data download: state of vc - nvca · data download: state of vc 1. ... adley bowden vp analysis at...
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![Page 1: Data Download: State of VC - NVCA · Data Download: State of VC 1. ... Adley Bowden VP Analysis at Pitchbook Data ... ($M) Under $5M $5M-$15M $15M-$30M $30M-$60M $60M+](https://reader031.vdocuments.mx/reader031/viewer/2022022506/5ac013e87f8b9add5f8e7df5/html5/thumbnails/1.jpg)
Data Download: State of VC
1. Venture capital firms and fundraising
2. Venture investment by year, geography, and industry
3. Venture exits with an IPO spotlight
Adley Bowden VP Analysis at Pitchbook Data
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Venture Firms & Fundraising
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2,105 active U.S.-headquartered VC firms
Source: 2017 NVCA Yearbook
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VC Firm AUM picks up after years of stagnant growthVenture capital firms active AUM ($B)
$167
$245$272
$289$315
$333
$0
$50
$100
$150
$200
$250
$300
$350
$400
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Source: 2017 NVCA Yearbook, Data Provided by PitchBook
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Venture firms enjoying several vintage years of market outperformanceVC KS-PME fund benchmarks by vintage
1.07
0.72
1.17
0.90
1.16
1.081.04
1.45
1.30
1.39 1.40
0.7
0.8
0.9
1.0
1.1
1.2
1.3
1.4
1.5
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
PME calculated using Russell 2000® Growth Index
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Venture capital fundraising remains healthyU.S. VC fundraising ($B)
$3
5.7
$1
1.8
$1
9.6
$2
4.1
$3
5.1
$3
4.9
$4
1.1
$7
.8
189
118
151
186
267257
275
58
0
50
100
150
200
250
300
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
Capital Raised ($B)
# of Funds Closed
*Through 3/31/2017Source: Q1 PitchBook-NVCA Venture Monitor
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Venture dry powder at highest level since 2008U.S. VC capital overhang ($B)
$88$96 $94
$88
$77 $79$71
$67$73 $73
$90
$0
$20
$40
$60
$80
$100
$120
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*
2017201620152014201320122011
Cumulativeoverhang
Overhang by vintage
Source: PitchBook
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Venture Deal Flow
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Activity off to slow start as GPs study where to invest newly-raided capitalU.S. venture capital deal flow
$2
9.2
$2
6.6
$6
8.7
$7
9.0
$7
0.8
$1
6.5
3,320
4,456
10,565 10,483
8,469
1,808
0
2,000
4,000
6,000
8,000
10,000
12,000
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
Deal Value ($B) # of Deals Closed
*Through 3/31/2017Source: Q1 PitchBook-NVCA Venture Monitor
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Venture deal activity has grown at a rate of 7.3% annually since 2016CACGR of U.S. venture deals since 2016
3,320
7,232
0
2,000
4,000
6,000
8,000
10,000
12,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
2006-2017* deal count7.3% CAGR
*Annualized 2017 based on 1Q deal count Source: Q1 PitchBook-NVCA Venture Monitor
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744
1,672
5,452 5,683
4,115
2,224 2,223
3,147 3,013
2,496
1,324
1,516 1,951
1,772 1,525
0
1,000
2,000
3,000
4,000
5,000
6,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*
Angel/Seed Early VC Later VC
All stages are seeing a slowdown in activityU.S. VC deal count by stage
*Through 12/31/2016Source: PitchBook
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Valuation growth has largely subsided or fallenMedian round valuations ($M) by round series
$3.7
$8.0 $7.7
$11.9
$21.0$25.8
$27.9
$50.6 $50.0
$0
$10
$20
$30
$40
$50
$60
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
Seed Series A Series B
$55.4
$100.4 $100.0$86.3
$194.8
$160.4
$0
$50
$100
$150
$200
$250
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
Series C Series D+
Source: PitchBook
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*Through 3/31/2017 Source: Q1 PitchBook-NVCA Venture Monitor
$1
.4
$2
.0
$1
.5
$1
.6
$1
.5
$2
.0
$1
.8
$1
.9
$2
.3
$1
.8
$1
.8
$1
.6
564
812
681
941 993872
1,061
877 878
575548497
0
200
400
600
800
1,000
1,200
$0
$1
$1
$2
$2
$3
$3
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
2010 2011 2012 2013 2014 2015 2016 2017
Deal Value ($B) # of Deals Closed
First financings continue to drop as follow-ons make up bulk of VC dealsU.S. first financing VC activity
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VC funding reached 386 congressional districts in 2016 up from 299 in 2011
