MoneyTree™ Report
Q2 2019
2
Executive summary Q2 2019
$100M+ deals continue to elevate US VC funding levels, with total funding on track to push records again.At the 2019 halfway point, US VC funding shows no signs of slowing: At the end of Q2, US VC funding was at $55B, well above the mid-point for 2018 ($48B), which ultimately saw a near-record $116B raised (compared to the record$120B in 2000). $100M mega-rounds drive funding higher: Driving thetrend toward bigger deals, US companies raised a recordquarterly number of $100M+ VC rounds in Q2, with 64 mega-rounds accounting for nearly half of all funding raised. Seed rounds fluctuate to lowest activity in six years: After rebounding last quarter, Seed activity dropped below levels last seen in Q1’14. US produces 19 new unicorns: 19 US VC-backed companiessaw their valuations rise to $1B+, nearing the record set in Q4’18 of 22 new unicorns.
Q2 2019 funding across North America, Asia, and Europeremains relatively flat.North America, Asia, and Europe combined funding hits $53B: Total annual VC funding decreased by 2% from Q1 2019 totals. Deal activity increased by 2%, to 3,474 transactions.Asia deal activity retreats behind North America: While Asia came close to surpassing North America’s deal activity in Q3 2018, the region’s deal activity has since declined by 24% from Q3’18 to Q2’19.
San Francisco Bay Area deal activity rebounds: After 3 consecutive quarters of decline, deal activity increased 17% to 438 transactions in Q2 2019. After record quarterly funding of $25B in Q3 2018, dollar funding has since stabilized to $13B.New York Metro sees slight decline in deal and dollar funding activity: After deal activity rebounded by 29% in Q1 2019, it declined by 8% in Q2 2019 to 212 transactions. Similarly, dollar funding declined by 9% in Q2 2019.
Geographic InsightsUS Insights
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 3
1,5871,465
1,5731,683
1,4841,378 1,362 1,409
20.7 20.223.1 24.6
29.3
39.0
26.128.7
Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
Q2 investments rise after fall from funding record set in Q4’18US deals and dollars – Quarterly
Record funding
(all-time)
Investments ($B) # of deals
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 4
8,314
1,8923,423
6,268 6,118
2,771
2019 YTD US funding is strongUS deals and dollars – Annual
201020052000 2015 2019 YTD
$120
$55
Recordfunding
(all-time)
Investments ($B) # of deals
$116Record funding(this century)
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 5
2019 records the largest first half this centuryUS funding – Quarterly seasonality
$8.2 $12.3 $18.9 $16.6 $16.0$23.1 $26.1$9.0
$16.9$20.8 $18.6 $19.7
$24.6 $28.7
$9.1
$14.0
$20.8$15.8 $20.7
$29.3
$10.1
$17.5
$17.6
$12.1$20.2
$39.0
Record annual funding(this century)
Record first half funding(this century)
Q3Q2Q1 Q4 TotalInvestments ($B):
20172016201520142013 2018 2019 YTD
$36.4
$116.0
$76.6
$63.1
$78.1
$60.7$54.8
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 6
Seed deal activity fluctuated down to its lowest level in six yearsDeal activity by round
Note: All deals include additional round types
1,247 All deals
554
105
70
330 SeriesA
113 Series C
60 Series E+
1,183
364 Seed292
Q1 2019
Q1 2014
Q1 2015
Q1 2016
Q1 2017
Q1 2018
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 7
SeriesA$8.0M
$2.0M $2.2M Seed
Overall median deal size jumped 26% to $7.6M from Q1’19Median deal size by round
Overall$7.6M
$26.3M Series C
$0.6M
$3.8M
$9.0M
Note: Overall median includes additional round types
Q1 2019
Q1 2014
Q1 2015
Q1 2016
Q1 2017
Q1 2018
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 8
31 35 33
4855
51 48
64
Q2’19 saw a record number of $100M+ funding roundsMega-rounds – Investments and deal counts
$8.2 $7.6 $7.9 $8.2
$14.6
$24.7
$11.9 $13.4
Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
Recordmega-rounds
(all-time)
Recordmega-round investments
(all-time)
Mega-round investments ($B) # of Mega-rounds
Note: Mega-rounds are $100M deals or larger
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 9
40% 38%34% 33%
50%
63%
46% 47%
Mega-rounds maintain a high percentage of all dealsMega-rounds – Funding and share of deals
