NATIONAL
VENTURE
CAPITAL
ASSOCIATION
YEARBOOK 2013

NATIONAL VENTURE CAPITAL ASSOCIATION YEARBOOK 2013
PREPARED BY
3 Times...
March 2013
Dear Reader:
These are interesting times characterized by economic and political uncertainty - and little forwa...
NVCA BOARD OF DIRECTORS 2012-2013
Executive Committee
Ray Rothrock
Chair
Venrock Associates

Josh Green
Chair-Elect
Mohr, ...
2013

National Venture Capital Association
Yearbook

For the National Venture Capital Association
Prepared by Thomson Reut...
National Venture Capital Association 2013 Yearbook
National Venture Capital Association

Thomson Reuters

1655 Fort Myer D...
Table of Contents
What is Venture Capital? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....
National Venture Capital Association
This page is intentionally left blank.

6

Thomson Reuters
What is Venture Capital?
Venture capital has enabled the United States to support its entrepreneurial talent and appetite ...
National Venture Capital Association
Many technologies currently under development by
venture capital firms are truly disr...
Executive Summary
During 2012, many of the metrics describing the venture capital industry in the United States were simil...
10

2 01
0
201
1
201
2

2 00
1
200
2
200
3
2 00
4
200
5
200
6
200
7
2 00
8
200
9

199
8
199
9
200
0

199
6
199
7

199
4
19...
2013 NVCA Yearbook

Figure 4.0
Investments in
Portfolio Companies ($ Billions)
1985 to 2012
120
100

($ Billions)

80
60
4...
National Venture Capital Association
Figure 6.0
Venture Capital Investments in 2012
Stage by Dollars Invested
Seed 3%

Lat...
2013 NVCA Yearbook
acquisition markets has not enabled most firms to
pay out sufficient distributions to their investors t...
National Venture Capital Association
Industrial/Energy sector to 10.5% of the total. Medical
Devices rounded out the top f...
2013 NVCA Yearbook
Exits

ing or seeking to go public were not able to do so.

Once successful portfolio companies mature,...
National Venture Capital Association
This page is intentionally left blank.

16

Thomson Reuters
Industry Resources
The activity level of the U.S. venture capital industry is roughly half of what it was at the 2000-era ...
National Venture Capital Association
Venture capital under management can be a complex
statistic to estimate. Indeed, capi...
2013 NVCA Yearbook
made up of independent private and public firms
including both institutionally and non-institutionally
...
National Venture Capital Association
Figure 1.04
Fund and Firm Analysis
Fund
Vintage
Year
1985
1986
1987
1988
1989
1990
19...
2013 NVCA Yearbook
Figure 1.07
Capital Under Management By State 1985 to 2012 ($ Millions)

N

O

W

S
N
M
P
W
R
N
W
A
M
U...
National Venture Capital Association
Figure 1.08
Life of IT Funds in Years

Life of IT Funds
In Years
<= 10
11-12
13-14
15...
Capital Commitments
New commitments to venture capital funds in the United States increased for the second year in a row, ...
National Venture Capital Association
Figure 2.01
Capital Commitments
To U.S. Venture Funds ($ Billions)
1985 to 2012
120
1...
2013 NVCA Yearbook
Figure 2.03
Venture Capital Fund Commitments
1985 to 2012 ($ Millions)

State
CA
C
MA
CT
NY
NC
WA
CO
TN...
National Venture Capital Association
Figure 2.04
Top 5 States
By Venture Capital Committed 2012

No. of
Funds

State
Calif...
Investments
Measuring industry activity with the total dollars invested in a given year shows that the industry
has remain...
National Venture Capital Association
California-domiciled venture capital firms made
investments in 39 states in 2012. App...
2013 NVCA Yearbook
Figure 3.01
Venture Capital Investments ($ Billions)
1985 to 2012
120

($ Billions)

100
80
60
40
20

1...
National Venture Capital Association
Figure 3.04
Venture Capital Investments in 2012
Industry Sector by Dollars Invested
T...
2013 NVCA Yearbook
Figure 3.06
Amount of Capital Invested By State in 2012
($ Millions)

61
NH

932
574
WA
WA
6
15
MT
MT

...
National Venture Capital Association
Figure 3.08
Venture Capital Investments in 1985 to 2012
By Region ($ Millions)

Regio...
2013 NVCA Yearbook
Figure 3.09
Venture Capital Investments
1985 to 2012 By Stage ($ Millions)

Stage
S SSeed
Early Stage
E...
National Venture Capital Association
Figure 3.09c-3
Quarterly Venture Capital Investments
1985 to 2012 By Stage ($ Million...
2013 NVCA Yearbook
Figure 3.09d-1
Quarterly Venture Capital Investments
1985 to 2012 By Stage (Number of Deals)
Stage
Seed...
National Venture Capital Association
Figure 3.09d-6
Quarterly Venture Capital Investments
1985 to 2012 By Stage (Number of...
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013
Upcoming SlideShare
Loading in …5
×

NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013

13,256 views
13,108 views

Published on

Executive Summary

During 2012, many of the metrics describing the venture capital industry in the United States were similar to those of the prior two years. The decline in the number of firms and capital managed was expected but not as large as some were anticipating. Venture investment focused on companies in the seed and early stages, with many later-stage companies continuing to await a helpful IPO environment. Investment in early-stage life science companies continues to soften.

Fundraising remained very challenging for the majority of venture firms, largely because of a dearth of healthy exits that would distribute yet-unrealized returns to current fund investors. The number of initial public offerings in 2012 fell slightly from 2011 levels, but the proceeds and IPO valuation tally were both up significantly,largely as a result of one huge IPO and a handful of large ones.

A healthy venture capital ecosystem requires its metrics to be in balance. And while the quality of new business opportunities, known as deal flow, remains very high and the best opportunities are getting funded, stresses remain.

