Venture Capital Insights® — 2Q14
Global VC investment landscape
July 2014
Page 2 Venture Capital Insights — 2Q14
Global VC investment landscape Summary
Global VC investment activity
• Globally, 2Q14 recorded the highest quarterly VC investments (US$21.1b since 1Q01). VC investments for the first half of 2014 reached $37.8b.
• Recovery in global VC investment activity gathered pace with significant growth in the amounts invested across all markets. Compared to the previous quarter, the amount invested in 2Q14 was up by 26% and an increase of 3% in number of rounds.
• While Europe saw the largest increase of 42% in VC dollars invested during 2Q14, versus the previous quarter, the US and China saw an increase of 21% and 19%, respectively, over the same time period.
• Of the top 15 hotbeds, the Bay Area continued to account for close to half of the amount invested-49% in 1Q14 and 47% in 2Q14. The top two deals of the quarter were San Francisco-based companies, one of which was a US$1.2b investment in Uber Technologies Inc., bringing it to a post-valuation of US$18.2b.
• Consumer services, and business and financial services were the two most attractive sectors during 2Q14 in terms of value and volume.
• Companies operating at the revenue generation stage continue to attract large investments primarily through later round classes.
• In 1H14, median deal values at later round class were at their all-time high for most VC markets, except for China.
• By stage of development, 1H14 saw significant increase in median values across stages, particularly for the US, Europe and China.
• Median pre-money valuations reached an all time high for 2Q14, due to the large number of mega deal investments, almost double the pre-money valuation values for 1Q14.
Page 3 Venture Capital Insights — 2Q14
Global VC investment landscape Analysis by geographies, hotbed, sectors, stages of development and round classes
Page 4 Venture Capital Insights — 2Q14
• Globally, 2Q14 raised the highest quarterly VC investments since 1Q01 levels. Subsequently, VC investments for the first half of 2014 reached $37.8b.
• Recovery in global VC investment activity gathered pace with significant growth recorded in amount invested across all markets. Compared to 2Q13 last year, the dollar amount invested in 2Q14 was up by 57% despite a slight decline of 2% in number of rounds.
• The outlook for VC investments remains strong with 2Q14 continuing the momentum from 1Q14. The total amount invested of US$21.1b , for 2Q14, as well as average round size US$13.7m were the highest in the last six years. The first half of 2014 has already seen 73% of the total VC investments recorded for the year 2013.
Global VC activity — by amount invested and number of rounds
Global VC investment After a record first quarter in the last six years, VC investors kept up the positive momentum in 2Q14 with a further 26% increase in VC dollars, compared to 1Q14
13.7
6.8 9.9
12.8 11.0 10.8
16.7 16.7
13.6
8.5
12.1
14.2 13.4
13.4 21.1
21.1
13.7
8.7
9.7
15.3
11.1 13.3
10.0
11.4
14.8
12.8
13.1
14.4
5,467
4,777
5,402
5,954
5,958 6,345
3,038
1,425
1,148 1,451
1,589 1,577 1,575
1,542
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
0
10
20
30
40
50
60
2008 2009 2010 2011 2012 2013 1H 2014 Q1 Q2
Nu
mb
er o
f rou
nd
s A
mo
un
t in
ve
ste
d (
US
$b
)
Amount invested during Q1 (US$b) Amount invested during Q2 (US$b)
Amount invested during Q3 (US$b) Amount invested during Q4 (US$b)
Number of rounds during the year/qtr Number of rounds during Q2
Note: Global total includes the US, Europe, Canada, China, Israel (all site) and India only.
51.0 35.4 46.4 55.0 48.6 51.9 37.8 16.7 21.1
1496 1542
Page 5 Venture Capital Insights — 2Q14
US
Europe
• In the US, VC investments continue to grow in 2014 with a 21% increase seen in VC dollars during 2Q14, versus 1Q14. Compared to 2Q13, the dollar amount invested went up by almost 60%, due to a large number of mega deals in consumer services industry.
• Among the three major markets, Europe saw the sharpest increase of 42% in VC dollars raised for 2Q14, versus the previous quarter. The US and China saw an increase of 21% and 19%, respectively, over the same period.