$8.2 $7.6 $7.9 $8.2 $14.6
$24.7
$11.9 $13.4
$11.5 $12.5$12.3 $12.3
$14.7
$15.8
$13.9 $13.2
Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
Recordmega-round
share(all-time)
Mega-round investments ($B) Non mega-round investments ($B) Mega-round share
Note: Mega-rounds are $100M deals or larger
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 10
US $100M+ rounds are on track to set records againMega-rounds – Quarterly seasonality
$1.2
$2.9$6.9
$4.3 $4.4$7.9
$11.9$0.9 $4.4
$7.3 $7.4 $7.0
$8.2 $13.4
$0.8 $3.5
$7.8 $4.9
$8.2
$14.6
$1.2 $6.9
$6.2
$2.1
$7.6
$24.7
2013 2014 2015 2016 2017 2018 2019 YTD
Record annualmega-round
funding(all-time)
Record quarterly mega-roundfunding(all-time)
$4.1
$55.4
$27.2
$18.7
$28.2
$17.7
$25.3
Q3Q2Q1 Q4 TotalInvestments ($B):
Note: Mega-rounds are $100M deals or larger
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 11
Sector Deals Funding
1 Internet $12.0B
2 Healthcare $4.6B
3 Mobile & Telecommunications $3.1B
4 Software (non-internet/mobile) $2.7B
5 Consumer Products & Services $.7B52
132
167
221
620
Internet companies raised the most funding rounds of any sectorDeals and dollars – US sectors
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 12
Q2 2019 saw one $1B+ funding round (13th largest of all time)Largest US deals of Q2 2019
Company Investment Round Select investors Vertical
1 Cruise AutomationSan Francisco, CA
$1.15B Corporate Minority
General Motors Automotive & Transportation
2 DoorDashSan Francisco, CA
$600M Series E+ Coatue Management, Darsana Capital Partners, Dragoneer Investment Group
Internet
2 UiPathNew York, NY
$600M Series D+ Accel, capitalG, Coatue Management, Dragoneer Investment Group
Software
3 SpaceXHawthorne, CA
$536M Other Undisclosed Industrial
4 SoFiSan Francisco, CA
$500M Series E+ Marketplace Funds, Qatar Investment Authority, Third Point Ventures
Internet
4 UberSan Francisco, CA
$500M Corporate Minority
PayPal Mobile & Telecommunications
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 13
Company Funding Vertical Emerging areas Select investors
1 Juul LabsSan Francisco, CA
$13.6B Consumer Products & Services Consumer Hardware
Coatue Management, D1 Capital Partners, Tiger Global Management
2 WeWorkNew York, NY
$6.6B Business Product & Services Co-Working & Co-Living Spaces
T. Rowe Price, Benchmark Capital,Softbank Group
3 AirbnbSan Francisco, CA
$3.4B InternetE-Commerce
On-Demand Sequoia Capital, Andreessen Horowitz,Greylock Partners, General Catalyst
4 SpaceXHawthorne, CA
$2.7B IndustrialAerospace & Defense
Space Tech Founders Fund, Threshold Ventures, Fidelity Investments, Google
5 Magic LeapPlantation, FL
$2.6B Software (non-internet/mobile)Scientific, Engineering Software
AR/VR Alibaba Group, Fidelity Investments, Google
Juul moves into the #1 spot following Uber’s IPOTop 5 funded US companies – Q2 2019
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 14
Q2’19 saw new US unicorns at near-record levelsUnicorns – New US VC-backed unicorns by quarter
8 7 7 8
1922
1619
Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
Record new unicorns(all-time)
Note: Unicorns are startups valued at $1B or more
US VC-backed unicorn births
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 15
Record population(all-time)
Unicorn population remains at record level, despite recent exitsUS unicorn population
108 111 114 114127
143157 167
Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
Unicorn population count
Note: Unicorns are startups valued at $1B or more
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 16
Record aggregate unicorn valuation
(all-time)
Unicorn valuations ($B)
$376.9 $378.8 $402.9 $412.3 $473.3
$575.6 $603.3 $552.9
Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
Total value of US unicorns fell from record highs in Q1’19Unicorns – US aggregate unicorn valuation
Note: Unicorns are startups valued at $1B or more
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 17
Company Valuation Vertical Emerging areas Select investors
1 Juul Labs San Francisco, CA
$50.0B Consumer Products & ServicesConsumer Electronics
Consumer Hardware