Published in: Economy & Finance, Business

NVCA Yearbook 2013: US National Venture Capital Association's Yearbook 2013

  1. 1. NATIONAL VENTURE CAPITAL ASSOCIATION YEARBOOK 2013 NATIONAL VENTURE CAPITAL ASSOCIATION YEARBOOK 2013 PREPARED BY 3 Times Square 18th Floor New York, NY 10036 www.thomsonreuters.com 1655 Fort Myer Drive Suite 850 Arlington, VA 22209 www.nvca.org INCLUDING STATISTICS FROM THE PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters
  2. 2. March 2013 Dear Reader: These are interesting times characterized by economic and political uncertainty - and little forward motion. And yet in the entrepreneurial section of the economy, the opportunities to create great companies remain unabated. There is wide agreement among policy makers on the importance of entrepreneurial companies to economic growth and well-being. Venture capital is a major driver of that entrepreneurial economy. The nation continues to look to this sector for job creation, economic development, better healthcare, cleaner technology, and a faster, better, and more secure internet. The NVCA Yearbook 2013, prepared by Thomson Reuters, is the 16th iteration of a series launched in early 1998 by NVCA and what is now Thomson Reuters. Since then we have joined forces with PricewaterhouseCoopers to provide the best possible information on venture capital deals across all 50 states. This investment information is tracked and reported by the PricewaterhouseCoopers/NVCA MoneyTreeTM Report based on data from Thomson Reuters. On behalf of the National Venture Capital Association board of directors and staff, we are pleased to present you with the latest statistics that describe the activity of the venture capital industry in the United States. These statistics reflect strong survey participation by venture capital practitioners. This support has allowed us to bring appropriate transparency to a part of the economy that most people are aware of but few really understand. Your comments are always welcome at research@nvca.org. NVCA believes that it is more important than ever to effectively tell the story of venture capital, differentiate it from other forms of alternative assets, and explain what’s needed to continue creating great, leading-edge companies. We believe that a strong venture capital industry is essential to America’s future and our quality of life. NVCA is proud to be funding innovation and empowering entrepreneurs! Very truly yours Diana Frazier FLAG Capital Management NVCA Director & Chair, NVCA Research Committee Mark G. Heesen NVCA President John S. Taylor NVCA Head of Research
  3. 3. NVCA BOARD OF DIRECTORS 2012-2013 Executive Committee Ray Rothrock Chair Venrock Associates Josh Green Chair-Elect Mohr, Davidow Ventures Michael Greeley Treasurer FlyBridge Capital Partners Jonathan Leff At-Large & Research Committee Deerfield Management Jason Mendelson At-Large Foundry Group Scott Sandell At-Large New Enterprise Associates Research Committee Diana Frazier Chair, Research Committee FLAG Capital Management, LLC Mike Elliott Noro-Moseley Partners Adam Grosser Silver Lake Kraftwerk Board Members At-Large Jonathan Callaghan True Ventures Maria Cirino .406 Ventures David Douglass Delphi Ventures Bruce Evans Summit Partners Claudia Fan Munce IBM Venture Capital Group Norm Fogelsong Institutional Venture Partners Venky Ganesan Menlo Ventures Robert Goodman Bessemer Venture Partners Mark Gorenberg Hummer Winblad Venture Partners Jason Green Emergence Capital Partners Ross Jaffe, MD Versant Ventures Ray Leach Jumpstart, Inc. Sherrill Neff Quaker BioVentures Robert Nelsen ARCH Venture Partners David Lincoln Element Partners James Marver VantagePoint Capital Partners Anne Rockhold Accel Partners 2 Thomson Reuters
  4. 4. 2013 National Venture Capital Association Yearbook For the National Venture Capital Association Prepared by Thomson Reuters Copyright © 2013 Thomson Reuters The information presented in this report has been gathered with the utmost care from sources believed to be reliable, but is not guaranteed. Thomson Reuters disclaims any liability including incidental or consequential damages arising from errors or omissions in this report. Thomson Reuters 3
  5. 5. National Venture Capital Association 2013 Yearbook National Venture Capital Association Thomson Reuters 1655 Fort Myer Drive, Suite 850 Arlington, Virginia 22209-3114 Telephone: 703-524-2549 Telephone: 703-524-3940 www.nvca.org 3 Times Square, 18th Floor New York, NY 10036 Telephone: 646-223-4431 Fax: 646-223-4470 www.thomsonreuters.com President Mark G. Heesen Head of Research John S. Taylor Senior Vice President Molly M. Myers Senior Vice President of Federal Policy & Political Advocacy Jennifer Connell Dowling Vice President of Communications Emily Mendell Vice President of Membership & Member Firm Liaison Janice Mawson Vice President of Federal Policy & Political Advocacy Emily A. Baker Chief Marketing Officer Jeanne Lazarus Metzger Vice President of Federal Life Science Policy Kelly Slone Membership and Database Manager Terry Samm Manager of Administration and Meetings Allyson Chappell Accounting Manager Beverley Badley Administrative Assistant Gwendolyn Taylor Global Head of Deals & Private Equity Stephen N. Case II Vice President, Deals and Private Equity Operations Shariq Kajiji Global Business Manager – Private Equity Jim Beecher Editor-in-Charge David Toll Global Private Equity Operations Manager Anna Aquino-Chavez Press Management Matthew Toole Product Manager Lori Ann Silva Content Specialist Paul Pantalla Data Specialist Francis Base Research Editor Eamon Beltran Senior Art Director David Cooke Sales Manager – Publications (Buyouts, VCJ, peHUB) Greg Winterton (646-223-6787) ThomsonONE.com Sales: Dave Sharma (646-223-4048) Research Lab Mavis Moulterd, Thea Shepherd 4 Thomson Reuters
  6. 6. Table of Contents What is Venture Capital? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Industry Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . 11 Investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Exits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . 15 Industry Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . 17 Capital Commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Investments.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Exits: IPOs and Acquisitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Appendix A: Glossary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Appendix B: MoneyTree Report Criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Appendix C: MoneyTree Geographical Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 Appendix D: Industry Codes (VEICs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 Appendix E: Industry Sector VEIC Ranges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95 Appendix F: Stage Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 Appendix G: Data Sources and Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 Appendix H: International Convergence. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 Appendix I: US Accounting Rulemaking and Valuation Guidelines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .105 Appendix J: Non-US Private Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109 Thomson Reuters 5
  7. 7. National Venture Capital Association This page is intentionally left blank. 6 Thomson Reuters
  8. 8. What is Venture Capital? Venture capital has enabled the United States to support its entrepreneurial talent and appetite by turning ideas and basic science into products and services that are the envy of the world. Venture capital funds build companies from the simplest form – perhaps just the entrepreneur and an idea expressed as a business plan – to freestanding, mature organizations. Risk Capital for Business Venture capital firms are professional, institutional managers of risk capital that enables and supports the most innovative and promising companies. This money funds new ideas that could not be financed with traditional bank financing, that threaten established products and services in a corporation, and that typically require five to eight years to be launched. Venture capital is quite unique as an institutional investor asset class. When an investment is made in a company, it is an equity investment in a company whose stock is essentially illiquid and worthless until a company matures five to eight years down the road. Follow-on investment provides additional funding as the company grows. These “rounds,” typically occurring every year or two, are also equity investment, with the shares allocated among the investors and management team based on an agreed “valuation.” But, unless a company is acquired or goes public, there is little actual value. Venture capital is a long-term investment. More Than Money The U.S. venture industry provides the capital to create some of the most innovative and successful companies. But venture capital is more than money. Venture capital partners become actively engaged with a company, typically taking a board seat. With a startup, daily interaction with the management team is common. This limits the number of startups in which any one fund can invest. Few entrepreneurs approaching venture capital firms for money