venture capital report - images.dowjones.com · vida ventures llc vida ventures llc $254.80 boston...

of 20 /20
VENTURE CAPITAL REPORT Venture Capital Report U.S. | 4Q | 2017

Author: nguyennguyet

Post on 16-Jul-2018

215 views

Category:

Documents


0 download

Embed Size (px)

TRANSCRIPT

  • V E N T U R E C A P I T A L R E P O R T

    Venture Capital Report U.S. | 4Q | 2017

  • V E N T U R E C A P I T A L R E P O R T

    VENTURE CAPITAL REPORT

    The following report presents Dow Jones VentureSources quarterly findings for U.S. venture capital fundraising, investment, valuation,

    and liquidity. The included charts and graphs offer a comprehensive view of the trends currently affecting the venture capital market.

    Highlights for 4Q 2017 include:

    U.S. venture capital fundraising decreased in amount invested while the number of funds increased;

    Venture capital investment in U.S. companies declined;

    Amount raised through Initial public offerings (IPOs) tripled in the fourth quarter of 2017, mergers and acquisitions (M&As) fell in comparison with the previous quarter.

    2

  • V E N T U R E C A P I T A L R E P O R T

    VENTURE FUNDRAISING DECREASES IN THE U.S. DURING 4Q 2017

    3

    FUNDRAISING

    U.S. VC Fundraising (2014 2017) Based on multiple closings

    121 venture capital funds raised $4.75 billion in 4Q 2017, a 51%

    decrease in the amount raised though number of funds were

    up 3% from the prior quarter.

    Flagship Pioneering Fund VI LP was the largest

    U.S. venture capital fund of 4Q 2017, raising $618 million and

    accounting for 13% of the total venture capital financing

    raised during the quarter.

    4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17

    Amount Raised ($B) $9.37 $9.01 $13.70 $5.76 $9.13 $14.19 $11.72 $8.78 $9.42 $8.12 $14.27 $9.74 $4.75

    Number of Funds 114 80 113 77 102 128 116 116 143 166 153 117 121

    0

    20

    40

    60

    80

    100

    120

    140

    160

    180

    $-

    $2.00

    $4.00

    $6.00

    $8.00

    $10.00

    $12.00

    $14.00

    $16.00

  • V E N T U R E C A P I T A L R E P O R T

    LARGEST VC FUNDS RAISED IN 4Q 2017

    4

    FUNDRAISING

    Firm Name Fund Name Amount ($M) City State Offering Status Fund Type Fund Category Closing Type

    Flagship Pioneering Flagship Pioneering Fund

    VI LP $618.00 Cambridge MA Closed Early-stage

    venture capital

    Venture Capital Final

    Andreessen Horowitz AH Bio Fund II LP $450.00 Menlo Park CA Closed Early-stage

    venture capital

    Venture Capital Final

    Frazier Healthcare Partners Frazier Life Sciences IX LP $418.93 Seattle WA Closed Early-stage

    venture capital Venture Capital Final

    Icon Ventures Icon Ventures VI LP $265.00 Palo Alto CA Closed Early-stage

    venture capital Venture Capital Final

    Vida Ventures LLC Vida Ventures LLC $254.80 Boston MA Closed Multi-stage

    venture capital Venture Capital Final

  • V E N T U R E C A P I T A L R E P O R T

    U.S. VENTURE INVESTMENT IN 4Q 2017 DECREASES

    U.S.-based VC-backed companies received $18.88 billion in

    957 equity deals in 4Q 2017, which is at a similar level to the

    capital raised in the third quarter of 2017. During the same

    period, the number of deals decreased 10%.

    Consumer Services received the highest amount of

    investment, accounting for 25% of the total capital raised.

    The sector experienced a sharp rise of 78% from the last

    quarter, up 90% when compared to the same period last

    year.