Coatue Management, D1 Capital Partners, Tiger Global Management
2 WeWorkNew York, NY
$47.0B Business Product & Services Co-Working & Co-Living Spaces
T. Rowe Price, Benchmark Capital,Softbank Group
3 AirbnbSan Francisco, CA
$29.3B Internet On-Demand General Catalyst Partners,AndreessenHorowitz, ENIAC Ventures
4 StripeSan Francisco, CA
$22.5B Internet Fin Tech Khosla Ventures, Lowercase Capital,capitalG
5 SpaceXHawthorne, CA
$18.5B IndustrialAerospace & Defense
Space Tech Founders Fund, Threshold Ventures, Fidelity Investments, Google
Juul replaces Uber as the most highly valued VC-backed companyTop 5 highest valued US unicorns — Q2 2019
Note: Unicorns are startups valued at $1B or more
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 18
7.9
6.7 6.6 6.86.2
7.16.3
7.5
149 157 165179
162183
162 163
Q3‘17 Q4‘17 Q1‘18 Q2‘18 Q3‘18 Q4‘18 Q1'19 Q2'19
Time-to-liquidation reaches highest level since Q3 2017 US M&A exits — Quarterly
Note: Median years to liquidate from first funding
Record exits
(all-time)
M&A exits Years
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 19
11
24
13
32
25
16 15
33
Q3‘17 Q4‘17 Q1‘18 Q2‘18 Q3‘18 Q4‘18 Q1'19 Q2'19
5.8
8.8
4.5
6.77.1 7.4
5.4
7.39th fastest(this century)
8thhighest(ever)
IPO activity Years to IPO
US IPO exits reach 8-quarter record in Q2’19 US IPOs — Quarterly
Note: Median years to liquidate from first funding
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 20
7.96.7 6.6 6.8
6.27.1
6.37.5
5.8
8.8
4.5
6.7
7.1 7.4
5.4
7.3
Q3 ‘17 Q4 ‘17 Q1 ‘18 Q2 ‘18 Q3 ‘18 Q4 ‘18 Q1'19 Q2'19
Time-to-liquidation converges for M&A and IPO exitsM&A exits and IPOs combined — Time-to-liquidation
Years to M&A Years to IPO
Note: Median years to liquidate from first funding
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 21
149 157 165 179162
183162 163
1124 13
3225
1615 33
Q1’18 Q2’18 Q3’18Q4’17Q3’17 Q1’19Q4’18 Q2’19
Q2’19 M&A exits nearly flat, but IPOs more than double from Q1M&A exits and IPOs combined — Number of exits
IPO exitsM&A exits
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 22
Internet and Healthcare sectors dominate the top dealsTop 5 M&A exits of Q2 2019
Company Last round Valuation Verticals Select prior investors Buyer
1 LookerSanta Cruz, CA
Series E $2.6B Internet Redpoint Ventures, Goldman Sachs, First Round Capital
2 Peloton TherapeuticsDallas, TX
Series E $2.2B Healthcare BVF Partners, Foresite Capital, Nextech Invest
Merck & Co.
3 Harry’s Razor CompanyNew York, NY
Series D $1.4B Internet Tiger Global Management, Thrive Capital, Temasek Holdings
EdgewellPersonal Care Co.
4 KyribaSan Diego, CA
Series E $1.2B Internet Upfront Ventures, Iris Capital, HSBC Venture Capital
Bridgepoint
5 Paragon BioservicesBaltimore, MD
Series B $1.2B Healthcare Camden Partners, NewSpringHoldings
Catalent
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 23
San Francisco Bay Area sees continued surge of top IPOsTop 5 IPOs of Q2 2019
Company Last round Valuation Verticals Select prior investors
1 UberSan Francisco, CA
Corporate Minority
$75.5B Mobile & Telecommunications SoftBank Group, DiDi Chuxing, Barclays Bank, Citigroup, Goldman Sachs
2 Slack TechnologiesSan Francisco, CA
Series H $15.7B Internet Atlassian, Accel, GGV Capital, Comcast Ventures, Index Ventures
3 Pinterest San Francisco, CA
Series H $12.7B Internet Andreessen Horowitz, Bessemer Venture Partners, FirstMark Capital
4 Zoom Video CommunicationsSan Jose, CA
Series D $9.2B Internet Sequoia Capital, Emergence Capital, Qualcomm Ventures
5 Adaptive BiotechnologiesSeattle, WA
Corporate Minority
$2.4B Healthcare Labcorp, Viking Global Investors, Tiger Management Corp
24Source: PwC / CB Insights MoneyTree™ Report Q2 2019
Three top metros raise notably more rounds in Q2’19Top 10 Metros by deal activity
#1 San Jose-San Francisco-Oakland, CA#2 New York-Newark, NY-NJ-CT-PA#3 Boston-Worcester-Providence, MA-RI-NH-CT#4 Los-Angeles-Long Beach, CA#5 Seattle-Tacoma, WA#6 Denver-Aurora, CO#7 Austin-Round Rock, TX#8 Washington-Baltimore-Arlington, DC-MD-VA-WV-PA#9 San Diego-Carlsbad, CA#10 Chicago-Naperville, IL-IN-WI
25Source: PwC / CB Insights MoneyTree™ Report Q2 2019