are aware that they essentially are asking for 1/6 of a person! Yet that active engagement is critical to the success of the fledgling company. Many one- and two-person Thomson Reuters Venture Capital Backed Companies Known for Innovative Business Models Employment at IPO and Now As Company The Home Depot Starbucks Corporation Staples Whole Foods Market, Inc. eBay of IPO 650 2,521 1,693 2,350 138 Current 331,000 160,000 89,019 69,500 31,500 # Change 330,350 157 ,479 87 ,326 67 ,150 31,362 Venture Capital Backed Companies Known for Innovative Technology and Products Employment at IPO and Now Company Microsoft Intel Corporation Medtronic, Inc. Apple Inc. Google JetBlue As of IPO 1,153 460 1,287 1,015 3,021 4,011 Current 94,000 100,100 45,000 76,100 53,861 12,070 # Change 92,847 99,640 43,713 75,085 50,840 8,059 Source: Global Insight; Updated from ThomsonOne 2/2013 companies have received funding but no one- or twoperson company has ever gone public! Along the way, talent must be recruited and the company scaled up. Ask any venture capitalist who has had an ultra-successful investment and he or she will tell you that the company that broke through the gravity evolved from the original business plan concept with the careful input of an experienced hand. Deal Flows — Where The Buys Are For every 100 business plans that come to a venture capital firm for funding, usually only 10 or so get a serious look, and only one ends up being funded. The venture capital firm looks at the management team, the concept, the marketplace, fit to the fund’s objectives, the value-added potential for the firm, and the capital needed to build a successful business. A busy venture capital professional’s most precious asset is time. These days, a business concept needs to address world markets, have superb scalability, be made successful in a reasonable timeframe, and be truly innovative. A concept that promises a 10 or 20 percent improvement on something that already exists is not likely to get a close look. 7
  9. 9. National Venture Capital Association Many technologies currently under development by venture capital firms are truly disruptive technologies that do not lend themselves to being embraced by larger companies whose current products could be cannibalized by this. Also, with the increased emphasis on public company quarterly results, many larger organizations tend to reduce spending on research and development and product development when things get tight. Many talented teams have come to the venture capital process when their projects were turned down by their companies. The Exit Funnel Outcomes of the 11,686 Companies First Funded 1991 to 2000 Went/Going Public 14% Still Private or Unknown* 35% Acquired 33% Common Structure — Unique Results While the legal and economic structures used to create a venture capital fund are similar to those used by other alternative investment asset classes, venture capital itself is unique. Typically, a venture capital firm will create a Limited Partnership with the investors as LPs and the firm itself as the General Partner. Each “fund,” or portfolio, is a separate partnership. A new fund is established when the venture capital firm obtains necessary commitments from its investors, say $100 million. The money is taken from investors as the investments are made. Typically, an initial funding of a company will cause the venture fund to reserve three or four times that first investment for follow-on financing. Over the next three to eight or so years, the venture firm works with the founding entrepreneur to grow the company. The payoff comes after the company is acquired or goes public. Although the investor has high hopes for any company getting funded, only one in six ever goes public and one in three is acquired. Economic Alignment of all Stakeholders — An American Success Story Venture capital is rare among asset classes in that success is truly shared. It is not driven by quick returns or transaction fees. Economic success occurs when the stock price increases above the purchase price. When a company is successful and has a strong public stock offering, or is acquired, the stock price of the company reflects its success. The entrepreneur benefits from appreciated stock and stock options. The rank and file employees throughout the organization historically also do well with their stock options. The venture capital fund and its investors split the capital gains per a 8 Known Failed 18% *Of these, most have quietly failed pre-agreed formula. Many college endowments, pension funds, charities, individuals, and corporations have benefited far beyond the risk-adjusted returns of the public markets. Beyond the IPO Many of the most exciting venture capital backed companies left the venture portfolios after they went public. Far from being a destination, the IPO process provides needed growth capital for a growing company. A 2009 analysis by IHS Global Insight shows that more than 90% of the jobs at today’s venture backed public companies were created after it went public. That is, these companies on average are 10% of their mature size at the time they go public. What’s Ahead Much of venture capital’s success has come from the entrepreneurial spirit pervasive in the American culture, financial recognition of success, access to good science, and fair and open capital markets. It is dependent upon a good flow of science, motivated entrepreneurs, protection of intellectual property, and a skilled workforce. The nascent deployment of venture capital in other countries is gated by a country’s or region’s cultural fit, tolerance for failure, services infrastructure that supports developing companies, intellectual property protection, efficient capital markets, and the willingness of big business to purchase from small companies. Thomson Reuters
  10. 10. Executive Summary During 2012, many of the metrics describing the venture capital industry in the United States were similar to those of the prior two years. The decline in the number of firms and capital managed was expected but not as large as some were anticipating. Venture investment focused on companies in the seed and early stages, with many later-stage companies continuing to await a helpful IPO environment. Investment in early-stage life science companies continues to soften. Fundraising remained very challenging for the majority of venture firms, largely because of a dearth of healthy exits that would distribute yet-unrealized returns to current fund investors. The number of initial public offerings in 2012 fell slightly from 2011 levels, but the proceeds and IPO valuation tally were both up significantly, largely as a result of one huge IPO and a handful of large ones. A healthy venture capital ecosystem requires its metrics to be in balance. And while the quality of new business opportunities, known as deal flow, remains very high and the best opportunities are getting funded, stresses remain. Introduction The National Venture Capital Association 2013 Yearbook provides a summary of venture capital activity in the United States. This ranges from investments into portfolio companies to capital managed by general partners to fundraising from limited partners to exits of the investments by either IPOs or mergers and acquisitions. The statistics for this publication were assembled primarily from the MoneyTree™ Report by PricewaterhouseCoopers and the National Venture Capital Association, based on data from Thomson Reuters and analyzed through Figure 1.0 Venture Capital Under Management Summary Statistics No. of VC Firms in Existence No. of VC Funds in Existence No. of Principals No. of First Time VC Funds Raised No. of VC Funds Raising Money This Year VC Capital Raised This Year ($B) VC Capital Under Management ($B) Avg VC Capital Under Mgt per Firm ($M) Avg VC Fund Size to Date ($M) Avg VC Fund Size Raised This Year ($M) Largest VC Fund Raised to Date ($M) Thomson Reuters 1992 2002 2012 358 1,089 841 616 2,119 1,269 4,996 14,541 5,887 13 25 43 78 176 162 4.9 15.7 20.1 28.7 272.1 199.2 80.2 249.9 236.9 39.1 94.4 110.6 62.8 89.2 124.1 1,775.0 6,300.0 6,300.0 the ThomsonONE.com (formerly VentureXpert) database of Thomson Reuters, which has been endorsed by the NVCA as the official industry activity database. Subscribers to ThomsonONE can recreate most of the charts in this publication and report individual deal detail and more granular statistics than provided herein. Industry Resources The activity level of the U.S. venture capital industry is roughly half of what it was at the 2000-era peak. For example, in 2000, 1053 firms each invested $5 million or more during the year. In 2012, the count was less than half that at 522. Venture capital under management in the United States by the end of 2012 decreased to $199.2 billion as calculated using the methodology described below. However, looking behind the numbers, we know that the industry continues to contract from the circa 2000 bubble high of $261.2 billion The slight downtick in number of firms and capital managed in 2012 perhaps understates a consolidating trend. The average venture capital firm shrunk to 7.0 principals per firm from 7.4 in 2011. The corresponding drop in headcount to under 6,000 principals is almost one-third lower than 2007 levels. This 9
