Shaking the MoneyTree™
Q4 and Full Year 2014 Update
www.pwc.com
PricewaterhouseCoopers/National Venture Capital Association MoneyTreeTM Report, based on data from Thomson Reuters
HJ Paik Director, Emerging Company Services [email protected] (213) 356-6110
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
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Shaking the MoneyTreeTM Q4 and Full Year 2014
$5.1
$6.5 $6.3 $6.1
$9.9
$7.2
$8.3
$7.5 $7.3
$13.6
$5.5
$7.6
$6.7
$8.0
$10.1
$5.7
$7.5 $7.0
$8.6
$14.8
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
2010 2011 2012 2013 2014Q1 Q2 Q3 Q4
MoneyTree total investments: Q1 2010 – Q4 2014
($ 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 Q4
Deals 827 1,030 894 915 911 1,096 1,020 1,007 891 992 968 1,085 933 1,023 1,077 1,160 1,027 1,169 1,051 1,109
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Shaking the MoneyTreeTM Q4 and Full Year 2014
$8.0 $11.3
$15.1 $21.5
$54.9
$105.0
$40.9
$22.2 $19.7 $22.9 $23.2
$27.6 $32.1 $30.4
$20.4 $23.4
$29.8 $27.6 $30.0
$48.3
$0
$20
$40
$60
$80
$100
$120
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
($ in billions)
MoneyTree total investments Annual venture capital investments 1995 – 2014
# of deals
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
1,897 2,635 3,232 3,743 5,606 8,042 4,595 3,217 3,036 3,236 3,301 3,889 4,230 4,198 3,172 3,666 4,034 3,936 4,193 4,356
4
Shaking the MoneyTreeTM Q4 and Full Year 2014
$5.1
$7.2
$5.5 $5.7 $6.5
$8.3 $7.6 $7.5
$6.3 $7.5
$6.7 $7.0 $6.1
$7.3 $8.0 $8.6
$9.9
$13.6
$10.1
$14.8
0
200
400
600
800
1000
1200
1400
Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14
# D
eals
Total amount invested ($B)
Average deal size ($M)
$6.2 $7.0
$6.1 $6.2 $7.2 $7.5 $7.4 $7.4 $7.1 $7.6
$6.9 $6.5 $6.5 $7.1 $7.4 $7.4
$9.6
$11.6
$9.6
$13.3
Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14
MoneyTree total investments Quarterly venture capital investments Q1 2010 – Q4 2014
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Shaking the MoneyTreeTM Q4 and Full Year 2014
Investments by region – Annual percentage of total US investments
Top 5 US regions : 2010 – 2014
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Shaking the MoneyTreeTM Q4 and Full Year 2014
40%
11%
8%
11%
6%
41%
11% 10% 10%
5%
41%
13%
9%
12%
5%
42%
11% 11% 8%
4%
48%
10% 10% 8%
4%
0%
10%
20%
30%
40%
50%
60%
Silicon Valley New England NY Metro Southern California Midwest
(% of total dollars) 2010 2011 2012 2013 2014
Investments by industry – Annual percentage of total US investments
22%
17%
7% 7%
11%
26%
16%
9% 9% 10%
31%
15%
8% 7%
9%
37%
15%
10%
7% 7%
41%
12% 12%
7% 6%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Software Biotechnology Media andEntertainment
IT Services Medical Devices andEquipment
2010 2011 2012 2013 2014
(% of Total Dollars)
Top 5 Industries : 2010 – 2014
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Shaking the MoneyTreeTM Q4 and Full Year 2014
Internet-specific investments ($B)
Software & Internet-specific investments Q1 2010 – Q4 2014
$0.9 $1.0
$1.2 $1.3 $1.4
$2.3
$1.7 $1.7 $1.6 $1.9
$1.7 $1.6 $1.3
$1.8
$1.4
$2.5 $2.4
$3.2 $3.2 $3.0
0
50
100
150
200
250
300
350
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 Q4 '14
$ Invested
# of deals
Software investments ($B)
$1.0 $1.4 $1.3 $1.5 $1.5
$2.0 $2.3
$1.9 $1.8 $2.5
$2.1 $2.3 $2.2 $2.3
$3.7
$2.9
$4.1
$6.1
$3.8
$5.8
0
50
100
150
200
250
300
350
400
450
500
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 Q4 '14
$ Invested
# of deals
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Shaking the MoneyTreeTM Q4 and Full Year 2014
