact PitchBook Data, Inc. JOHN GABBERT Founder, CEO ADLEY BOWDEN Vice President, Market Development & Analysis Content GARRET T JAMES BL ACK Manager, Custom Research & Publishing HENRY APFEL Data Analyst KORY HOANG Data Analyst DARREN KLEES Data Analyst J ENNIFER SAM Senior Graphic Designer Contents Contact PitchBook pitchbook.com RESE ARCH reports@pitchbook.com 3 Introduction EDITORIAL editorial@pitchbook.com New York in the US Venture Ecosystem 4 Economy 5 Investment Activity 6-11 Exits & Fundraising League Tables 14 The PitchBook Platform The data in this report comes from the PitchBook Platform our data software for VC, PE and M&A. Contact sales@pitchbook.com to request a free trial. SALES sales@pitchbook.com COPYRIGHT 2017 by PitchBook Data, Inc. All rights reserved. No part of this publication may be reproduced in any form or by any means graphic, electronic, or mechanical, including photocopying, recording, taping, and information storage and retrieval systems without the express written permission of PitchBook Data, Inc. Contents are based on information from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. Nothing herein should be construed as any past, current or future recommendation to buy or sell any security or an offer to sell, or a solicitation of an offer to buy any security. This material does not purport to contain all of the information that a prospective investor may wish to consider and is not to be relied upon as such or used in substitution for the exercise of independent judgment. 2 P I TC H B O O K 2017 V E N T U R E E CO S YS T E M FAC T B O O K : N E W YO R K

3 Is the New York ecosystem finally living up to hype? Introduction Narratives tend to be hard to control. In the case of the New York venture and startup ecosystem, most current headlines will posit that Silicon Alley has yet to live up to how much it was hyped around four or five years ago. And yet, just over a year ago, posts and articles began appearing asking and firmly answering yes to the question of whether the area s ecosystem was finally catching up to the hype. But actual, data-driven assessment of health matters more than headlines of any sort. And, as always, candid analysis reveals a decidedly un-dramatic mixture of yes and no when it comes to whether NY has firmly established its place as the second-most prominent venture ecosystem in the US. Yes, investment activity in Look up a company. And its cap table. And its investors. And its EBITDA multiples. And its board members. In seconds. the NY metropolitan statistical area (MSA) which includes northern New Jersey, it should be noted soared to unprecedented heights in the past few years yet it has not escaped the general moderation of the US venture investing cycle. Yes, NY enjoys unique advantages when it comes to talent given its sheer size, The PitchBook Platform diversity and cultural appeal yet it remains pricey and does not yet possess has the data you need the sheer concentration of capital across the entire funding lifecycle that Silicon to close your next deal. Valley does...or will it soon? Will Cornell-Technion s new venture on Roosevelt Island help augment the engineering talent supply, eventually? There is much to explore before forming conclusions, and in the following pages we detail everything from venture financing by size to domestic fundraising in order to do Learn more at pitchbook.com so. This is just the latest entry in our series of reports focused on exploring US venture ecosystems at a more granular level, relying most heavily on PitchBook datasets but also including relevant figures sourced from outside providers. We welcome your feedback and questions reach out to us at reports@pitchbook.com. Special thanks to RRE Ventures, Braemar Energy Ventures, Catalyst Investors and the National Venture Capital Association, among others, all of whom assisted in the production of this report. GARRET T JAMES BL ACK Manager, Custom Research & Publishing 3 P I TC H B O O K 2017 V E N T U R E E CO S YS T E M FAC T B O O K : N E W YO R K

