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Shaking the MoneyTree
 

Shaking the MoneyTree

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    Shaking the MoneyTree Shaking the MoneyTree Presentation Transcript

    • Q3 Update October 2009 Shaking the MoneyTree™ PricewaterhouseCoopers/ National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters
    • PricewaterhouseCoopers / National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters David Silverman National Co-Leader - Emerging Company Practice, PricewaterhouseCoopers LLP Q3 2009 PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters Slide 2
    • About The Report • PricewaterhouseCoopers and the National Venture Capital Association produce the MoneyTree Report™ based on data from Thomson Reuters • ‘Core’ measure of equity investments in venture-backed companies in the United States • Companies have received at least one round of financing involving a professional VC firm or equivalent • Captures: tranches, not term sheets, foreign VCs, qualified private placement • Excludes: debt, bridge loans, recaps, roll-ups, IPOs, PIPEs, leasing, etc. • MoneyTree™ Report in its 15th year • Results online at www.pwcmoneytree.com, www.nvca.org, www.venturexpert.com Q3 2009 PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters Slide 3
    • MoneyTree Total Investments: Q1 2001 – Q3 2009 # 2001 2002 2003 2004 2005 2006 2007 2008 2009 of Deal Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 s 1,283 1,215 1,004 984 843 855 694 722 705 743 721 791 720 855 696 846 736 834 798 825 882 976 921 964 874 1,061 1,011 1,076 1,015 1,067 994 904 616 657 637 Q3 2009 PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters Slide 4
    • MoneyTree Total Investments: 1980 – YTD 2009 Annual Venture Capital Investments 1980 to YTD 2009 Q3 2009 PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters Slide 5
    • Investments by Region: Q3 2009 % Change $ # of Region from Q2’09 Deals Silicon Valley 210 62.82% New England 86 14.74% NY Metro 50 -10.97% Northwest 30 82.79% LA/Orange County 33 33.19% San Diego 32 -6.17% Southeast 33 -36.94% Texas 23 170.13% DC/Metroplex 21 25.14% Midwest 40 -22.94% North Central 13 -3.29% Philadelphia Metro 25 -42.05% Colorado 13 -76.47% SouthWest 14 -69.46% Upstate NY 1 207.69% South Central 11 -20.23% Sacramento/N.Cal 2 -80.23% Grand Total 637 16.78% Q3 2009 Total: $4,808.8 million in 637 deals Q3 2009 PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters Slide 6
    • Investments by Region – Quarterly Percent of Total U.S. Investments Top U.S. Regions Q3 ‘08– Q3 ‘09 Q3 2009 PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters Slide 7
    • Investments by Industry: Q3 2009 # of % Change $ Industry Deals from Q2 ’09 Biotechnology 104 -4.42% Industrial/Energy 52 89.34% Software 128 -8.52% Medical Devices and Equipment 71 -5.89% Media and Entertainment 60 269.40% IT Services 48 -10.87% Networking and Equipment 25 17.65% Semiconductors 21 -14.20% Electronics/Instrumentation 18 55.42% Consumer Products and Services 23 149.36% Telecommunications 32 -17.42% Financial Services 8 485.55% Computers and Peripherals 13 -39.55% Retailing/Distribution 5 101.13% Business Products and Services 20 -17.10% Healthcare Services 7 -56.54% Other 2 -62.54% TOTAL 637 16.78 Q3 2009 Total: $4,808.8 million in 637 deals Visit www.pwcmoneytree.com for Industry definitions Q3 2009 PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters Slide 8