Eight top metros raise more capital in Q2’19Top 10 Metros by investments
#1 San Jose-San Francisco-Oakland, CA#2 New York-Newark, NY-NJ-CT-PA#3 Boston-Worcester-Providence, MA-RI-NH-CT#4 Los-Angeles-Long Beach, CA#5 San Diego-Carlsbad, CA#6 Seattle-Tacoma, WA#7 Chicago-Naperville, IL-IN-WI#8 Salt Lake City-Provo-Orem, UT#9 Denver-Aurora, CO#10 Raleigh-Durham-Chapel Hill, NC
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 26
120
103
119115
102 105
74
87
$1.3$0.9
$1.8 $1.7
$0.6
$2.0$1.6 $1.6
Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
Investments ($B) # of Deals
Quarterly deals rebound after sharp declineLA Metro deals and dollars – Quarterly
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 27
One mega-round eclipses other top LA dealsTop 5 LA Metro dealsCompany Investment Round Select investors Vertical
1 SpaceXHawthorne, CA
$536M N/A N/A Industrial
2 Virgin Hyperloop OneLos Angeles, CA
$172M Series C DP World Automotive & Transportation
3 Restaurant365Irvine, CA
$88M Series C Bessemer VenturePartners, Tiger Global Management
Internet
4 VideoAmpLos Angeles, CA
$70M Series C Ankona Capital, The Raine Group Internet
5 Criteria CorpWest Hollywood, CA
$56M Private Equity Sumeru Equity Partners Internet
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 28
483449
528 514
441419
374
438
$6.6 $8.8 $10.9 $10.2
$14.0
$25.3
$12.2 $13.7
Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
Investments ($B) # of Deals
Deals rebound after three consecutive quarters of declineSan Francisco Bay Area deals and dollars – Quarterly
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 29
Rounds over $500M dominate top dealsTop 5 San Francisco Bay Area dealsCompany Investment Round Select investors Vertical
1 Cruise AutomationSan Francisco, CA
$1.2B Corporate Minority
General Motors, SoftBank Group, T.Rowe Price
Automotive & Transportation
2 DoorDashSan Francisco, CA
$600M Series G SoftBank Group, Sequoia Capital, Temasek Holdings
Internet
3 SoFiSan Francisco, CA
$500M Series G Third Point Ventures, Qatar Investment Authority
Internet
4 UberSan Francisco, CA
$500M Corporate Minority
PayPal Mobile & Telecommunications
5 PAXSan Francisco, CA
$420M Series E Tiger Global Management, Tao Capital Partners, Redmile Group
Consumer Products & Services
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 30
239 233 229241
203
178
230212
$4.7
$3.1 $2.7 $3.0
$5.9
$2.2
$4.5 $4.1
Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
Investments ($B) # of Deals
Q2’19 deals and dollars decline slightly compared to Q1New York Metro deals and dollars – Quarterly
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 31
Internet, software, and mobile continue to outpace other sectorsTop New York Metro dealsCompany Investment Round Select investors Vertical
1 UiPathNew York, NY
$568M Series D Accel, capitalG, Sequoia Capital
Software (non-internet / mobile)
2 GympassNew York, NY
$300M Series D Atomico, General Atlantic, SoftBank Group
Internet
3 LemonadeNew York, NY
$300M Series D Allianz X, General Catalyst, Google Ventures
Internet
4 FoursquareNew York, NY
$150M Series G The Raine Group Mobile & Telecommunications
5 SpringWorks TherapeuticsStamford, CT
$125M Series B Bain Capital, GlaxoSmithKline, OrbiMed Advisors
Healthcare
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 32
3538
27
40
27
34
23
39
$574.6
$296.5 $392.5
$589.6
$924.8
$741.6
$296.3
$805.8
Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
Investments ($M) # of Deals
San Diego metro deals and dollars jump in Q2’19San Diego Metro deals and dollars – Quarterly
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 33
Healthcare startups dominate San Diego top dealsTop San Diego Metro dealsCompany Investment Round Select investors Vertical
1 Poseida TherapeuticsSan Diego, CA
$142M Series C Novartis, Aisling Capital, Vivo Capital
Healthcare
2 TuSimpleSan Diego, CA
$105M Series D CDH Investments, Sina Weibo Fund
Software
3 Acutus MedicalCarlsbad, CA
$100M Series D 8VC, Advent Venture Partners, GE Ventures
Healthcare
4 Vividion TherapeuticsSan Diego, CA
$82M Series B ARCH Venture Partners, Versant Ventures, BVF Partners
Healthcare
5 LocanaSan Diego, CA