    5

    FINANCING

    Equity Financings into U.S.- Based, VC-backed Companies (20142017)

    4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17

    Amount Raised ($B) $18.70 $16.80 $19.90 $20.83 $20.14 $13.96 $18.17 $14.14 $11.18 $17.37 $17.85 $19.06 $18.88

    Number of Deals 1115 1094 1231 1097 1139 1058 1050 1056 965 1122 1121 1059 957

    0

    200

    400

    600

    800

    1000

    1200

    1400

    $0.00

    $5.00

    $10.00

    $15.00

    $20.00

    $25.00

  • V E N T U R E C A P I T A L R E P O R T

    Number of Deals

    EQUITY FINANCINGS IN U.S.BASED, VCBACKED COMPANIES, BY ROUND CLASS (QUARTER ON QUARTER, 20142017)

    6

    FINANCING

    4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17

    Restart 7 6 5 3 2 4 4 4 2 6 1 4 0

    Later 311 300 350 315 312 291 301 307 256 310 253 247 203

    Second 206 242 266 219 240 232 231 202 197 224 193 206 165

    First 410 377 422 395 398 369 372 367 349 335 311 247 211

    Seed 99 87 110 96 113 95 67 97 81 120 153 139 133

    0

    100

    200

    300

    400

    500

  • V E N T U R E C A P I T A L R E P O R T

    Amount Raised ($B)

    EQUITY FINANCINGS IN U.S.-BASED, VC-BACKED COMPANIES, BY ROUND CLASS (QUARTER ON QUARTER, 20142017)

    7

    FINANCING

    4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17

    Restart $0.13 $0.04 $0.09 $0.06 $0.02 $0.06 $0.04 $0.55 $0.03 $0.08 $0.01 $0.04 $0.00

    Later $11.95 $10.22 $12.01 $12.37 $13.30 $8.22 $8.37 $7.50 $5.04 $8.13 $10.05 $10.82 $9.90

    Second $3.06 $3.24 $3.81 $3.66 $3.09 $2.24 $2.74 $2.34 $2.46 $3.88 $2.96 $3.50 $2.88

    First $2.85 $2.41 $2.63 $2.96 $2.99 $2.48 $2.50 $3.12 $2.31 $3.92 $2.95 $2.03 $2.48

    Seed $0.12 $0.10 $0.14 $0.12 $0.14 $0.15 $0.11 $0.13 $0.12 $0.21 $0.39 $0.33 $0.35

    $0.00

    $2.00

    $4.00

    $6.00

    $8.00

    $10.00

    $12.00

    $14.00

  • V E N T U R E C A P I T A L R E P O R T

    EQUITY FINANCINGS IN U.S.-BASED, VC-BACKED COMPANIES, MEDIAN DEAL SIZE ($M) (20142017)

    8

    FINANCING Median Equity Deal Size ($M)

    4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17

    Median Equity Deal Size ($M) $5.51 $5.00 $5.00 $5.50 $5.37 $5.00 $5.00 $5.00 $5.00 $5.00 $6.00 $5.40 $6.50

    $0.00

    $1.00

    $2.00

    $3.00

    $4.00

    $5.00

    $6.00

    $7.00

  • V E N T U R E C A P I T A L R E P O R T

    EQUITY FINANCINGS IN U.S.-BASED, VC-BACKED COMPANIES, BY INDUSTRY GROUP (4Q 2017)

    Consumer Services took first place with a 25% of total investment, accumulating

    $4.74 billion through 141 deals. While the number of deals declined compared to

    the number of deals in 3Q17, the amount raised almost doubled (up 78%).

    Healthcare kept its second place with $4.71 billion raised through 214 deals.

    Compared to the performance of this sector in the previous quarter, the numbers

    signify a 3% decrease in deal flow, yet a 16% rise in amount raised. The sectors

    investment figures represent approximately 25% of total equity investment in

    U.S. VC-backed companies for the quarter.

    Information Technology placed third this quarter in terms of equity financing,

    accounting for 24% of all 4Q17 investment. The 310 deals drew $4.53 billion, an

    increase of 33% in capital raised compared to the previous quarter.