• China, however continues to lead in terms of average round size across all markets. At US$23m, it was also the highest average amount seen across markets since 1Q10 levels.
China
VC investment by geography 2Q14 recorded the highest quarterly VC amount across the US, Europe and China, since 1Q08
9.1 4.6 5.4
8.1 7.6 7.6 11.4
11.4 13.8
8.4
6.2 8.0
9.2 9.3
8.6
13.8 9.1
6.0
6.3
10.8 7.8 9.4
6.8
7.6
9.6
8.1
9.0 9.3
3,092
2,788
3,192
3,651 3,734 3,747
1,802
825
692 856
937 1,011 938
917
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
0
5
10
15
20
25
30
35
40
2008 2009 2010 2011 2012 2013 1H14 Q1 Q2
Nu
mb
er o
f rou
nd
s
Am
ou
nt
inve
ste
d (
US
$b
)
6.3 5.0 4.2 4.8 4.0 4.0 5.0
Median amount invested (US$m)
4.4 6.3
885 917
2.2 1.1 1.4
1.9 1.4 1.6 2.0 2.0
1.8
1.1 1.6 1.8
1.9 1.9 2.9
2.9
2.1
1.3
1.5
1.8 1.4
1.7
1.9
2.2
2.6
2.0
1.6 2.3
1,491
1,304
1,422 1,369 1,387
1,601
723
348
295 382 394 363 406
365
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
0
1
2
3
4
5
6
7
8
9
2008 2009 2010 2011 2012 2013 1H14 Q1 Q2
Nu
mb
er o
f rou
nd
s
Am
ou
nt
inve
ste
d (
US
$b
)
1.2 0.5
2.4 1.7 1.1 0.7
2.4 2.4
1.7
0.6
1.1 1.9
1.4 1.4
2.8
2.8
1.4
0.8
1.0 1.6
0.9 1.0
0.7
0.9
1.7
1.6
1.4 1.6
367
319
391
430
289
379
228
119
76
100 122
78 88
121
0
50
100
150
200
250
300
350
400
450
500
0
1
2
3
4
5
6
7
8
2008 2009 2010 2011 2012 2013 1H14 Q1 Q2
Nu
mb
er o
f rou
nd
s
Am
ou
nt
inve
ste
d (
US
$b
)
Median amount invested (US$m) Median amount invested (US$m)
2.7 2.0 2.4 2.1 1.9 1.7 2.7 2.4 3.0 6.9 5.4 7.4 10.0 7.5 5.0 10.0 8.6 16.0
358 365 107 121
Amount invested during Q1 (US$b) Amount invested during Q2 (US$b) Amount invested during Q3 (US$b)
Amount invested during Q4 (US$b) Number of rounds during the year/qtr Number of rounds during Q2
Page 6 Venture Capital Insights — 2Q14
• Canada saw growth of 134% in the amount of VC investment, compared to 1Q14, followed by India with an increase of 92%.
• Israel was the only market which saw a decline in VC investments, compared to 2Q13, both in terms of deals and dollars. However, compared to 1Q14, the amount invested in healthcare and information technology (IT) sector rose by 6%.
• The outlook for VC investments in Canada and India continues to remain positive, with 1H14 investments significantly exceeding 1H13 levels. However, Israel has yet to cross 2013-halfway mark.