$55M Series A ARCH Venture Partners, Google Ventures, Temasek Holdings
Healthcare
5 TealiumSan Diego, CA
$55M Series F Presidio Ventures, Bain Capital Ventures, Silver Lake Partners
Internet
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 34
53
40 39
61
45
37
46 45
$691.0
$326.5 $351.0
$811.7 $656.6
$227.1
$473.7
$668.1
Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
Investments ($M) # of Deals
Seattle funding jumps, deals down slightly in Q2’19Seattle Metro deals and dollars – Quarterly
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 35
Seattle-based startups raise two $100M+ deals in Q2’19Top Seattle Metro dealsCompany Investment Round Select investors Vertical
1 OutreachSeattle, WA
$114M Series E DFJ Growth Fund, Sapphire Ventures, Spark Capital
Internet
2 Auth0Bellevue, WA
$103M Series E Bessemer Venture Partners, K9 Ventures, Trinity Ventures
Internet
3 HighspotSeattle, WA
$60M Series D ICONIQ Capital, Sapphire Ventures, Shasta Ventures
Internet
4 ZenotiBellevue, WA
$50M Series C Accel, Norwest Venture Partners, Tiger Global Management
Internet
5 FlexeSeattle, WA
$43M Series B Madrona Venture Group, Redpoint Ventures, Tiger Global Management
Internet
36Source: PwC / CB Insights MoneyTree™ Report Q2 2019
California and Washington materially increased deals in Q2’19Top 10 States by deal activity
#1 California
#5 Washington
37Source: PwC / CB Insights MoneyTree™ Report Q2 2019
Seven top states raise more capital in Q2’19Top 10 States by investments
#1 California
#5 Washington#4 Florida
#7 Illinois#8 Colorado#9 Utah#10 North Carolina
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 38
650595
681 688
583 565
485
576
$8.5 $10.1 $13.1 $12.8
$15.8
$28.1
$14.3 $16.2
Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
Investments ($B) # of Deals
California deal activity and funding jump in Q2’19California deals and dollars – Quarterly
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 39
15
29
21
24
28
24
2122
$1,054.0
$601.4 $510.3
$119.0 $230.5 $214.0 $161.1
$742.6
Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
Investments ($M) # of Deals
Florida funding rises sharply in Q2’19Florida deals and dollars – Quarterly
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 40
53
40 39
62
45
40
47
52
$691.0
$326.5 $351.0
$823.7
$656.6
$280.4
$473.7
$733.1
Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
Investments ($M) # of Deals
WA deal activity and funding rise for the second-straight quarterWashington deals and dollars – Quarterly
41Source: PwC / CB Insights MoneyTree™ Report Q2 2019
Startups selling Internet SaaS solutions dominate deal activityTop 10 Verticals by deal activity
#1 Healthcare > Biotechnology#2 Internet > SaaS > Monitoring & Security#3 Internet > SaaS > BI, Analytics & Performance Mgmt#3 Internet > eCommerce > Marketplace#5 Internet > SaaS > Advertising, Sales & Marketing#5 Internet > SaaS > Customer Relationship#7 Internet > SaaS > HR & Workforce Management#8 Internet > SaaS > Accounting & Finance#9 Internet > SaaS > Healthcare#10 Healthcare > Drug Development
42Source: PwC / CB Insights MoneyTree™ Report Q2 2019
Biotechnology, Drug Development and BI persist as top verticalsTop 10 Verticals by investments
#1 Healthcare > Biotechnology#2 On Premise Software > Scientific, Engineering Software#3 Automotive & Transportation > Automobile Parts#4 Internet > SaaS > Monitoring & Security#5 Internet > SaaS > Accounting & Finance#6 Internet > eCommerce > Marketplace#7 Healthcare > Drug Development#8 Internet > eCommerce > Food & Grocery#9 Internet > SaaS > BI, Analytics & Performance Mgmt#10 Industrial > Aerospace & Defense
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 43
72
55
68
7771
5451
70
$1.2 $1.6
$2.1 $2.1 $2.2
$1.1 $1.3
$1.9
Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
Investments ($B) # of Deals
Biotech deal activity rises sharply in Q2’19Healthcare Biotechnology deals and dollars – Quarterly
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 44
23
35
23
39
32
27
31 30
$629
$1,412
$1,098 $1,312
$903 $1,056 $953 $948
Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
Investments ($M) # of Deals