4 New York in the US Venture Ecosystem Snapshot of the NY MSA s size within the US venture ecosystem as a whole In early August 2016 we released the first US Venture Ecosystem: FactBook, the largest PitchBook report ever and a compendium of venture and relevant economic datasets for the top 12 (by overall venture activity) metro areas within the US. Within the US venture industry, Silicon Valley is so predominant that in assessing venture ecosystems broken out by MSA it necessitated splitting out San Francisco and San Jose. That said, New York was still second in terms of total capital raised by VC fund managers, as well as total volume of completed venture financings. Third place for most VC invested since 2010 merely further reflects how the New York MSA is clearly second in the nation, after the Bay Area. Note: Using data as of 6/30/2016, this ranking was generated by weighting capital raised, VC invested, VC activity and venture-backed exit value equally, tallying up their ranking in each area, then summing and sorting from lowest to highest, with a lower score indicating a larger ecosystem. MSA* Size of VC ecosystem, ranked Total VC funds raised since 2006 Total VC invested since 2010 Total # of VC rounds since 2010 Total exit value since 2010 San Francisco #1 #1 $117.6 billion #1 $101.4 billion #1 9,710 #1 $90.8 billion San Jose #2 #4 $35.5 billion #2 $43.3 billion #3 4,152 #2 $63.5 billion New York #3* #2 $43.6 billion #3 $33.9 billion #2 6,174 #4 $17.6 billion Boston #3 #4 $41.2 billion #4 $30.7 billion #4 3,664 #3 $28.7 billion Los Angeles #5 #9 $2.7 billion #5 $21.3 billion #5 3,403 #5 $11.2 billion Seattle #6 #5 $7.6 billion #7 $8.4 billion #6 1,717 #10 $6.7 billion Chicago #7 #7 $3.4 billion #8 $8.3 billion #9 1,348 #6 $9.95 billion Washington, DC #8 #6 $4.8 billion #9 $8.2 billion #7 1,416 #9 $7.4 billion San Diego #9 #11 $1.5 billion #6 $9.4 billion #10 1,317 #7 $8.7 billion Austin #10 #10 $1.9 billion #10 $6.6 billion #8 1,376 #12 $3.7 billion Philadelphia #11 #8 $3.0 billion #12 $4.8 billion #11 1,003 #11 $5.4 billion Atlanta #12 #12 $1.15 billion #11 $5.0 billion # #8 $7.8 billion Source: PitchBook. *New York and San Jose technically tied but given San Jose s exit value and VC invested we gave it second place. Note that PitchBook uses the US Census Bureau definition and delineation of metropolitan statistical areas. 4

5 Pricey but worth it? New York s current economic condition & recent trends When it comes to a metro area as large and dynamic as New York s, it s difficult to avoid painting with fairly broad strokes. For the purposes of this report, the select statistics are primarily included to provide the reader with a general grasp of a given region s economic backdrop. The cost of living still precludes some from considering New York City, while its allure remains too strong for others to resist. Data reveals that prices have indeed remained high, while rental rates by and large (although there are plenty of competing reports that ultimately only go to show how fickle rental market numbers can be) are still growing. That said, growth indicators are also present, with unemployment declining, earnings creeping up, and GDP growth steady even if slower on a per capita basis. The balanced conclusion from these disparate trends is one which many young workers in tech or related fields have come to over the past few years: The opportunities available in NYC are worth spending a lot of money on rent. For those seeking to be socially conscious, it is worth noting the overall national trend of urban metro areas becoming increasingly pricey for middle-class and lower inhabitants definitely holds true in NYC, with a recent Apartment List report stating that 54.1% of renters are costburdened. Interestingly, when it comes to the closely related indicator of wages, workers in the NYC tech ecosystem earned 49% more than the average city-wide hourly wage, according to a 2013 report per HR&A Advisors. In addition, jobs within that ecosystem that didn t require bachelor s degrees paid 45% more than those in other industries. Although potentially outdated, those trends are likely to have held true given the nationwide competitive market for tech talent, once again reinforcing the conclusion New York metropolitan statistical area (MSA) Labor force (not seasonally adjusted), New York City, July 2017 Select statistics 4.3 million Portion of residents aged 25 or older holding bachelor s degree, % Population growth, (est.) 4.4% Population estimate, July 2016 that NY may be pricey, but still worth it. Engineering roles do remain the most challenging to fill, on an anecdotal and survey* basis, while talent remains a considerable barrier to growth, so such a conclusion is heartening for NY s prospects, as is the continued health of the talent pipeline from local schools. 8.5 million Total private nonagricultural employment, 12-month % change, August % Change in unemployment rates, seasonally adjusted August 16-August 17 Compensation cost change for private industry, 12-month, not seasonally adjusted, June 16-June % 3.3% Consumer price index YoY % change, August 16-August % 2017 ranking for startup activity ranking for entrepreneurial growth 35 Average hourly earnings of private-sector employees, % change, August 16-August % Current-dollar GDP % change, % Per capital real GDP, % change, % Overall growth ranking among largest 100 US metropolitan areas, S&P Case-Shiller New York Home Price NSA Index, 12-month % change, July 2017 Approximate range of change in annual fair market rents, 2-bedroom, FY 2017-FY % 9.3% Sources: US Bureau of Labor Statistics, HUD FY 2017 Fair Market Rents, PayScale, Brookings Institution, US Bureau of Economic Analysis, The Kauffman Index, New York State Department of Labor, CBRE, National Apartment Association, Apartment List *Note: In the preparation of this report, a survey run by RRE Ventures with distribution participation from Union Square Ventures, Lerer Hippeau Ventures, Workbench and Corigin was consulted. 5

