Venture Capital Update

Andy White Analysis Manager

PitchBook Data, Inc.
andy.white@pitchbook.com

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 THE PITCHBOOK PLATFORM
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21,860 94,438 150,137 33,460 514,170

LPs Commitments GPs/Investors Funds Performance
Data Lines

696,194 491,333 124,748 25,463 1,097,011

Portfolio Transactions Valuations Advisory Firms People
Companies
National VC Trends
Stages of funding over view

Accelerators/incubators
Later stage valuations drive piles of capital
despite fewer deals
U.S. VC deal flow
$90 12,000
60% of $ in LVC
$80 10,199 $78B
54% of $ in LVC Deals 10,000
$70 Deals $68B
$60
9,177 8,000

$50
6,000
$40 $35B 4,389
$30 $26B 4,000
4,197
$20
2,000
$10

$0 0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Capital invested ($B) Deal count

*Through 12/31/2015
 2015: 100 deals of $100M+
U.S. VC deal flow by quarter

$25 3,000

2,562 $21B
$20 2,299 $19B 2,500
2,104 2,492 $18B
2,000
1,756
$15 1,985
1,328 $13B 1,500
$10B $10B
$10 $9B
1,000

$5
500

$0 0
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
2010 2011 2012 2013 2014 2015
Capital invested ($B) Deal count
*Through 12/31/2015
 Unicorn rounds have skyrocketed
U.S. VC rounds valued over $1 billion

$20 69 80
$43.3B invested
$18 $17.4B
across only 131 $13.7B 70
$16 companies since
2006. 60
$14
65
50
$12

$10 40

$8
30
21
$6 $5.4B 17
20
$4
19 $2.7B
$0.7B $0.6B $0.7B $1.8B
$2 $0.03B $0.3B 10

$0 1 3 6 5 5 0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Capital invested ($B) Deal count

*Through 12/31/2015
 Median late stage valuations more than
double from 2010 levels
Median pre-money valuation ($M) by series
$200
$184.0
$180

$160 $136.4
$140 2.8X
$120 $99.0
$100
$80.0
$80 $65.8
$60 $78.3
$40 $56.7 $60.2
$45.2 $38.1
$20

$0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Series C Series D+
*Through 12/31/2015
 Tourists filling VC funding gap
U.S. VC fund contributions vs. U.S. VC capital invested
$90 Non-traditional VC $78.2B
investors account
$80
for an increasing $68.0B
$70 share of VC $
spend.
$60 $44.0B
$50

$40 $35.4B $30.7B

$30
$32.6B $28.6B
$20 $24.9B $26.1B $23.2B
$10

$0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Total VC Fund LP Contributions ($B) Total Capital Invested ($B)

*Through 12/31/2015
 A glut of heavily funded companies will be
seeking public market exits
% of VC Ba cke d Cos to I P O by VC Ca p ita l R a is e d (2 0 0 6 -2 01 5)
60%

49.7%
50%

40% 35.1%
Over 500
30% companies
21.7%
having raised
20% $100M+ yet to
be exited.
7.8%
10%

1.5% 2.0% 3.2%

0%
Under $5M $5M - $10M $10M - $20M $20M - $50M $50M - $75M $75M - $100M $100M+
Total VC Capital Raised

*Through 12/31/2015
 Seed round valuations reach levels
previously seen at series A
Median pre-money valuation ($M) by series
$45
$42
$40
$34
$35

$30 $26
$25 $22
$19
$20
$15.4
$15 $12.7
$9.6
$10 $7.3 $6.7
$5
$4.8 $4.9 $5.5
$0 $3.2
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Seed Series A Series B

*Through 12/31/2015
 Massive increase in angel & seed rounds
U.S. VC deal count by stage

6,000
5175
4893
5,000

4,000

3142
3,000 2662
2238
2214
2,000 1575
1285 1882
1481 1622
1,000

698
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Angel/Seed Early VC Later VC

*Through 12/31/2015
 Accelerators & incubators are springing up
everywhere
U.S. accelerator deal round count
3000

2547
2500

2094 2134
2000

1500
1292

1000
685
500 344
121 188
42 93
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

*Through 12/31/2015
 63% of funds under $100M in 2015
U.S. VC fundraising

$40 300
$34B $36B
$35
$34B
250

$30 259 244

200
$25

180
$20 150
116
$15
2007 $12B 2015 100

$10 Avg. size: Avg. size:

$211M $149M 50
$5

$0 0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Capital raised ($B) Fund count

*Through 12/31/2015
Washington VC
Trends
 WA accounts for nearly 70% of capital
invested in the PNW since 2013
PNW VC capital invested ($M) by state
$2,500

$2,021M
$2,000 $1,892M

$1,500
$1,238M

$1,000

$579M
$500 $365M $398M
$314M $282M
$204M
$24M $22M $83M
$0
2013 2014 2015

British Columbia Idaho Oregon Washington

*Through 12/31/2015
 More WA-based companies are raising
capital
WA V C d e a l f l o w
$2.5 350
319
303
272 300
$2.0
$2.0B
$1.8B
250
$1.6B
$1.5
200
157 150 $1.2B
150
$1.0

$0.7B 100

$0.5
50

$0.0 0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Capital invested ($B) Deal count First fundings

*Through 12/31/2015
 Angel & seed deals have increased rapidly
over the past decade
Wa s h i n gto n V C d e a l co u nt by sta ge
250

206
200

161
150

100 86 90 79
78
66
61
50
57 53
40
28
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Angel/Seed Early VC Later VC

*Through 12/31/2015
1.8x more unique investors involved in WA
deals than in 2010
A c t i ve i nve s to rs i n WA V C d e a l s b y y e a r
400
369
350 333
303
300
259 267
250 234 240
201
200 188 183

150

100

50

0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

*Through 12/31/2015
 CA investors continue to be the most
active investors in WA companies
A c t i ve i nve s to rs i n WA V C d e a l s b y y e a r
160

140

120

100

80

60

40

20

0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

California Washington New York Other US state Non-US investor

*Through 12/31/2015
US +1 206.623.1986
UK +44 207.190.9809

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