Drug Development financing declines slightly in Q2’19Healthcare Drug Development deals and dollars – Quarterly
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 45
53 5257 57
66
54
41 40
$563 $517 $516
$1,461
$857 $875
$444 $665
Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
Investments ($M) # of Deals
Cloud BI funding rebounds after declining three straight quarters Internet Business Intelligence Software deals and dollars – Quarterly
46Source: PwC / CB Insights MoneyTree™ Report Q2 2019
Fin Tech and AI tie for the most deals this quarterTop 10 Emerging Areas by deal activity
#1 Fin Tech#1 AI
47Source: PwC / CB Insights MoneyTree™ Report Q2 2019
Fin Tech continues to raise the most money with AI close behindTop 10 Emerging Areas by investments
#1 Fin Tech#2 AI
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 48
158
131
156 153
119111
128139
$1.5 $1.8 $2.1 $2.6 $2.8 $2.6 $2.7
$4.9
Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
Investments ($B) # of Deals
AI-related financing increases for the second-straight quarterArtificial Intelligence deals and dollars – Quarterly
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 49
The AI sector saw one $1B+ deal in Q2’19Top Artificial Intelligence dealsCompany Investment Round Select investors Vertical
1 Cruise AutomationSan Francisco, CA
$1.15B Corporate Minority
General Motors, Honda, SoftBank Group
Automotive & Transportation
2 UiPathNew York, NY
$568M Series D Accel, capital, CoatueManagement, DragoneerInvestment Group
Software
3 LemonadeNew York, NY
$300M Series D Allianz X, General Catalyst, Google Ventures
Internet
4 AfirmSan Francisco, CA
$300M Series E+ Baillie Gifford & Co. Fidelity Investments, Founders Fund
Mobile & Telecommunications
5 TempusChicago, IL
$200M Series E+ Baillie Gifford & Co., Franklin Templeton Investments, New Enterprise Associates
Healthcare
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 50
164 161
217
180 174158
177
139
$2.3 $2.5 $2.5 $3.4 $3.0
$3.5 $3.6
$5.1
Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
Investments ($B) # of Deals
Fin Tech-related deals fall amid rise in fundingFin Tech deals and dollars – Quarterly
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 51
Top 5 Fin Tech deals all $300M and higherTop Fin Tech dealsCompany Investment Round Select investors Vertical
1 UiPathNew York, NY
$568M Series D Accel, capital, CoatueManagement, DragoneerInvestment Group
Software
2 SoFiSan Francisco, CA
$500M Series E+ Marketplace Funds, Qatar Investment Authority, Third Point Ventures
Internet
3 CartaPalo Alto, CA
$300M Series E+ Andreessen Horowitz, Goldman Sachs, Principal Strategic Investments
Internet
4 LemonadeNew York, NY
$300M Series D Allianz X, General Catalyst, Google Ventures
Internet
5 AffirmSan Francisco, CA
$300M Series E+ Baillie Gifford & Co. Fidelity Investments, Founders Fund
Mobile & Telecommunications
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 52
71
60
71 73
5652
68
56
$1.1 $0.8
$0.6
$1.7
$1.1 $1.1
$1.8 $2.1
Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
Investments ($B) # of Deals
Cybersecurity deals fall amid slight rise in funding in Q2’19Cybersecurity deals and dollars – Quarterly
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 53
Cybersecurity companies saw multiple $100M+ deals in Q2’19Top Cybersecurity dealsCompany Investment Round Select investors Vertical
1 KnowBe4Clearwater, FL
$300M Series D Elephant Venture Capital, KKR, Ten Eleven Ventures
Internet
2 Digital GuardianWaltham, MA
$154M Series E+ Fairhaven Capital, LLR Partners, Neocarta Ventures
Software (non-internet/mobile)
3 DruvaSunnyvale, CA
$130M Series E+ Atreides Management, Neuberger Berman, Nexus Venture Partners
Internet
4 SentinelOneMountain View, CA
$120M Series D Data Collective, Granite Hill Capital Partners, Insight Partners
Computer Hardware & Services
5 DashlaneNew York, NY
$110M Series D Balderton Capital, Bessemer Venture Partners, FirstMarkCapital
Internet
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 54
129
99
117
164
127
93105
130
$1.2 $1.3
$1.9 $1.9
$2.7
$1.9 $1.4
$2.3
Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