  11. 11. 10 2 01 0 201 1 201 2 2 00 1 200 2 200 3 2 00 4 200 5 200 6 200 7 2 00 8 200 9 199 8 199 9 200 0 199 6 199 7 199 4 199 5 198 9 199 0 199 1 199 2 199 3 198 8 198 7 198 6 198 5 ($ Billions) 198 5 198 6 198 7 198 8 198 9 199 0 199 1 199 2 1993 199 4 199 5 199 6 1997 199 8 199 9 200 0 200 1 200 2 200 3 200 4 200 5 200 6 200 7 200 8 200 9 201 0 201 1 201 2 ($ Billions) National Venture Capital Association Figure 2.0 Capital Under Management U.S. Venture Funds ($ Billions) 1985 to 2012 350 300 250 200 150 100 50 0 Year Figure 3.0 Capital Commitments to U.S. Venture Funds ($ Billions) 1985 to 2012 120 100 80 60 40 20 0 Year Thomson Reuters
  12. 12. 2013 NVCA Yearbook Figure 4.0 Investments in Portfolio Companies ($ Billions) 1985 to 2012 120 100 ($ Billions) 80 60 40 200 1 200 2 200 3 2 00 4 200 5 200 6 200 7 200 8 200 9 201 0 201 1 201 2 199 7 199 8 199 9 200 0 199 4 199 5 199 6 198 7 198 8 198 9 199 0 199 1 199 2 199 3 0 198 5 198 6 20 Year Figure 5.0 Venture Capital Investments in 2012 By Industry Group All Investments Industry Group Information Technology Medical/Health/Life Science Non-High Technology Total # Companies 2,130 649 364 3,143 # Deals 2,480 818 425 3,723 meant that there was an increase in the average amount of capital managed by each principal. It is possible going forward, that the number of principals per firm will increase as the number of firms decreases. This is because the bulk of the money being raised today is being raised by larger, specialty, and boutique firms. Commitments New commitments to venture capital funds in the United States increased for the second year in a row, which follows four years of declines. In 2012, commitments totaling $20.1 billion were made to 183 funds. This is roughly two-thirds of the annual levels Thomson Reuters Initial Investments Investment Amt ($Bil) 16.5 6.8 3.4 26.7 # Companies 870 148 156 1,174 # Deals 870 148 156 1,174 Investment Amt ($Bil) 3.0 0.7 0.4 4.1 seen in 2005-2007 and approximately one-fifth of the annual amount raised at the bubble peak. When you look behind the 2012 capital commitments at the specific funds being raised, the 10 largest funds represent 48% of the capital raised, with 173 funds raising the other 52%. This is the sixth consecutive year in which more money was invested by the industry than raised in new commitments. That has been the case in 11 of the past 13 years. While this is not a true apples-toapples comparison, it does explain the industry’s strong interest in raising additional funds in 2013 and beyond. The narrow success of recent IPO and 11
  13. 13. National Venture Capital Association Figure 6.0 Venture Capital Investments in 2012 Stage by Dollars Invested Seed 3% Later Stage 32% Early Stage 30% Expansion 35% Figure 7.0 Venture Capital Investments in 2012 Industry Sector by Dollars Invested Telecommunications 2% Other 0.2% Biotechnology 15% Business Products and Services 0.4% Computers and Peripherals 2% Consumer Products and Services 5% Electronics/ Instrumentation 1% Financial Services 1% Healthcare Services 1% Software 31% Semiconductors 3% Retailing/ Distribution 2% Networking and Equipment 1% Medical Devices and Equipment 9% 12 Industrial/Energy 10% IT Services 7% Media and Entertainment 7% Thomson Reuters
  14. 14. 2013 NVCA Yearbook acquisition markets has not enabled most firms to pay out sufficient distributions to their investors to begin raising another fund. For the vast majority of firms, raising additional capital right now is very difficult. Investments Measuring industry activity with the total dollars invested in a given year shows that the industry has remained generally in the $20 billion to $30 billion range since 2002. In 2012, $26.7 billion was invested in 3,143 companies. This is less than 2011 totals and greater than 2010 totals. The number of first-time fundings likewise was less than 2011 and greater than 2010. Further parsing the data shows an increasing portion of the investment dollars going to California companies. Software was the leading sector in 2012, receiving 31% of the total dollars. The second largest sector was Biotechnology which fell to roughly half that amount at 15.4% of total investment The continued interest in Clean Technology investing brought the Figure 8.0 2012 Investments By State State California Massachusetts New York Washington Texas Illinois Colorado Pennsylvania New Jersey Virginia All Others Total Number of Companies 1,280 326 287 101 134 76 85 154 49 62 589 3,143 Pct of Total 41% 10% 9% 3% 4% 2% 3% 5% 2% 2% 19% Investment ($ Millions) 14,128.8 3,067.9 1,856.7 931.5 930.5 570.4 564.2 517.8 429.3 372.3 3,282.8 26,652.4 Pct of Total 53% 12% 7% 3% 3% 2% 2% 2% 2% 1% 12% Figure 9.0 Venture-Backed IPOs Year 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Num of IPOs 48 104 86 43 42 47 120 150 175 140 184 256 141 79 280 238 37 24 26 82 59 68 92 7 13 68 51 49 Thomson Reuters Offer Amount ($Mil) 763 2,414 2,125 769 873 1,108 3,726 5,431 6,141 4,004 7,859 12,666 5,831 4,221 24,005 27,443 4,130 2,333 2,024 10,032 5,113 7,127 12,365 765 1,980 7,609 10,690 21,451 Med Offer Amt ($Mil) 13 14 17 15 16 20 27 24 24 24 36 35 33 43 70 83 80 89 71 70 68 85 97 83 123 93 106 89 Mean Offer Post Offer Med Post Mean Post Median Age Amt ($Mil) Value ($Mil) Value ($Mil) Value ($Mil) @ IPO (yrs) 16 1,991 32 47 3 23 166,260 53 1889 4 25 10,790 46 150 4 18 20,523 51 555 3 21 5,479 51 166 4 24 5,886 60 178 4 31 14,151 78 168 5 36 15,759 68 147 5 35 14,430 75 129 5 29 9,854 67 91 5 43 17,046 103 136 4 49 40,360 111 191 3 41 17,784 99 146 3 53 9,649 149 214 3 86 86,669 294 425 3 115 63,610 336 464 3 112 15,545 304 576 4 97 8,322 266 347 3 78 7,412 252 285 5 122 50,268 254 613 6 87 39,702 202 673 5 105 71,467 293 1067 5 134 68,282 361 742 6 109 3,645 278 521 7 152 9,192 548 707 6 112 111,386 431 1662 5 210 94,987 606 1862 6 438 122,264 371 2495 7 Mean Age @ IPO (yrs) 4 4 4 4 4 4 5 5 6 5 5 4 6 3 3 4 4 5 6 6 5 6 6 7 7 6 7 8 13
  15. 15. National Venture Capital Association Industrial/Energy sector to 10.5% of the total. Medical Devices rounded out the top four sectors at 9.4%. The life sciences share of the venture capital investment dollars decreased in 2012 to its lowest level since 2002. In 2012, 15.4% of the money went into Biotechnology, 9.4% into Medical Devices, and 1.2% into Healthcare Services, totaling 26.0%. This is down from the 33.1% combined share in 2009. As has been the case for several years, attention has been focused on the two ends of the spectrum. Looking at deal counts, 2012 actually saw the highest percentage of seed- and early-stage deals since at least 1985 (51.8% of total deals). This certainly would challenge the suggestion that the industry’s attention is single-focused on later-stage companies. That said, the 22.4% of deals going to later-stage companies is also toward the top end of the historical range. There remains a record number of companies in portfolios in the later stage of development that in most other positions in the business cycle would have already gone public or otherwise been acquired. With the rule of thumb that a healthy venture capital industry invests in 1,000-1,300 new companies each year, the 1,174 first fundings in 2012 is very much in that range. Not surprisingly, 81% of those first round investments were made at the seed- and early-stage levels. The year 2012 provided an interesting contrast in geographic dispersion. While 53% of all the investment dollars went to California-based portfolio companies, a record for MoneyTree™, companies in 48 states and DC received financing, also a MoneyTree™ record high. Figure 10.0 Venture-Backed M&A Exits Year 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 14 Number Total 6 8 10 17 20 19 16 69 59 82 92 107 143 189 227 379 384 363 323 402 443 485 488 416 350 521 488 449 Number Known 3 1 4 9 10 7 4 43 36 56 58 76 99 113 154 245 175 165 134 199 198 207 200 134 108 149 169 121 ($ Millions) Price Average 300.2 100.1 63.4 9.1 667.2 111.2 920.7 115.1 746.9 74.7 120.3 10.0 190.5 15.9 2,119.1 81.5 1,332.9 58.0 3,207.1 123.4 3,801.8 111.8 8,230.8 265.5 7,743.6 176.0 8,002.0 105.3 38,688.0 530.0 79,996.4 597.0 25,115.6 120.2 11,913.2 60.2 8,240.8 43.6 28,846.1 142.1 19,600.2 80.0 24,288.5 87.4 30,745.5 106.8 16,236.9 57.6 12,364.9 51.1 17,700.3 47.6 24,093.2 75.5 21,516.2 65.6 Thomson Reuters