Life sciences investments – Percentage of total US investments Q4 2013 – Q4 2014
16%
5%
22%
10%
6%
17%
14%
5%
19%
11%
6%
17%
14%
5%
19%
0%
5%
10%
15%
20%
25%
Biotechnology Medical Devices and Equipment Life Sciences
(% of total dollars)
Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14
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Shaking the MoneyTreeTM Q4 and Full Year 2014
$719
$15,819
$19,767
$12,044
Seed Stage Early Stage
Expansion Stage Later Stage
Investments by stage of development: 2014
2014 Total Investments - $48,349 million in 4,356 deals
Stage of Development # of
Deals
% Change in $ from
2013
Seed Stage 192 -29%
Early Stage 2,165 54%
Expansion Stage
1,156 102%
Later Stage 843 35%
Total 4,356 61%
($) in millions
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Shaking the MoneyTreeTM Q4 and Full Year 2014
Amount Invested by Stage ($M)
US Investments by stage: Annually 2006 – 2014
$1,343 $1,832 $1,966 $1,684 $1,661 $1,069 $850 $1,007 $719
$4,897 $6,240 $5,970
$4,965 $6,106 $9,074 $8,480
$10,283
$15,819
$11,045 $10,989 $11,198
$6,850 $8,520
$9,941 $9,532
$9,775
$19,767
$10,343
$13,002 $11,246
$6,858
$7,152
$9,762 $8,715
$8,899
$12,044
0
10,000
20,000
30,000
40,000
50,000
60,000
2006 2007 2008 2009 2010 2011 2012 2013 2014
Later Stage
ExpansionStage
Early Stage
Seed Stage
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Shaking the MoneyTreeTM Q4 and Full Year 2014
Number of Deals by Stage
US Investments by stage: Annually 2006 – 2014
401 525 536 373 408 441 301 235 192
1,010
1,149 1,169
994
1,302
1,643 1,785 2,137 2,165
1,377
1,267 1,244
892
1,075
1,030 999
1,023 1,156
1,101
1,289 1,249
913
881
920 851
798 843
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
2006 2007 2008 2009 2010 2011 2012 2013 2014
Later Stage
ExpansionStage
Early Stage
Seed Stage
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Shaking the MoneyTreeTM Q4 and Full Year 2014
$7,369
$40,979
First Sequence Follow-on
Investments by sequence of financing: 2014
Financing # of Deals % Change in $
from 2013
First Sequence 1,409 47%
Follow-on 2,947 64%
Total 4,356 61%
($) in millions
2014 Total Investments - $48,349 million in 4,356 deals
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Shaking the MoneyTreeTM Q4 and Full Year 2014
First sequence financing Investment amount: Q1 2009 – Q4 2014
First sequence investments
$0.7
$1.0
$1.2
$0.9 $0.9
$1.3
$0.8
$1.2
$1.6
$1.2 $1.3
$1.8
$0.8
$1.3 $1.3
$1.1
$1.3
$1.7
$1.2
$0.9
$1.2 $1.3
$1.5
$2.6
-
$1
$1
$2
$2
$3
$3
2009 2010 2011 2012 2013 2014
($ in billions) Q1 Q2 Q3 Q4
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Shaking the MoneyTreeTM Q4 and Full Year 2014
First sequence financing Number of deals: Q1 2009 – Q4 2014
First sequence deals
167
235
304
264
289
314
199
297
368
332 346
375
187
275
346 329
385
346
283 288
336
382 377 374
-
100
200
300
400
500
2009 2010 2011 2012 2013 2014
Q1 Q2 Q3 Q4
15
Shaking the MoneyTreeTM Q4 and Full Year 2014
Number of First-time vs. Follow-on Deals US Venture Capital deals 2009 – 2014
Number of Deals
836 1,095
1,354 1,307 1,397 1,409
2,336
2,571
2,680 2,629 2,796
2,947
0
500
1000
1500
2000
2500
3000
3500
4000
4500
2009 2010 2011 2012 2013 2014
Follow on First sequence
16
Shaking the MoneyTreeTM Q4 and Full Year 2014
First sequence financing Percentage of total US investments: Q1 2009 – Q4 2014
17%
16% 15%
20%
19%
17%
23%
16%
19%
20%
18% 17%
14% 16%
17%
18%
15% 17% 17% 17%
13% 13%
16% 18%
24%
26% 24%
30% 28% 29%
31% 31%
33% 34% 34% 33%
30%
33% 34% 35%
