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Shaking the MoneyTree™Q3 2014 Update
www.pwc.com
PricewaterhouseCoopers/National Venture Capital Association MoneyTreeTM Report, based on data from Thomson Reuters
PwC 2PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters
PricewaterhouseCoopers/National Venture Capital Association MoneyTreeTM report, based on data from Thomson ReutersBy Name:
PwC 3PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters
About the report
• PricewaterhouseCoopers and the National Venture Capital Association produce the MoneyTree Report™, based on data from Thomson Reuters
• ‘Core’ measure of equity investments in venture-backed companies in the United States
• Companies have received at least one round of financing, involving a professional VC firm or equivalent
• Captures: tranches, not term sheets, foreign VCs, qualified private placement
• Excludes: debt, bridge loans, recaps, roll-ups, IPOs, PIPEs, leasing, etc.
• MoneyTree™ Report in its 20th year
• Results online at www.pwcmoneytree.com and www.nvca.org
PwCPricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters
2010 2011 2012 2013 2014$0.0
$2,000,000,000.0
$4,000,000,000.0
$6,000,000,000.0
$8,000,000,000.0
$10,000,000,000.0
$12,000,000,000.0
$14,000,000,000.0
$16,000,000,000.0
$5,110,359,200.0
$6,534,193,100.0 $6,330,925,000.0 $6,070,155,400.0
$9,762,356,200.0
$7,113,520,100.0
$8,249,655,300.0$7,463,078,300.0 $7,213,392,100.0
$13,495,900,000.0
$5,497,109,900.0
$7,531,581,900.0$6,681,062,200.0
$7,979,124,300.0
$9,913,005,600.0
$5,673,584,200.0
$7,490,808,300.0$7,027,471,100.0
$8,526,081,100.0
Q1 Q2 Q3 Q4
MoneyTree total investments: Q1 2010 – Q3 2014
4
($ in billions)
2010 2011 2012 2013 2014
# of Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Deals 827 1,023 889 912 908 1,092 1,020 1,000 889 989 954 1,072 924 1,005 1,065 1,140 1,002 1,129 1,023
PwC
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014 Q3 YTD
$0
$20,000,000,000
$40,000,000,000
$60,000,000,000
$80,000,000,000
$100,000,000,000
$120,000,000,000
$8,016,523,400.0$11,286,785,000.0$15,073,135,600.0
$21,539,333,400.0
$54,910,597,400.0
$105,116,369,800.0
$40,937,602,200.0
$22,194,875,700.0$19,679,338,600.0$22,833,890,900.0$23,554,790,600.0$27,630,446,000.0
$32,146,614,600.0$30,362,754,400.0
$20,329,337,300.0$23,394,573,400.0$29,806,238,600.0$27,502,536,600.0$29,788,752,900.0$33,171,261,800.0
($ in billions)
MoneyTree total investmentsAnnual venture capital investments 1995 – Q3 2014 YTD
5
# of deals
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q3
YTD
1,897
2,636
3,232
3,743
5,606
8,044
4,595
3,218
3,035
3,236
3,304
3,890
4,234
4,189
3,162
3,651
4,020
3,904
4,134
3,154
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters
PwC
Q1 '10
Q2 '10
Q3 '10
Q4 '10
Q1 '11
Q2 '11
Q3 '11
Q4 '11
Q1 '12
Q2 '12
Q3 '12
Q4 '12
Q1 '13
Q2 '13
Q3 '13
Q4 '13
Q1 '14
Q2 '14
Q3 '14
0
200
400
600
800
1000
1200
$5,110,359,200.0
$7,113,520,100.0$5,497,109,
900.0$5,673,584,
200.0
$6,534,193,100.0
$8,249,655,300.0$7,531,581,
900.0$7,490,808,
300.0$6,330,925,000.0