    9

    FINANCING 4Q'17 Industry Breakdown By Number of Deals

    4Q17 Industry Breakdown By Amount Raised ($B)

    203

    50

    141

    12 214

    23

    310

    Business and Financial Services

    Consumer Goods

    Consumer Services

    Energy & Utilities

    Healthcare

    Industrial Goods & Materials

    Information Technology

    16%

    8%

    25%

    1%

    25%

    1%

    24%

    Business and Financial Services

    Consumer Goods

    Consumer Services

    Energy & Utilities

    Healthcare

    Industrial Goods & Materials

    Information Technology

  • V E N T U R E C A P I T A L R E P O R T

    TOP 4 DEALS INTO VC-BACKED COMPANIES (4Q 2017)

    1 0

    FINANCING

    Co. Name Location Industry Code Industry Segment Industry Group Brief Description Close Date Round Type Raised ($M) Round Investors (* denotes lead)

    Lyft Inc. San Francisco, CA Transportation

    Services Travel and Leisure

    Consumer Services

    Provider of an on-demand ridesharing

    service platform. 10/19/2017 Later $1,500.00

    CapitalG*, Fidelity Management & Research Co., Ontario Teachers' Pension Plan Board, Undisclosed Investor(s)

    NextEV Ltd. San Jose, CA Automobiles Vehicles and Parts Consumer Goods Provider of electric and autonomous

    vehicles. 11/8/2017 5th $1,000.00

    Baillie Gifford & Co. Ltd., China Asset Management Co. Ltd., CITIC Capital Holdings Ltd., Lone Pine Capital, Russia-China

    Investment Fund, Tencent Holdings Ltd.*

    Urban Compass Inc. New York, NY Real Estate Financial

    Institutions and Services

    Business and Financial Services

    Provider of a real estate purchase and

    rental platform. 12/7/2017 6th $550.00

    Fidelity Investments*, IVP, SoftBank Vision Fund, Wellington Management Co. LLP

    Magic Leap Inc. Dania Beach, FL Displays Electronics and

    Computer Hardware Information Technology

    Developer of an augmented reality visual computing

    system.

    10/17/2017 5th $502.00

    Alibaba Group Holding Ltd., EDB Investments, Fidelity Management & Research Co., Google Inc., Grupo Globo, Janus

    Henderson Investors, JPMorgan Chase & Co., T. Rowe Price Group Inc., Temasek Holdings Pvt. Ltd.*

  • V E N T U R E C A P I T A L R E P O R T

    MOST ACTIVE INVESTORS FOR U.S.-BASED, VC-BACKED COMPANIES (4Q 2017)

    1 1

    FINANCING

    28

    21

    14 13

    12 12 12

    0

    5

    10

    15

    20

    25

    30

    New Enterprise Associates Inc.

    Keiretsu Forum Y Combinator GV Sequoia Capital Intel Capital Accel Partners

  • V E N T U R E C A P I T A L R E P O R T

    NUMBER OF DEALS/AMOUNT RAISED BY PRIMARY REGION (4Q 2017)

    1 2

    FINANCING Number of Deals in 4Q 2017 by Primary Region

    Amount Raised ($B) in 4Q 2017 by Primary Region

    Number of Deals by Primary Region 4Q 2017 212

    18

    61

    48

    88

    326

    42

    38

    45

    75

    Mid-Atlantic Midwest Central

    Midwest East

    Mountain

    New England

    Northern California

    Pacific Northwest

    South Central

    South East

    Southern California

    Amount Raised ($B) by Primary Region 4Q 2017 $3.67

    $0.34

    $0.64

    $0.43

    $2.01

    $9.46

    $0.44

    $0.22

    $0.87

    $0.81

    Mid-Atlantic

    Midwest Central

    Midwest East

    Mountain

    New England

    Northern California

    Pacific Northwest

    South Central

    South East

    Southern California

    Mid-Atlantic

    Midwest Central

    Midwest East

    Mountain

    New England

    Northern California

    Pacific Northwest

    South Central

    South East

    Southern California

  • V E N T U R E C A P I T A L R E P O R T

    NUMBER OF DEALS/AMOUNT RAISED BY SUBREGION (4Q 2017)

    1 3

    FINANCING

    Number of Deals by subregion 4Q 2017

    Amount Raised ($B) by subregion 4Q 2017

    Austin Metro 17 $0.11

    Boston Metro 79 $1.97

    Chicago Metro 26 $0.32 Dallas-Fort Worth 5 $0.05

    Los Angeles Metro 39 $0.36

    New York Metro 147 $2.41

    Orange County 10 $0.04

    Potomac 29 $0.66

    San Diego Metro 22 $0.35

    San Francisco Bay Area 327 $9.02

    Seattle Metro 31 $0.29

    Subregion Breakout Number of Deals

    Subregion Breakout Amount Raised ($B)

