Venture Capital Activity Report | Q1 2012TABLE OF CONTENTSQUARTER SUMMARY                                               2Q...
2                                                                        Venture Capital Activity Report | Q1 2012Q1 2012 ...
3                                               Venture Capital Activity Report | Q1 2012$5.9B in 785 Deals – Strong Deal ...
4                                              Venture Capital Activity Report | Q1 2012NY Jumps Ahead of Mass On Deal Sha...
5                                                Venture Capital Activity Report | Q1 2012Cali, Mass, NY Take Lowest Share...
6                                              Venture Capital Activity Report | Q1 2012What Smart Investors, Bankers andW...
7                                               Venture Capital Activity Report | Q1 2012New Year Starts with Bang (At Lea...
8                                               Venture Capital Activity Report | Q1 2012VCs Aggressively Plant Their Seed...
9                                                 Venture Capital Activity Report | Q1 2012Healthcare Slips Back on Deals ...
10                                              Venture Capital Activity Report | Q1 2012Get Started for Free with CB Insi...
11                             Venture Capital Activity Report | Q1 2012     Q1 2012 Venture Capital     INTERNETwww.cbins...
12                                                Venture Capital Activity Report | Q1 2012Internet Deals Way Up While Fun...
13                                              Venture Capital Activity Report | Q1 2012Mass Falls to Distant Third for I...
14                                                Venture Capital Activity Report | Q1 2012Mass Hits Five Quarter Low on I...
15                                               Venture Capital Activity Report | Q1 2012Seed Internet Deals Soar. Series...
16                                              Venture Capital Activity Report | Q1 2012Big Data Pushes Business Intellig...
17                                              Venture Capital Activity Report | Q1 2012Early Stage Medians Remain Flat, ...
18                             Venture Capital Activity Report | Q1 2012     Q1 2012 Venture Capital     MOBILE & TELECOMw...
19                                               Venture Capital Activity Report | Q1 2012Mobile Deal Activity Stays Stron...
20                                               Venture Capital Activity Report | Q1 2012Like Internet VC, Cali Dominates...
21                                                  Venture Capital Activity Report | Q1 2012Deal/Dollar Share In Line Wit...
22                                              Venture Capital Activity Report | Q1 2012Seed VC Deals in Mobile Hit Five ...
23                                               Venture Capital Activity Report | Q1 2012Mobile Advertising, Gaming and A...
24                                              Venture Capital Activity Report | Q1 2012Early Stage Median Deal Sizes Sta...
25                             Venture Capital Activity Report | Q1 2012     Q1 2012 Venture Capital     HEALTHCAREwww.cbi...
26                                                Venture Capital Activity Report | Q1 2012Healthcare Hits 5-Quarter Fundi...
27                                            Venture Capital Activity Report | Q1 2012Cali and Mass Remain Healthcare Bre...
28                                                 Venture Capital Activity Report | Q1 2012California Loses Deal Share fo...
29                                              Venture Capital Activity Report | Q1 2012Seed Jumps Significantly, but Ove...
30                                               Venture Capital Activity Report | Q1 2012Usual Suspects: Medical Devices,...
31                                              Venture Capital Activity Report | Q1 2012Healthcare Medians Continue to Dr...
32                             Venture Capital Activity Report | Q1 2012     Q1 2012 Venture Capital     GREEN & CLEAN TEC...
33                                                Venture Capital Activity Report | Q1 2012Double Whammy – Green Tech Deal...
34                                               Venture Capital Activity Report | Q1 2012Cali, Mass Dominate. Unusual Sus...
35                                                Venture Capital Activity Report | Q1 2012Cali, Mass Take Almost $7 of Ev...
36                                              Venture Capital Activity Report | Q1 2012Early Stage Green Tech Deals Hit ...
37                                              Venture Capital Activity Report | Q1 2012Energy Efficiency Climbs to Five ...
38                                              Venture Capital Activity Report | Q1 2012Green Tech Median Generally Decli...
39                             Venture Capital Activity Report | Q1 2012     Q1 2012 Venture Capital     CALIFORNIAwww.cbi...
40                                                         Venture Capital Activity Report | Q1 2012What Smart Investors, ...
41                                               Venture Capital Activity Report | Q1 2012What’s Wrong With This Picture? ...
42                                             Venture Capital Activity Report | Q1 2012Lack of Mega-Deals Responsible for...
43                                                 Venture Capital Activity Report | Q1 2012Healthcare & Internet Combine ...
44                                                Venture Capital Activity Report | Q1 2012Seed Continues to Grow Share of...
45                             Venture Capital Activity Report | Q1 2012     Q1 2012 Venture Capital     MASSACHUSETTSwww....
46                                              Venture Capital Activity Report | Q1 2012                                 ...
47                                                Venture Capital Activity Report | Q1 2012                               ...
48                                              Venture Capital Activity Report | Q1 2012Overall Dip in Mass Doesn’t Affec...
49                                              Venture Capital Activity Report | Q1 2012                                 ...
50                             Venture Capital Activity Report | Q1 2012     Q1 2012 Venture Capital     NEW YORKwww.cbins...