$7,463,078,300.0$6,681,062,
200.0$7,027,471,
100.0$6,070,155,400.0
$7,213,392,100.0
$7,979,124,300.0
$8,526,081,100.0
$9,762,356,200.0
$13,495,900,000.0
$9,913,005,600.0
# D
eals
Total amount invested ($B)
6
Average deal size ($M)
Q1 '10
Q2 '10
Q3 '10
Q4 '10
Q1 '11
Q2 '11
Q3 '11
Q4 '11
Q1 '12
Q2 '12
Q3 '12
Q4 '12
Q1 '13
Q2 '13
Q3 '13
Q4 '13
Q1 '14
Q2 '14
Q3 '14
$6,179,394.4
$6,953,587.6$6,183,475
.7$6,221,035
.3
$7,196,247.9
$7,554,629.4
$7,383,903.8
$7,490,808.3
$7,121,400.4
$7,546,085.2
$7,003,209.9
$6,555,476.8
$6,569,432.3
$7,177,504.6
$7,492,135.5
$7,479,018.5
$9,742,870.5
$11,953,853.0
$9,690,132.6
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters
MoneyTree total investmentsQuarterly venture capital investments Q1 2010 – Q3 2014
PwC 7PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters
Investments by region – Quarterly percent of total US investments
Top 5 US regions : Q3 2013 – Q3 2014
Silicon Valley NY Metro New England LA/Orange County SouthWest0%
10%
20%
30%
40%
50%
60%
46%
9%11%
6%
2%
40%
13%11%
5%
2%
50%
10% 10%
6%3%
57%
9% 9%
4%2%
44%
17%
7% 6% 5%
(% of total dollars)
Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14
PwC 8PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters
Investments by industry – Quarterly percent of total US investments
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%46%
7%
12%
5% 6%
35%
13%16%
7%5%
42%
10% 11%8%
6%
45%
11%14%
5% 5%
37%
19%
11%7% 6%
Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14
(% of Total Dollars)
Top 5 Industries : Q3 2013 – Q3 2014
PwCPricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters
Internet-specific investments ($B)
Software & Internet-specific investments
9
Q1 2010 – Q3 2014
Q1 '10
Q2 '10
Q3 '10
Q4 '10
Q1 '11
Q2 '11
Q3 '11
Q4 '11
Q1 '12
Q2 '12
Q3 '12
Q4 '12
Q1 '13
Q2 '13
Q3 '13
Q4 '13
Q1 '14
Q2 '14
Q3 '14
0
50
100
150
200
250
300
350
$892,538,000.0
$1,059,704,800.0$1,126,735,40
0.0
$1,254,536,600.0
$1,403,608,800.0
$2,278,982,000.0$1,693,665,50
0.0$1,597,281,00
0.0$1,523,537,10
0.0
$1,898,352,000.0$1,643,292,00
0.0$1,551,395,20
0.0$1,363,890,500.0
$1,837,563,000.0$1,422,620,30
0.0
$2,399,494,100.0$2,403,297,50
0.0
$3,140,951,700.0$3,196,804,00
0.0$ Invested
# of deals
Software investments ($B)
Q1 '10
Q2 '10
Q3 '10
Q4 '10
Q1 '11
Q2 '11
Q3 '11
Q4 '11
Q1 '12
Q2 '12
Q3 '12
Q4 '12
Q1 '13
Q2 '13
Q3 '13
Q4 '13
Q1 '14
Q2 '14
Q3 '14
0
50
100
150
200
250
300
350
400
450
500
$994,470,400.0
$1,407,044,100.0
$1,272,385,900.0
$1,472,228,500.0
$1,432,914,100.0
$1,952,645,000.0
$2,295,604,500.0$1,852,137,
200.0$1,766,834,
600.0
$2,472,362,600.0$2,079,705,
500.0
$2,309,960,400.0
$2,240,158,800.0
$2,284,260,100.0
$3,650,663,200.0$2,946,494,
700.0
$4,145,647,300.0
$6,120,638,100.0
$3,709,030,900.0
$ Invested# of deals
PwC 10PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters
Life sciences investments – Percent of total US investmentsLife sciences sector : Q3 2013 – Q3 2014
Biotechnology Medical Devices and Equipment Life Sciences0%
5%
10%
15%
20%
25%
12%
6%
19%
16%
5%
22%
11%
6%
17%
14%
5%
19%
11%
6%
17%
