startup funding report: historical analysis 2005 - 2014

Mattermark Startup Funding ReportPUBLISHED FEBRUARY 4, 2015

© 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 2

IntroductionThis report provides a data-driven exploration of the United States startup ecosystem. Take an in-depth look at the funding events, growth signals, exits and other insights into the fastest growing private companies. The resources that flow into startups each year are a calculated risk on the part of investors, founders, employees, service-providers and everyone who stands to benefit from the proliferation of new product, better services, and saved time and money.

Understanding how businesses are created, funded, grown and ultimately rewarded with sustainability or an exit helps inform the conversations and actions for the coming years, and it is our hope you will read this report and combine it with your special knowledge of your industry, region, role and community as you charge forward into the New Year.

Sincerely,

Danielle Morrill, CEO & Cofounder of Mattermark

Acknowledgements

The Startup Funding Report would not be possible without a team effort. Thank you to the Mattermark analysts, researchers, software engineers and designers who made this report possible: Sarah Catanzaro, and Avi Eisenberger.

MATTERMARK STARTUP FUNDING REPORT

http://MATTERMARK.COM


Table of ContentsDisclaimer

This information has been prepared by Mattermark Inc. solely for informational purposes. It is not, and should not be regarded as, investment advice or as a recommendation regarding any particular security or course of action. Opinions expressed herein are current opinions as of the date appearing in this material only and are subject to change without notice.

No part of this document may be reproduced in any manner, in whole or in part, without the prior written permission of Mattermark, Inc. This information is provided with the understanding that with respect to the material provided herein, you will make your own independent decision with respect to any course of action based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action.

Neither the information, nor any opinion contained herein, constitute a solicitation or offer by Mattermark, Inc. to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service. Mattermark, Inc. does not purport to, and does not, in any fashion, provide broker/dealer, consulting or any related services. Mattermark, Inc. shall not have any liability for any damages of any kind whatsoever relating to this material. By accepting this material, you acknowledge, understand and accept the foregoing.


5 Historical Analysis

32 Talent Wars

37 Who Funds The Most Capital Efficient Companies

39 Burn Book

45 Fastest Employee Growth in 12 Months



MethodologyTime Period

For this report we examined companies funded in the past ten years. Funding year represents the calendar year at which a company was funded. For example companies receiving funding in 2014, received funding any time between January 1, 2014 and December 31, 2014.

Funding Rounds

For venture rounds, we only included deals in which the amount of funding raised was disclosed.

Criteria

All analyses include USA companies funded over the past 10 years. Companies in the Biotech, Energy, Clean Tech and Pharmaceutical industries have been excluded from all analyses.

Data Sources

Mattermark uses a broad range of sources to present the most complete picture possible of the startup ecosystem. In addition to extensive primary source research sourced specifically for this report, Mattermark uses publicly-available data from Crunchbase (www.crunchbase.com), AngelList (www.angel.co), NASDAQ (www.nasdaq.com), the United States Securities and Exchange Commission (www.sec.gov), The White House Office of Management & Budget, and source relationships with thousands of investors, community leaders and startup founders.

Please send any questions, comments or corrections for the editor to [email protected].



http://www.crunchbase.com

http://www.angel.co

http://www.nasdaq.com

http://www.sec.gov

mailto:[email protected]

Historical AnalysisThe US startup ecosystem over the past 10 years

© 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587

MATTERMARK STARTUP FUNDING REPORT: 2005-2014

6

Median Investment Size by StageIn

vest

men

t Siz

e (in

USD

Mill

ion)

$0

$9

$18

$26

$35

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Seed Series A Series B Series C Series D Series E




7

Median Investment Size by Stage (Seed – Series B)Ye

ar o

ver Y

ear C

hang

e in

Inve

stm

ent S

ize

(%)

-60%

-40%

-20%

0%

20%

40%

60%

80%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Seed YoY Change Series A YoY ChangeSeries B YoY Change




8

Median Investment Size YoY Change by Stage (Series C – E)Ye

ar o

ver Y

ear C

hang

e in

Inve

stm

ent S

ize

(%)

-68%

-45%

-23%

0%

23%

45%

68%

90%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Series C YoY Change Series D YoY ChangeSeries E YoY Change




9

Number of Investments by Region - 2005 to PresentTo

tal N

umbe

r of I

nves

tmen

ts

0

500

1,000

1,500

2,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

SF Bay Area Boston Area Los Angeles AreaNew York Area




10

Average Investment Size by Region In

vest

men

t Siz

e (in

USD

Mill

ion)