Canada
VC investment by geography Continued recovery in amount invested by VCs was evident across all markets, although number of deals declined in Israel and Canada, versus 1Q14
0.8
0.2 0.3 0.3 0.3 0.3 0.3 0.3
0.6
0.2
0.9
0.6
0.2
0.6 0.4
0.4
0.5
0.3
0.2 0.4
0.3
0.4
0.3
0.2
0.5 0.6
0.4
0.4
289
178
163 180 163
196
96
75
41
54 54
33 52
42
0
50
100
150
200
250
300
350
0
1
2
3
2008 2009 2010 2011 2012 2013 1H 2014 Q1 Q2
Nu
mb
er o
f rou
nd
s
Am
ou
nt
inve
ste
d (
US
$b
)
0.2 0.1 0.2 0.4
0.2 0.2 0.2 0.2
0.1 0.1
0.2
0.4
0.2 0.2 0.4
0.4
0.3
0.1
0.4
0.3
0.3 0.3
0.2
0.2
0.2
0.1
0.3 0.4
110
92 114
143 151
182
80
27 26 25
37 40 40 38
0
20
40
60
80
100
120
140
160
180
200
0
1
2
2008 2009 2010 2011 2012 2013 1H 2014 Q1 Q2
Nu
mb
er o
f rou
nd
s
Am
ou
nt
inve
ste
d (
US
$b
)
5.0 4.6 4.0 5.0 2.7 2.1 2.3
0.2 0.2 0.2
0.3 0.4 0.4 0.4 0.4
0.9
0.1 0.2
0.4 0.3
0.6
0.8
0.8
0.4
0.1 0.2
0.4 0.4
0.5
0.2
0.3
0.3
0.4 0.4
0.4
118 96
120
181
234 240
109
31 18 34
45 52 51 59
0
50
100
150
200
250
300
0
1
2
2008 2009 2010 2011 2012 2013 1H 2014 Q1 Q2
Nu
mb
er o
f rou
nd
s
Am
ou
nt
inve
ste
d (
US
$b
)
Median amount invested (US$m) Median amount invested (US$m)
Median amount invested (US$m)
1.5 5.9
42 38
5.0 4.0 5.0 7.0 4.0 4.8 4.8 4.0 5.4 7.0 4.2 6.4 5.0 3.7 3.9 4.1 3.0 5.0
54 42 50 59
Israel (all site) India
Amount invested during Q1 (US$b) Amount invested during Q2 (US$b) Amount invested during Q3 (US$b)
Amount invested during Q4 (US$b) Number of rounds during the year/qtr Number of rounds during Q2
Page 7 Venture Capital Insights — 2Q14
• The Bay Area continues to account for close to half of the dollar amount invested in the top 15 major VC hotbeds 49% in 1Q14 and 47% in 2Q14, compared to 2008–2013 period when it accounted for less than 38% of the total amount. The top two deals of the quarter San Francisco-based companies, one of which was a US$1.2b investment in Uber Technologies Inc., bringing it to a post-valuation of US$18.2b.
• VC investments increased in India which saw Bengaluru move up three ranks from the bottom, for the first time since 2009. Beijing, the most attractive VC hotbed in the Asia Pacific region , is the top ranked non-US hotbed and continues to be among the top five.
VC investment by hotbed Beijing was the only non-US destination among the top five VC hotbeds during 2Q14; the Bay Area continued its dominance attracting top two deals of the quarter
6
23
33
13
42
38
46
22
74
97
71
66
102
122
323
Number of rounds
108
139
178
278
364
376
439
473
541
821
856
1,114
1,190
1,575
7,400
Switzerland
Illinois
Potomac
Bengaluru
Israel (all…
Canada
Germany
Shanghai
France
UK
S. Calif
Beijing
New England
NY Metro
Bay Area
Amount invested (US$m)
Top five hotbeds1
US$12.1b (77% of the total2)
Top five hotbeds1
684 (63% of the total2)
113
385
394
421
572
634
881
901
954
981
1,509
1,820
2,306
3,234
8,786
Bengaluru
Switzerland
Shanghai
Illinois
Canada
Potomac
Israel (all site)
Beijing
France
Germany
UK
NY Metro
S. Calif
New England
Bay Area
Amount invested (US$m)
Top five hotbeds1 US$17.7b (74% of the total2)
2009 2Q14
316
384
730
832
1,084
1,214
1,282
1,655
1,951
1,996
2,759
3,344
3,835
3,933
14,075
Bengaluru
Switzerland
Illinois
Germany
Shanghai
Canada
France
Potomac
Israel (all site)
UK
Beijing
NY Metro
New England
S. Calif
Bay Area
Amount invested (US$m)
Top five hotbeds1
US$27.9b (71% of the total2)
2011
412
564
570
730
1,092
1,105
1,242
1,521
1,707
2,106
2,305
3,264
3,491
3,891
13,488
Switzerland
Illinois
Bengaluru
Shanghai
France
Canada
Potomac
Germany
Israel (all site)
Beijing
UK
S. Calif
NY Metro
New England
Bay Area
Amount invested (US$m)
Top five hotbeds1
US$26.4b (71% of the total2)
2013
83
134
139
161
193
251
340
342
517
669
704
775
1,056
1,263
6,278
Bengaluru
Switzerland
Illinois
Canada
Potomac
France
Germany
Israel (all site)
UK
S. Calif
Shanghai
Beijing
NY Metro
New England
Bay Area
Amount invested (US$m)
Top five hotbeds1
US$10.1b (78% of the total2)
1Q14
*Data on Israel is based on Israel (all site). 1 Top five hotbeds by amount invested. 2 Total of 15 major VC hotbeds listed above.