  16. 16. 2013 NVCA Yearbook Exits ing or seeking to go public were not able to do so. Once successful portfolio companies mature, venture funds generally exit their positions in those companies by taking them public through an initial public offering (IPO) or by selling them to presumably larger organizations (acquisition, or trade sale). This then lets the venture fund distribute the proceeds to investors, raise a new fund for future investment, and invest in the next generation of companies. This chapter considers each type of exit separately. On the market valuation placed on these IPOs at the offer price, 2012 was a very good year. The 49 IPOs had a valuation of $122.3 billion. This is the highest amount since 1986. What is quite striking (Fig 5.03), is the huge gap between median and mean (average) valuation of almost seven times! This suggests a huge outlier effect created by the very large IPOs that succeeded. IPOs in 2012 were a mixed bag at best. On the one hand, the number of venture-backed companies going public actually fell from 2011 from 51 to 49. But the dollars raised in those initial public offerings more than doubled from $10.7 billion to $21.5 billion. But looking behind the numbers, we see that Facebook itself raised $16.0 billion of that $21.5 billion, with a few other high-profile IPOs looming large in the remainder. This meant that many companies attempt- Thomson Reuters In 2012, the acquisition market weakened. There was a slight decrease in the number of acquisitions, or trade sales, of venture-backed companies. We tracked 449 acquisitions, of which we had disclosed deal amounts for 121 of them. The sum of the disclosed values was also down at $21.5 billion. Just over onefifth of them were acquired at 10 times or greater than the cumulative venture capital investment in those companies. We tracked four acquisitions at more than $1 billion. 15
  17. 17. National Venture Capital Association This page is intentionally left blank. 16 Thomson Reuters
  18. 18. Industry Resources The activity level of the U.S. venture capital industry is roughly half of what it was at the 2000-era peak. For example, in 2000, 1053 firms each invested $5 million or more during the year. In 2012, the count was less than half that at 522. Venture capital under management in the United States by the end of 2012 decreased to $199.2 billion as calculated using the methodology described below. However, looking behind the numbers, we know that the industry continues to contract from the circa 2000 bubble high of $261.2 billion The slight downtick in firms and capital managed in 2012 perhaps understates a consolidating trend. The average venture capital firm shrunk to 7.0 principals per firm from 7.4 in 2011. The corresponding drop in headcount to under 6,000 principals is almost one-third lower than 2007 levels. This meant that there was an increase in the average amount of capital managed by each principal. It is possible going forward, that the number of principals per firm will increase as the number of firms decreases. This is because the bulk of the money being raised today is being raised by larger, specialty, and boutique firms. For our purposes here, we define a principal to be someone who goes to portfolio company board meetings. That is, deal partners would be included and firm CFOs would not be included. Geographic location of the largest venture firms is quite concentrated. California domiciled firms manage 47.1% of the industry’s capital although these firms may be actively investing in other states and countries. This concentration has been consistent for several years and may increase going forward, given the movement of some east coast funds westward. Taken together, the top five states (California, Massachusetts, New York, Connecticut, and Illinois) hold 81.4% of total venture capital in this country. METHODOLOGY Historically we have calculated industry size using a “rolling eight years of fundraising” proxy for capital managed, number of funds, number of firms, etc. The number of firms in existence will vary on a rolling eight-year basis as firms raise new funds or do not raise funds for more than eight years. Currently, we know the industry is consolidating, but the eight- year model now includes fund vintage years 2005-2012. However, through 2012, the rolling eight year methodology belies this contraction because the very slow fundraising years of 2002-2004 were rolling out of the calculation. Under this methodology, we estimate that there are currently 841 firms with limited partnerships “in existence.” To clarify, this is actually stating that there are 841 firms that have raised a venture capital fund in the last eight years. In reality, fewer firms are actually making new investments in 2012. added a column to the table to report the number of independent and corporate venture groups actually investing $5 million or more in a given year. These 522 firms are less than half the level of 2000. We expect this statistic to fall further going forward. For this publication, we are primarily counting the number of firms with limited partnerships and are excluding other types of investment vehicles. From that description, it may appear that the statistics for total industry resources may be underestimated. However, this must be balanced with the fact that capital under management by captive and evergreen funds is difficult to compare equitably to typical limited partnerships with fixed lives. For this analysis only, the firms counted for capital under management include firms with fixed-life partnerships and venture capital funds they raised. If a firm raised both buyout and venture capital funds, only the venture funds would be counted in the calculation of venture capital under management. To better report the actual number of active firms, we Thomson Reuters 17
  19. 19. National Venture Capital Association Venture capital under management can be a complex statistic to estimate. Indeed, capital under management reported by firms can differ from firm to firm as there’s not one singular definition. For example, some firms include only cumulative committed capital, others may include committed capital plus capital gains, and still other firms define it as committed capital after subtracting liquidations. To complicate matters, it is difficult to compare these totals to European private equity firms, which include capital gains as part of their capital under management measurements. have completed their life cycle. Typically, venture capital firms have a stated 10-year fixed life span, except for life science funds, which are often established as 12-year funds. Figure 1.08 shows the reality of fund life. Thomson Reuters calculates capital under management as the cumulative amount committed to funds on a rolling eight-year basis. Current capital under management is calculated by taking the capital under management calculation from the previous year, adding in the current year’s funds’ commitments, and subtracting the capital raised eight years prior. For purposes of the analysis in this publication, we have tried to clarify the industry definition of capital under management as the cumulative total of committed capital less liquidated funds or those funds that For this analysis, Thomson Reuters classifies venture capital firms using four distinct types: private independent firms, financial institutions, corporations, and other entities. ‘Private independent’ firms are Figure 1.01 Capital Under Management U.S. Venture Funds ($ Billions) 1985 to 2012 350 300 ($ Billions) 250 200 150 100 50 198 5 198 6 198 7 198 8 198 9 199 0 199 1 1992 1993 199 4 199 5 199 6 1997 199 8 199 9 200 0 200 1 200 2 200 3 200 4 200 5 200 6 200 7 200 8 200 9 201 0 201 1 201 2 0 Year 18 Thomson Reuters
  20. 20. 2013 NVCA Yearbook made up of independent private and public firms including both institutionally and non-institutionally funded firms and family groups. ‘Financial institutions’ refers to firms that are affiliates and/or subsidiaries of investment banks and non-investment bank financial entities, including commercial banks and insurance companies. The ‘corporations’ classification includes venture capital subsidiaries and affiliates of industrial corporations. In 2013, we will modify the methodology to reflect virtually all direct corporate investment because many of the corporate venture investors do not operate out of a separate fund or group. The capital under management statistics reported in this section consist primarily of venture capital firms investing through limited partnerships with fixed commitment levels and fixed lives and do not include non-vintage “evergreen funds” or true captive corporate industrial investment groups without fixed commitment levels. The term ‘evergreen funds’ refers to funds that have a continuous infusion of capital from a parent organization, as opposed to the fixed life and commitment level of a closed-end venture capital fund. Figure 1.02 Total Capital Under Management By Firm Type 1985 to 2012 ($ Millions) 1985 1986 1987 1988 P vate Independent 11,636 14,574 17,299 18,607 Pri Financial Institutions 3,368 3,508 3,442 3,178 Corporations 1,739 1,709 2,062 2,148 Other 857 909 897 867 Total 1989 1990 22,112 2,714 2,095 779 22,632 2,802 2,142 725 1991 1992 1993 1994 1995 1996 1997 1998 21,805 22,557 25,199 28,528 33,417 2,392 2,220 2,484 2,924 3,758 2,086 2,211 1,526 1,573 1,345 618 313 191 275 380 40,235 5,123 2,032 409 51,877 7,209 2,348 665 76,398 10,382 3,245 3 875 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 120,221 15,466 6,797 1,116 187,475 23,454 11,604 1,467 221,105 24,975 12,787 2,134 221,634 225,208 233,976 242,466 24,453 23,558 22,277 21,634 12,766 12,717 12,245 12,044 2,347 2,317 2,302 2,055 255,714 238,766 18,991 14,384 11,964 8,828 2,031 1,822 194,698 6,263 4,171 1,469 171,713 4,865 2,979 843 175,980 5,266 3,458 3,997 2011 2012 183,482 180,936 9,541 9,670 4,483 4,497 3,995 4,098 17,600 20,700 23,700 24,800 27,700 28,300 26,900 27,300 29,400 33,300 38,900 47,800 62,100 90,900 143,600 224,000 261,000 261,200 263,800 270,800 278,200 288,700 263,800 206,600 180,400 188,700 201,500 199,200 Figure 1.03 Distribution of Firms By Capital Managed 2012 155 160 139 125 140 112 111 120 91 100 80 60 47 60 40 20 10 00 + 50 010 00 25 050 0 10 025 0 -10 0 50 25 -5 0 10 -2 5 010 0 Capital Under Management ($ Millions) This chart shows capital committed to U.S. venture firms in active funds. While much of the capital is managed by larger firms, of the 841 firms at the end of 2012, roughly 60% of them (504) managed $100 million or less. By comparison, just 47 firms managed active funds totaling more than $1 billion. Thomson Reuters 19