Source: NVCA Ecosystem Dashboard
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Software continues to be the largest area of VC investmentU.S. VC deal count by industry 2016
8%4%
3%
38%
25%
6%
CommercialServicesConsumer Goods &RecreationEnergy
IT Hardware
Media
Software
Other
*Through 12/31/2016Source: PitchBook
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Life Science deal flow and investment ($B)
310 501
621 541
128
340
595
582
500
139
0
200
400
600
800
1,000
1,200
1,4002
00
6
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
*
Life Sciences deal flowPharma & Biotech HC Devices & Supplies
$7
.5
$7
.5
$9
.1
$1
4.9
$1
1.7
$3
.6
26%28%
21%19%
16%
22%
0%
5%
10%
15%
20%
25%
30%
$0
$2
$4
$6
$8
$10
$12
$14
$16
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
*
Life Sciences capital investmentLife Sciences Capital Invested
($B)
*Through 3/31/2017Source: Q1 PitchBook-NVCA Venture Monitor
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Tech deal flow and investment ($B)
$1
5
$1
0
$1
9
$3
4
$3
6
$3
7
$1
1
1,853 1,835
2,983
4,8784,459
3,614
1,026
0
1,000
2,000
3,000
4,000
5,000
6,000
$0
$5
$10
$15
$20
$25
$30
$35
$40
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
Capital Invested ($B) Deal Count
*Through 3/31/2017Source: PitchBook
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Big Data deal flow and investment ($B)
$0.4 $1
.6
$2
.7
$5
.0
$5
.8
$2
.1
59
224
425
563530
188
0
100
200
300
400
500
600
$0
$1
$2
$3
$4
$5
$6
$7
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
Capital Invested ($B) Deal Count
*Through 3/31/2017Source: PitchBook
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Cybersecurity deal flow and investment ($B)
$1
.5
$1
.0
$3
.6
$2
.9
$1
.0
147
139
269254
70
0
50
100
150
200
250
300
$0
$1
$2
$3
$4
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
Capital Invested ($B) Deal Count
*Through 3/31/2017Source: PitchBook
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AI deal flow and investment ($B)
$0.2 $0
.7
$1
.7
$3
.6
$1
.5
30
75
252
300
151
0
50
100
150
200
250
300
350
$0
$1
$2
$3
$4
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
Capital Invested ($B) Deal Count
*Through 3/31/2017Source: PitchBook
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Exit Activity & IPOs
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Exit activity sets multi-year low as exit count slides for sixth quarterU.S. venture-backed exit activity
$4
.2
$1
1.9
$3
8.0
$1
0.2
$1
0.9
$1
7.7
$8
.1
$1
4.9
206
277268
238220
190171 169
0
50
100
150
200
250
300
$0
$5
$10
$15
$20
$25
$30
$35
$40
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
2013 2014 2015 2016 2017
Exit value ($M) # of Exits Closed
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Frosty exit market keeps deal/exit ratio at historically high levelsventure investments (#) compared to venture exits (#)
6.4x
10.0x
7.8x
10.8x 10.8x 10.7x
3,320
10,482
8,469
1,808
518 970 787
169
0
2,000
4,000
6,000
8,000
10,000
12,000
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
Investments/Exits # of Investments # of Exits
*Through 3/31/2017Source: PitchBook
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Corporate acquisitions are the main driver of venture exitsU.S. venture-backed exits by type
413
588 715
792 777 643
132
59
42
60
122 76
39
7
46
64
88
135 117
105
30
-
200
400
600
800
1,000
1,200
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
*
Buyout IPO Acquisition
*Through 3/31/2017Source: Q1 PitchBook-NVCA Venture Monitor
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Healthcare companies lead IPO count for six of the last eight years
0
20
40
60
80
100
120
140
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
*
Materials & Resources
Financial Services
Energy
B2C
B2B
Information Technology
Healthcare
*Through 3/31/2017Source: Q1 PitchBook-NVCA Venture Monitor
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There are over 18,000 active venture-backed companies in the USU.S. VC-backed company inventory by capital raised ($M)
11,313
3,159
1,3911,117 1,127
0
2000
4000
6000
8000
10000
12000
VC-Backed Company Inventory by Captial Raised ($M)
Under $5M $5M-$15M $15M-$30M $30M-$60M $60M+
Source: PitchBook
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In summary
1. Venture firms and the asset class as a whole is poised for another few years of growth.
2. Deal activity is cooling, but more in terms of reversion to the mean vs a bubble bursting.
3. The lack of exits is one of the biggest challenges facing venture today and is highlighted by the decline in IPOs.