Florida Venture Capital Highlights

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Gilbert Barker
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InternetCoast Florida Innovation Highlights Series Florida Venture Capital Highlights 2013 2017 2017 Florida Investment

1 InternetCoast Florida Innovation Highlights Series Florida Venture Capital Highlights Florida Investment Activity Best Since 2000 InternetCoast January 2018 Dale Gregory President, InternetCoast

2 About InternetCoast InternetCoast was founded in 1999 as a non-partisan, not-for-profit 501(c) organization. Our mission is to cultivate innovation communities and networks Bringing together innovators, public sector, private sector, academia, and nonprofits to stimulate collaboration and ignite innovation. Florida Innovation Highlights compares Florida and its metro areas with peer states and metro areas using quantifiable performance indicators that measure the level of innovation and job creation in and among communities. Our strategy is to foster an environment where ideas and technologies may be grown to achieve their full potential. Our strategic focuses on: Industry Partnerships that Stimulate Innovation and Development of Innovation Infrastructure Sources of Funds for R&D; Proof of Concept; Commercialization; Startup and Expansion of Innovative Products, Services, and Processes; High Growth Science & Technology Industries Benchmark South Florida Innovation Metrics with "Best in Class" Metro Areas & States across the U.S. Enrichment of Public Sector, Academic, Nonprofit Research Organization, and Private Sector Collaboration Leverage Regional & Statewide Financial and Infrastructure Resources to Enhance Development of a World Class Workforce & Talent Pipeline Enhance K12 and Higher Education Programs in STEM, Critical Thinking, Creativity, and Innovation January 2018 Property of InternetCoast Page 2 of 7

3 Overview The purpose of the InternetCoast Florida Innovation Highlights Series is to provide a tool to stimulate dialogue to better understand Florida s innovation ecosystem, its impact on the competitiveness of industries, and opportunities to leverage innovation to stimulate job creation and economic growth. The "Florida Venture Capital Highlights" Report ( Highlights Report ). The State GDP metric normalizes the differences in state economies, allowing for a more focuses on venture capital investments in Florida-based businesses during The Report benchmarks Florida investments with other States based on total investments and investments per State GDPrealistic comparison of state performance. Total U.S. venture capital deals and investments in 2017 were estimated at 5,052 deals and $72 billion by the PwC CB Insights MoneyTree Report and 8,635 deals and $84 billion by the PitchBook-NVCA Venture Monitor. While the difference between deals and investments were significant, the change from 2016 was similar: 17 percent increase in investments and 4.1 and 6.5 percent reduction in total deals. The MoneyTree Report includes the most detailed data at the State level, including deals and investments by industry sector and stage of development. Hence the Highlights Report relies on data available in the MoneyTree Report to benchmark Florida with national trends and venture capital activity in other States. InternetCoast research estimates that there were 153 deals investing $2.6 billion in Florida-based businesses in This compares to MoneyTree Report estimate of 88 deals and a $2.1 billion investment and PitchBook-NVCA Venture Monitor estimate of 225 deals and a $1.5 billion investment in Florida-based companies. InternetCoast s research analyzed Florida-based company press releases, financial industry and other national and local news sources. Hence the Highlights Report relies on InternetCoast research for Florida-based deals and investment by industry sector, Enterprise Florida region, and transaction details. PwC CB Insights MoneyTree Report: Florida Compared With Other States According to the MoneyTree Report, 2017 funding to VC-backed companies based in the United States was $72 billion, a 17 percent over Table 1 summarizes Florida s share of U.S. investments, including benchmarks with other States. Florida businesses share of U.S. venture capital investments was 3 percent in 2017, the best performance in more than 10 years. January 2018 Property of InternetCoast Page 3 of 7