6 The cycle moderates An overview of New York s venture investment activity Factors combine to drive down earliest-stage activity New York MSA venture activity Total Deal Value ($B) # of Total Deals Closed Angel & Seed (#) Early Stage (#) Late Stage (#) ,053 1,250 1,261 $3.2 $3.9 $3.2 $4.6 $6.8 $8.8 $8.0 $5.3 New York MSA-based companies (#) receiving venture funding ,146 1, , Early-stage competition takes toll It is clear the venture investment cycle in the NY metro area, much like the US in general, has entered a stage of moderation after its most significant ramp-up since the dot-com era. As is typical of the later stages of price and sentiment cycles, players in the market are responding to still-elevated costs by decreasing activity at the riskiest or earliest of stages. That isn t the sole driver of diminishing angel and seed activity increasing sophistication on the part of founders and investors alike have resulted in the frequency of fundings decreasing as they grow more targeted and data-driven in general, among others. Meanwhile, primarily thanks to the preponderance of capital available to the national venture industry, the late stage is still seeing significant funding levels, in a sign of a healthily correcting, not crashing, cycle. Quarterly momentum reveals a tempered pace, with late-stage outliers in terms of VC invested New York MSA venture activity $3,000.0 $2,500.0 $2,000.0 $1,500.0 $1,000.0 $500.0 $0.0 Deal Value ($M) # of Deals Closed 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

7 Highly active early-stage players point toward more established ecosystem down the road Perhaps one of the clearer signs that the New York startup ecosystem has recently begun truly living up to previously observed hype is the sheer number of active early-stage investors. Both 2014 and 2015 recorded close to or just over 200 active accelerators, incubators or early-stage venture funds within the NY MSA. Of course, such activity is not bound to persist, as the next few years likely shall result in a culling of the herd to at least some degree. But even in the current environment, wherein so much money has been flowing to private markets, capital doesn t come to a startup ecosystem without a justifiably fastgrowing base of potential enterprises being launched, especially in such numbers. Investors report more frequent gatherings, tech meetups and the like than at any other point in the past five years, as well. Given the broader context of the overall investment cycle tempering, the NY MSA tech scene is more active than in years past, and simply experiencing a period wherein once-fledgling enterprises have now matured and require nurturing alongside a stillburgeoning crop of nascent startups looking to meet higher hurdles. Financing of female-led startups follows overall cycle Especially in light of the ongoing conversation around diversity within the VC universe, it is important to consider trends in financing of femaleled companies. Comparisons among various US MSAs warrant a deeper dive that will be forthcoming in a Significant concentration at the early stage Investors headquartered in NY MSA (#) by type, active in New York MSA Accelerator/Incubator Early-stage VC VC separate post on PitchBook News & Analysis, but by and large, what is interesting to note is that after peaks of early-stage fundings of companies with at least one female founder from 2013 to 2015, there is a decent increase in commensurate late-stage a year or so later, tracing aggregate investment patterns closely. Growth Equity Late-stage VC Source: PitchBook. Data pulled on 10/3/2017 Note: If a firm had >= 70% of investments tagged as early stage, they were classified as an early-stage firm. Likewise for late stage and growth equity, with the plain VC classifier utilized if a firm s given portfolio composition did not reach that threshold of 70%. Steady growth at Series A & C VC invested ($M) in companies with at least one female founder in New York MSA More Series C rounds as of late, steady Series A flow VC activity (#) in companies with at least one female founder in New York MSA TYPE * Angel $18.4 $28.3 $21.5 $40.0 $49.5 $12.2 Seed $40.3 $49.6 $81.7 $92.8 $79.0 $38.0 A $94.5 $120.2 $307.1 $255.4 $241.1 $279.5 B $45.3 $111.5 $243.9 $334.0 $318.2 $154.6 C $130.0 $123.4 $138.1 $104.9 $238.7 $304.6 D+ $6.0 $167.3 $143.2 $484.3 $123.0 $74.7 TYPE * Angel Seed A B C D Source: PitchBook. *As of 9/21/2017 7