Investments ($B) # of Deals
Digital Health sector deals and dollars jumped in Q2’19Digital Health deals and dollars – Quarterly
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 55
Digital health startups raised multiple $100M+ rounds in Q2Top Digital Health dealsCompany Investment Round Select investors Vertical
1 Collective HealthSan Francisco, CA
$205M Series E+ DFJ Growth Fund, Founders Fund, Google Ventures
Financial
2 TempusChicago, IL
$200M Series E+ Baillie Gifford & Co., Franklin Templeton Investments, New Enterprise Associates
Healthcare
3 Encoded TherapeuticsSan Francisco, CA
$104M Series C Alexandria Venture Investments, Altitude Life Science Ventures, ARCH Venture Partners
Healthcare
4 BHEBoston, MA
$78M Growth Equity
Leerink Transformation Partners, Silversmith Capital Partners
Software (non-internet/mobile)
5 Omada HealthSan Francisco, CA
$73M Series E+ Andreessen Horowitz, Cigna Ventures, Civilization Ventures
Internet
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 56
Investor Funds raised (2015–Q2’19)
Year founded
Select investments Location
1 Sequoia Capital* $17.5B 1972 DoorDash, Noom, Klarna Menlo Park, CA
2 Insight Partners $12.5B 1995 SalesLoft, ezCater, Checkout.com New York, NY
3 Andreessen Horowitz $9.7B 2009 TripActions, ADDI, People.ai Menlo Park, CA
4 Summit Partners $9.1B 1984 Red Canary, Klaviyo Boston, MA
5 New Enterprise Associates $6.5B 1977 Collective Health, Tempus Menlo Park, CA
The top 5 VCs have raised over $55B since 2015 Top VCs by amount raised
Note: includes all funds under the Sequoia Capital umbrella
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 57
Only one top 5 VC is focused on seed-stage dealsMost active VCs in Q2 2019
Investor Deals Select investments Location
1 New Enterprise Associates 28 Coursera, Collective Health, Expel Menlo Park, CA
2 Plug and Play Ventures 24 Zippia, Datch, Back Office Sunnyvale, CA
3 Lightspeed Venture Partners 19 People.ai, BetterUp, Affirm Menlo Park, CA
4 Google Ventures 19 Harness, Lemonade, Hover Mountain View, CA
5 Kleiner Perkins 17 Nextdoor, Feather, Labelbox Menlo Park, CA
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 58
1,6911,552
1,698 1,8101,596
1,475 1,468 1,519
1,032 1,139 1,166 1,540 1,5371,259 1,181 1,169
750 747 758 784 718 779 759 786
Q3‘17 Q4‘17 Q1‘18 Q2‘18 Q3‘18 Q4‘18 Q1‘19 Q2‘19
North American deal activity pulls firmly ahead of AsiaGlobal deal activity: North America, Asia, and Europe
# of deals: North America Asia Europe
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 59
$22 $21 $24 $26
$30
$40
$27 $30
$20 $23
$20 $22 $20 $22 $19
$15
$6 $5 $5 $6 $5 $5 $8 $8
Q3‘17 Q4‘17 Q1‘18 Q2‘18 Q3‘18 Q4‘18 Q1'19 Q2'19
North America maintains dollar funding lead over AsiaGlobal dollar funding: North America, Asia, and Europe
Investments ($B): EuropeAsiaNorth America
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 60
SoftBank Group leads the world’s largest deals Largest global deals of Q2 2019Company Investment Round Select investors Vertical
1 Cruise AutomationSan Francisco, USA
$1.15B Corporate Minority
General Motors, Honda, SoftBank Group
Automotive & Transportation
2 RappiBogota, Colombia
$1.00B Corporate Minority
SoftBank Group Mobile & Telecommunications
3 GreensillLondon, UK
$800M Corporate Minority
SoftBank Group Financial
4 Face++Beijing, China
$750M Series D Alibaba Group, Macquarie Group Software (non-internet/mobile)
5 DoorDashSan Francisco, USA
$600M Series G Coatue Management, SoftBankGroup, DST Global
Internet
AppendixPwC / CB InsightsMoneyTree™ ReportQ2 2019
Source: PwC / CB Insights MoneyTree™ Report Q2 2019 62
US States: Full listing of Q2 2019 deals and investments
State $M Deals State $M Deals State $M Deals State $M Deals
Alabama 8 2 Illinois 490 36 Missouri 42 11 Pennsylvania 204 25
Arizona 177 15 Indiana 37 13 Nebraska 2 1 South Carolina 24 5
California 16,227 576 Kansas 25 1 Nevada 4 2 Tennessee 86 10
Colorado 402 45 Kentucky 107 5 New Jersey 86 11 Texas 687 72
Connecticut 154 10 Louisiana 8 1 New Mexico 185 6 Utah 402 20
DC 57 6 Maine 102 2 New York 3,883 203 Virginia 131 23
Delaware 93 3 Maryland 224 21 North Carolina 381 19 Washington 733 52