    17

    79

    26

    5

    39

    147

    10

    29

    22

    327

    31

    Austin Metro

    Boston Metro

    Chicago Metro

    Dallas-Fort Worth

    Los Angeles Metro

    New York Metro

    Orange County

    Potomac

    San Diego Metro

    San Francisco Bay Area

    Seattle Metro

    Number of Deals by Subregion

    $0.11

    $1.97

    $0.32

    $0.05

    $0.36

    $2.41

    $0.04

    $0.66

    $0.35

    $9.02

    $0.29

    Austin Metro

    Boston Metro

    Chicago Metro

    Dallas-Fort Worth

    Los Angeles Metro

    New York Metro

    Orange County

    Potomac

    San Diego Metro

    San Francisco Bay Area

    Seattle Metro

    Amount Raised ($B) by subregion

  • V E N T U R E C A P I T A L R E P O R T

    VENTURE M&A AND IPO MARKET ACTIVITY IN THE U.S. DURING 4Q 2017

    Mergers and acquisitions (M&As) for venture-backed

    companies decreased 28% in value from 3Q 2017, with

    135 deals getting $14.05 billion.

    The number of IPOs in 4Q 2017 more than tripled during

    the same period. The amount raised was $2.03 billion,

    a 228% increase from the previous quarter.

    1 4

    LIQUIDITY

    Exit Opportunities for U.S. VCbacked Companies (20142017)

    0 20 40 60 80 100 120 140 160 180

    4Q'14

    1Q'15

    2Q'15

    3Q'15

    4Q'15

    1Q'16

    2Q'16

    3Q'16

    4Q'16

    1Q'17

    2Q'17

    3Q'17

    4Q'17

    4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17

    IPOs 23 13 29 12 16 6 11 13 8 7 18 8 24

    M&As 140 156 114 149 141 147 160 160 146 166 154 145 135

  • V E N T U R E C A P I T A L R E P O R T

    U.S. VC-BACKED M&As (2014-2017)

    135 M&As of venture-backed companies in the U.S.

    amounted to $14.05 billion during 4Q 2017.

    Compared to 3Q 2017, when a total of 145 transactions accumulated $19.62 billion, both the

    number of deals and the amount raised decreased

    by 7% and 28%, respectively.

    The largest M&A of the quarter was musical.ly Inc. which was valued at $500 million in

    its last round from 2016. In December this year the

    company was acquired for $1 billion by Beijing Byte

    Dance Telecommunications Co. Ltd.

    1 5

    LIQUIDITY

    U.S. VC-backed M&A Activity (2014 - 2017)

    4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17

    Amount Paid ($B) $35.44 $11.88 $10.23 $15.01 $16.15 $22.18 $22.06 $24.85 $18.93 $24.16 $18.59 $19.62 $14.05

    Number of M&As 140 156 114 149 141 147 160 160 146 166 154 145 135

    0

    20

    40

    60

    80

    100

    120

    140

    160

    180

    $-

    $5.00

    $10.00

    $15.00

    $20.00

    $25.00

    $30.00

    $35.00

    $40.00

  • V E N T U R E C A P I T A L R E P O R T

    TOP 3 U.S. M&As (4Q 2017)

    1 6

    LIQUIDITY

    Company Name Location Brief Description Industry Code Industry Segment Industry Group Close Date Round Type Amount Paid ($M)

    Acquirer

    musical.ly Inc. Santa Monica,

    CA Provider of a lip-syncing

    app for smartphones. Communications

    Software Software Information Technology 12/19/2017 Acquisition $1,000.00

    Beijing Byte Dance

    Telecommunications Co

    NeoTract Inc. Pleasanton,

    CA

    Provider of minimally invasive devices focused

    on urological and gynecological disorders.

    Therapeutic Devices (Minimally Invasive /

    Noninvasive)

    Medical Devices and Equipment Healthcare 10/2/2017 Acquisition $725.00 Teleflex

    Rimini Street Inc. Las Vegas, NV

    Provider of a third-party enterprise software

    support and maintenance services in United States

    and Canada.