  21. 21. National Venture Capital Association Figure 1.04 Fund and Firm Analysis Fund Vintage Year 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Total Cumulative Funds 631 707 810 887 979 1,037 1,075 1,147 1,244 1,342 1,497 1,647 1,859 2,096 2,433 2,849 3,092 3,174 3,282 3,447 3,622 3,805 4,019 4,205 4,313 4,439 4,599 4,716 Total Cumulative Firms 323 353 388 406 435 451 458 478 509 542 607 668 760 839 966 1,109 1,191 1,208 1,260 1,328 1,398 1,474 1,558 1,621 1,664 1,725 1,787 1,828 Total Cumulative Capital ($B) 20 23.4 27.4 30.8 35.8 38.3 40.5 44.1 49.4 56.7 66.2 78.6 97.9 129.2 184.1 268.2 310.4 318 330 349.4 376.2 417.9 447.9 474.8 490.7 506.7 531.5 548.6 Existing Funds 532 590 670 700 727 716 639 601 613 635 687 760 880 1,059 1,358 1,702 1,848 1,832 1,785 1,800 1,763 1,709 1,586 1,356 1,221 1,265 1,317 1,269 Firms That Raised Funds in the Last 8 Vintage Years 294 324 353 365 380 383 360 352 370 385 424 469 541 613 733 864 920 918 948 984 1009 1019 1010 879 818 844 868 841 Capital Managed ($B) 17.6 20.7 23.7 24.8 27.7 28.3 26.9 27.3 29.4 33.3 38.9 47.8 62.1 90.9 143.6 224 261 261.2 263.8 270.8 278.2 288.7 263.8 206.6 180.4 188.7 201.5 199.2 Avg Fund Size ($M) 33.1 35.1 35.4 35.4 38.1 39.5 42.1 45.4 48.0 52.4 56.6 62.9 70.6 85.8 105.7 131.6 141.2 142.6 147.8 150.4 157.8 168.9 166.3 152.4 147.7 149.2 153.0 157.0 Avg Firm Size ($M) 59.9 63.9 67.1 67.9 72.9 73.9 74.7 77.6 79.5 86.5 91.7 101.9 114.8 148.3 195.9 259.3 283.7 284.5 278.3 275.2 275.7 283.3 261.2 235 220.5 223.6 232.1 236.9 Firms Actively Investing 92 113 112 118 115 100 80 104 93 110 185 249 342 408 713 1053 759 534 505 575 558 570 627 603 462 509 545 522 The correct interpretation of this chart is that since the beginning of the industry to the end of 2012, 1,828 firms had been founded and 4,716 funds had been raised. Those funds totaled $548.6 billion. At the end of 2012, 841 firms as calculated using our eight-year methodology managed 1,269 individual funds, with each fund typically being a separate limited partnership. Capital under management, again calculated using a rolling eight years of fundraising, by those firms at the end of 2012 was $199.2 billion. However, only 522 independent and corporate venture groups invested at least $5 million in MoneyTree™ deals in 2012. Figure 1.05 Principals Information Year 2007 2008 2009 2010 2011 2012 No. Principals Per Firm 8.7 8.5 8.6 8.0 7.4 7.0 Estimated Industry Principals 8,665 7,293 6,760 6,328 6,231 5,887 Figure 1.06 Top 5 States By Capital Under Management 2012 Avg Mgt Per Principal ($M) 30.0 28.3 26.4 25.7 28.6 33.8 State CA MA NY CT IL Total* ($ Millions) 93,814.8 34,482.3 21,378.0 8,051.2 4,369.0 162,095.4 *Total includes above 5 states states only *Total includes above 5 only The correct interpretation of this chart is that at year end 2012, there were 5,887 principals (people who go to board meetings) in the industry. A principal on average manages $33.8 million and the average firm is made up of 7.0 principals, down from 7.4 principals a year earlier. 20 Thomson Reuters
  22. 22. 2013 NVCA Yearbook Figure 1.07 Capital Under Management By State 1985 to 2012 ($ Millions) N O W S N M P W R N W A M U A T State 1985 1986 1987 1988 1989 CA 4,875 5,836 6,493 6,727 7,987 MA 2,331 2,646 3,533 3,886 4,292 NY 3,382 4,421 4,369 4,158 5,589 CT 1,285 1,432 1,917 1,979 1,821 IL 470 490 720 848 804 PA 444 518 548 562 731 DC 3 4 4 3 4 TX 454 488 722 720 792 NJ 610 707 746 734 730 MD 93 97 123 116 158 WA 313 406 384 422 395 VA 72 78 78 84 104 MN 198 294 338 672 743 NC 34 54 87 89 124 CO 361 428 396 513 613 MO 557 581 614 591 599 UT 9 19 19 15 15 MI 111 119 125 122 123 FL 124 131 172 192 194 TN 102 127 191 183 215 GA 88 94 175 257 261 DE 39 40 40 38 47 OH 852 889 969 831 254 AL 125 131 131 127 134 IN 45 55 56 77 96 AZ 40 43 43 73 74 LA 7 7 7 7 7 KY 15 16 16 16 0 WI 181 99 98 95 104 NM 71 100 135 132 168 ID 0 0 0 0 0 ME 1 1 20 25 26 OK 1 29 29 28 37 SD 0 0 0 0 0 HI 2 2 2 2 2 IA 49 51 104 101 80 OR 168 176 203 239 242 VT 0 0 0 0 0 NH 24 25 25 49 50 ND 0 0 0 0 0 KS 0 0 0 0 0 SC 1 1 1 1 15 NE 0 0 0 1 1 MS 0 0 0 0 0 PR 0 0 0 0 0 WY 0 0 0 0 0 RI 15 16 16 36 36 NV 0 0 0 0 0 WV 0 0 0 0 0 AR 2 2 2 2 2 MT 0 1 1 1 1 UN 46 48 48 46 31 AK 0 0 0 0 0 Total 17,600 20,700 23,700 24,800 27,700 Thomson Reuters 1990 7,620 4,414 5,810 1,984 818 772 4 835 950 163 383 91 882 113 572 655 16 38 132 259 275 41 257 136 88 75 5 0 104 255 0 26 38 0 2 82 246 0 51 0 13 15 1 0 9 0 37 0 0 2 1 31 0 28,300 1991 7,732 4,070 5,460 1,840 783 774 4 773 880 98 198 56 810 109 554 653 15 14 110 276 262 41 273 136 80 75 2 0 78 243 0 26 37 0 2 61 228 0 50 0 13 15 1 0 9 0 36 0 0 2 1 21 0 26,900 1992 7,728 4,944 5,314 1,937 886 770 1 805 546 115 241 42 764 110 528 642 10 14 97 270 262 14 303 137 96 34 11 0 78 230 0 28 37 0 0 62 116 0 50 0 13 15 1 0 9 0 36 0 0 0 1 0 0 27,300 1993 8,562 5,136 5,911 2,268 1,148 570 20 936 512 374 227 35 842 108 617 107 10 13 151 200 434 41 427 6 99 44 22 0 81 205 0 29 38 0 0 54 74 0 27 0 14 15 11 0 9 0 22 0 0 0 1 0 0 29,400 1994 9,315 5,645 6,977 2,430 1,220 739 20 1,143 695 784 178 32 896 146 566 137 25 10 223 292 432 51 470 6 109 43 31 7 163 179 0 98 9 0 0 55 74 0 27 0 14 15 11 0 9 0 22 0 0 0 0 0 0 33,300 1995 11,524 6,881 8,268 2,282 1,361 822 123 1,145 958 914 299 48 877 128 475 119 31 41 321 306 434 100 447 6 111 44 49 21 168 154 0 89 10 0 2 5 77 0 47 0 37 29 105 11 9 0 23 0 0 0 0 0 0 38,900 1996 14,797 7,339 9,952 2,397 1,312 1,324 1,670 1,225 1,480 1,514 460 73 511 298 549 124 31 41 303 453 359 121 375 6 192 10 89 21 195 151 0 86 32 10 2 5 30 0 19 0 37 52 136 11 9 0 0 0 0 0 0 0 0 47,800 1997 19,349 10,436 10,286 3,677 1,989 1,743 2,325 1,681 1,557 2,004 677 251 616 618 863 147 94 66 378 463 762 114 689 5 176 9 275 21 180 120 0 88 23 10 2 16 30 0 66 0 56 37 138 11 49 0 2 0 0 0 0 0 0 62,100 1998 26,799 15,737 19,646 4,684 2,245 2,100 2,450 2,994 2,171 2,642 1,078 506 713 804 1,162 111 96 76 688 743 1,074 116 764 24 191 38 366 21 204 12 0 89 67 85 2 17 40 0 67 0 43 37 141 11 40 0 2 0 0 0 0 0 0 90,900 2000 83,652 38,137 38,221 8,913 4,393 3 6,233 3,847 6,871 3,628 3 5,112 2,799 2,520 2,235 1,007 1,365 4,775 307 268 587 1,782 1,235 2,308 113 1,847 107 662 101 476 21 1 245 12 014 202 140 178 1 11 16 100 016 65 00 42 36 175 11 39 0 117 22 223 021 1 19 00 00 00 224,00 2001 102,032 47,762 39,225 11,878 4,805 6,338 4,122 7,994 4,311 5,378 3,684 2,636 2,187 1,36 1,446 5,288 449 475 591 1,749 1,280 2,158 80 1,872 107 662 104 651 21 245 12 1 14 290 139 177 11 60 100 1 43 65 00 42 37 164 39 68 1 117 226 23 221 19 00 00 00 261,300 2002 102,065 49,004 37,658 11,710 5,258 6,231 4,686 7,922 4,226 5,159 3,687 2,649 2,363 1,577 5,432 417 448 589 1,682 1,161 2,151 69 1,873 107 650 145 648 14 152 12 14 218 139 177 11 60 112 43 84 00 42 71 164 39 68 117 226 32 21 19 00 00 00 261,200 2003 105,008 48,678 37,086 11,682 5,616 6,523 4,584 7,799 4,440 5,043 3,566 2,819 2,357 1,776 5,412 407 559 631 1,591 1,150 2,075 28 1,853 155 683 180 631 14 152 33 14 219 139 177 9 55 83 43 65 00 19 58 71 28 68 117 35 32 21 19 00 00 00 263,800 2004 110,920 49,187 36,655 13,333 5,690 6,100 3,373 8,259 4,083 4,811 4,630 2,868 2,361 1,618 5,229 504 589 859 1,577 1,043 2,109 15 1,986 173 593 180 663 14 133 35 14 214 117 175 16 65 85 43 65 00 19 35 38 28 68 117 35 33 21 19 00 00 00 270,800 2005 116,533 50,675 36,182 13,525 5,168 6,506 3,582 8,448 4,073 4,762 4,591 3,338 2,441 1,447 4,882 1,232 546 912 1,802 1,089 1,835 15 1,805 225 595 199 502 18 105 69 14 215 117 175 16 53 85 43 19 00 0 41 38 28 29 118 33 33 21 19 00 00 00 278,200 2006 125,205 55,598 29,295 14,879 5,289 7,033 4,640 8,203 5,159 4,743 4,597 3,367 2,593 1,657 4,663 1,293 651 946 1,525 840 1,697 15 1,721 224 608 171 430 216 205 74 84 276 111 103 16 60 76 43 30 00 0 41 38 29 29 118 33 33 21 19 00 00 00 288,700 2007 2008 2009 2010 113,611 97,099 85,072 88,085 52,312 38,586 32,397 32,001 25,621 14,104 13,156 18,116 13,251 12,165 8,498 9,263 4,235 3,590 3,278 3,060 7,063 4,564 4,399 4,408 5,046 4,835 4,631 4,043 6,550 5,431 4,203 4,061 5,021 4,137 3,916 3,959 4,432 2,936 3,005 2,912 5,173 4,627 3,720 3,684 3,013 1,802 2,225 2,267 2,472 1,640 1,657 1,317 1,542 1,190 1,216 1,696 3,010 1,604 974 1,137 1,384 1,318 1,182 1,187 1,251 1,328 1,136 1,199 685 919 976 1,051 1,283 558 801 864 669 576 565 775 1,686 558 530 533 251 256 394 396 1,329 714 565 521 216 357 361 362 617 136 342 343 173 130 118 263 353 336 196 263 218 223 225 226 213 141 143 170 77 79 80 114 85 72 73 73 160 164 73 73 121 47 47 47 113 32 32 48 7 14 14 43 67 69 39 39 78 34 40 29 57 41 14 19 30 31 31 11 00 013 1 13 14 0 0 0 8 41 42 41 5 38 0 0 2 30 30 1 1 30 31 1 1 119 0 0 0 33 34 10 10 9 10 10 0 21 0 0 0 0 0 0 0 00 00 00 00 00 00 00 00 00 00 00 00 263,800 206,600 180,400 188,700 2011 93,952 31,836 22,380 10,076 4,564 4,123 4,510 4,164 3,554 2,891 3,693 2,073 1,763 1,614 1,144 1,188 1,314 1,244 819 802 646 445 570 387 308 260 279 212 194 84 73 69 47 48 43 39 29 19 11 14 8 5 2 1 1 0 0 0 0 0 00 00 00 201,500 2012 93,815 34,482 21,378 8,051 4,369 4,183 4,165 3,838 3,355 3,010 2,749 1,999 1,862 1,633 1,399 1,315 1,296 1,022 818 763 605 544 439 369 335 309 214 212 199 82 73 69 48 40 36 29 27 19 16 14 8 5 3 1 1 0 0 0 0 0 00 00 00 199,200 21 0 0 0