31%
34%
36%
33% 31%
32% 33%
34%
0%
5%
10%
15%
20%
25%
30%
35%
40%
% of Total Dollars % of Total Deals
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Shaking the MoneyTreeTM Q4 and Full Year 2014
Quarterly percentage of total first sequence dollars Stage of development 2010 – 2014
20%
41%
21% 18%
15%
49%
19% 18%
13%
50%
22%
15% 16%
58%
14% 13%
7%
53%
28%
12%
0%
10%
20%
30%
40%
50%
60%
70%
Seed Stage Early Stage Expansion Stage Later Stage
(% of first sequence dollars)
2010
2011
2012
2013
2014
18
Shaking the MoneyTreeTM Q4 and Full Year 2014
Quarterly percentage of total first sequence deals Stage of development 2010 – 2014
25%
51%
15%
9%
26%
53%
13% 8%
17%
64%
12%
7%
14%
69%
11%
6%
11%
68%
14%
7%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Seed Stage Early Stage Expansion Stage Later Stage
(% of first sequence deals)
2010
2011
2012
2013
2014
19
Shaking the MoneyTreeTM Q4 and Full Year 2014
First sequence deals in Seed Stage & Early Stage companies 1995 – 2014
53
7 710
82
0 96
2
1,7
78
2,5
02
914
59
7
58
9 713
74
7 89
3 1,0
14
94
2
617
83
2
1,0
71
1,0
61
1,15
9
1,11
1
60% 62% 63%
67% 72%
74% 74% 70%
76% 73%
70% 70% 72% 72% 74% 76%
79% 81%
83%
79%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
0
1000
2000
3000
Seq 1 Deals in Seed/Early Stage
% of Total Seq 1 DealsSeed stage
Early stage
20
Shaking the MoneyTreeTM Q4 and Full Year 2014
Median deal size vs. mean deal size Quarterly total US investments: Q1 2009 – Q4 2014
$5.7
$6.6 $7.1
$6.3 $6.2
$7.0
$6.1 $6.2
$7.2 $7.5 $7.4 $7.4
$7.1 $7.6
$6.9 $6.5
$6.5 $7.1 $7.4
$7.4
$9.6
$11.6
$9.6
$13.3
$3.0
$2.5 $3.1 $2.4 $2.8 $3.0
$2.6 $2.7
$2.5 $2.9 $3.0 $2.5
$2.9 $3.0
$2.2 $2.1 $2.3 $2.5 $2.6 $2.6 $3.1
$3.4 $3.0
$3.9
-
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
Median Deal Size Mean Deal Size
($ in millions)
21
Shaking the MoneyTreeTM Q4 and Full Year 2014
SoCal MoneyTree total investments: 2009 – 2014
($ in millions)
22
Shaking the MoneyTreeTM Q4 and Full Year 2014
$3
81.
0
$6
41.
3
$5
97
.5
$9
59
.6
$5
52
.6 $
80
1.8
$5
77
.5
$8
87
.7
$8
78
.0
$8
96
.9
$5
99
.8
$7
21.
2
$4
35
.4
$4
48
.2 $6
56
.4
$7
12.6
$7
28
.6
$8
00
.1
$5
97
.3
$5
19.0
$8
44
.9
$7
32
.2
$6
21.
0
$1,
33
0.3
$0.0
$200.0
$400.0
$600.0
$800.0
$1,000.0
$1,200.0
$1,400.0
2009 2010 2011 2012 2013 2014
Q1 Q2 Q3 Q4
# of
Deals
2009 2010 2011 2012 2013 2014
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
63 75 79 76 89 106 81 83 77 99 91 83 96 99 87 105 92 84 96 95 96 99 105 83
$10.9
$20.3
$20.8
$26.2
$31.7
$34.7
$44.2
$102.4
$103.5
$113.6
$122.1
$255.8
$272.8
$287.0
$529.9
$1,675.3
$0.0 $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 $700.0 $800.0 $900.0$1,000.0$1,100.0$1,200.0$1,300.0$1,400.0$1,500.0$1,600.0$1,700.0
Other
Computers and Peripherals
Electronics/Instrumentation
Business Products and Services
Networking & Equipment
Healthcare Services
Financial Services
Telecommunications
IT Services
Industrial/Energy
Retailing/Distribution
Semiconductors
Medical Devices and Equipment
Media and Entertainment
Consumer Products and Services
Biotechnology
Software
($ in millions)
Southern California investments by industry: Full Year 2014
Industry # of Deals
% Change since 2013
Software 138 131%
Biotechnology 54 13%
Media and Entertainment 37 7%
IT Services 33 59%
Medical Devices and Equipment 26 -26%
Consumer Products and Services 24 211%
Industrial/Energy 15 -30%
Semiconductors 12 243%
Retailing/Distribution 9 249%
Telecommunications 7 -50%
Financial Services 6 -42%
Business Products and Services 6 201%
Computers and Peripherals 6 -88%