51                                             Venture Capital Activity Report | Q1 2012NY Hits Five Quarter Funding Low; ...
52                                              Venture Capital Activity Report | Q1 2012Get Started for Free with CB Insi...
53                                               Venture Capital Activity Report | Q1 2012Internet Still Rules, but Mobile...
54                                                 Venture Capital Activity Report | Q1 2012Internet and Mobile are 82% of...
55                                              Venture Capital Activity Report | Q1 2012NY Early Stage Investments Jump E...
56                             Venture Capital Activity Report | Q1 2012     Q1 2012 Venture Capital     WASHINGTONwww.cbi...
57                                               Venture Capital Activity Report | Q1 2012Washington Bucks the Trend, Sees...
58                                                Venture Capital Activity Report | Q1 2012Mobile & Telecom Jumps to #2 Sp...
59                                              Venture Capital Activity Report | Q1 2012Healthcare Loses Ground to Intern...
60                                                Venture Capital Activity Report | Q1 2012Early Stage Investing Inches Ba...
61                             Venture Capital Activity Report | Q1 2012     Q1 2012 Venture Capital     TEXASwww.cbinsigh...
62                                               Venture Capital Activity Report | Q1 2012Funding Falls, but Overall Texas...
63                                              Venture Capital Activity Report | Q1 2012Healthcare Grabs Texas’ Top Spot ...
64                                               Venture Capital Activity Report | Q1 2012Energy Registers Another Relativ...
65                                               Venture Capital Activity Report | Q1 2012Seed Continues to Gain Ground in...
66                                                                     Venture Capital Activity Report | Q1 2012Definition...
67                                                         Venture Capital Activity Report | Q1 2012What Smart Investors, ...
68                                              Venture Capital Activity Report | Q1 2012Get Started for Free with CB Insi...
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Q1 2012 venture capital activity report cb insights final-

  1. 1. Venture Capital Activity Report | Q1 2012TABLE OF CONTENTSQUARTER SUMMARY 2QUARTERLY TRENDS 3SECTOR REVIEW 111 INTERNET 112 MOBILE & TELECOM 183 HEALTHCARE 254 GREEN / CLEAN TECH 32GEOGRAPHIC REVIEW1 CALIFORNIA 392 MASSACHUSETTS 453 NEW YORK 504 WASHINGTON 565 TEXAS 61DEFINITIONS & DATA INTEGRITY 66 © 2010, CB Insights. All rights reserved. For more information about CB Insights, please email info@cbinsights.com.www.cbinsights.com
  2. 2. 2 Venture Capital Activity Report | Q1 2012Q1 2012 – This Quarter in Venture CapitalVCs aggressively doing deals in Q1 2012, but the absence of mega VC deals put adamper on funding levels as industry hit funding levels not seen since Q2 2010.VCs weren’t hesitant to open up their wallets in Q1 2012 making 785 investments in the quarter – the 2nd most in the lastnine quarters. But despite the aggressive number of deals, the checks written were smaller than prior quarters asinstitutional investors plowed $5.9 billion into companies – the lowest level of VC funding since Q2 2010.Although this represents a 22% decline in funding from Q4 2012, we do not think that a single quarter dip in funding is in anyway symptomatic of any sort of correction or any sort of bubble bursting. Deal activity which we view as a better gauge ofinvestor sentiment remains strong. The funding dip is primarily the result of fewer VC mega deals in the quarter which as thequarter illustrates can and do move numbers significantly up when present and down wildly when absent.Note: Only deals in which VCs are participating are included. Companies which raise money from mutual or private equity funds orcorporations (unless it is their corporate venture arms) are not included. We recommend you review our definitions and methodology onp. 66 to see what is included/excluded as there is a great amount of misinformation out there.VCs Continue to Plant Their Seeds Internet Deals Climb on Back of Seed Deals Seed investing hit a historical high with almost 1 of every While internet funding fell 17%, deal volume grew 16% 5 VC deals being an early stage seed VC investment. with a five quarter high for seed VC deals. These “call options” as we’ve referred to them in the past allow venture investors to invest minimal amounts in Healthcare’s Flu Like Symptoms Continue companies (primarily tech) and get first access to invest in these companies should they show signs of going from After a strong Q411, VC funding to healthcare hit a five seed to something more substantial. quarter low while deals stayed within their recent range. The sentiment and chatter around healthcare On the flipside, if the seed investment doesn’t work out, continues to be mixed and so the