  23. 23. National Venture Capital Association Figure 1.08 Life of IT Funds in Years Life of IT Funds In Years <= 10 11-12 13-14 15-16 17-18 >=19 % of Funds 7% 20% 27% 22% 14% 10% Source: Adams Street Partners, based on 2010 analysis of dissolved funds. This chart tracks the year in which a 10-year fund is, in fact, dissolved. These later periods are referred to as “out years.” Historically, after the 10th year, only a few companies remain in the portfolios that typically do not have huge upside potential. But the slow pace of exits in recent years has resulted in a number of good, mature companies remaining in portfolios well past the nominal 10-year mark. Life science funds tend to have lives two years longer than typical technology funds. In preparing this chart, partial years are rounded to the nearest whole year. So 10.4 years would round to 10 years, and 10.5 years would round up to 11 years. The median life span of a fund in this analysis is 14.17 years. 22 Thomson Reuters
  24. 24. Capital Commitments New commitments to venture capital funds in the United States increased for the second year in a row, which follows four years of declines. In 2012, commitments totaling $20.1 billion were made to 183 funds. This is roughly two-thirds of the annual levels seen in 2005-2007 and approximately one-fifth of the annual amount raised at the bubble peak. When you look behind the 2012 capital commitments at the specific funds being raised, the 10 largest funds represent 48% of the capital raised, with 173 funds raising the other 52%. This is the sixth consecutive year in which more money was invested by the industry than raised in new commitments. That has been the case in 11 of the past 13 years. While this is not a true apples-to-apples comparison, it does explain the industry’s strong interest in raising additional funds in 2013 and beyond. The narrow success of recent IPO and acquisition markets has not enabled most firms to pay out sufficient distributions to their investors to begin raising another fund. For the vast majority of firms, raising additional capital right now is very difficult. For the seventh year in a row, the top fundraising states were California and Massachusetts. This year, Connecticut replaces New York in the third position. California, with its venture firms raising $13.7 billion, holds the top spot for the tenth year in a row. Firms domiciled in the top five fundraising states in 2012 gathered 88% of the dollars, compared with 91% in 2011, 88% in 2010 and 82% in 2009. Please note that the state of fund domicile matters less than has been true historically. Much of the money is managed by large, national funds that tend to be domiciled in any of several states with a broad geographic investing footprint. Readers should not interpret capital available to entrepreneurs in a given state as being limited to the capital raised in that state. Venture capital fundraising typically makes up 20-25% of private equity fundraising. But in 2012, it represented 16% of total, down from 22% in 2011. Methodology figure 1.04). The data in this chapter is by calendar year and incrementally measures how much in new commitments funds raised during the calendar year. As defined by Thomson Reuters, capital commitments, also known as fundraising, are firm capital commitments to private equity/venture capital limited partnerships by outside investors. For purposes of these statistics, the terms “capital commitments,” “fundraising,” and “fund closes” are used interchangeably. There are three data sources for tracking capital commitments: (1) SEC filings that are regularly monitored by our research staff, (2) surveys of the industry routinely conducted by Thomson Reuters, and (3) verified industry press and press releases from venture firms. Consider, for example, a venture capital firm that announces a $200 million fund in late 2010, raises $75 million in 2011, and subsequently raises the remaining $125 million in 2012. In this chapter, nothing would be reflected in 2010, $75 million would be counted in 2011, and $125 million would be counted in 2012. Assuming it started investing and made its first capital call in 2012, the entire fund would then be considered to be a 2012 vintage year fund. Capital commitments are stated on either (1) a calendar-year basis when committed (for example, throughout this chapter) or (2) a vintage-year basis which is designated once the fund starts investing (for example, Note that fund commitments presented in this publication do not include those corporate captive venture capital funds that are funded by a corporate parent, which do not typically raise capital from outside investors. Thomson Reuters 23
  25. 25. National Venture Capital Association Figure 2.01 Capital Commitments To U.S. Venture Funds ($ Billions) 1985 to 2012 120 100 ($ Billions) 80 60 40 20 2 01 0 201 1 201 2 2 00 1 200 2 200 3 2 00 4 200 5 200 6 200 7 2 00 8 200 9 199 8 199 9 200 0 199 6 199 7 199 4 199 5 198 6 198 7 198 8 198 9 199 0 199 1 199 2 199 3 198 5 0 Year Figure 2.02 Capital Commitments To Private Equity Funds 1985-2012 Venture Capital Year 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 24 Sum ($Mil) 3,727.9 3,584.5 4,379.1 4,209.7 4,918.8 3,222.7 1,900.3 5,223.1 4,489.2 7,636.7 9,387.3 11,550.0 17,741.9 30,641.7 53,597.8 101,417.9 38,923.4 11,867.3 10,586.7 18,137.1 30,627.3 31,371.7 29,378.1 25,577.2 16,194.4 13,519.8 19,296.2 20,065.9 % of Total PE 56% 42% 21% 28% 29% 27% 31% 33% 21% 27% 26% 26% 29% 33% 50% 56% 43% 25% 23% 23% 22% 17% 11% 12% 25% 21% 22% 16% Buyouts and Mezzanine Capital No. Funds 116 101 116 104 106 86 40 80 93 136 161 168 242 290 430 634 324 202 161 212 234 236 235 215 162 175 188 183 Sum ($Mil) 2,971.8 5,043.7 16,234.6 10,946.4 12,068.5 8,831.5 4,242.1 10,752.5 16,961.7 20,457.0 27,040.7 32,981.4 42,803.0 62,023.7 53,720.7 80,614.8 52,523.0 35,076.8 35,913.4 59,878.5 108,249.8 152,566.2 243,264.2 180,923.9 49,871.5 51,674.8 70,103.5 106,249.9 No. Funds 21 32 47 54 78 64 27 58 81 100 108 104 136 173 166 171 137 124 121 158 205 216 264 231 148 173 207 217 Total Private Equity Sum ($Mil) 6,699.7 8,628.2 20,613.6 15,156.1 16,987.3 12,054.3 6,142.4 15,975.6 21,451.0 28,093.7 36,428.0 44,531.3 60,544.9 92,665.4 107,318.5 182,032.7 91,446.4 46,944.0 46,500.1 78,015.6 138,877.1 183,937.9 272,642.3 206,501.1 66,065.9 65,194.6 89,399.6 126,315.7 No. Funds 137 133 163 158 184 150 67 138 174 236 269 272 378 463 596 805 461 326 282 370 439 452 499 446 310 348 395 400 Thomson Reuters
  26. 26. 2013 NVCA Yearbook Figure 2.03 Venture Capital Fund Commitments 1985 to 2012 ($ Millions) State CA C MA CT NY NC WA CO TN T FL PA UT MO MN IL NJ AZ VA WI IN OH TX MI MD AL GA NH NE N DE D ND OK O AR A DC D HI H IID IIA KS K KY K LLA ME M MS M NV N NM N OR O PR P RI R SC S SD S VT V WV W WY W Total T 1985 1986 1987 1,250 969 1,159 534 356 973 282 156 420 202 1,460 547 7 7 31 25 126 37 32 71 32 20 23 73 10 0 36 54 73 55 0 11 1 644 0 33 14 110 51 51 47 325 254 61 120 0 0 0 0 4 10 0 0 0 0 10 0 3 0 87 37 33 231 5 0 7 4 7 24 150 0 0 0 0 15 49 0 0 0 0 0 39 0 0 0 0 0 0 32 0 0 0 0 0 0 0 0 0 0 0 0 0 11 0 60 0 0 0 0 0 0 0 0 0 0 0 22 0 0 0 0 0 0 36 28 0 0 0 30 0 0 0 17 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3,728 3,584 4,379 1988 936 582 352 279 23 60 70 0 11 12 0 0 418 158 0 37 13 0 27 75 41 33 0 0 65 40 0 5 0 0 0 0 0 0 0 0 0 0 948 0 0 2 0 0 25 0 0 0 0 0 4,210 Thomson Reuters 1989 1,519 339 66 2,260 38 0 80 34 29 118 0 0 20 26 125 0 15 0 16 0 161 0 49 0 0 0 0 0 0 10 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 13 0 0 0 0 4,919 1990 831 675 290 490 1 0 0 0 0 45 0 53 162 57 243 0 2 0 5 30 143 0 14 0 14 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 155 0 10 0 5 0 0 0 0 3,223 1991 549 180 150 474 0 5 0 0 35 167 0 0 16 94 75 0 0 0 0 0 50 0 50 0 0 15 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 40 0 0 0 0 0 0 0 0 1,900 1992 1,311 1,051 300 494 0 48 0 40 0 30 0 0 946 247 110 0 17 0 49 67 381 0 0 0 0 0 0 0 0 0 0 0 0 0 56 0 0 11 2 0 0 0 0 0 0 0 0 0 0 0 5,161 1993 1,333 368 473 940 0 40 114 0 59 110 0 64 66 278 177 10 5 0 0 4 137 3 225 0 56 0 0 0 0 0 0 0 0 0 0 0 14 14 0 0 0 0 0 0 0 0 0 0 0 0 4,489 1994 1,764 1,158 388 1,860 63 37 0 116 105 182 27 0 164 183 401 0 0 40 20 86 283 14 479 0 0 0 0 0 0 0 0 25 0 0 0 0 7 169 59 0 0 6 0 0 0 0 0 0 0 0 7,637 1995 3,107 1,955 260 2,364 10 129 19 84 106 114 0 11 7 230 213 0 7 0 0 10 179 0 67 0 74 20 111 130 0 0 0 31 3 0 5 0 15 18 0 12 50 2 32 0 0 14 0 0 0 0 9,387 1996 3,724 1,871 425 1,516 184 239 216 149 0 264 0 6 36 295 606 0 20 31 116 0 326 26 439 0 34 0 36 820 0 24 0 65 0 0 0 0 0 24 22 0 25 0 0 0 0 0 11 0 0 0 11,550 1997 5,463 2,602 1,324 3,609 349 180 253 109 78 784 17 45 208 575 118 0 165 30 0 358 394 11 145 5 41 50 0 668 0 0 0 0 0 0 11 20 42 88 0 0 0 0 0 0 0 0 0 0 0 0 17,742 1998 8,456 5,176 1,068 9,346 