Professional Documents
Culture Documents
Jeffrey E. Sohl
Professor of Entrepreneurship and Decision Science
Director, Center for Venture Research
University of New Hampshire
U.S. Securities and Exchange Commission
Washington, DC
February 25, 2016
The entrepreneur
The technology
Pre Seed
FDRS
$25K
Demand
CF
$100K
Seed/ Start-Up
Early
Angels
$500K
Later
Venture Funds
$2,000K
19.6%
$2.0 M
$210,000
Conv. debt
Debt
Equity
21%
7%
72%
42%
34%
10%
5%
4%
Business Angels
Business Angels
$28.0
80,000
$26.0
75,000
$24.0
70,000
65,000
$22.0
60,000
$20.0
55,000
$18.0
50,000
$16.0
45,000
40,000
$12.0
35,000
$10.0
30,000
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$14.0
Amount
Deals
Pre Seed
FDRS CF
$25K
Demand
Supply
Seed/ Start-Up
$100K
Early
Angels
$500K
Later
Venture Funds
$2,000K
-------------------------------Funding Gap
Angel Deals
Sector
Health
Software
Biotechnology
Retail
Media
IT Services
Industrial/Energy
Fin/Bus Products
2008 2009
16% 17%
13% 19%
11%
8%
12% 9%
7%
4%
6%
5%
8% 17%
6%
5%
2010
30%
16%
15%
5%
4%
5%
8%
2%
2011
19%
23%
13%
4%
5%
7%
13%
5%
2012
14%
23%
11%
12%
7%
5%
7%
6%
2013
14%
23%
11%
7%
16%
5%
6%
7%
2014
16%
27%
5%
9%
1%
10%
5%
8%
Deal Size
2008
2009
2010
2011
2012
2013
2014
Average
deal size
$346,500
$308,205
$324,700
$339,890
$341,800
$350,830
$328,500
$ invested
/investor
$73,810
$67,968
$75,735
$70,650
$85,435
$83,050
$76,152
Avg.
Equity
Recvd.
10.4%
13.5%
13.5%
13.4%
12.7%
12.5%
12.3%
Implied
valuation
$2.1m
$2.3m
$2.4m
$2.5m
$2.7m
$2.8m
$2.7m
1997: 12.00%
1998: 14.00%
2000: 23.26%
2001: 10.79%
2002: 7.10%
2003: 10.3%
2004: 18.5%
2005: 23.0%
2006: 20.1%
2007: 14.0%
2008: 10.0%
2009: 14.5%
2010 18.4%
2011 18.3%
2012 21.3%
2013 21.6%
2014 19.2%
25%
20%
15%
10%
5%
0%
1997
2001
2004
2007
2010
2013
Total
$22.1 billion
$25.5 billion
$30.7 billion
$28.3 billion
$17.7 billion
$21.8 billion
$28.4 billion
$26.9 billion
$29.7 billion
$49.5 billion
$58.8 billion
Deals
3,008
3,416
3,918
3,808
2,795
3,277
3,673
3,770
4,106
4,378
4,380
per Deal
$7.4 million
$7.5 million
$7.8 million
$7.4 million
$6.3 million
$6.9 million
$7.7 million
$7.1 million
$7.2 million
$11.3 million
$13.4 million
$767 m (3.5%)
$1.2 b (4.7%)
$1.2 b (3.9%)
$1.5 b (5.3%)
$1.7 b (9.6%)
$1.7 b (7.8%)
$0.9 b (3.2%)
$0.7 b (2.6%)
$1.0 b (3.3%)
$0.7 b (1.4%)
$0.9 b (1.5%)
Pre Seed
FDRS CF
$25K
Demand
Supply
Seed/ Start-Up
$100K
Early
Angels
$500K
Later
Venture Funds
$2,000K
--------------------------------Funding Gap
Capital Gap