(% of total dollars)
Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14
PwC 11PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters
$197
$2,958
$3,427
$3,331
Seed Stage Early StageExpansion Stage Later Stage
Investments by stage of development: Q3 2014
Q3 2014 Total Investments - $9,913 million in 1,023 deals
Stage of Development# of
Deals
% Change in $ from Q2 2014
Seed Stage 48 -16%
Early Stage 511 -3%
ExpansionStage
264 -16%
Later Stage 200 -13%
Total 1,023 -9%
($) in millions
PwC 12PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters
Amount Invested by Stage ($M)
US Investments by stage: Quarterly Q1 2012 – Q3 2014
Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '140
2,000,000,000
4,000,000,000
6,000,000,000
8,000,000,000
10,000,000,000
12,000,000,000
14,000,000,000
16,000,000,000
$174,703,300$281,262,600$173,645,400$213,946,500$190,611,700$247,551,300$200,531,100$351,571,000$134,955,900$207,868,900$196,803,500
$1,982,759,700$2,183,885,000$1,975,818,800$2,316,269,800$1,624,087,300
$2,601,783,000$2,940,963,600$2,997,191,400$3,274,439,800$3,815,516,900
$2,957,753,700
$1,813,185,200
$2,773,197,700$2,647,434,300$2,241,399,000
$2,070,485,300
$2,197,869,700$2,487,970,400
$2,957,537,300$3,766,557,500
$6,247,799,600
$3,427,398,800$2,360,276,800
$2,224,733,000$1,884,163,700$2,255,855,800
$2,184,971,100
$2,166,188,100$2,349,659,200
$2,219,781,400
$2,586,403,000
$3,224,714,600
$3,331,049,600
Later Stage
Expansion Stage
Early Stage
Seed Stage
PwC 13PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters
Number of Deals by Stage
US Investments by stage: Quarterly Q1 2012 – Q3 2014
Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '140
200
400
600
800
1,000
1,200
63 88 71 76 55 48 60 73 47 57 48
366
448430
520
426526
582 561
485526 511
226
256253
257
238
236
239 293
274
315264
234
197200
219
205
195
184
213
196
231
200
Later Stage
Expansion Stage
Early Stage
Seed Stage
PwC 14PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters
$1,642
$8,271
First Sequence Follow-on
Investments by sequence of financing: Q3 2014
Financing # of Deals% Change in $ from Q2
2014
First Sequence 337 -8%Follow-on 686 -29%Total 1,023 -27%
($) in millions
Q3 2014 Total Investments - $9,913 million in 1,023 deals
PwC 15PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters
First sequence financing Investment amount: Q1 2009 – Q3 2014
First sequence investments
2009 2010 2011 2012 2013 2014-
$1
$2
$0.7
$1.0
$1.2
$0.9 $0.9
$1.3
$0.8
$1.1
$1.6
$1.2 $1.2
$1.8
$0.8
$1.3 $1.3
$1.1
$1.3
$1.6
$1.2
$0.9
$1.3 $1.3
$1.5
($ in billions) Q1 Q2 Q3 Q4
PwC 16PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters
First sequence financingNumber of deals: Q1 2009 – Q3 2014
First sequence deals
2009 2010 2011 2012 2013 2014 -
100
200
300
400
500
167
235
304
264 289
301
196
293
367
331 341 353
187
274
350 323
380
337
281 288
332
376 372
Q1 Q2 Q3 Q4
PwC 17
Number of First-time vs. Follow-on DealsUS Venture Capital deals 2009 – Q3 2014 YTDNumber of Deals
2009 2010 2011 2012 2013 2014 YTD Q30
500
1000
1500
2000
2500
3000
3500
4000
4500
