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2Q 2018 Venture Monitor Report Cameron Stanfill Analyst Download report 2
U S F U N D R A I S I N G P O L L Text Header In your styles opinion, header 55pt bold 2 41pt what is the most important driver of increased allocation to Venture? Header 3 24pt Header 4 18pt bold aa Main text 18pt Lorem ipsum dolor sit amet, consectetur adipiscing elit. Cras ut pharetra nisi, at convallis tellus. Integer pulvinar consectetur ex eu sollicitudin. B Lorem ipsum dolor sit amet, consectetur adipiscing elit. Cras ut pharetra nisi, at convallis tellus. Integer pulvinar consectetur ex eu sollicitudin. C Small data text 14pt Return characteristics Diversification benefit Increased maturity of VC market D Access to companies earlier in the lifecycle E Other 4
Half-decade landmark in sight $45 $40 $35 $30 $25 $20 $15 $10 US fundraising activity by year $32 193 $20 156 124 $12 $26 155 $24 208 227 $21 $36 $37 297 295 $41 322 $35 283 157 350 300 250 200 150 $20 100 8 Funds of $500M+ raised through first 6 months $85B Dry Powder in the US $5 50 (as of 9/30/17) $0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018* - Capital Raised ($B) # of Funds Closed *Data as of 6-30-2018 5
$57.5B Invested in first half, on pace to top $100B. 227% Increase in early-stage median deal size over the past decade Capital invested paces for decade-high $90 US deal activity by year $80 $70 $60 $50 $40 $30 $20 $10 $0 5,388 $37.1 4,470 $31.3 4,716 $27.0 6,738 $44.4 9,244 $82.2 $81.9 10,509 10,606 8,815 8,939 $75.6 $71.9 10,000 7,865 $57.5 $47.4 $41.7 3,997 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 12,000 8,000 6,000 4,000 2,000 0 Deal Value ($B) # of Deals Closed 6
300 250 200 150 Late stage valuations continue to soar Median pre-money valuation by series 278 225 24% YoY growth of valuation at Series D+ 100 80 115 $50 $0 40 55 15.9 20 7 6 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018* Angel/Seed Series A Series B Series C Series D+ *Data as of 6-30-2018
Defined: Non-traditional investor PE/Buyout Corporation Sovereign Wealth Fund Family Office Hedge Fund Mutual Fund Limited Partner 8
Non-traditional investors increase participation 22% Non-traditional Investor deal participation 62% recorded deal value $50 Deal activity by non-traditional investors $45 $40 $35 $30 $25 $20 $15 1,192 840 875 $17.4 $11.1 $11.8 1,410 1,205 1,015 $19.8 $18.7 $16.0 1,690 $36.5 $46.1 1,839 $42.5 1,634 $43.6 1,560 $35.8 886 2,000 1,800 1,600 1,400 1,200 1,000 800 600 $10 400 $5 200 $0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 0 Deal Value ($B) # of Deals Closed 9 *Data as of 6-30-2018
Outsized exits drive healthy first half US exit activity by year $90 $80 $70 $60 $50 $40 $30 $20 $10 484 482 $16.2 $16.3 697 738 $30.6 $33.8 869 893 $46.0 $36.8 $79.8 1,073 1,012 $50.4 879 853 $59.2 $54.0 419 1,200 1,000 800 600 400 $28.7 200 43 completed IPOs in first half $28.7B capital exited through 6/30 $0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018* 0 Exit Value ($B) # of Exits Closed *Data as of 6-30-2018
IPO window begins to open 9.0 Median time to exit 8.0 7.0 6.0 7.7 7.4 6.9 6.3 5.9 5.6 5.0 4.0 3.0 2010 2011 2012 2013 2014 2015 2016 2017 2018* Acquisition IPO Buyout 11 *Data as of 6-30-2018
U S F U N D R A I S I N G P O L L Text Header Over styles the header 55pt bold 2 rest 41pt of 2018, what will have the largest effect on VC deal activity & capital investment? Header 3 24pt Header 4 18pt bold aa Main text 18pt Lorem ipsum dolor sit amet, consectetur adipiscing elit. Cras ut pharetra nisi, at convallis tellus. Integer pulvinar consectetur ex eu sollicitudin. B Lorem ipsum dolor sit amet, consectetur adipiscing elit. Cras ut pharetra nisi, at convallis tellus. Integer pulvinar consectetur ex eu sollicitudin. C Small data text 14pt VC fundraising and dry powder Increased participation from non-traditional investors Deal/check sizes D Valuations E Other 13
Panel discussion Activity of Non-Traditional Investors Evolution of Exits Throughout Venture
Kevin Swan VP, Corporate Development, Solium At Solium, Kevin is responsible for driving growth via acquisitions, new business creation and strategic initiatives. Before Solium, he was a partner at a $500M VC firm and then transitioned to lead corporate development for one of his portfolio companies in San Francisco, helping the company grow to a billion-dollar valuation.
Buddy Arnheim Co-chair, Emerging Companies & Venture Capital Practice, Perkins Coie Buddy represents emerging growth companies, venture capital funds, other early stage participants and more. He is widely referenced for his experience in the areas of corporate and securities law, governance matters and industries such as robotics, autonomous machines, AI and machine learning.
Jim Marshall Head of Emerging Manager Practice, Silicon Valley Bank Jim has been working in the startup ecosystem in Silicon Valley for over 20 years and has been with Silicon Valley Bank since 2012. As Head of the Emerging Manager Practice at SVB, Jim leads a team that provides general partners with tailored services and strategic guidance from fundraising and fund operations to portfolio company support and creative liquidity solutions. 17
The latest in VC: Ripple effects of record capital availability Kevin Swan VP, Corporate Development Buddy Arnheim Co-chair, Emerging Companies & Venture Capital Practice Jim Marshall Head of Emerging Manager Practice 18
2Q 2018 Venture Monitor Report Download report In partnership with: 19