sector will remain the firm has put little capital at risk. Increased capital range-bound unless some catalyst, i.e., massive exit, efficiency in tech has made these types of seed regulatory change, etc. can spur it to move. investments increasingly popular and Q1 2012 starkly demonstrated this with 19% of deals being of the seed NY Hits Five Quarter Funding Low. Uh Oh? variety. New York funding dipped but the state’s deal activityThe “Instagram Effect” stayed strong so we don’t think the decline is a problem (yet). NY remains a hub for early stage investment with For the first time, we’ve broken out mobile & telecom 30% of deals in the seed stage and another 30%+ in the investment trends in this report – what we’re calling our Series A stage. own little “Instagram Effect”. While mobile deal volume remained strong, funding dipped in Q1’12. Like most tech Mass Sees Five Quarter Low on Deals & Dollars investment sectors, VCs are favoring small seed investments in the mobile sector. And since the Unlike NY, Mass fell on both deals and dollars. The gap Instagram acquisition by Facebook was announced when vs. NY on the tech front also seems to worsen for Mass Q1’12 was already in the books, we expect that the although the state continues to have a more balanced coming quarters will be interesting for the mobile sector as attack with healthcare and green tech. If, however, there companies and investors try even more aggressively to is a coming wave of internet & mobile opportunities, is ride the mobile wave. Mass not positioned to capitalize on these opportunities?Green Tech Sputters Washington Bucks National Trend – Funding Climbs With no mega deals and continued uncertain sentiment While national VC funding fell 22%, Washington actually green tech saw its lowest level of deals and funding in the climbed 41% making it the only major VC recipient to last five quarters. Will something help Green Tech shake register an increase in funding. its malaise in the coming quarters? California Leads but Sees Big Funding Dip. Cali funding dips 26% vs. Q4’11, but still leads the pack. www.cbinsights.com
  3. 3. 3 Venture Capital Activity Report | Q1 2012$5.9B in 785 Deals – Strong Deal Activity; Few Mega DealsAfter four straight quarters of $7B+ funding, Q1 2012 saw a steep drop in fundingdollars although deal activity stayed very strong.www.cbinsights.com
  4. 4. 4 Venture Capital Activity Report | Q1 2012NY Jumps Ahead of Mass On Deal ShareAfter Q4’10 dip below Mass, NY snaps back to #2 on number of VC deals. Overall,league tables for top states remain largely in-line with historical levels.www.cbinsights.com
  5. 5. 5 Venture Capital Activity Report | Q1 2012Cali, Mass, NY Take Lowest Share of Funding in Last 5 QtrsNY’s funding fell to a five quarter low while Washington registered it’s highest amountof funding in the last five quarters.www.cbinsights.com
  6. 6. 6 Venture Capital Activity Report | Q1 2012What Smart Investors, Bankers andWealth Managers Use to Get Ahead…With CB Insights you can access real-time private company deal feeds – includingfinancings, M&A and IPOs – that are updated constantly throughout the day.CB Insights is accessible for free by visiting http://www.cbinsights.comwww.cbinsights.com
  7. 7. 7 Venture Capital Activity Report | Q1 2012New Year Starts with Bang (At Least in Terms of Deals)January 2012 continued the deal momentum seen in late 2011 with the monthregistering the highest deal count in the last 18 months. Funding levels stayeddepressed throughout the quarter with few mega deals to buoy totals.www.cbinsights.com
  8. 8. 8 Venture Capital Activity Report | Q1 2012VCs Aggressively Plant Their Seeds in Q1 2012Seed VC deals register five quarter high and help to push deal activity numbers for thequarter higher. Funding distribution across series stays consistent with historicalpatterns. In total, seed and Series A continue to make up almost 50% of deals.www.cbinsights.com
  9. 9. 9 Venture Capital Activity Report | Q1 2012Healthcare Slips Back on Deals While Internet GrowsAfter an uptick in Q4’11, healthcare falls back on deals and maintains its historicalfunding levels. Internet investments gain increased share of total VC deals.www.cbinsights.com
  10. 10. 10 Venture Capital Activity Report | Q1 2012Get Started for Free with CB InsightsBasic membership on CB Insights is free. Just visit http://www.cbinsights.com. Orconnect with us via any of the following. Twitter Newsletter Follow us @cbinsights Click here to receive our weekly dealflow newsletter. Email Telephone 212-292-3148 info@cbinsights.comwww.cbinsights.com
  11. 11. 11 Venture Capital Activity Report | Q1 2012 Q1 2012 Venture Capital INTERNETwww.cbinsights.com
  12. 12. 12 Venture Capital Activity Report | Q1 2012Internet Deals Way Up While Funding Hits Five Qtr LowWithout a massive Facebook, Twitter, etc mega-funding, internet dollars slip Internetsignificantly, but on the back of strong Seed and Series A activity, deals are way up.Versus Q4’11, deals are up 15%. Relative to Q1’11, deals are up 14%.www.cbinsights.com