4 Compared to the other States, Florida ranked 4 th behind California, New York, and Massachusetts. Florida was ranked 6 th in Florida ranked 12 th compared to other States based on investment per State GDP, being ranked 11 th in California, Massachusetts, New York, Washington, and Colorado ranked in the top 10 states based on investment per State GDP in each year from , with California and Massachusetts alternating between the #1 and #2 ranked States. Table 1. Florida Venture Capital Investments Compared To Other States Investment Florida $693 $1,005 $820 $1,239 $2,139 Total U.S $36,065 $59,365 $76,771 $61,361 $71,944 Share of U.S. 1.9% 1.7% 1.1% 2.0% 3.0% Ranking With Other States Investment Investment Per State GDP Source: PwC/CB Insights MoneyTree Report InternetCoast Research According to research by InternetCoast, 153 Florida based companies received $2.6 billion of venture funding in 2017, compared to 98 deals and $1.4 billion in Highlights: Investment dollars at highest level in 21 st century Tremendous deal activity transactions Spectacular growth compared to U.S. investment activity South Florida businesses accounted for 44 percent of all investments Fanatics, Magic Leap, and Modernizing Medicine received the largest investments, accounting for 66 percent of total investment Internet, Software, and Mobile/Telecommunications Industry Sectors accounted for 78 percent of all investments January 2018 Property of InternetCoast Page 4 of 7

5 Enterprise Florida Regions In 2017 the South Florida Region accounted for 67 of Florida deals and investment of $1.2 billion, accounting for 44 percent of Florida deals and investments. The most notable transactions include Magic Leap ($502M), Modernizing Medicine ($231M), and Finova Financial ($103M). Four businesses in the Northeast Region received $1.02 billion from investors, led by a $1 billion investment in Fanatics by a Softbank investment fund. Table 2 is a summary of 2017 deals and investments in each Enterprise Florida Regions. A map of Enterprise Florida regions is available at the InternetCoast Florida Innovation Highlights portal.>>> Table Investments In Florida-based Companies By Enterprise Florida Region ($millions) Enterprise Florida Region Deals Investment Florida 153 $2,611 East Central Florida (Orlando - Space Coast) North Central Florida (Alachua - Gainesville) 4 1,017 Northeast Florida (Fernandina Beach - Jacksonville - Palm Coast) 8 12 Northwest Florida (Tallahassee - Panhandle) 3 9 South Florida (Miami - Ft. Lauderdale - West Palm Beach - Vero Beach) 67 1,164 Southwest Florida (Punta Gorda - Naples) 2 15 Tampa Bay Florida (Tampa - Sarasota-Lakeland) Source: InternetCoast research, PwC - CB Insights MoneyTree Report, & Pitchbook January 2018 Property of InternetCoast Page 5 of 7

6 Table 3 is a list of the top investment deals of The twelve largest deals accounted 8 percent of deals and 81 percent of total investments. Table Top Florida Venture Capital Investment Transactions ($millions) Company Sector City Amount Fanatics Internet Jacksonville $1,000 Magic Leap Software Ft Lauderdale 502 Modernizing Medicine Mobile & Telecommunications Boca Raton 231 Finova Financial FinTech West Palm Beach 103 M2Gen Moffitt Cancer Center HealthIT Tampa 75 F1 Oncology Life Sciences West Palm Beach 37 Luminar Technologies Computer Hardware & Services Orlando 36 Viewpost Software Maitland 34 Altor BioScience Life Sciences Miramar 30 Neutral Connect Networks Mobile & Telecommunications West Palm Beach 30 KnowBe4 Software Clearwater 30 GeNO Healthcare Cocoa 30 Source: InternetCoast January 2018 Property of InternetCoast Page 6 of 7

7 Florida Investments by Industry Sector The most active sectors include Internet, software (non-internet/mobile), and mobile & telecommunications. Together these sectors accounted for 78 percent of all 2017 investments. The information technology, life sciences, and health technology sectors accounted for an additional 13 percent of all 2017 investments. Table 4 is a summary of 2017 Florida deals and investments by industry sector. Table Florida Deals & Investments By Industry Sector ($millions) Industry Sector Deals Investment Internet 19 $1,075 Software (non-internet/mobile) Mobile & Telecommunications Information Technology Life Sciences HealthIT Industrial/Manufacturing Healthcare 6 50 Business Products & Services Retail (non-internet/mobile) 6 41 Computer Hardware & Services 3 39 Automotive & Transportation 1 20 Consumer Products & Services 7 13 All Other Sectors 5 6 Source: InternetCoast January 2018 Property of InternetCoast Page 7 of 7

Venture Capital Research Report Q4 2017

Venture Capital Research Report Q4 2017 As of February 9, 2018 Executive Summary VC market in the US Regional share of investment VC market in the SF Bay Area Annual VC investment in the SF Bay Area VC