8311,090
1,353 1,294 1,382991
2,331
2,561
2,667 2,6102,752
2,163
Follow on First sequence
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters
PwC 18PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters
First sequence financingPercent of total US investments: 2009 – Q3 2014 YTD
Q1
'09
Q2
'09
Q3
'09
Q4
'09
Q1
'10
Q2
'10
Q3
'10
Q4
'10
Q1
'11
Q2
'11
Q3
'11
Q4
'11
Q1
'12
Q2
'12
Q3
'12
Q4
'12
Q1
'13
Q2
'13
Q3
'13
Q4
'13
Q1
'14
Q2
'14
Q3
'14
0%
5%
10%
15%
20%
25%
30%
35%
40%
17%16%
15%
20%19%
16%
23%
16%
19%20%
18% 17%
15%16%
17%18%
15% 17%17% 17%
13%13%
17%
24%26% 24%
30% 28% 29%
31% 32%
33% 34% 34%33%
30%
33% 34%35%
31%34%
36%
33%30% 31%
33%
% of Total Dollars
PwC 19PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters
Quarterly percent of total first sequence dollars Stage of development Q3 2013 – Q3 2014
Seed Stage Early Stage Expansion Stage Later Stage0%
10%
20%
30%
40%
50%
60%
70%
80%
12%
64%
17%
7%
20%
53%
14% 13%9%
70%
11% 10%7%
51%
24%
17%
11%
48%
25%
16%
(% of first sequence dollars)
Q3 '13
Q4 '13
Q1 '14
Q2 '14
Q3 '14
PwC 20PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters
Quarterly percent of total first sequence deals Stage of development Q3 2013 – Q3 2014
Seed Stage Early Stage Expansion Stage Later Stage0%
10%
20%
30%
40%
50%
60%
70%
80%
13%
72%
10%5%
16%
66%
13%
6%
13%
70%
11%6%
11%
63%
14%11%12%
68%
13%
6%
(% of first sequence deals)
Q3 '13Q4 '13Q1 '14
PwC 21PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters
First sequence deals in seed & early stage companies1995 – Q3 2014 YTD
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Q3
YTD
0
1000
2000
3000
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
537 7
10 820 962
1,7
78
2,5
02
914
598
589 713
748 894 1
,014
936
612
827 1,0
69
1,0
52
1,1
46
785
60%62% 63%
67%72% 74% 74%
70%76% 73%
70% 70% 71% 72% 74%76%
79%
81%
83%79%
Seq 1 Deals in Seed/Early Stage% of Total Seq 1 Deals
Seed stage
Early stage
PwC 22
Median deal size vs. mean deal size Quarterly total US investments: Q1 2009 – Q3 2014
-
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$3.0 $2.5
$3.1 $2.4
$2.8 $3.0 $2.7
$2.8 $2.5
$3.0 $2.9 $2.5
$2.9 $3.0
$2.2 $2.2 $2.3 $2.5 $2.6 $2.6
$3.2 $3.6 $3.1
$5.7 $6.6
$7.1 $6.3 $6.2
$7.0
$6.2 $6.2 $7.2
$7.6 $7.4 $7.5
$7.1 $7.5
$7.0 $6.6 $6.6
$7.2 $7.5
$7.5
$9.7
$12.0
$9.7
Median Deal Size
($ in millions)
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters
PwC 23PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters
Q3 2014 – Most active US venture investors
VC Firm Location Number of DealsNew Enterprise Associates, Inc. Menlo Park, California 29Kleiner Perkins Caufield & Byers LLC Menlo Park, California 28Atlas Venture Cambridge, Massachusetts 19Intel Capital Corporation Santa Clara, California 17First Round Capital Philadelphia, Pennsylvania 17Innovation Works, Inc. Pittsburgh, Pennsylvania 16Andreessen Horowitz LLC Menlo Park, California 16Bessemer Venture Partners, L.P. Larchmont, New York 15Google Ventures Mountain View, California 13Trinity Ventures LLP Menlo Park, California 13Sequoia Capital Menlo