8 As late stage corrects, overall figures hold at an elevated level The distortion of financial flows in general in an era of unprecedented monetary policy has also positively effected changes in the amount of capital flowing into the US venture industry. On top of that, as technical development finally made good on the starry-eyed promise of the dot-com era, high-profile early successes both contributed to a growing population of angel and venture investors and also padded their wallets. These factors in combination have contributed to an overall elevation of deal metrics within the national venture industry, and as one of the most active epicenters of VC financing within the country, the NY MSA is little different. But thus far in 2017, a few things do stand out. Firstly, at the late stage, both median round sizes and valuations have corrected somewhat in the past 20 months post a 2015 peak. As early-stage figures remain elevated, the competitive pressures induced by both the nationwide surplus of dry powder and growing sophistication of founders is evident, especially against a backdrop of diminishing total financing volume. The companies that can close a round in this environment can still close on plenty of money, in other words. It is also worth considering that in relatively pricey areas such as NYC, historically, financings have trended higher partially out of pure economic necessity. Pricing pressures hold steady Median venture financing size ($M) in New York MSA Valuations normalize at the latest stage Median venture pre-valuation ($M), New York MSA $16.0 Angel/Seed Early-stage VC Late-stage VC $120.0 Angel/Seed Early-stage VC Late-stage VC $14.0 $100.0 $12.0 $12.3 $10.0 $10.0 $80.0 $8.0 $6.0 $6.4 $6.7 $60.0 $40.0 $62.2 $56.0 $4.0 $2.0 $1.3 $1.5 $20.0 $22.5 $24.3 $6.3 $6.7 $0.0 $0.0 CVCs stay highly involved New York VC activity with corporate venture participation Deal Value ($B) # of Deals Closed Case study: Tracking the 98 New York MSAheadquartered companies seeded in 2010 and followon financing rates by company count & financing type Follow-on financing type Angel Seed A B Early stage Late stage 1 3. In cases where the precise series of the financing is unknown, the stage is labeled instead. $0.5 $1.2 $0.9 $1.7 $2.0 $3.1 $3.1 $2.0 8

9 How traditional venture nomenclature is changing As the arguably second-largest venture ecosystem in the US, the NY MSA is experiencing a significant redefinition of traditional VC nomenclature more emphatically than most. How the inflation of interest and capital invested in VC has resulted in seed rounds slowly marching upward into traditional Series A ranges can be observed in the breakdown of VC activity by round size below: A steady ramp-up in sub-$500,000 financings by count led to a peak in 2014, yet the proportion of $500,000-$1 million rounds stayed more resilient in subsequent years. Moreover, fundings in the $1 million-$5 million range have stayed perhaps the most stable of all. This trend has been partially driven by sheer availability of capital and the growing proliferation of incubators, accelerators, angel syndicates, and other confluxing models of entrepreneurship and investment. As such institutions and organizations stay active, sophistication and resulting competition will exert upward pressure on deal metrics, shifting the common parlance of series and associated round sizes. In a related phenomenon, NY s success in attracting follow-on capital speaks to its evolution into an even more mature venture ecosystem. Pricing pressures shift proportions upward New York MSA VC activity (#) by round size As cycle tempers, later-stage follow-ons are resilient New York MSA follow-on VC activity (#) by stage 1,200 1,000 Under $500K $500K-$1M $1M-$5M $5M-$10M $25M+ $10M-$25M Angel/Seed Early-stage VC Late-stage VC Traditional nomenclature has changed New York MSA VC activity (#) by series Follow-on VC invested suggests shifting dynamics New York MSA follow-on VC activity ($B) by stage Seed Series A Series B Series C Series D+ $9.0 $8.0 Angel/Seed Early VC Later VC 700 $ $ $ $ $ $ $1.0 0 $0.0 9

