U.S. Venture Capital Update

Transcription

1 U.S. Venture Capital Update Nizar Tarhuni, Analysis Manager PitchBook Data, Inc. Test drive PitchBook

2 THE PITCHBOOK PLATFORM The financial informanon technology trusted by leading investors, companies and advisors 26,624 LPs 93,086 Commitments 146,185 GPs/Investors 33,157 Funds 502,371 Performance Data Lines 687,996 PorRolio Companies 475,628 TransacNons 112,169 ValuaNons 24,903 Advisory Firms 1,070,406 People

3 NaNonal VC Trends

4 VC fundraising reaches decade- high U.S. VC fundraising $ $40 Capital Raised ($B) # of Funds Closed 250 $35 $ $ $ $ $10 50 $5 $0 $36.4 $34.9 $36.2 $12.0 $19.6 $23.3 $24.4 $20.6 $35.4 $35.2 $ * 0 Source: Q4 PitchBook- NVCA Venture Monitor

5 Bulk of managers closing funds in 2016 reached target U.S. VC funds (#) hi_ng target 100% % % 40% % 0% * Hit Target Missed Target Source: Q4 PitchBook- NVCA Venture Monitor

6 First- Nme managers raised most capital since 2008 U.S. first- Nme VC funds by year $ $3.0 Capital Raised ($B) # of Funds Closed 45 $ $2.0 $ $ $0.5 5 $0.0 $3.0 $2.9 $3.0 $1.1 $0.9 $1.9 $1.5 $1.4 $1.8 $1.6 $ * 0 Source: Q4 PitchBook- NVCA Venture Monitor

7 VC Dry powder at near- record level U.S. VC capital overhang ($B) $120 $100 $95.3B $94.6B 2016 $80 $76.4B $65.7B $72.2B 2015 $ CUMULATIVE OVERHANG 2013 $40 OVERHANG BY VINTAGE $ $0 *Through 6/30/ * 2009

8 $90 $80 $70 While VC invested remained high, 2016 transacnon volume normalized Deal value ($B) U.S. VC deal flow # of deals closed 10,550 10,468 12,000 10,000 $60 $50 $40 4,292 6,771 8,136 8,000 6,000 $30 3,301 4,458 4,000 $20 $10 $0 $29.1 $35.5 $37.2 $26.5 $31.2 $44.3 $40.6 $44.8 $68.9 $79.3 $ ,000 0

9 $25 Quarterly deal flow follows consistent decline U.S. VC deal flow by quarter 3,000 $20 $15 2,500 2,000 1,500 $10 1,000 $5 500 $0 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q Deal value ($B) # of deals closed Angel/Seed Early VC Later VC

10 While certainly snll inflated, median early- stage valuanons slightly flaken $45 $40 Median pre- money valuanon ($M) by series $38.65 $38.97 $35 $31.66 $30 $25 $20 $15 $10 $5 $0 $21.33 $19.18 $15.00 $13.16 $11.53 $7.22 $6.45 $4.79 $5.29 $5.94 $1.46 $ Seed Series A Series B

11 Median late- stage valuanons nearly double since 2010 $180 $160 Median pre- money valuanon ($M) by series $ $ $140 $ $120 $100 $80 $60 $40 $20 $78.68 $44.45 $65.76 $39.06 $59.50 $71.87 $80.00 $ Series C Series D+

12 Somware connnues to drive deal making U.S. VC deal count by industry 2016 Commercial Services 6.3% 6.2% 6.0% 7.7% 3.8% 1.8% 2.3% 3.1% Consumer Goods & RecreaNon Energy IT Hardware Media Somware 24.8% Other 38.1% Pharma & Biotech HC Devices & Supplies HC Services & Systems *Through 12/31/2016 Source: Q4 PitchBook- NVCA Venture Monitor

13 West coast dominates acnvity Deal flow by region Deal count by region Great Lakes Mid- AtlanNc Midwest Mountain New England Other Territory South Southeast West Coast Capital invested by region, $B $24.97 $ Great Lakes Midwest New England South West Coast $74.38 $3.94 $20.14 $56.78 $0.07 $22.65 $24.64 Mid- AtlanNc Mountain Other Territory Southeast