Page 8 Venture Capital Insights — 2Q14
VC investment by industry Consumer services, and business and financial services were the two most attractive sectors during 2Q14 in terms of value and volume, respectively
By number of rounds:
• The business and financial services sector globally continues to be ranked first. Notably, in the US, IT sector was displaced from the top ranking for 2Q14, for the first time since 1Q08, although many of these companies are significantly IT enabled.
• Compared to 2Q13, the increase in deal count was the highest in business and financial services with an increase of 18% followed by consumer services with 6%, while the IT sector saw a decline of 17%.
By amount invested:
• Amount invested in both the business and financial services, and consumer services sectors more than doubled compared to 2Q13.
• Amid an increased focus by VC investors on mobile technology and internet types of companies, the consumer services sector saw the top three deals for the quarter with a total investment of US$19.5b.
1,693
240
1,165
240
1,304
186
1,115
Information Technology
Industrial Goods and Materials
Healthcare
Energy and Utilities
Consumer Services
Consumer Goods
Business and Financial Services
2011
1,779
206
1,074
176
1,424
183
1,092
Number of rounds
Amount invested (US$b)
726
74
514
52
746
112
803
Note: There are also some deals for which sector has not been assigned.
2012 2013 1H14 1Q14 2Q14
366
31
242
23
366
63
398
360
43
272
29
380
49
405
11.5 1.9
12.3 4.7
13.1
2.1
9.5
Information Technology
Industrial Goods and Materials
Healthcare
Energy and Utilities
Consumer Services
Consumer Goods
Business and Financial Services
2011
12.7
1.5
10.6
2.4
11.1
1.4
8.6
8.4
0.5
6.6
0.7
11.8
0.7
9.0
2012 2013 1H14 1Q14 2Q14
4.4
0.2
2.9
0.4
4.4
0.3
4.3
4.0
0.4
3.7
0.3
7.5
0.4
4.8
12.4
1.4
11.8
1.7
12.0
1.8
10.8
1,719
207
1,113
160
1,474
208
1,451
Page 9 Venture Capital Insights — 2Q14
VC investment by country / region 2Q14 was the strongest quarter in terms of VC amount invested for the US, Europe and China
By number of rounds:
• In 2Q14, the number of rounds in the US and Europe grew marginally, compared to the previous quarter. However, for India and China ‒ the volume increased by 18% and 13%, respectively, due to strong activity in the consumer services sector.
• The number of rounds invested in Canada and Israel declined by 10% and 22%, respectively for 2Q14 versus 1Q14. However in Israel, low investment activity in the consumer services sector, particularly consumer information services subsector led the decline. In Canada, the information technology sector saw 13 deals compared to 18 deals in the last quarter.
By amount invested:
• VC activity picked up across markets in 2Q14, with the US, Europe and China seeing record growth of 21%, 45% and 22%, respectively. Even the smaller markets grew impressively with Canada and India recording 100% increases each over the last quarter, Israel grew by 33%.
• Subsequently, the average deal size also grew across markets during the 2Q14 compared to 1Q14. For the largest VC market, the US, average deal size increased by 17%, while for Europe, it grew by 42%. India, Israel and Canada also recorded big gains in their average deal sizes with 69%, 71% and 121%.