Healthcare Services 4 -28%
Electronics/Instrumentation 3 170%
Networking & Equipment 2 -19%
Other 1 -65%
Total 383 46%
2014 Total: $3,653.3
$2.3
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Shaking the MoneyTreeTM Q4 and Full Year 2014
$2.3
$3.8
$12.5
$12.8
$18.3
$20.6
$21.1
$27.6
$29.3
$36.7
$44.2
$85.9
$89.3
$110.5
$218.4
$233.1
$1,333.8
$0.0 $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 $700.0 $800.0 $900.0 $1,000.0$1,100.0$1,200.0$1,300.0$1,400.0
Other
Computers and Peripherals
Networking and Equipment
Medical Devices and Equipment
Electronics/Instrumentation
Business Products and Services
Financial Services
Healthcare Services
Biotechnology
Semiconductors
Telecommunications
IT Services
Industrial/Energy
Retailing/Distribution
Consumer Products and Services
Media and Entertainment
Software
($ in millions)
Los Angeles investments by industry: Full Year 2014 2014 Total: $2,300.0
Industry # of Deals
% Change $ from
2013
Software 73 267%
Media and Entertainment 24 1%
IT Services 23 53%
Consumer Products and Services 20 150%
Industrial/Energy 11 10%
Biotechnology 8 -45%
Retailing/Distribution 7 240%
Telecommunications 7 -49%
Business Products and Services 5 198%
Medical Devices and Equipment 5 -80%
Financial Services 4 322%
Semiconductors 3 33%
Computers and Peripherals 3 NV
Healthcare Services 3 -33%
Electronics/Instrumentation 2 NV
Networking and Equipment 1 3%
Other 1 NV
Total 200 100%
NV - no value in prior year
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Shaking the MoneyTreeTM Q4 and Full Year 2014
$0.3
$2.5
$4.1
$6.2
$7.3
$11.2
$12.2
$22.2
$26.0
$27.7
$194.9
$233.8
$0.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0
Business Products and Services
Computers and Peripherals
Healthcare Services
Biotechnology
IT Services
Industrial/Energy
Financial Services
Media and Entertainment
Consumer Products and Services
Semiconductors
Medical Devices and Equipment
Software
($ in millions)
NV - no value in prior year
Orange County investments by industry: Full Year 2014
2014 Total: $548.2
Industry # of Deals
% Change $ from 2013
Software 42 -2%
Medical Devices and Equipment 14 7%
IT Services 8 3,145%
Media and Entertainment 6 216%
Biotechnology 4 -74%
Semiconductors 3 327%
Industrial/Energy 2 1,255%
Consumer Products and Services 1 447%
Financial Services 1 -77%
Healthcare Services 1 311%
Computer and Peripherals 1 -97%
Business Products and Services 1 NV
Total 84 -11%
25
Shaking the MoneyTreeTM Q4 and Full Year 2014
$1.4
$2.0
$3.1
$3.1
$4.5
$9.3
$13.6
$17.6
$42.6
$48.1
$57.6
$107.8
$494.5
$0.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 $400.0 $450.0 $500.0
Financial Services
Electronics/Instrumentation
Industrial/Energy
Retailing/Distribution
Computers and Peripherals
IT Services
Networking & Equipment
Media and Entertainment
Consumer Products and Services
Medical Devices and Equipment
Semiconductors
Software
Biotechnology
($ in millions)
Industry # of Deals
% Change $ from 2013
Biotechnology 42 27%
Software 23 -11%
Medical Devices and Equipment 7 -51%
Media and Entertainment 7 12%
Semiconductors 6 3,689%
Consumer Products and Services 3 NV
IT Services 2 12%
Computers and Peripherals 2 NV
Retailing/Distribution 2 NV
Industrial/Energy 2 -95%
Networking and Equipment 1 -32%
Electronics/Instrumentation 1 -73%
Financial Services 1 2%
Total 99 10%
San Diego investments by industry: Full Year 2014
2014 Total: $805.1
NV - no value in prior year
26
Shaking the MoneyTreeTM Q4 and Full Year 2014
SoCal venture capital firms: Full Year 2014 investments
Venture capital firm Location Investments