  13. 13. 13 Venture Capital Activity Report | Q1 2012Mass Falls to Distant Third for Internet VC DealsNY nearly triples Massachusetts on number of internet deals. Cali continues its Internetchokehold on the #1 position for both deals and funding. Quarter Highlights 326 deals | $2,067M Top Deals Yammer Lithium Technologies Code 42 Software Apptio Kinnser Software Trialpay Top Cities San Francisco, CA 47 deals | $447M Mountain View, CA 14 deals | $173M New York, DC 47 deals | $153M Austin, TX 9 deals | $76M Santa Monica, CA 5 deals | $65M Bellevue, WA 2 deals | $58M Palo Alto, CA 14 deals | $56M Emeryville, CA 1 deals | $53M Minneapolis, MN 1 deals | $53M Boulder, CO 5 deals | $52Mwww.cbinsights.com
  14. 14. 14 Venture Capital Activity Report | Q1 2012Mass Hits Five Quarter Low on Internet DealsNY retains to the #2 spot for Internet, although loses significant share of funding to Cali Internetand others. Massachusetts falls to 5 quarter low on share of internet deals.www.cbinsights.com
  15. 15. 15 Venture Capital Activity Report | Q1 2012Seed Internet Deals Soar. Series B Funding Gets Crunched.Seed deals in web companies breaks out above already-record levels. Series A Internetfunding sees five quarter high while internet Series B deals see a multi-quarter low.www.cbinsights.com
  16. 16. 16 Venture Capital Activity Report | Q1 2012Big Data Pushes Business Intelligence into Deal LeadSocial internet companies, usually a big area of investment, fell several spots with Internetsome atypical areas like Business Intelligence and Monitoring & Security jumping up tothe league tables.www.cbinsights.com
  17. 17. 17 Venture Capital Activity Report | Q1 2012Early Stage Medians Remain Flat, Later Stage UptickEarly stage Internet deal sizes remain fairly steady, while Series C and beyond see Internetuptick since last quarter.www.cbinsights.com
  18. 18. 18 Venture Capital Activity Report | Q1 2012 Q1 2012 Venture Capital MOBILE & TELECOMwww.cbinsights.com
  19. 19. 19 Venture Capital Activity Report | Q1 2012Mobile Deal Activity Stays Strong but Funding DipsFunding falls to a five quarter low dropping 42% vs. Q4’11 and 29% vs. Q1’11 but deal Mobileactivity stays steady. Q2’12 will be an interesting quarter to watch: will there be an“Instagram Effect” on mobile funding and deal activity? (We expect there will be)www.cbinsights.com
  20. 20. 20 Venture Capital Activity Report | Q1 2012Like Internet VC, Cali Dominates with NY 2nd in Mobile VCNY is a distant 2nd to California in terms of both deals and dollars. Massachusetts and MobileWashington also exhibit mobile VC strength in Q1’12. Quarter Highlights 93 deals | $453M Top Deals BOKU Ruckus Wireless Jasper Wireless Ooma Verivo Software Top Cities San Francisco, CA 8 deals | $62.91M Palo Alto, CA 9 deals | $49.37M Mountain View, CA 7 deals | $40.6M New York, NY 10 deals | $39.37M Sunnyvale, CA 3 deals | $25.75M Bellevue, WA 2 deals | $22.8M Waltham, MA 1 deals | $17M Boston, MA 3 deals | $15.93M Denver, CO 2 deals | $14M Sioux Falls, SD 1 deals | $12Mwww.cbinsights.com
  21. 21. 21 Venture Capital Activity Report | Q1 2012Deal/Dollar Share In Line With Historical LevelsWashington and Colorado register healthy quarters for mobile deals and funding. MobileFunding levels by state continue to swing wildly in mobile & telecom as the category isstill in its infancy, where a large deal can seismically shift the quarter’s funding totals.www.cbinsights.com
  22. 22. 22 Venture Capital Activity Report | Q1 2012Seed VC Deals in Mobile Hit Five Quarter High Seed and Series A make up two-thirds of deals, highlighting the relative nascence of Mobilecompanies in mobile and the burgeoning interest in the mobile sector. Series B and Csee lowest portion of financing dollars in the last five quarters.www.cbinsights.com
  23. 23. 23 Venture Capital Activity Report | Q1 2012Mobile Advertising, Gaming and Application Dev Win DealsDeal and dollar distribution remains diverse with numerous sub-industries within Mobilemobile garnering funding. The “land grab” is still on within mobile as category leadersare still being determined across a wide variety of mobile focus areas.www.cbinsights.com
  24. 24. 24 Venture Capital Activity Report | Q1 2012Early Stage Median Deal Sizes Stay FlatNo clear trend for mobile investment medians is discernible. While early stage deal Mobilemedians have stayed mostly range bound, Series B and Series C medians havedropped while Series D and later-stage Series E+ have ticked up.www.cbinsights.com
  25. 25. 25 Venture Capital Activity Report | Q1 2012 Q1 2012 Venture Capital HEALTHCAREwww.cbinsights.com
  26. 26. 26 Venture Capital Activity Report | Q1 2012Healthcare Hits 5-Quarter Funding Low, Seeks Lifeline HealthcareHealthcare follows up its strongest quarter in funding over the previous five quarterswith its weakest one since 2010. Deal volume reverts to familiar levels.www.cbinsights.com