181
180
143
430
1,369
3,651
India
Israel
Canada
China
Europe
US
2011
234
163
151
289
1,387
3,734
Number of rounds
Amount invested (US$b)
2012 2013 1H14 1Q14 2Q14
240
196
182
379
1,601
3,747
109
96
80
228
723
1,802
50
54
42
107
358
885
59
42
38
121
365
917
1.5
2.0
1.2
6.7
7.5
36.2
India
Israel
Canada
China
Europe
US
2011
1.6
1.2
0.9
4.8
6.4
33.7
2012 2013 1H14 1Q14 2Q14
1.9
1.7
1.1
4.7
7.5
34.9
1.3
0.7
0.5
5.1
4.9
25.2
0.4
0.3
0.2
2.3
2.0
11.4
0.8
0.4
0.4
2.8
2.9
13.8
Page 10 Venture Capital Insights — 2Q14
VC investment by round class and stage of development Companies operating at revenue generation stage continued to attract large investments primarily through later round classes
1,622
1,067
2,279
626
Later stage
Second round
First round
Seed round
2011
1,537
995
2,355
733
Number of rounds
Amount invested (US$b)
2012 2013 1H14 1Q14 2Q14
1,532
1,225
2,591
697
866
638
1,196
207
392
283
612
138
474
355
584
69
27.7
10.8
12.0
0.6
Later stage
Second round
First round
Seed round
2011
25.5
8.2
10.5
0.5
2012 2013 1H14 1Q14 2Q14
26.8
10.3
10.9
0.5
21.2
6.8
5.7
0.2
8.3
2.9
2.6
0.1
12.9
4.0
3.1
0.1
297
3,664
1,427
559
Profitable
Generating revenue
Product development
Startup
2011
231
3,858
1,293
571
Number of rounds
Amount invested (US$b)
2012 2013 1H14 1Q14 2Q14
270
4,344
1,242
486
144
2,262
515
115
71
1,095
255
74
5.6
36.1
12.2
1.1
Profitable
Generating revenue
Product development
Startup
2011
3.4
35.8
8.6
0.7
2012 2013 1H14 1Q14 2Q14
4.7
37.8
8.7
0.6
4.2
28.9
4.5
0.2
2.2
12.3
2.1
0.1
2.0
16.6
2.4
0.1
By stage of development
By round class
73
1,167
260
41
Page 11 Venture Capital Insights — 2Q14
Median round size by round class In 1H14, median deal values at later round class were at their all-time high for all VC markets, except for China; China still recorded the highest median value at this stage, across markets
10
.0
8.0
7.7
10
.0
10
.0
10
.0
11
.3
5.9
4.4
5.3
5.5
7.4
6.2
10
.0
9.2
7.3
10
.0
20
.0
18
.0
19
.9
20
.0
9.5
5.7
8.9
7.3
8.8
3.8
14
.7
9.0
6.1
9.9
11
.0
10
.0
7.6
15
.5
11
.6
11
.5
10
.8
10
.0
9.0
10
.4
15
.0
0
5
10
15
20
25
2008 2009 2010 2011 2012 2013 1H14
8.0
5.0
5.5
6.0
5.3
5.8
6.5
3.8
2.6
3.0
2.9
3.3
3.3
4.0
10
.0
8.2
10
.0 1
5.0
15
.4
12
.5
20
.0
5.1
5.6
5.0
6.9
6.0
6.0
4.4
6.0
5.0
6.0
8.0
5.5
9.0
8.5
10
.6
7.6
9.0
6.9
6.1
6.0
8.0
0
5
10
15
20
25
2008 2009 2010 2011 2012 2013 1H14
4.1
3.5
3.0
3.0
2.7
2.5
3.0
2.1
1.6
1.8
1.6
1.5
1.3
1.7
5.0
4.0
5.0
7.7
3.7
3.3
3.0
4.2
2.8
3.0
3.3
2.0
1.6
1.3
4.0
2.5
2.0
3.5
2.6
3.0
3.3
5.5
4.0
3.7
4.0
3.1
1.6
2.0
0
2
4
6
8
10
2008 2009 2010 2011 2012 2013 1H14
0.8
0.6
0.7
0.8
0.7
0.5
0.6
0.8
0.6
0.5
0.5
0.3
0.2
1.0
0.7
NS
NS
1.0
0.2
0.3
1.0
0.6
NS
0.9
0.9
0.5
0.1
0.2
0.6
0.6
0.6
0.7
0.5
0.7
0.6
NS
NS
NS
0.3
0.4
0.2
NS
0.0
0.5
1.0
1.5
2008 2009 2010 2011 2012 2013 1H14
Seed round (median round size in US$m)
During 1H14, the median deal size across all markets remained at similar levels to 2013, except for Europe and China which saw their median deal size increase to US$1.0m each from US$0.2m and US$0.3m, in 2013. However, in India, the stage continued to remained insignificant.