10 Investors remain selective as NYC benefits from concentration of industries As a stronghold of multiple industries and global center of a few, the NY metro area benefits immensely from a proliferation of big customers, senior executives crossing over into entrepreneurship, information flows and potential for collaboration, all key to a well-functioning startup ecosystem. Particularly given the moderation of the investment cycle, such cross-collaboration proves crucial in underpinning the supply of enterprises suitable for VC infusion. Anecdotally, such crossover has become more common, likely as the boundary between certain tech segments and more traditional NY industries such as finance become blurred in fintech, among other areas. The dynamism and sheer size of the NY metro area in terms of population still bode well for its ability to host a diverse variety of startups by sector. It is worth noting that media s heyday in terms of its proportion of venture activity and dollars appears over, but that is more due to that sector being already completely disrupted over the past decade than anything else, especially as monolithic social networks continue to encroach into the business of news. Off-pace volume, as first-time VC invested stays strong First-time financings in New York MSA The city environs host the most activity, still City of New York-only venture activity Deal Value ($M) # of Deals Closed Deal Value ($B) 1,102 1, # of Deals Closed $452.1 $702.8 $558.8 $1,015.7 $986.8 $854.9 $802.3 $497.1 $2.5 $3.0 $2.5 $4.0 $5.5 $7.5 $7.1 $4.9 Traditional strongholds in the area stay popular New York MSA VC activity (#) by sector Software s proportion holds steady New York MSA VC activity ($) by sector 100% So ware 100% So ware 90% 80% 70% 60% 50% Pharma & Biotech Other Media IT Hardware 90% 80% 70% 60% 50% Pharma & Biotech Other Media IT Hardware 40% HC Services & Systems 40% HC Services & Systems 30% 20% 10% 0% HC Devices & Supplies Energy Consumer Goods & Recrea on Commercial Services 30% 20% 10% 0% HC Devices & Supplies Energy Consumer Goods & Recrea on Commercial Services 10

11 Outside investment has steadied, with investors increasingly looking locally Most venture ecosystems in the US simply don t have a fully self-sustaining supply of domestic sources when it comes to growth-stage capital. This isn t necessarily a negative, simply an observation that early-stage firms usually must possess connections to enable follow-on fundings in order to scale significantly. What s interesting about NY, as the second-most active area in the US, is that the anecdotal verdict regarding the availability of midstage capital is quite mixed. Most firms prefer to source funding locally, according to a survey sourced from various investment firms, while obtaining capital remains the biggest barrier to growth. Yet as datasets below reveal, the preponderance of outside investor participation is within rounds in the middle of the size range, while overall investment from outside investors by count peaked in Investment in New York MSA-based companies by investors HQ d outside New York state only 178 Deal Value ($M) # of Deals Closed In the context of a moderating investment cycle, such trends yield the conclusion that the NY venture ecosystem is growing somewhat more self-sustaining in terms of nascent and early-stage funding. Silicon Valleybased and other firms of sufficient size still do play an important role when it comes to participating in investments intended to help companies scale at a significant rate, however. $639 $609 $1,060 $951 $1,478 $1,219 $949 $838 Investment (#) by size in New York MSA-based companies by investors HQ d outside New York state only 100% Investment ($) by size in New York MSA-based companies by investors HQ d outside New York state only 100% 90% $25M+ 90% $25M+ 80% 80% 70% $10M-$25M 70% $10M-$25M 60% $5M-$10M 60% $5M-$10M 50% 50% 40% $1M-$5M 40% $1M-$5M 30% 30% 20% $500K-$1M 20% $500K-$1M 10% Under $500K 10% Under $500K 0% 0% 11

12 Healthier than headlines suggest Datasets of venture-backed exits and local venture fundraising in NY A healthy if not spectacular recycling rate One of the commonest complaints regarding the NY venture ecosystem is the dearth of $1 billion+ exits. Granted, outlier exits do play a role in narrative formation around a given venture scene, as well as in positive effects of recycling capital and entrepreneurial talent. That said, as is clear from the aggregate post-exit value created by VC-backed companies over the past few years, as well as the sheer volume of exit events, the NY MSA is posting healthy tallies, even in the absence of a WhatsApp or Snap. An article from Correlation Ventures in May posited that the East Coast was actually on par with the West Coast when it came to realized returns due to greater capital efficiency. And, indeed, as PitchBook calculations of multiples on invested capital reveal, the NY MSA does have a greater proportion of significantly sized exits than may at first be suspected. Volume finally takes a downturn Venture-backed exits of New York MSA-based companies $2.5 Aggregate Exit Postvalua on ($B) $2.0 $3.4 $4.1. Note: Aggregate exit post-valuations are included to better represent the total value created by IPOs in particular. They include IPO post-valuations, which are calculated as total shares outstanding multiplied by offering share price. $ $5.5 # of Exits Closed $ $4.4 Venture-backed exits (#) by type of New York MSAbased companies Venture-backed exits ($B) by type of New York MSAbased companies 120 Acquisi on Buyout IPO $7 100 $6 Acquisi on Buyout IPO $5 $4 $3 $2 20 $1 0 $0 12