  27. 27. 27 Venture Capital Activity Report | Q1 2012Cali and Mass Remain Healthcare Breadwinners HealthcareCalifornia and Massachusetts combine for 46% of deal share and 61% of fundingdollars. Beyond the top two, the field remains diverse as usual. Quarter Highlights 153 deals | $1,449M Top Deals Warp Drive Bio Sientra Ariosa Diagnostics Apollo Endosurgery Mevion Medical Systems Top Cities Boston, MA 2 deals | $128M San Diego, CA 6 deals | $90M Redwood City, CA 4 deals | $86M Santa Barbara, CA 1 deals | $65M San Jose, CA 2 deals | $65M Cambridge, MA 7 deals | $53M La Jolla, CA 2 deals | $50M Austin, TX 2 deals | $48M Littleton, MA 1 deals | $45M Ann Arbor, MI 3 deals | $37Mwww.cbinsights.com
  28. 28. 28 Venture Capital Activity Report | Q1 2012California Loses Deal Share for the 5th Straight Quarter HealthcareThe field continues to chip away at California’s lead in deal share, as California falls to27% of Healthcare deal flow – a 10% drop since Q1 2011. Meanwhile, Mass and Caliboth lose a bit of funding share as well.www.cbinsights.com
  29. 29. 29 Venture Capital Activity Report | Q1 2012Seed Jumps Significantly, but Overall Early Stage Dips HealthcareSeed deals double their share since Q4 2011, owning 14% of overall dealflow.However, Series A takes a step back in terms of both deals and dollars, netting anoverall drop in early stage Healthcare activity.www.cbinsights.com
  30. 30. 30 Venture Capital Activity Report | Q1 2012Usual Suspects: Medical Devices, Pharma, Biotech Own Q1 HealthcareMedical devices stays atop the charts in terms of both deals and dollars, followed upby Biotech and Pharma, respectively.www.cbinsights.com
  31. 31. 31 Venture Capital Activity Report | Q1 2012Healthcare Medians Continue to Drop in Q1 HealthcareFollowing a trend in recent quarters, Healthcare median deal sizes drop almost acrossthe board, with the sole exception in Series E+ which saw a significant bump.www.cbinsights.com
  32. 32. 32 Venture Capital Activity Report | Q1 2012 Q1 2012 Venture Capital GREEN & CLEAN TECHwww.cbinsights.com
  33. 33. 33 Venture Capital Activity Report | Q1 2012Double Whammy – Green Tech Deals & Funding Hit LowsQ1 2012 sees funding and deal levels drop 40% and 18% respectively from Q4’11 with Greenboth measures hitting five quarter lows. The absence of green tech mega deals hurtfunding totals, but it’s the drop in deal activity that is probably most worth tracking.www.cbinsights.com
  34. 34. 34 Venture Capital Activity Report | Q1 2012Cali, Mass Dominate. Unusual Suspect, Illinois Enters FrayCali remains the overwhelming leader in terms of Green Tech deals and dollars. Mass Greenmaintains its #2 spot. Lack of mega deals doesn’t cause any wild gyrations among statefunding shares. Illinois sees a diverse array of renewables and energy efficiency dealspushing them into green tech limelight. Quarter Highlights 56 deals | $763M Top Deals SolarCity Joule Unlimited LanzaTech MiaSole Renmatix Top Cities San Mateo, CA 1 deals | $81M Bedford, MA 1 deals | $70M Roselle, IL 1 deals | $56M Santa Clara, CA 1 deals | $55M King of Prussia, PA 1 deals | $50M San Jose, CA 3 deals | $39M San Diego, CA 3 deals | $38M Sunnyvale, CA 2 deals | $34M Houston, TX 2 deals | $32M Livermore, CA 1 deals | $25Mwww.cbinsights.com
  35. 35. 35 Venture Capital Activity Report | Q1 2012Cali, Mass Take Almost $7 of Every $10 Green Tech DollarsBesides Illinois’ ascent into deal and funding league tables, the rest of the share Greenbreakdowns by states for deals & funding are in line with historical averages.www.cbinsights.com
  36. 36. 36 Venture Capital Activity Report | Q1 2012Early Stage Green Tech Deals Hit 5-Quarter LowAfter Q4’11’s early stage investment peak, Q1’12 sees early stage clean tech deal Greenshare fall of a cliff. Series C stage investments clean up on the funding front inQ1’12.www.cbinsights.com
  37. 37. 37 Venture Capital Activity Report | Q1 2012Energy Efficiency Climbs to Five Quarter High on DealsRenewables retain top spot on deals and dollars, but energy efficiency technology Greencontinues to see strong deal activity.www.cbinsights.com
  38. 38. 38 Venture Capital Activity Report | Q1 2012Green Tech Median Generally DecliningWith sector sentiment remaining mixed, median values across different stages all Greendecline as compared to Q1 2011.www.cbinsights.com
  39. 39. 39 Venture Capital Activity Report | Q1 2012 Q1 2012 Venture Capital CALIFORNIAwww.cbinsights.com
  40. 40. 40 Venture Capital Activity Report | Q1 2012What Smart Investors, Bankers andWealth Managers Use to Get Ahead…With CB Insights you can access deep private company info that was once exclusivelyavailable behind prohibitively expensive paywalls.CB Insights is accessible for free by visiting http://www.cbinsights.com 82,000+ Private Company Profiles. Coverage Universe Over 82,000 high value private company profiles across industries and • Venture Capital – 1999 to present sectors. Medical devices to • Angel Investment mobile. Industrial to internet. • Private Equity • Federal SBIR Grants – 3 years • State Grant Programs From Angel to Private Equity. • Incubators – Over 300 Angel investment to venture capital to • Middle Market Private Companies private equity to government