14 Group of mega- exits keep 2016 exit value nearly flat with 2015 U.S. VC exit flow $90 $80 $70 Exit Value ($B) # of Exits Closed , ,200 1,000 $60 $50 $ $ $20 $10 $0 $24.1 $40.8 $18.1 $15.7 $30.3 $36.9 $53.9 $36.2 $81.7 $50.4 $

15 Cash- rich strategics remain VCs best friends U.S. VC- backed exit count by exit type * AcquisiNon Count IPO Count Buyout Count Source: Q4 PitchBook- NVCA Venture Monitor *Through 12/31/2016

16 Florida VC Trends

17 Florida deal volume slides, yet total capital invested remains unchanged Southeast region VC deal Flow FL vs. rest of region $1, $1,400 $1,200 $1,000 $800 $600 $400 $200 $- 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Florida Capital ($M) Southeast (excl. FL) Capital ($M) Florida Deal # Southeast (excl. FL) Deal #

18 250 Angel/seed rounds connnue to represent the bulk of Florida VC Florida VC deal count by stage Angel/Seed Early VC Later VC

19 $25 Early- stage valuanons rise across the Southeast region Median early- stage pre- money valuanon ($M) $22.0 $20 $15 $10 $5 $9.1 $6.3 $9.9 $11.0 $8.6 $ Florida Early Stage Southeast (excl. Florida) Early Stage

20 $100 $90 $80 $70 $60 Florida late- stage valuanons drop, yet Southeast region unchanged Median later- stage pre- money valuanon ($M) $63.5 $49.0 $86.4 $50 $40 $30 $20 $10 $23.8 $18.2 $31.6 $ Florida Later Stage Southeast (excl. Florida) Later Stage

21 In step with the broader market, first Nme financings in Florida slump $300 $250 $200 $188M Florida first financings by year $202M 150 $271M 117 $199M $ $142M $100 $ $ Capital Invested ($M) Deal Count

22 Company Name Top deals 2016 in Florida Close Date Deal Size ($M) City Industry Code Magic Leap 2/2/2016 $793.5 Dania Beach Computers, Parts and Peripherals JetSmarter 12/12/2016 $105 Fort Lauderdale ApplicaNon Somware Reven PharmaceuNcals 2/1/2016 $100 Sarasota Biotechnology Rental Equipment Investment 6/1/2016 $59.5 Miami Beach Other Business Products and Services Finova Financial 8/4/2016 $52.5 Palm Beach Gardens Consumer Finance Woundtech 8/4/2016 $40 Hollywood Other Healthcare Technology Systems Surterra 12/11/2016 $35 Tampa Drug Discovery Open Blue Sea Farms 8/10/2016 $23 Miami Aquaculture Fountainhead 5/4/2016 $23 Orlando Specialized Finance Sliderz UL 7/20/2016 $21 Miami Restaurants and Bars

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25 Outsized propornon of capital si_ng in largest fund buckets U.S. capital raised by fund size 100% 90% $1B+ 80% $500M-$1B 70% 60% $250M-$500M 50% 40% $100M-$250M 30% 20% $50M-$100M 10% Under $50M 0% * Source: Q4 PitchBook- NVCA Venture Monitor

26 $7,000 U.S. East Coast VC deal flow by quarter 1000 $6,000 $5, $4,000 $3, $2,000 $1, $- Qtr1Qtr2Qtr3Qtr4Qtr1Qtr2Qtr3Qtr4Qtr1Qtr2Qtr3Qtr4Qtr1Qtr2Qtr3Qtr4Qtr1Qtr2Qtr3Qtr4Qtr1Qtr2Qtr3Qtr4Qtr1Qtr2Qtr3Qtr Capital Invested ($B) Deal count (#)

27 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $- U.S. West Coast VC deal flow by quarter Qtr1 Qtr3 Qtr1 Qtr3 Qtr1 Qtr3 Qtr1 Qtr3 Qtr1 Qtr3 Qtr1 Qtr3 Qtr1 Qtr Capital Invested ($B) Deal count (#)

28 $18 $16 U.S. VC rounds valued over $1 billion $16.3B $15.7B $14 $13.3B 60 $12 50 $10 $8 $6 $4 $2 $0.4B $5.4B $2.7B $ Capital invested ($B) Deal count