13 A significant portion of volume in the midrange Percentage of New York exits separated by multiple on invested capital (MOIC), * Under 1x 1-2x 2-3x 3-5x 5-10x 10-15x 15-20x 20-25x 25-30x 30x+ 20.5% 11.4% 8.7% 16.0% 24.2% 8.2% 2.7% 1.8% 0.9% 4.1%. This table recreated and updated the same methodology as used in this article, excepting the inclusion of buyouts in this dataset. Fundraising still overall healthy New York MSA venture fundraising 17 $3.2 Capital Raised ($B) # of Funds Closed 24 $ $ $ $ $ $ $ $ $ $ $1.7 All that acknowledged, it is undeniable that the impact of a multibillion-dollar acquisition or IPO is hugely important to a VC ecosystem, and the continued lack thereof in NY may not hinder as much as headlines would have it, but certainly won t help. In his book Startup Communities, Brad Feld employs a timeline of approximately 20 years for a venture ecosystem to truly rev up NYC is only just nearing that timeframe, as opposed to Silicon Valley s multiple decades. Fundraising bodes well In one of the most encouraging signs for a venture ecosystem, NY is still enjoying the impact of recent strong fundraising totals. Given typical fund lifecycles, the impact of the 111 vehicles closed from 2014 to 2016 will continue to be considerable for years to come across the capital stack, given the total sum of commitments raised as well is currently seeing diminished volume but, in light of more recent yearly tallies, that is more attributable to most domestic venture firms that were positioned to raise another fund having already done so. Fewer but larger exits by size in 2017 to date Venture-backed exits of New York MSA-based companies (#) by size 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Exits have tended toward the larger as of late Venture-backed exits of New York MSA-based companies ($) by size 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 0% Under $25M $25M-$50M $50M-$100M $100M-$500M Under $25M $25M-$50M $50M-$100M $100M-$500M 13

14 Select League Tables Select rankings of most active investors and deals in NY Ready for the next round: companies (#) by time since most recent round Most recent round type 9-12 months months Angel/seed A B C Most active investors in NY MSA, 2017*, across all stages Lerer Hippeau Ventures 16 Greycroft Partners 14 Social Starts 11 Y Combinator 10 Female Founders Fund 10 General Catalyst Partners 10 Collaborative Fund 9 Thrive Capital 8 SV Angel months Select 2017* venture financings of companies headquartered in NY Company Deal size ($M) Series/stage Sector Peloton $325.0 Series E Consumer Durables Casper Sleep $170.0 Series C Consumer Durables Dataminr $130.0 Series D Software Bread Operations $126.0 Series B Software Blink Health $90.0 Series B Software Progyny $83.1 Series B Commercial Services Vroom $82.2 Series F Retail Freshly $77.0 Series C Consumer Non-Durables Kobalt Music $75.0 Series D Media PMV Pharmaceuticals $73.7 Series B Pharmaceuticals and Biotechnology Betterment $70.0 Series E Software ClassPass $70.0 Series C Software Kleiner Perkins Caufield & Byers 8 New Enterprise Associates 8 League tables are compiled using the number of completed VC rounds for New York MSA-based companies. To ensure your firm is accurately represented in future PitchBook reports, please contact survey@pitchbook.com. Venture capital Venture capital, for the purposes of this report, is defined as institutional investors that have raised a fund structured as a limited partnership from a group of accredited investors, or a corporate entity making venture capital investments. Valuations Pre-money valuation: the valuation of a company prior to the round of investment. Post-money valuation: the valuation of a company following an investment. Exits This report includes both full and partial exits via mergers and acquisitions, private equity buyouts and IPOs. Fundraising This report includes New York MSA-based venture capital funds that have held a final close. Funds-of-funds and secondary funds are not included. 14

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