Correlation Ventures LP San Diego 36
Upfront Ventures Los Angeles 33
Tech Coast Angels Los Angeles 30
Frost Data Capital San Juan Capistrano 26
Avalon Ventures, LLC La Jolla 20
Qualcomm Ventures San Diego 19
Miramar Venture Partners Corona del Mar 10
Wavemaker Partners Santa Monica 9
DFJ Frontier Sherman Oaks 8
Crosscut Ventures Manhattan Beach 7
Pasadena Angels, Inc. Altadena 7
Double M Partners, L.P. Brentwood 7
RINCON VENTURE PARTNERS L P Santa Barbara 7
Creative Artists Agency Inc Los Angeles 7
NGEN Partners LLC Santa Barbara 6
Angeleno Group Investors LLC Los Angeles 6
TVC Capital LLC San Diego 6
J. F. Shea Co Inc Walnut 5
Okapi Venture Capital LLC Laguna Beach 5
7 Other Firms 4 each
11 Other Firms 3 each
19 Other Firms 2 each
38 Other Firms 1 each
27
Shaking the MoneyTreeTM Q4 and Full Year 2014
Venture capital firms: Full Year 2014 investments in SoCal
Venture capital firm Location Investments
Frost Data Capital CA,San Juan Capistrano 26
Tech Coast Angels CA,Los Angeles 24
Upfront Ventures CA,Los Angeles 18
Kleiner Perkins Caufield & Byers LLC CA,Menlo Park 13
Avalon Ventures, LLC CA,La Jolla 10
Domain Associates LLC NJ,Princeton 10
Versant Ventures, Inc. CA,Menlo Park 9
Wavemaker Partners CA,Santa Monica 7
Pasadena Angels, Inc. CA,Altadena 7
Institutional Venture Partners CA,Menlo Park 6
Canaan Partners CA,Menlo Park 6
DFJ Frontier CA,Sherman Oaks 6
U.S. Venture Partners CA,Menlo Park 6
First Round Capital PA,Philadelphia 6
Greycroft Partners LLC NY,New York 5
True Ventures CA,Palo Alto 5
5AM Venture Management LLC CA,Menlo Park 5
ff Venture Capital NY,New York 5
Delphi Ventures CA,Menlo Park 5
Miramar Venture Partners CA,Corona del Mar 5
Crosscut Ventures CA,Manhattan Beach 5
Shasta Ventures, L.P. CA,Menlo Park 5
Double M Partners, L.P. CA,Brentwood 5
Thomas Mcnerney and Partners LLC CT,Stamford 5
13 Other Firms 4 each
24 Other Firms 3 each
74 Other Firms 2 each
202 Other Firms 1 each
28
Shaking the MoneyTreeTM Q4 and Full Year 2014
2014 – Most active US venture investors
VC Firm Location Number of Deals
Kleiner Perkins Caufield & Byers LLC Menlo Park, California 110
New Enterprise Associates, Inc. Menlo Park, California 105
Andreessen Horowitz LLC Menlo Park, California 86
First Round Capital Philadelphia, Pennsylvania 81
Google Ventures Mountain View, California 66
Khosla Ventures LLC Menlo Park, California 64
Atlas Venture Cambridge, Massachusetts 62
Sequoia Capital Menlo Park, California 61
True Ventures Palo Alto, California 56
SV Angel II Q LP San Francisco, California 55
Intel Capital Corporation Santa Clara, California 54
Canaan Partners Menlo Park, California 54
Bessemer Venture Partners, L.P. Larchmont, New York 54
General Catalyst Partners LLC Cambridge, Massachusetts 52
Accel Partners & Co Inc Palo Alto, California 48
Ben Franklin Technology Partners Southeastern PA Philadelphia, Pennsylvania 46
DreamIt Ventures Bryn Mawr, Pennsylvania 45
Draper Fisher Jurvetson Menlo Park, California 45
Foundation Capital Menlo Park, California 45
Innovation Works, Inc. Pittsburgh, Pennsylvania 44
Polaris Partners Waltham, Massachusetts 43
500 Startups, L.P. Mountain View, California 43
Lerer Ventures New York, New York 42
Advanced Technology Ventures Palo Alto, California 42
Redpoint Ventures Menlo Park, California 42
29
Shaking the MoneyTreeTM Q4 and Full Year 2014
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 ($M)
Average IPO Offer
Amount ($M)
2009 361 113.4 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 1,408.4 176.1
2012 490 171.9 49 21,459.9 438.0