$0

$4

$8

$12

$16

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

SF Bay Area Boston Area Los Angeles Area New York Area




11

Median Investment Size by Region In

vest

men

t Siz

e (in

USD

Mill

ion)

$0

$2

$4

$6

$8

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

SF Bay Area Boston Los Angeles New York




12

Total Investment Size by RegionIn

vest

men

t Siz

e (in

USD

Mill

ion)

0

7.5

15

22.5

30

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Bay Area New York BostonLos Angeles




13

Seed Investment Sizes In

vest

men

t Siz

e (in

USD

Mill

ion)

$0.00

$0.25

$0.50

$0.75

$1.00

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

MedianAverage




14

Number of Seed Investments by Region To

tal N

umbe

r of I

nves

tmen

ts

0

150

300

450

600

2006 2007 2008 2009 2010 2011 2012 2013 2014

SF Bay Area New York AreaBoston Area Los Angeles Area




15

Average Seed Investment Sizes by Region In

vest

men

t Siz

e (in

USD

Mill

ion)

$0.00

$0.75

$1.50

$2.25

$3.00

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

SF Bay Area Boston Area Los Angeles Area New York Area




16

Series A Investment Sizes In

vest

men

t Siz

e (in

USD

Mill

ion)

$0.00

$1.75

$3.50

$5.25

$7.00

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

MedianAverage




17

Number of Series A Investments by Region To

tal N

umbe

r of I

nves

tmen

ts

0

75

150

225

300

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Bay Area Boston Los Angeles New York




18

Average Series A Investment Sizes by Region In

vest

men

t Siz

e (in

USD

Mill

ion)

$0.00

$2.75

$5.50

$8.25

$11.00

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Bay Area Boston Area Los Angeles Area New York Area




19

Series B Investment Sizes In

vest

men

t Siz

e (in

USD

Mill

ion)

$0

$4

$8

$12

$16

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

MedianAverage




20

Number of Series B Investments by Region To

tal N

umbe

r of I

nves

tmen

ts

0

40

80

120

160

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014





21

Average Series B Investment Sizes by Region In

vest

men

t Siz

e (in

USD

Mill

ion)

$0

$6

$12

$18

$24

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014





22

Series C Investment Sizes In

vest

men

t Siz

e (in

USD

Mill

ion)

$0

$8

$15

$23

$30

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

MedianAverage




23

Number of Series C Investments by Region To

tal N

umbe

r of I

nves

tmen

ts

0

25

50

75

100

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014





24

Average Series C Investment Sizes by RegionIn

vest

men

t Siz

e (in

USD

Mill

ion)

$0

$18

$35

$53

$70

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Bay Area BostonLos Angeles New York




25

Series D Investment Sizes In

vest

men

t Siz

e (in

USD

Mill

ion)

$0

$15

$30

$45

$60

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

MedianAverage




26

Number of Series D Investments by Region To

tal N

umbe

r of I

nves

tmen

ts

0

13

25

38

50

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014





27

Average Series D Investment Sizes by Region In

vest

men

t Siz

e (in

USD

Mill

ion)

$0

$25

$50

$75

$100

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014





28

Series E Investment Sizes In

vest

men

t Siz

e (in

USD

Mill

ion)

$0

$18

$35

$53

$70

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

MedianAverage




29

Number of Series E Investments by Region To

tal N

umbe

r of I

nves

tmen

ts

0

10

20

30

40

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014





30

Average Series E Investment Sizes by Region In

vest

men

t Siz

e (in

USD

Mill

ion)

$0

$23

$45

$68

$90

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014





31

Total Funding by Stage U

.S. D

olla

rs (i

n M

illio

ns)

0

7,500

15,000

22,500

30,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Seed Series A Series B Series C Series D Series E


Talent WarField Report: Funds & Companies



33

Accelerator Portfolio EmployeesN

umbe

r of E

mpl

oyee

s

0

7500

15000

22500

30000

Y Combinator 500 Startups Techstars

Total Employees Employees 1 Month Ago Employees 6 Months Ago




34

Accelerator Portfolio Company Employees

Kleiner Perkins

Accel

Sequoia

SV Angel

NEA

Benchmark

Y Combinator

Lightspeed

General Catalyst

A16Z

Greylock

Google Ventures

Redpoint

Bessemer

0 15000 30000 45000 60000

Total Employees Employees 1 Month Ago Employees 6 Months Ago




35

Average Employees by Stage

LightspeedAccel

GreylockBenchmark

Lerer VenturesGeneral Catalyst

BessemerSequoia

SV AngelA16Z

Kleiner PerkinsFoundry Group

Y CombinatorGoogle Ventures

Union SquareNEA

RedpointAtlas Venture

0 100 200 300 400

Series A Series B Series C




36

Average Series A Stage Startup Team Size

BessemerGeneral Catalyst

SequoiaRedpoint

Google VenturesBenchmark

Foundry GroupKleiner Perkins

Atlas VentureAccel

Andreessen HorowitzNEA

GreylockLerer Ventures

SV AngelY Combinator

Union Square VenturesBENCHMARK

Lightspeed

0 15 30 45 60

Median Employee Count Average Employee Count


Who Funds The Most Capital Efficient Companies?