    IT Consulting Business Support

    Services Business and

    Financial Services 10/11/2017 Reverse Merger $638.00 GP Investments

    Acquisition Corp.

  • V E N T U R E C A P I T A L R E P O R T

    U.S. VC-BACKED IPOs (2014-2017)

    24 venture-backed companies raised $2.03 billion through public

    offerings in 4Q 2017.

    Both the number of deals and capital raised grew dramatically from the last quarter.

    The largest IPO of 4Q 2017 raised almost twice as much as the largest listing from the previous quarter. Denali Therapeutics

    Inc. (NASDAQ: DNLI) raised $ 250 million in an Initial Public

    Offering which valued it at $ 1.7 billion. The company was

    backed by investors such as ARCH Venture Partners and F-

    Prime Capital.

    1 7

    LIQUIDITY

    U.S. VC-backed IPO Activity (2014 - 2017)

    4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17

    Raised ($B) through IPO $3.15 $0.93 $2.57 $1.60 $1.36 $0.38 $0.79 $0.99 $0.69 $3.95 $1.75 $0.62 $2.03

    Number of IPOs 23 13 29 12 16 6 11 13 8 7 18 8 24

    0

    5

    10

    15

    20

    25

    30

    35

    $-

    $0.50

    $1.00

    $1.50

    $2.00

    $2.50

    $3.00

    $3.50

    $4.00

    $4.50

  • V E N T U R E C A P I T A L R E P O R T

    TOP 3 U.S. IPOs (4Q 2017)

    1 8

    LIQUIDITY

    Company Name Location Brief Description Industry Code Industry Segment Industry Group Close Date Round Type

    Raised through IPO ($M)

    Exchange

    Denali Therapeutics Inc.

    South San Francisco, CA

    Developer of therapies for neurodegenerative diseases.

    Biotechnology Therapeutics Biopharmaceuticals Healthcare 12/8/2017

    IPO $250.00 NASDAQ: DNLI

    MongoDB Inc. New York, NY Provider of an open-source,

    non-relational database. Data Management

    Services Business Support

    Services Business and

    Financial Services 10/19/2017 IPO $192.00 NASDAQ:MDB

    Apellis Pharmaceuticals

    Inc. Crestwood, KY

    Developer of therapeutic compounds for autoimmune and inflammatory diseases.

    Biotechnology Therapeutics Biopharmaceuticals Healthcare 11/9/2017

    IPO $150.00 NASDAQ: APLS

  • V E N T U R E C A P I T A L R E P O R T

    ABOUT US

    Dow Jones VentureSource helps venture capitalists, corporate development executives, investment bankers and service providers find deal and

    partnership opportunities, perform comprehensive due diligence and examine trends in venture capital investment, fund-raising and liquidity. It

    provides accurate, comprehensive data on venture-backed companies including their investors and executives in every region, industry and stage of

    development throughout the world.

    The investment figures included in this release are based on aggregate findings of Dow Jones' proprietary research and are contained in VentureSource.

    This data was collected through surveys of professional firms, interviews with company executives, and from secondary sources. These venture capital

    statistics cover equity investments into early stage, innovative companies and do not include companies receiving funding solely from corporate,

    individual, and/or government investors. Figures contained throughout the report current at time of editorial but are subject to change without notice.

    No statement herein is to be construed as a recommendation to buy or sell securities or to provide investment advice.

    1 9

  • V E N T U R E C A P I T A L R E P O R T

    ABOUT DOW JONES

    Dow Jones is a global provider of news and business information, delivering content toconsumers and organizations around the world across multiple

    formats, including print, digital, mobile and live events.Dow Jones has produced unrivaled quality content for more than 125 years and today has one of

    the worlds largest newsgathering operations globally. It produces leading publications and products including the flagship Wall Street Journal,

    Americas largest newspaper by paid circulation; Factiva, Barrons, MarketWatch, Financial News, DJX, Dow Jones Risk & Compliance, Dow Jones

    Newswires, and Dow Jones VentureSource.

    MEDIA CONTACT:

    Colleen Schwartz 212.416.3583

    [email protected]

    2 0