Q1 2013 86 92.7 8 716.9 89.6
Q2 2013 98 218.6 22 2,249.9 102.3
Q3 2013 116 161.9 27 2,781.4 103.0
Q4 2013 93 196.0 24 5,320.1 221.7
2013 393 178.0 81 11,068.2 136.6
Q1 2014 113 245.8 37 3,404.5 92.0
Q2 2014 114 93.7 28 4,938.9 176.4
Q3 2014 133 245.0 23 2,592.2 112.7
Q4 2014 95 909.0 27 4,363.5 161.6
2014 455 348.7 115 15,299.1 133.0
30
Shaking the MoneyTreeTM Q4 and Full Year 2014
Venture capital fundraising
Source: Thomson Reuters & National Venture Capital Association Data current as of January 12, 2015
Year First Time Funds
Follow-On Funds Total Number of Funds
VC Raised ($M)
2010 53 122 175 13,272.0
2011 64 127 191 19,060.5
2012 76 142 218 19,838.2
2013 64 143 207 17,694.1
2014 96 158 254 29,826.4
Quarter
Q4 ‘13 22 40 62 5,582.2
Q1 ‘14 31 38 69 10,036.1
Q2 ‘14 23 59 83 8,024.1
Q3 ‘14 24 42 66 6,162.7
Q4 ‘14 27 48 75 5,603.5
31
Shaking the MoneyTreeTM Q4 and Full Year 2014
Appendix – Additional Quarterly Information
32
Shaking the MoneyTreeTM Q4 and Full Year 2014
Investments by industry – Quarterly percentage of total US investments
34%
16% 14%
2%
7%
42%
10% 10%
1%
8%
45%
14% 11%
2%
5%
37%
11%
18%
1%
8%
39%
14%
10% 7% 6%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Software Biotechnology Media andEntertainment
Computers andPeripherals
IT Services
Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14
(% of Total Dollars)
Top 5 Industries : Q4 2013 – Q4 2014
33
Shaking the MoneyTreeTM Q4 and Full Year 2014
40%
11%
7%
13%
4%
50%
10% 8%
10%
3%
57%
9%
5%
9%
3%
44%
7% 8%
17%
2%
43%
14%
9% 8% 7%
0%
10%
20%
30%
40%
50%
60%
Silicon Valley New England Southern California NY Metro Southeast
(% of total dollars)
Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14
Investments by region – Quarterly percentage of total US investments
Top 5 US regions : Q4 2013 – Q4 2014
34
Shaking the MoneyTreeTM Q4 and Full Year 2014
Amount Invested by Stage ($M)
US Investments by stage: Quarterly Q1 2012 – Q4 2014
$176 $286 $174 $215 $189 $248 $217 $354 $143 $205 $195 $176
$1,955 $2,222 $1,974 $2,330
$1,648
$2,653 $2,943 $3,039 $3,323 $3,883
$2,999
$5,615 $1,839
$2,791 $2,657 $2,246
$2,067
$2,192 $2,513
$3,003 $3,810
$6,257
$3,451
$6,249
$2,360
$2,207
$1,892 $2,256
$2,185
$2,167
$2,329
$2,219
$2,610
$3,241
$3,478
$2,715
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14
Later Stage
ExpansionStage
Early Stage
Seed Stage
35
Shaking the MoneyTreeTM Q4 and Full Year 2014
Number of Deals by Stage
US Investments by stage: Quarterly Q1 2012 – Q4 2014
64 88 72 77 53 47 61 74 45 61 47 39
366
451 441
527
434 541
588 574
509 553
527 576
226
257 254
262
240
240
243 300
274
319
266
297 235
196 201
219
206
195
185
212
199
236
211
197
0
200
400
600
800
1,000
1,200
1,400
Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14
Later Stage
ExpansionStage
Early Stage
Seed Stage
36
Shaking the MoneyTreeTM Q4 and Full Year 2014
$176
$5,615
$6,249
$2,715
Seed Stage Early Stage
Expansion Stage Later Stage
Investments by stage of development: Q4 2014
Q4 2014 Total Investments - $14,754 million in 1,109 deals
Stage of Development # of
Deals
% Change in $ from Q3 2014
Seed Stage 39 -10%
Early Stage 576 87%
Expansion Stage
297 81%
Later Stage 197 -22%
Total 1,109 46%
($) in millions
37
Shaking the MoneyTreeTM Q4 and Full Year 2014
$2,604
$12,150
First Sequence Follow-on
Investments by sequence of financing: Q4 2014
Financing # of Deals % Change in $ from Q3 2014
First Sequence 374 57%
Follow-on 735 44%
Total 1,109 46%
($) in millions
Q4 2014 Total Investments - $14,754 million in 1,109 deals
38