First round (median round size in US$m)
Median deal sizes increased in almost all markets in 1H14 compared to 2013, showing that VC investors, when investing in the first round are continuing to make larger investments. China and Canada were the only two markets that reported a decline in median values, for the first round for the same period.
Second round (median round size in US$m)
Across all markets, China maintained its lead in 1H14, with a 60% increase in median deal value compared to 2013. During the same period, while the median values increased in the US (12%), Europe (24%) and India (33%), the value declined by 27% and 6% in Canada and Israel.
Later stage (median round size in US$m)
All markets saw a significant growth in median deal sizes in 1H14 compared to 2013, except for China. The growth was the highest in Canada where the median value increased four times, followed by Israel where the median value doubled to US$15.5m in 1H14 from US$7.6m in 201). With no change in median values, China continued to see the highest value globally, for the same period.
Note: Chart scales vary for the purpose of clarity.
0.3 0.2 0.3 0.6 0.5 0.5 0.2
339 303 385 626 733 697 207
11.3 7.6 8.4 10.8 8.2 10.3 6.8
1,077 1,021 1,050 1,067 995 1,225 638
Amount invested globally (US$b)
No. of global deals
Amount invested globally (US$b)
No. of global deals
13.6 7.9 9.8 12.0 10.5 10.9 5.7
2,192 1,667 1,955 2,279 2,355 2,591 1,196
22.3 17.4 24.7 27.7 25.5 26.8 21.2
1,470 1,457 1,655 1,622 1,537 1,532 866
US Europe China Canada Israel (all site) India
Page 12 Venture Capital Insights — 2Q14
Median round size by stage of development Significant increases in many median values across stages, particularly for the US, Europe and China
7.0
5.0
5.0
5.2
5.0
5.0
5.8
3.0
2.1
2.4
2.2
2.4
1.9
2.5
7.3
7.3
8.8
10
.0
8.0
6.5
10
.0
6.0
4.0
5.0
5.0
3.3
2.5
2.6
6.0
4.6
6.0
9.1
5.0
6.0
6.5
8.0
4.6
6.8
5.5
4.0
4.0
4.1
0
2
4
6
8
10
12
2008 2009 2010 2011 2012 2013 1H14
8.0
5.0
6.1
9.1
6.3
5.3
10
.0
3.9
2.9
5.6
4.0
4.1
3.3
10
.0
7.2
5.7
6.7
20
.0
18
.5
11
.2
15
.5
NS
7.9
14
.6
NS
NS
7.5
NS
9.0
NS
8.5
9.8
7.0
12
.0
NS
7.2
5.1
5.0
8.0
9.2
45
.8
4.4
0
5
10
15
20
25
30
35
40
45
50
2008 2009 2010 2011 2012 2013 1H14
7.0
5.1
4.1
5.0
3.7
3.3
4.5
2.5
2.1
2.6
1.9
1.3
1.7
2.8
2.7
3.9
5.0
3.1
3.6
1.5
3.0
3.3
4.2
3.0
6.0
2.0
1.5
1.0
4.5
3.8
4.0
4.4
2.8
4.3
2.5
6.3
1.8
8.7
0.4
3.3
2.2
NS
0
2
4
6
8
10
2008 2009 2010 2011 2012 2013 1H14
1.2
1.0
1.0
1.0
1.0
0.7
0.7
0.9
0.8
0.6
0.7
0.4
0.2
0.8
NS
1.9
2.0
2.1
0.5
0.3
NS
NS
1.5
1.4
0.9
NS
NS
NS
2.5
1.5
0.9
1.8
0.6
0.9
1.1
NS
NS
6.7
3.0
0.5
0.2
NS
0
1
2
3
4
5
6
7
8
2008 2009 2010 2011 2012 2013 1H14
Startup (median round size in US$m)
In 1H14, activity at the startup stage continued to remained low across most markets except for the US, Europe and Israel. While the median deal size for the first half of 2014 remained the same in the US, versus 2013, it grew by 300% in Europe and by 24% in Israel, over the same time frame.