Park, California 13General Catalyst Partners LLC Cambridge, Massachusetts 13Frost Data Capital San Juan Capistrano, California 12Redpoint Ventures Menlo Park, California 12SV Angel II Q, L.P. San Francisco, California 12500 Startups, L.P. Mountain View, California 11Greycroft Partners LLC New York, New York 11Khosla Ventures LLC Menlo Park, California 11Index Ventures San Francisco, California 11Bain Capital Venture Partners LLC Boston, Massachusetts 11DreamIt Ventures Bryn Mawr, Pennsylvania 11Mercury Fund Houston, Texas 11True Ventures Palo Alto, California 11Correlation Ventures San Diego, California 10Foundation Capital Menlo Park, California 10Accel Partners & Co., Inc. Palo Alto, California 10Lightspeed Management Company Menlo Park, California 10Domain Associates LLC Princeton, New Jersey 10Draper Fisher Jurvetson Menlo Park, California 10
PwC 24PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters
Analysis of venture-backed IPO and M&A activity
Source: Thomson Reuters and National Venture Capital Association*Only accounts for deals with disclosed values**Includes all companies with at least one U.S. VC investor that trade on U.S. exchanges, regardless of domicile
Date Total M&A Deals
Average M&A deal size ($M)*
Number of IPOs**
Total Offer Amount ($M)
Average IPO OfferAmount ($M)
2009 360 113.4 13 1,979.8 152.3
2010 545 117.3 66 7,409.5 112.3
2011 500 142.6 50 10,441.1 208.8
Q1 2012 114 131.1 19 1,682.8 88.6
Q2 2012 124 185.4 12 17,227.9 1,435.7
Q3 2012 123 228.6 10 1,140.7 114.1
Q4 2012 129 126.0 8 1,408.5 176.1
2012 490 171.9 49 21,459.9 438.0
Q1 2013 86 92.7 8 716.9 89.6
Q2 2013 96 218.6 22 2,249.9 102.3
Q3 2013 115 161.9 27 2,781.4 103.0
Q4 2013 93 196.0 24 5,320.1 221.7
2013 390 178.0 81 11,068.2 136.6
Q1 2014 112 245.8 37 3,404.5 92.0
Q2 2014 110 93.7 28 4,938.9 176.4
Q3 2014 119 248.2 23 2,563.0 111.4
2014 341 190.3 88 10,906.4 123.9
PwC 25PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters
Venture capital fundraising
Source: Thomson Reuters & National Venture Capital AssociationData current as of October 14, 2014
YearFirst Time Funds
Follow-On FundsTotal Number of Funds
VC Raised ($M)
2010 53 122 175 13,272.0
2011 61 128 189 19,022.7
2012 75 141 216 19,798.2
2013 61 142 203 17,641.8
2014 Q3 YTD 70 116 186 16,471.1
Quarter
Q3 ‘13 18 45 63 4,340.7
Q4 ‘13 20 39 59 5,569.9
Q1 ‘14 30 38 68 10,030.2
Q2 ‘14 22 59 81 7,672.7
Q3 ’14 24 36 60 6,057.2
PwC 26PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters
Closing thoughts & comments
Data is current as of October 14, 2014. PricewaterhouseCoopers and the National Venture Capital Association have taken responsible steps to ensure that the information contained in the MoneyTree™ Report has been obtained from reliable sources. However, neither of the parties nor Thomson Reuters 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.
© 2014 PricewaterhouseCoopers LLP. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers LLP, which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.
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