    • Investments by Industry: Q3 2009 – NY Metro ($ in millions) Biotechnology $8.600 Software $69.135 Business Products and Services $6.040 IT Services $27.575 Industrial/Energy $0.060 Networking and Equipment $18.000 Media and Entertainment $18.568 Telecommunications $44.901 Electronics/Instrumentation $2.800 Business Products and Services $6.043 Healthcare Services $0.940 Consumer Products and Services $46.290 $0 $20 $40 $60 $80 $100 Q3 2009 Total: $251.26 million in 50 deals Visit www.pwcmoneytree.com for Industry definitions Q3 2009 PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report Slide 9 based on data from Thomson Reuters
    • Investments by Industry – Quarterly Percent of Total U.S. Investments Top 5 Industries – Q3 ‘08 to Q3 ‘09 Q3 2009 PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters Slide 10
    • Investments by Industry – Quarterly Percent of Total NY Metro Investments (% of Total Dollars) Top 5 Industries – 2006 to Q3 ‘09 32.40% 35% 27.50% 30% 22.70% 21.60% 25% 20.30% 19.35% 18.50% 20% 17.00% 20% 13.70% 13.03% 12.39% 11.66% 10.90% 15% 10.30% 9.60% 9.37% 8.20% 7.39% 7.42% 7.30% 7.17% 10% 7% 5.20% 5.14% 4.65% 3.40% 5% 0% 0% 0% 0% Biotechnology Industrial/Energy Software Medical Devices & Media & Entertainment Equipment 2006 2007 2008 Q1 2009 Q2 2009 Q3 2009 Q3 2009 PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report Slide 11 based on data from Thomson Reuters
    • Investments by Stage of Development: Q3 2009 # of % Change in Stage of Development $ Amount Deals from Q2 2009 Later Stage 168 35.14% Expansion Stage 185 27.13% Early Stage 198 -0.87% Startup/Seed 86 -10.88% Total 637 16.78% Q3 2009 Total: $4,808.8 million in 637 deals Q3 2009 PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters Slide 12
    • Investments by Stage of Development: Q3 2009 – NY Metro ($ in millions) Later Stage $49.5 Expansion $133.9 # of Stage of Development Deals Early Stage $56.2 Later Stage 11 Expansion Stage 15 Early Stage 19 Startup/Seed 5 Startup/Seed $11.7 Total 50 $0 $50 $100 $150 Q3 2009 Total: $251.26 million in 50 deals Q3 2009 PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report Slide 13 based on data from Thomson Reuters
    • First Sequence Financing – Number of Deals First Sequence Deals Q3 2009 PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters Slide 14
    • First Sequence Financing – Investment Amount First Sequence Investments Q3 2009 PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters Slide 15
    • First Sequence Financing – Percent of Total U.S. Investments Q3 2009 PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters Slide 16
    • Stage of Development – Quarterly Percent of Total First Sequence Dollars Stage Development – Q3 2008 to Q3 2009 Q3 2009 PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters Slide 17
    • Median Deal Size vs. Mean Deal Size – Quarterly Total U.S. Investments Q3 2009 PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters Slide 18
    • Post-Money Valuations – Early Stage Companies Q2 2002 to Q2 2009 12 Month Average Source: Thomson Reuters Q3 2009 PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters Slide 19
    • Post-Money Valuations – Expansion Stage Companies Q2 2002 to Q2 2009 12 Month Average Source: Thomson Reuters Q3 2009 PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters Slide 20
    • Post-Money Valuations – Later Stage Companies Q2 2002 to Q2 2009 12 Month Average Source: Thomson Reuters Q3 2009 PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters Slide 21