38

Top Participants in U.S. Series A Rounds*SV Angel

True VenturesLerer Hippeau Ventures

Great Oaks Venture CapitalAccel Partners

First Round CapitalSequoia Capital

Kleiner Perkins Caufield & ByersThrive Capital

SoftBank CapitalGrotech VenturesUpfront Ventures

Atlas VentureFuel Capital

Lightspeed Venture Partnersff Venture Capital

Silicon Valley BankFelicis Ventures

Total Number of Companies0 5 10 15 20


Burn BookSeptember 2014



40

U.S. FUNDING DISTRIBUTION

7,464 startups have raised new funding in the past 2 years

0 - 1 M

1 - 3M

3 - 10M

10 - 25M

25 - 50M

50 - 100M

100 - 200M

200 - 500M

500M+

0 875 1750 2625 3500

0 - 1 years 1 - 2 yearsLast Funding Round Was In the Past:

Cur

rent

Fun

ding

Ran

ge (i

n U

SD M

illio

n)



50 - 100M

100 - 200M

200 - 500M

500M+

0 125 250 375 500

0 - 1 years1 - 2 years

Cur

rent

Fun

ding

Ran

ge (i

n U

SD M

illio

n)MATTERMARK STARTUP FUNDING REPORT: 2005-2014

41

U.S. FUNDING DISTRIBUTION

511 STARTUPS with > $50M in funding have raised in the past 2 years

Last Funding in




42

No More VC Needed?

107 companies with > $50M in funding have NOT raised in the past 2 years, but have made hires in past 6 months

50 - 100M

100 - 200M

200 - 500M

500M+

Time Since Last Funding (Years)

0 1 2 3 4

Cur

rent

Fun

ding

Ran

ge (i

n U

SD M

illio

n)




43

No More VC Needed?

352 companies with > $50M have raised in the past year.

3%

33%

64%

B2BB2CMarketplace


Fastest Employee Growth In 12 Months

Fastest Employee Growth Rate Since Last Round Total Funding > $50M, Raised in Past 12 Months



45

Consumer (w/ >$50M Funding)

Company Total Funding Total Employees Employees Added Since Last Round

Employee Months Added Since Last

Round

Blue Apron $58M 145 99 2760

Tango $369.25M 223 74 2688

Birchbox $71.9M 354 86 2558

HotelTonight $80.69M 185 47 2216

One Medical Group $116.5M 379 67 2005

Prosper $189.9M 169 73 1866

1stdibs $117M 152 33 1836

BuzzFeed $96.3M 698 185 1762

VICE $580M 1412 207 1525

Rdio $125.7M 177 42 1116




46

Marketplace (w/ >$50M Funding)



Round

Lyft $332.5M 1532 1018 32538

Airbnb $794.82M 2055 682 19411

Coursera $85M 313 209 13462

Birchbox $71.9M 354 86 2558

Prosper $189.9M 169 73 1866

Thumbtack $148.2M 439 160 1274

Uber $4907.45M 4143 516 516

Wish $128.7M 64 28 444

Minted $89.1M 358 114 323

Etsy $97.26M 1532 62 319




47

B2B Software (w/ >$50M Funding)



Round

Kony Solutions $98.4M 1069 595 6703

Zenefits $83.6M 396 300 5204

Sprinklr $77.5M 559 284 7808

Atlassian $210M 1019 278 6690

Domo $248.65M 607 249 11941

Spredfast $64.1M 380 207 13151

Mulesoft $130.5M 472 180 6584

Nutanix $312.2M 757 175 1485

AtTask $62M 565 168 8275

InsideSales.com $143.05M 574 158 1766




48

Hardware (w/ >$50M Funding)



Round

NJOY $165M 109 15 613

Aquantia $153.62M 115 8 176

SimpliSafe $57M 34 11 153

Luxtera $91.08M 80 5 103

MinuteKey $55.8M 30 14 82

Roku $153.1M 318 23 56

4moms $60M 142 10 47

Anki $105M 87 8 41

Prysm $293.08M 202 10 10

Misfit Wearables $63M 110 4 4


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