Florida 743 22 Massachusetts 2,207 112 Ohio 131 11 Wisconsin 69 12
Georgia 208 20 Michigan 268 9 Oklahoma 4 1
Hawaii NA 1 Minnesota 47 12 Oregon 50 7
63
What is included:• Equity financings into emerging companies. Fundings must be to VC-backed
companies, which are defined as companies that have received funding atany point from either: venture capital firms, corporate venture arms, or superangel investors.
• Fundings of private companies only. Funding rounds raised by public companies ofany kind on any exchange (including Pink Sheets) are excluded from our numbers,even if they received investment by a venture firm(s).
• Only includes the investment made in the quarter for tranched investments. If acompany does a second closing of its Series B round for $5M and previously hadclosed $2M in a prior quarter, only the $5M is reflected in our results.
• Round numbers reflect what has closed, not what is intended. If a companyindicates the closing of $5M out of a desired raise of $15M, our numbers reflectonly the amount which has closed.
• Only verifiable fundings are included. Fundings are verified via (1) various federaland state regulatory filings; (2) direct confirmation with firm or investor; (3) pressrelease; or (4) credible media sources.
• Equity fundings to joint ventures and spinoffs/spinouts are included, given that theymeet the VC-backed criteria.
• Geography note: Israel funding figures are classified inAsia.
What is excluded:• No contingent funding. If a company receives a commitment for $20M subject to
hitting certain milestones but first gets $8M, only the $8M is included in our data.• No business development/R&D arrangements, whether transferable into equity
now, later or never. If a company signs a $300M R&D partnership with a largercorporation, this is not equity financing nor is it from venture capital firms. As aresult, it is not included.
• No buyouts, consolidations or recapitalizations. All three of these transaction typesare commonly employed by private equity firms and are tracked by CB Insights.However, they are excluded for the purposes of this report.
• No private placements. These investments, also known as PIPEs (PrivateInvestment in Public Equities), are not included even if made by a venturecapital firm(s).
• No debt/loans of any kind (except convertible notes). Venture debt or any kind ofdebt/loan issued to emerging, startup companies, even if included as an additionalpart of an equity financing, is not included. If a company receives $3M with $2Mfrom venture investors and $1M in debt, only the $2M is included in these statistics.
• No non-equity government funding. Grants or loans by the federal government,state agencies, or public-private partnerships to emerging, startup companiesare not included.
• No fundings to subsidiaries of a larger parent corporation.
PwC (pwc.com/moneytree) and CB Insights (cbinsights.com) encourage you to review the methodology and definitions employed to better understandthe numbers presented in this report. If you have any questions about the definitions or methodological principles used, we encourage you to reach out to CB Insights directly. Additionally, if you feel your firm has been underrepresented, please send an email to [email protected] and we can work together toensure your firm’s investment data is up-to-date.
Rankings, e.g., top states and top sectors, are done by quarterly deal activity (that is, deal count for the given quarter).
Methodology MoneyTree definitions
64
Disclaimer
This content is for general information purposes only, and should not be used as a substitute for consultation withprofessional advisors. Data is current as of July 11, 2019. PricewaterhouseCoopers and CB Insights have takenresponsible steps to ensure that the information contained in the MoneyTree™ Report has been obtained from reliablesources. However, neither PwC nor CB Insights 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.© 2019 PwC. All rights reserved. PwC refers to the US member firm or one of its subsidiaries or affiliates, and maysometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structurefor further details.