Shaking the MoneyTreeTM Q4 and Full Year 2014
Quarterly percentage of total first sequence dollars Stage of development Q4 2013 – Q4 2014
20%
54%
14% 13% 9%
71%
11% 9% 7%
52%
24%
17%
11%
49%
25%
16%
4%
48%
40%
8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Seed Stage Early Stage Expansion Stage Later Stage
(% of first sequence dollars)
Q4 '13
Q1 '14
Q2 '14
Q3 '14
Q4 '14
39
Shaking the MoneyTreeTM Q4 and Full Year 2014
Quarterly percentage of total first sequence deals Stage of development Q4 2013 – Q4 2014
16%
66%
12%
5%
11%
72%
10% 7%
11%
65%
14% 10% 12%
69%
13%
6% 8%
69%
18%
5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Seed Stage Early Stage Expansion Stage Later Stage
(% of first sequence deals)
Q4 '13
Q1 '14
Q2 '14
Q3 '14
Q4 '14
40
Shaking the MoneyTreeTM Q4 and Full Year 2014
$3.8
$6.0
$12.5
$14.2
$14.2
$19.2
$29.5
$56.9
$67.5
$84.2
$1,020.0
$0.0 $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 $700.0 $800.0 $900.0 $1,000.0 $1,100.0
Industrial/Energy
Computers and Peripherals
Business Products and Services
Financial Services
Telecommunications
IT Services
Medical Devices and Equipment
Semiconductors
Biotechnology
Media and Entertainment
Consumer Products and Services
Software
($ in millions)
Southern California investments by industry: Q4 2014
NV - no value in prior quarter
Industry # of Deals
% Change $ from Q3
2014
Software 36 917%
Biotechnology 10 -61%
IT Services 9 119%
Media and Entertainment 7 -35%
Consumer Products and Services 5 -37%
Medical Devices and Equipment 5 -81%
Semiconductors 2 9%
Telecommunications 2 408%
Financial Services 2 NV
Computers and Peripherals 2 -2%
Industrial/Energy 2 -95%
Business Products and Services 1 -42%
Total 83 66%
41
Shaking the MoneyTreeTM Q4 and Full Year 2014
Q4 2014 Total: $1,330.3
$2.3
NM
$3.8
$6.0
$11.6
$12.5
$13.3
$14.2
$25.2
$52.4
$63.1
$896.5
$0.0 $200.0 $400.0 $600.0 $800.0 $1,000.0
Industrial/Energy
Computers and Peripherals
Business Products and Services
IT Services
Financial Services
Biotechnology
Telecommunications
Semiconductors
Media and Entertainment
Consumer Products and Services
Software
($ in millions)
Los Angeles investments by industry: Q4 2014 Q4 2014 Total: $1,098.6
Industry # of Deals
% Change $ from Q3
2014
Software 18 2,570%
IT Services 6 2,226%
Consumer Products and Services 4 -53%
Media and Entertainment 4 -44%
Biotechnology 3 NV
Telecommunications 2 408%
Financial Services 2 NV
Computers and Peripherals 2 NM
Semiconductors 1 119%
Business Products and Services 1 -40%
Industrial/Energy 1 NM
Total 44 152%
NV - no value in prior quarter NM – not meaningful
42
Shaking the MoneyTreeTM Q4 and Full Year 2014
$2.6
$4.1
$12.0
$15.3
$91.0
$0.0 $20.0 $40.0 $60.0 $80.0 $100.0
IT Services
Biotechnology
Media and Entertainment
Medical Devices and Equipment
Software
($ in millions)
Orange County investments by industry: Q4 2014
Q4 2014 Total: $125.0
Industry # of Deals
% Change $ from Q3 2014
Software 13 209%
IT Services 3 36%
Medical Devices and Equipment 2 -79%
Media and Entertainment 1 18%
Biotechnology 1 1,536%
Total 20 -9%
43
Shaking the MoneyTreeTM Q4 and Full Year 2014
$2.3
$3.1
$3.9
$4.3
$21.1
$32.5
$39.5
$0.0 $10.0 $20.0 $30.0 $40.0 $50.0
Industrial/Energy
Media and Entertainment
Medical Devices and Equipment
Semiconductors
Consumer Products and Services
Software
Biotechnology
($ in millions)
Industry # of Deals
% Change $ from Q3
2014
Biotechnology 6 -73%
Software 5 -13%
Medical Devices and Equipment 3 -83%
Media and Entertainment 2 244%
Consumer Products and Services 1 NV
Semiconductors 1 -57%