funding to under the radar mid-market private Sector Coverage companies. • Green/clean tech • Internet Company & Investor Updates via Email. • Mobile & Telecom • Software Add companies and investors of • Energy & Utilities interest to your CBI Watchlist and get • Computer Hardware & Services notified of changes and updates • Healthcare automatically. • Industrial • Automotive & Transportation Management & Board Information • Business Products & Services • Consumer Products & Services Find out about the people behind the • Electronics companies including management and • Environmental Services & board of directors profiles. Equipment • Financial Services • Food & Beverages • Leisure Analytics & Reporting • Media • Metals & Mining Downloadable reports and analytics • Retail which allow you to manipulate data • Risk & Security when and how you want to.www.cbinsights.com
  41. 41. 41 Venture Capital Activity Report | Q1 2012What’s Wrong With This Picture? Cali StumblesCalifornia’s funding level drops 26% versus Q4 2011 and 27% versus a year ago, Californialeading the precipitous drop in overall venture funding experienced in Q1. On thebright side, deal volume remains strong.www.cbinsights.com
  42. 42. 42 Venture Capital Activity Report | Q1 2012Lack of Mega-Deals Responsible for Q1 Cali Flop CaliforniaWhereas Q4 2011 saw 4 deals of at least $100M each in California, The GoldenState’s largest deal this quarter is Yammer at $85 million. Quarter Highlights 309 deals | $2,857M Top Sector # of Deals – Internet $ of Funding – Internet Top Deals Yammer SolarCity Sientra Appirio MiaSole Top Cities San Francisco 64 deals | $555M Mountain View 26 deals | $315M San Mateo 12 deals | $189M Redwood City 11 deals | $158M San Diego 12 deals | $146M San Jose 15 deals | $143M Santa Clara 8 deals | $142M Palo Alto 30 deals | $138M Santa Monica 8 deals | $110M Sunnyvale 12 deals | $95Mwww.cbinsights.com
  43. 43. 43 Venture Capital Activity Report | Q1 2012Healthcare & Internet Combine for Nearly 60% of FundingHealthcare loses a bit of share in terms of both deals and dollars, but overall Internet Californiaand Healthcare continue to hold the two top spots in California in terms of venturefunding.www.cbinsights.com
  44. 44. 44 Venture Capital Activity Report | Q1 2012Seed Continues to Grow Share of Deal Volume in CaliOverall early stage sees a bump in share of deal volume as Seed grabs 17% of overall Californiadealflow in California. In terms of funding, however, later stage deals continue to exertpressure, with Series C and beyond taking two thirds of funding.www.cbinsights.com
  45. 45. 45 Venture Capital Activity Report | Q1 2012 Q1 2012 Venture Capital MASSACHUSETTSwww.cbinsights.com
  46. 46. 46 Venture Capital Activity Report | Q1 2012 MassachusettsMass Continues Roller Coaster Ride, This Time DownTurmoil in Boston isn’t isolated to the Red Sox as Massachusetts experiences a 5-quarter low in terms of both VC deals and dollars.www.cbinsights.com
  47. 47. 47 Venture Capital Activity Report | Q1 2012 MassachusettsHealthcare Continues Dominance in Mass, Internet #2Healthcare and Internet continue their hold on the top two spots in terms of both dealsand dollars. Energy is a convincing #3 in terms of funding. Quarter Highlights 76 deals | $650M Top Sector # of Deals – Healthcare $ of Funding - Healthcare Top Deals Warp Drive Bio Joule Unlimited Mevion Medical Systems Neolane RaNA Therapeutics Top Cities Boston 12 deals | $166M Waltham 10 deals | $88M Cambridge 14 deals | $78M Bedford 3 deals | $77M Littleton 1 deals | $45M Newton 2 deals | $28M Lexington 3 deals | $25M Medford 1 deals | $20M Winchester 1 deals | $15M Woburn 1 deals | $15Mwww.cbinsights.com
  48. 48. 48 Venture Capital Activity Report | Q1 2012Overall Dip in Mass Doesn’t Affect the Mix MassachusettsDeal and dollar distribution in Massachusetts remains largely unchanged since Q42011, with Healthcare and Internet remaining atop the board.www.cbinsights.com
  49. 49. 49 Venture Capital Activity Report | Q1 2012 MassachusettsSeed Deals Rally, but Overall Early Stage Loses GroundSeed takes 16% over overall deal flow in Massachusetts, but overall early stage (Seed +Series A) dips dramatically since Q4 in terms of funding.www.cbinsights.com
  50. 50. 50 Venture Capital Activity Report | Q1 2012 Q1 2012 Venture Capital NEW YORKwww.cbinsights.com
  51. 51. 51 Venture Capital Activity Report | Q1 2012NY Hits Five Quarter Funding Low; Deals Stay Strong New YorkNY funding falls 41% vs. Q4’11 and 25% vs. Q1’11 while VC deals actually climb 11%sequentially and 13% quarter-over-quarter.www.cbinsights.com
  52. 52. 52 Venture Capital Activity Report | Q1 2012Get Started for Free with CB InsightsBasic membership on CB Insights is free. Just visit http://www.cbinsights.com. Orconnect with us via any of the following. Twitter Newsletter Follow us @cbinsights Click here to receive our weekly dealflow newsletter. Email Telephone 212-292-3148 info@cbinsights.comwww.cbinsights.com
