Venture Capital Venture funding continued at the strongest pace witnessed over the past decade in 2016, and recruiting the future leaders of the industry s emerging growth companies has never been more important than now. Venture investors are increasingly looking for companies with strong core fundamentals while continuing to support their existing portfolios. As new technologies spur innovation across Virtual Reality, Artificial Intelligence, and Internet of Things, identifying and building management teams from nascent stages through realized liquidity events and beyond remains top of mind for the industry. Through a blend of search, consulting, and culture shaping services, Heidrick helps clients build winning leadership teams that meet the challenges of today and deliver on the strategies of tomorrow. As we enter 2017, we wish all of our clients and friends continued business success, and look forward to partnering with all of you. Heidrick & Struggles Venture Capital Practice Heidrick & Struggles Global Venture Capital practice operates from more than 50 offices worldwide. Please feel free to forward this newsletter to any of your colleagues. Heidrick & Struggles focuses on the following specialty areas: Big Data and Analytics Cloud Internet of Things Mobility Consumer Internet Clean Tech Bio Tech CyberSecurity www.heidrick.com
Market Backdrop US VC Deal Activity Despite a slowdown in the second half of 2016, venture capital markets remained strong with $69.1 billion invested in US-based deals. US VC-Backed Exit Activity The exit market remains sluggish with the value of many deals not yet realized as only 726 venture-backed exits were completed in 2016, the lowest count since 2010. Deal value ($B) # of deals closed 10,550 10,468 Exit value ($B) # of exits closed 1,040 961 9,326 859 885 6,771 7,987 8,136 693 733 726 4,292 4,707 5,411 4,458 510 602 465 482 3,301 $29.1 $35.5 $37.2 $26.5 $31.2 $44.3 $40.6 $44.8 $68.9 $79.3 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 $69.1 2016 * $24.1 $40.8 $18.1 $15.7 $30.3 $36.9 $53.9 $36.2 $81.7 $50.4 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 $46.8 2016 * US VC Deal Activity by Sector US venture capital firms are increasingly drawn to software companies as they seek technologies that can disrupt and innovate business as usual. US VC-Backed Exit Activity by Type US venture capital firms are increasingly drawn to software companies, seeking technologies that can disrupt and innovate business as usual. Commercial Services Consumer Goods & Recreation Energy HC Devices & Supplies HC Services & Systems IT Hardware Media Other Pharma & Biotech Software 100 80 60 Buyout ($B) IPO ($B) Acquisition ($B) 100 80 60 40 40 20 20 2010 2011 2012 2013 2014 2015 2016 * 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 * 0 Source: Pitchbook: *As of 12/31/2016 2
SPEED We understand that speed is critical, particularly for early stage companies. Early stage companies do not have the luxury to build leadership slowly and through trial and error. That is why our deep knowledge of leadership identification and small, dedicated teams bring the best talent to our Venture Capital clients quickly and effectively the first time around. PRICE Our competitive pricing structure is on par with boutiques. We work with our high growth Venture Capital clients to develop pricing structures that remain competitive with boutique firms and other pricing models in the market REACH We operate a global platform. Our global model includes practice members in every major market, including those that are emerging. This enables our relationships to expand to all corners of the globe and to the broadest range of leaders in each market sector. Talent We have a proven ability to identify and attract talent. We know the current leaders and we track the future leaders in the industry. Our brand name connects us to the top talent in the industry and enables us to capture their attention with marquis client opportunities. EXPERTISE Our Leadership Consulting capabilities and specialty practices provide holistic services. Our Leadership Consulting practice helps clients understand the leadership implications of their business strategy and then prioritize the range of leadership interventions for maximum impact and return. PARTNERSHIP We serve as true, committed business partners. Our consultants act as true business partners, understanding the strategies and growth stages of each of our unique clients. We work collaboratively with our clients to effectively understand and articulate what attributes are necessary for any placement to be successful with the client s strategic priorities in mind. Heidrick & Struggles 3
Consumer Markets Chief Executive Officer Managing Director, UK Director, Industry Strategy Senior Vice President, Business Development and Strategy Jand, Inc. Chief Financial Officer Vice President, Supply Chain, Warby Parker Chief Financial Officer Education, Nonprofit And Social Enterprise Non-Executive Director (2) 4
Financial Services Non-Executive Director Director, Online Marketing Chief Information Officer Innovation X, LLC Senior Vice President, Marketing Chief Financial Officer Business Services Chief Executive Officer Chief Financial Officer Board Advisory Non-Executive Director Chief Marketing Officer Vice President, Enterprise Sales, North America Vice President, Professional Services Heidrick & Struggles 5
CLEAN TECH Communications Vice President, Customer Success Chief Marketing Officer Finance Director, Asia Pacific HARDWARE AND SYSTEMS internet Vice President, Sales Executive Vice President of Finance IT SERVICES AND OUTSOURCING Chief Technology Officer Chief Operating Officer Senior Sales Executive, DACH 6
SEMICONDUCTORS Senior Director, Japan Sales Confidential - Chief Executive Officer Vice President of Business Development, Brand Security Vice President of Engineering, ASICS HEALTHCARE AND LIFE SCIENCES ENERGY, INFRASTRUCTURE AND SUSTAINABILITY Chief Financial Officer Chief Financial Officer Commercial Director Senior Account Manager, PPA Chief Medical Officer Head, Global Regulatory Affairs Chief Strategy Officer Head, United Kingdom PPA Heidrick & Struggles 7
SOFTWARE Chief Financial Officer Chief Financial Officer Chief Executive Officer Chief Marketing Officer Vice President, Sales Chief Executive Officer Managing Director EMEA Chief Accounting Officer Senior Vice President, Global Technical Operations Chief Financial Officer Vice President, Worldwide Sales Account Manager, KSA Senior Account Executive Head of Sales, EMEA Chief Growth Officer Chief Revenue Officer 8
Software Chief Revenue Officer Head of Engineering/ Product Development Vice President, Sales Global Head of Sales Chief Executive Officer Enterprise Segment Leader EMEA Chief Financial Officer Managing Director Heidrick & Struggles 9
Heidrick & Struggles is the premier provider of senior-level executive search, culture shaping, and leadership consulting services. For more than 60 years we have focused on quality service and built strong relationships with clients and individuals worldwide. Today, Heidrick & Struggles leadership experts operate from principal business centers globally. www.heidrick.com Copyright 2017 Heidrick & Struggles International, Inc. All rights reserved. Reproduction without permission is prohibited. Trademarks and logos are copyrights of their respective owners. Cover image: Thinkstock hs-00230