Industrial/Energy 1 185%
Total 19 -53%
San Diego investments by industry: Q4 2014
Q4 2014 Total: $106.7
NV - no value in prior quarter
44
Shaking the MoneyTreeTM Q4 and Full Year 2014
SoCal venture capital firms: Q4 2014 investments
45
Shaking the MoneyTreeTM Q4 and Full Year 2014
Venture capital firm Location Investments
Frost Data Capital San Juan Capistrano 10
Correlation Ventures LP San Diego 9
Upfront Ventures Los Angeles 8
Miramar Venture Partners Corona del Mar 3
Qualcomm Ventures San Diego 3
March Capital Partners GP LLC Santa Monica 3
NGEN Partners LLC Santa Barbara 2
Anthem Venture Partners Santa Monica 2
Avalon Ventures, LLC La Jolla 2
TVC Capital LLC San Diego 2
Queensbridge Venture Partners LLC Los Angeles 2
Double M Partners, L.P. Brentwood 2
Wavemaker Partners Santa Monica 2
DFJ Frontier Sherman Oaks 2
Palomar Ventures Santa Monica 2
TenOneTen Ventures LP Los Angeles 2
SG VC Santa Barbara 2
25 Other Firms 1 each
Venture capital firms: Q4 2014 investments in SoCal
46
Shaking the MoneyTreeTM Q4 and Full Year 2014
Venture capital firm Location Investments
Frost Data Capital CA,San Juan Capistrano 10
Upfront Ventures CA,Los Angeles 6
U.S. Venture Partners CA,Menlo Park 3
Insight Venture Partners LLC NY,New York 3
Toba Capital LLC CA,San Francisco 2
Greycroft Partners LLC NY,New York 2
Anthem Venture Partners CA,Santa Monica 2
First Round Capital PA,Philadelphia 2
Institutional Venture Partners CA,Menlo Park 2
Kleiner Perkins Caufield & Byers LLC CA,Menlo Park 2
Intel Capital Corporation CA,Santa Clara 2
Andreessen Horowitz LLC CA,Menlo Park 2
Wavemaker Partners CA,Santa Monica 2
Versant Ventures, Inc. CA,Menlo Park 2
Allegro Venture Partners CA,Los Altos 2
Domain Associates LLC NJ,Princeton 2
87 Other Firms 1 each
Q4 2014 – Most active US venture investors
VC Firm Location Number of Deals
Advanced Technology Ventures Palo Alto, California 27
Kleiner Perkins Caufield & Byers LLC Menlo Park, California 22
Ben Franklin Technology Partners Southeastern PA Philadelphia, Pennsylvania 21
DreamIt Ventures Bryn Mawr, Pennsylvania 20
Andreessen Horowitz LLC Menlo Park, California 19
Atlas Venture Cambridge, Massachusetts 19
Khosla Ventures LLC Menlo Park, California 19
Bain Capital Venture Partners LLC Boston, Massachusetts 17
Innovation Works, Inc. Pittsburgh, Pennsylvania 16
Intel Capital Corporation Santa Clara, California 16
New Enterprise Associates, Inc. Menlo Park, California 16
First Round Capital Philadelphia, Pennsylvania 13
General Catalyst Partners LLC Cambridge, Massachusetts 13
Sequoia Capital Menlo Park, California 13
Draper Fisher Jurvetson Menlo Park, California 12
Google Ventures Mountain View, California 12
Bessemer Venture Partners, L.P. Larchmont, New York 11
Mercury Fund Houston, Texas 11
Spark Capital Boston, Massachusetts 11
True Ventures Palo Alto, California 11
Crosslink Capital, Inc. San Francisco, California 10
Foundation Capital Menlo Park, California 10
Foundry Group LLC Boulder, Colorado 10
Frost Data Capital San Juan Capistrano, California 10
InterWest Partners LLC Menlo Park, California 10
Polaris Partners Waltham, Massachusetts 10
U.S. Venture Partners Menlo Park, California 10
47
Shaking the MoneyTreeTM Q4 and Full Year 2014
HJ Paik
Director, Emerging Company Services (213) 356-6110 [email protected]
www.pwcmoneytree.com
Data is current as of January 13, 2015. 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.
© 2015 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved. PwC refers to the US member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.