  53. 53. 53 Venture Capital Activity Report | Q1 2012Internet Still Rules, but Mobile and Healthcare Show Life New YorkInternet continues to command the lion’s share of deals and dollars, but Mobile dealsregister volume and Financial consumes serious dollars in Q1. Quarter Highlights 81 deals | $335M Top Sector # of Deals – Internet $ of Funding - Internet Top Deals Capital Access Network Aereo KEMP Technologies Buzzfeed Peek Top Cities New York 66 deals | $243M Scarsdale 1 deals | $30M Long Island City 2 deals | $22M Yaphank 1 deals | $16M Ithaca 1 deals | $6Mwww.cbinsights.com
  54. 54. 54 Venture Capital Activity Report | Q1 2012Internet and Mobile are 82% of Deals and 67% of Funding New YorkInternet deals jump back in Q1’12. When aggregated with mobile and other techinvestments, it is clear that NY’s VC ecosystem future is tethered to the fate of tech.www.cbinsights.com
  55. 55. 55 Venture Capital Activity Report | Q1 2012NY Early Stage Investments Jump Even More New York Following Q4’11’s strong early stage performance, Q1’12 sees 63% of deals going toSeed and Series A transactions. NY’s presence as an early stage investment hubcontinues to grow.www.cbinsights.com
  56. 56. 56 Venture Capital Activity Report | Q1 2012 Q1 2012 Venture Capital WASHINGTONwww.cbinsights.com
  57. 57. 57 Venture Capital Activity Report | Q1 2012Washington Bucks the Trend, Sees 5-Quarter Funding High WashingtonWashington fights off the national swoon, and instead experiences a five-quarter highwith $206 million in VC funding. Deal volume also sees an uptick since Q4.www.cbinsights.com
  58. 58. 58 Venture Capital Activity Report | Q1 2012Mobile & Telecom Jumps to #2 Spot in Washington WashingtonInternet and Healthcare, which traditionally occupy the top two spots are joined by Mobile& Telecom which sees a strong quarter. Quarter Highlights 28 deals | $206M Top Sector # of Deals – Internet $ of Funding - Internet Top Deals CrowdStrike Opscode Spoken Communications FinSphere Meteor Entertainment Top Cities Bellevue 6 deals | $89M Seattle 16 deals | $78M Kirkland 1 deals | $26M Liberty Lake 1 deals | $5M Issaquah 1 deals | $3M Olympia 1 deals | $3Mwww.cbinsights.com
  59. 59. 59 Venture Capital Activity Report | Q1 2012Healthcare Loses Ground to Internet and Mobile & Telecom WashingtonHealthcare, which experienced an incredibly strong Q4 2011 in Washington, comesback to earth as Mobile & Telecom grabs the #2 spot in terms of deals and dollars.www.cbinsights.com
  60. 60. 60 Venture Capital Activity Report | Q1 2012Early Stage Investing Inches Backward, but Remains Strong WashingtonSeed and Series A lose a bit of ground, but still combine for over 50% of overall dealvolume and 33% of funding in Washington.www.cbinsights.com
  61. 61. 61 Venture Capital Activity Report | Q1 2012 Q1 2012 Venture Capital TEXASwww.cbinsights.com
  62. 62. 62 Venture Capital Activity Report | Q1 2012Funding Falls, but Overall Texas See a Strong Quarter TexasDeal volume in Texas experiences a five-quarter high, while funding dips, but remainsstrong.www.cbinsights.com
  63. 63. 63 Venture Capital Activity Report | Q1 2012Healthcare Grabs Texas’ Top Spot TexasThe merry-go-round continues in Texas with Healthcare owning the top spot thisquarter in terms of both deals and dollars. Quarter Highlights 39 deals | $336M Top Sector # of Deals – Internet $ of Funding – Healthcare Top Deals Apollo Endosurgery Kinnser Software Pivot 3 Bellicum Pharmaceuticals Glori Energy Top Cities Austin 21 deals | $201M Houston 8 deals | $88M San Antonio 3 deals | $22M Fort Worth 1 deals | $10M Richardson 1 deals | $6M Anna 1 deals | $4M Dallas 1 deals | $3M McKinney 1 deals | $1M Plano 1 deals | $1M El Paso 1 deals | $1Mwww.cbinsights.com
  64. 64. 64 Venture Capital Activity Report | Q1 2012Energy Registers Another Relatively Week Quarter TexasTexas, a state traditionally known as a hotbed for Energy investment, sees anincredibly diverse quarter with Healthcare and Internet leading the way.www.cbinsights.com
  65. 65. 65 Venture Capital Activity Report | Q1 2012Seed Continues to Gain Ground in Texas TexasSeed VC deal volume sees five-quarter high with 11% of overall deal volume.However, Series A share of volume dips, netting overall drop in early stage deal share.www.cbinsights.com
  66. 66. 66 Venture Capital Activity Report | Q1 2012Definitions – Ensuring Data IntegrityWhat’s Included in our Quarterly Venture Capital Numbers? What is not?Given the importance of venture capital in spurring innovation and entrepreneurship, measuring venture capital activityaccurately is important. We encourage you to review the methodology and definitions employed by us to betterunderstand the numbers presented in this report. If you have any questions about our definitions or methodologicalprinciples, we encourage you to reach out to us directly. What is included? What is excluded?