Product development (median round size in US$m)
The three key VC markets ‒ the US, Europe and China ‒ saw a significant growth in median deal sizes in 1H14 compared to last year, indicating investors remained confident in these markets. China saw the largest increase in median value for this period from US$1.5m to US$3.0m, followed by Europe (68% and the US 38%.
Generating revenue (median round size in US$m)
In 1H14, median deal sizes at the generating revenue stage increased in all markets compared to 2013. China saw the largest growth at 53% and continued to record the highest median value across all markets for the first half of 2014, indicating VC Investors are remaining positive about investing in China and are continuing to make larger investments there.
Profitable (median round size in US$m) While the median values increased to US$10.0m in both the US and Europe in 1H14, from US$5.3m and US$3.3.m, in 2013, China recorded close to a 40% increase for the same period. India, on the other hand, saw a decline from its all-time high median value of US$45.8m in 2013 to US$4.4m in 1H14 ‒ the value, however was more inline with the levels that have been seen in previous years.
Note: Chart scales vary for the purpose of clarity.
1.0 0.8 0.9 1.1 0.7 0.6 0.2
366 375 354 559 571 486 115
17.5 11.3 13.0 12.2 8.6 8.7 4.5
1,665 1,421 1,568 1,427 1,293 1,242 515
Amount invested globally (US$b)
No. of global deals
27.0 19.6 27.4 36.1 35.8 37.8 28.9
3,012 2,672 3,141 3,664 3,858 4,344 2,262
Amount invested globally (US$b)
No. of global deals
5.4 3.6 5.1 5.6 3.4 4.7 4.2
413 299 337 297 231 270 144
US Europe China Canada Israel (all site) India
Page 13 Venture Capital Insights — 2Q14
Appendix: sector classification
Sector Sub-sector
Business and financial services Business support services
Construction and civil engineering
Financial institutions and services
Wholesale trade and shipping
Consumer goods Food and beverage
Household and office goods
Personal goods
Vehicles and parts
Consumer services Consumer information services
Media and content
Retailers
Travel and leisure
Energy and utilities Non-renewable energy
Renewable energy
Utilities
Healthcare Biopharmaceuticals
Healthcare services
Medical devices and equipment
Medical software and information services
Industrial goods and materials Aerospace and defense
Agriculture and forestry
Machinery and industrial goods
Materials and chemicals
Information technology Communications and networking
Electronics and computer hardware
Semiconductors
Software
Page 14 Venture Capital Insights — 2Q14
EY’s Global Venture Capital Advisory Group leadership network
Americas Markets and Operations Sandra Feldner Vandergriff +1 213 977 3253 [email protected]
EMEIA Andrea Vogel +31 8 8407 4070 [email protected]
Asia-Pacific Ringo Choi +86 755 2502 8298 [email protected]
Greater China Lawrence Lau +862 1222 82816 [email protected]
France and Luxembourg Franck Sebag +33 1 46 93 73 76 [email protected]
Global Leader Bryan Pearce +1 617 585 0499 [email protected]
Global SGM Leader Maria Pinelli +44 20 7980 0960 [email protected]
India Mayank Rastogi +91 22 6192 0850 [email protected]
Israel Oren Bar-On +97 2 3568 7102 [email protected]
US Leader Jeff Grabow +1 408 947 5607 [email protected]
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