    • Q3 2009 – Most Active Venture Investors Venture Capital Firm Location Total Deals New Enterprise Associates Baltimore, Maryland 20 Polaris Venture Partners Waltham, Massachusetts 17 U.S. Venture Partners Menlo Park, California 16 Draper Fisher Jurvetson Menlo Park, California 14 Kleiner Perkins Caufield & Byers Menlo Park, California 14 Sequoia Capital Menlo Park, California 13 ARCH Venture Partners Chicago, Illinois 11 Venrock Associates Palo Alto, California 11 Menlo Ventures Menlo Park, California 10 Sigma Partners Menlo Park, California 10 Domain Associates LLC Princeton, New Jersey 9 Flagship Ventures Cambridge, Massachusetts 9 Highland Capital Partners LLC Lexington, Massachusetts 9 Rho Ventures New York, New York 9 Benchmark Capital Menlo Park, California 8 CMEA Capital San Francisco, California 8 DCM Menlo Park, California 8 InterWest Partners Menlo Park, California 8 Kansas Technology Enterprise Corporation Topeka, Kansas 8 North Bridge Venture Partners San Mateo, California 8 Q3 2009 PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters Slide 22
    • Q3 2009 – Top 10 Deals in NY Metro Company Location Industry Stage $ Invested Consumer Products Gilt Groupe, Inc. New York, NY Expansion $43.0 and Services **Confidential** Short Hills, NJ Telecommunications Expansion $20.0 Tremor Media, Inc. (FKA: New York, NY Telecommunications Expansion $20.0 Tremor Network, Inc.) Networking and Tervela, Inc. New York, NY Expansion $18.0 Equipment TxVia, Inc. (FKA: TxCore, Inc.) New York, NY Software Expansion $15.5 Cadent, Inc. Carlstandt, NJ Software Later $15.0 TradeCard,Inc. (FKA: Full New York, NY Software Later $13.0 Service Trade System, Inc.) MediaMath, Inc. New York, NY IT Services Early $10.0 TRAFFIQ, Inc. New York, NY IT Services Early $9.99 5min, Ltd. New York, NY Media & Entertainment Early $7.5 Slide 23 Q3 2009 PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters
    • Analysis of Venture-Backed IPO and M&A Activity Average Average Venture- Number of Total Venture-Backed Venture- Quarter/Year Number of IPOs* Backed IPO Offer Venture-backed Offer Amount ($M) Backed M&A amount ($M) M&A deals deal size** 2004 94 11,378.0 121.0 346 85.3 2005 57 4,485.0 78.7 351 187.0 2006 57 5,117.1 89.8 369 105.0 2007 86 10,326.3 120.1 372 170.9 2008 Q1 5 282.7 56.6 108 127.2 2008 Q2 0 0.0 0.0 84 126.7 2008 Q3 1 187.5 187.5 88 96.3 2008 Q4 0 0.0 0.0 62 140.4 2008 6 470.2 78.4 342 120.5 2009 Q1 0 0.0 0.0 63 47.0 2009 Q2 5 720.7 144.1 64 197.7 2009 Q3 3 572.1 190.7 62 57.5 Source: Thomson Reuters and National Venture Capital Association * Includes all companies with at least one U.S. VC investor that trade on U.S. exchanges, regardless of domicile **Only accounts for deals with disclosed values Q3 2009 PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters Slide 24
    • Venture Capital Fundraising Year First Time Funds Follow-On Funds Total Number of Funds VC Raised ($M) 2004 64 154 218 19,154.4 2005 68 174 242 28,962.7 2006 57 185 242 31,925.0 2007 62 189 251 36,064.9 2008 51 173 224 28,604.6 Quarter Q3 ’07 15 62 77 8,595.8 Q4 ’07 27 59 86 12,322.5 Q1 ’08 12 62 74 7,228.4 Q2 ’08 23 59 82 9,284.5 Q3 ’08 14 49 63 8,497.0 Q4 ’08 12 37 49 3,594.7 Q1 ’09 3 47 50 4,810.9 Q2 ’09 8 19 27 1,965.5 Q3 ’09 4 13 17 1,557.8 Source: Thomson Reuters & National Venture Capital Association Data current as of October 12, 2009 Q3 2009 PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters Slide 25
    • Closing Thoughts & Comments
    • David Silverman Partner Phone: 646-471-5421 Email: david.silverman@us.pwc.com © 2009 PricewaterhouseCoopers LLP. All rights reserved. “PricewaterhouseCoopers” refers to PricewaterhouseCoopers LLP, a Delaware limited liability partnership, or, as the context requires, the PricewaterhouseCoopers global network or other member firms of the network, each of which is a separate and PwC independent legal entity. This document is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.