• Equity financings into emerging companies. • Angel investment. These are not included in Funding must come from venture capital firms including numbers unless an investment round included Angels corporate venture groups. investing alongside a venture capital firm or corporate• Fundings of only private companies. Public venture group. companies of any kind on any exchange (including Pink • No contingent funding. If a company receives a Sheets) are excluded from our numbers even if they commitment for $20M subject to hitting certain received investment by a venture firm(s) milestones but first gets $8M, only the $8M is included• Companies must be headquartered in the USA. Our in our data. geographic data is based on the city and state where the • No business development/R&D arrangements company receiving investment is headquartered. If a whether transferable into equity now, later or company has a satellite office/presence in multiple cities never. If a company signs a $300M R&D partnership or was founded in a particular city but has moved its HQ, with a larger corporation, this is not equity financing our results reflect only this HQ address. nor is it from venture capital firms. As a result, it is not• Only include the investment made in the quarter for included. tranched investments. If a company does a second • Buyouts, Consolidations and Recapitalizations. closing of its Series B round for $5M and previously had All three of these of transaction types are commonly closed $2M in a prior quarter, only the $5M is reflected employed by private equity firms and are tracked by in our results. CB Insights. However, they are excluded for the• Round #s reflect what has closed – not what is purposes of this report. Private equity investments into intended. If a company indicates the closing of $5M out companies which may have received venture capital of a desired raise of $15M, our numbers reflect only the investment prior are also not included. amount which has closed. • Private placements. These investments also known• Only verifiable fundings are included. Fundings are as PIPEs (Private Investment in Public Equities) even verified via (1) various federal & state regulatory filings if made by a venture capital firm(s) are not included. (2) direct confirmation with firm or investor or (3) press • Debt/loans of any kind. Venture debt or any kind of release. debt/loan issued to emerging, startup companies even• Funding close date matters. Fundings are provided if included as an additional part of an equity financing based on funding close date and not on announcement is not included. If a company receives $3M with $2M date. from venture investors and $1M in debt, only the $2M is included in these statistics. • Government funding. Grants, loans, equity financings by the federal government, state agencies or public-private partnerships to emerging, startup companies are not included. Strictly venture or corporate venture outfits. • Incubator investments. Investments of money as equity or debt and/or services by incubators are not included. • Strategic corporate investments. Corporations making strategic investments in companies but not as part of a specific organized venture group are not included.www.cbinsights.com
  67. 67. 67 Venture Capital Activity Report | Q1 2012What Smart Investors, Bankers andWealth Managers Use to Get Ahead…With CB Insights you can access deep private company info that was once exclusivelyavailable behind prohibitively expensive paywalls.CB Insights is accessible for free by visiting http://www.cbinsights.com 82,000+ Private Company Profiles. Coverage Universe Over 82,000 high value private company profiles across industries and • Venture Capital – 1999 to present sectors. Medical devices to • Angel Investment mobile. Industrial to internet. • Private Equity • Federal SBIR Grants – 3 years • State Grant Programs From Angel to Private Equity. • Incubators – Over 300 Angel investment to venture capital to • Middle Market Private Companies private equity to government funding to under the radar mid-market private Sector Coverage companies. • Green/clean tech • Internet Company & Investor Updates via Email. • Mobile & Telecom • Software Add companies and investors of • Energy & Utilities interest to your CBI Watchlist and get • Computer Hardware & Services notified of changes and updates • Healthcare automatically. • Industrial • Automotive & Transportation Management & Board Information • Business Products & Services • Consumer Products & Services Find out about the people behind the • Electronics companies including management and • Environmental Services & board of directors profiles. Equipment • Financial Services • Food & Beverages • Leisure Analytics & Reporting • Media • Metals & Mining Downloadable reports and analytics • Retail which allow you to manipulate data • Risk & Security when and how you want to.www.cbinsights.com
  68. 68. 68 Venture Capital Activity Report | Q1 2012Get Started for Free with CB InsightsBasic membership on CB Insights is free. Just visit http://www.cbinsights.com. Orconnect with us via any of the following. Twitter Newsletter Follow us @cbinsights Click here to receive our weekly dealflow newsletter. Email Telephone 212-292-3148 info@cbinsights.comwww.cbinsights.com

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