174 409 433 266 250 177 50 25 217 466 1,002 0 226 0 13 58 1,330 0 768 30 181 0 0 392 0 45 0 0 0 0 2 0 0 51 0 0 0 0 10 0 0 0 22 0 0 0 30,642 1999 21,891 7,659 2,843 8,945 180 640 1,942 267 326 1,241 62 80 107 1,304 570 29 884 17 20 659 1,803 321 840 0 30 0 0 360 0 0 0 28 10 0 5 0 0 373 127 0 25 0 0 0 0 0 14 0 0 0 53,598 2000 43,485 16,692 2,313 15,400 613 1,175 2,414 262 955 2,751 126 65 1,827 964 1,041 60 2,212 66 103 662 3,615 241 1,990 137 918 0 41 778 0 110 20 0 0 15 21 0 0 70 0 30 0 0 65 0 0 0 131 20 6 26 101,418 2001 13,452 9,783 4 4,164 2,986 105 888 513 82 26 537 232 286 17 1,10 1,103 6 652 21 1 119 14 0 330 2,232 8 340 16 19 0 0 622 0 0 0 0 0 27 26 0 1 135 27 76 0 0 0 0 3 31 2 25 0 1 25 4 0 38,923 2002 154 1,397 24 7,704 55 43 118 22 8 54 0 0 276 478 392 43 37 0 10 102 106 0 381 11 0 1 11 0 315 0 0 0 22 3 0 0 0 8 8 16 0 10 0 14 0 0 3 35 0 0 1 13 0 11,867 2003 4,830 1,597 165 1,233 237 1 94 101 56 388 34 0 26 657 561 41 196 0 36 5 76 65 105 49 0 9 0 0 0 0 0 0 0 0 0 0 2 0 3 0 0 1 18 0 0 0 2 0 0 0 0 10,587 2004 8,645 1,485 1,926 2,149 17 955 84 16 1 451 40 80 50 432 197 0 72 11 17 210 589 63 162 19 55 0 0 299 0 0 0 10 8 0 10 0 0 73 0 0 0 4 2 0 0 0 5 0 0 0 18,137 2005 12,869 9,151 1,143 1,736 108 281 69 84 313 688 24 829 295 80 204 19 419 0 6 558 570 122 433 70 104 0 0 393 0 1 12 0 0 0 0 0 0 5 4 0 0 0 34 0 0 0 6 0 0 0 0 30,627 2006 13,621 4,366 3,136 2,512 401 563 132 62 10 794 170 40 473 422 1,812 0 555 78 24 152 314 23 472 19 103 5 0 896 0 38 0 0 0 0 43 0 65 12 46 1 0 5 0 0 0 0 3 0 0 0 31,372 2007 12,016 5,122 904 4,310 185 1,376 358 100 109 746 213 210 275 545 235 0 582 102 1 81 316 49 783 0 203 7 0 315 0 11 0 0 0 75 0 1 10 98 0 19 0 0 7 2 1 0 0 0 11 0 0 29,378 2008 14,053 2,486 766 1,826 103 492 221 134 25 963 569 54 325 258 53 20 105 15 29 83 1,038 256 369 118 19 0 0 1,123 1 13 0 0 0 6 0 0 20 12 0 0 0 0 0 5 0 0 0 14 3 0 0 25,577 2009 8,635 3,574 158 1,652 5 5 3 89 32 233 33 0 22 216 504 0 14 9 1 4 78 84 484 101 31 0 0 204 0 0 0 0 0 0 15 0 0 0 0 0 0 0 6 0 0 0 0 0 0 0 16,194 2010 6,337 2,779 1,035 1,259 456 0 262 42 75 205 16 72 0 238 112 0 121 27 28 30 83 177 68 2 31 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 35 12 0 0 0 16 0 0 0 13,520 2011 2012 9,790 13,665 2,503 1,410 149 1,388 4,096 758 130 472 0 399 6 280 161 278 2 268 126 183 160 159 0 155 0 150 215 120 100 63 222 54 36 45 0 40 0 39 79 32 210 31 192 20 544 19 58 19 26 13 0 5 0 1 475 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 8 0 0 0 0 0 6 0 0 0 0 0 1 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 19,296 20,066 25
  27. 27. National Venture Capital Association Figure 2.04 Top 5 States By Venture Capital Committed 2012 No. of Funds State California Massachusetts Connecticut New York North Carolina Sub-Total Remaining States Total 64 17 4 21 5 111 72 183 Committed ($Mil) 13,665.3 1,409.7 1,388.0 757.7 472.0 17,692.7 2,373.1 20,065.9 280 260 240 220 200 180 160 140 120 100 80 60 40 20 - Venture Capital Buyout and Mezzannine Capital 198 5 198 6 198 7 198 8 198 9 199 0 199 1 199 2 199 3 199 4 199 5 199 6 199 7 199 8 199 9 200 0 200 1 200 2 200 3 200 4 200 5 200 6 200 7 200 8 200 9 201 0 201 1 201 2 ($ Billions) Figure 2.05 Private Equity Annual Commitment ($ Billions) 1985 to 2012 Year 26 Thomson Reuters
  28. 28. Investments Measuring industry activity with the total dollars invested in a given year shows that the industry has remained generally in the $20 billion to $30 billion range since 2002. In 2012, $26.7 billion was invested in 3,143 companies. This is less than 2011 totals and greater than 2010 totals. The number of first-time fundings likewise was less than 2011 and greater than 2010. Further parsing the data shows an increasing portion of the investment dollars going to California companies. Sectors Software was the leading sector in 2012, receiving 31% of the total dollars. The second largest sector was Biotechnology which fell to roughly half that amount at 15.4% of total investment The continued interest in Clean Technology investing brought the Industrial/Energy sector to 10.5% of the total. Medical Devices rounded out the top four sectors at 9.4%. The life sciences share of the venture capital investment dollars decreased in 2012 to its lowest level since 2002. In 2012, 15.4% of the money went into Biotechnology, 9.4% into Medical Devices, and 1.2% into Healthcare Services, totaling 26.0%. This is down from the 33.1% combined share in 2009. This recent downward life sciences trend is very visible when just looking at first fundings. In 2012, only 149 life science (the three sectors combined) companies received first funding. This is 12.7% of the total. As recently as 2006, the 294 first fundings of life science companies made up 23.0% of total first fundings. Among first fundings, Software led the way with 441 companies getting their initial venture capital rounds. This is more than one-third of the total number of first fundings. The nearest sector to Software was Media and Entertainment with 174 first fundings. Stages and First-Time Fundings Seed stage companies received 3% of total dollars in 2012, with early stage, expansion, and later stage companies roughly splitting the remaining share. More than one-third of the capital went to expansionstage companies. But it is worth looking more closely at those statistics. Thomson Reuters As has been the case for several years, attention has been focused on the two ends of the spectrum. Looking at deal counts, 2012 actually saw the highest percentage of seed- and early-stage deals since at least 1985 (51.8% of total deals). This certainly would challenge the suggestion that the industry’s attention is single-focused on later-stage companies. That said, the 22.4% of deals going to later-stage companies is also toward the top end of the historical range. There remains a record number of companies in portfolios in the later stage of development that in most other positions in the business cycle would have already gone public or otherwise been acquired. With the rule of thumb that a healthy venture capital industry invests in 1,000-1,300 new companies each year, the 1,174 first fundings in 2012 is very much in that range. Not surprisingly, 81% of those first round investments were made at the seed and early stage. Geographical Spread Across the United States The year 2012 provided an interesting contrast in geographic dispersion. While 53% of all the investment dollars went to California-based portfolio companies, a record for MoneyTree™, companies in 48 states and DC received financing, also a MoneyTree™ record high. That said, the five largest states (California, Massachusetts, New York, Washington and Texas) received 78% of all the dollars invested nationally. This compares to 2011, when California companies received a then-record 51.2% of the dollars. That year, companies in a record 47 states and DC received venture capital funding. Together, the top five states (California, Massachusetts, New York, Texas, and Illinois) received 77% of the total dollars. 27
  29. 29. National Venture Capital Association California-domiciled venture capital firms made investments in 39 states in 2012. Approximately 49% of all the money invested in California came from California-domiciled firms. Conversely, Californiabased firms concentrated 71% of their investment power within the state. Corporate Venture Group Involvement The number and reach of corporate venture capital groups increased in 2012. These groups provided 8.2% of the venture capital invested by all venture groups. They were involved in 15.2% of the deals the highest level in four years. Going forward, all signs suggest that these groups are becoming more involved alongside traditional venture firms in deals, as well as initiating corporate venture group syndicates to do deals in lieu of, or in advance of, investment rounds by traditional venture firms. 28 Methodology As calculated by Thomson Reuters, venture capital investment data are derived from several sources. Primarily, survey information is obtained from the quarterly survey that drives the MoneyTree Report™ from PricewaterhouseCoopers and the National Venture Capital Association based on data from Thomson Reuters. This is the official industry database of venture capital investment. Secondly, Thomson Reuters obtains data from SEC filings that are regularly monitored by our research staff. Finally, publicly available sources such as press releases and trade publications are used. For detailed information on which transactions qualify as MoneyTree deals and are therefore counted in this chapter, please refer to Appendix B. Thomson Reuters
  30. 30. 2013 NVCA Yearbook Figure 3.01 Venture Capital Investments ($ Billions) 1985 to 2012 120 ($ Billions) 100 80 60 40 20 198 5 198 6 198 7 198 8 198 9 199 0 199 1 199 2 199 3 199 4 199 5 199 6 199 7 199 8 199 9 200 0 200 1 200 2 200 3 200 4 200 5 200 6 200 7 200 8 200 9 201 0 201 1 201 2 0 Year Figure 3.02 Venture Capital Investments in 2012 By Industry Group All Investments Industry Group Information Technology Medical/Health/Life Science Non-High Technology Total # Companies 2,130 649 364 3,143 # Deals 2,480 818 425 3,723 Initial Investments Investment Amt ($Bil) 16.5 6.8 3.4 26.7 # Companies 870 148 156 1,174 # Deals 870 148 156 1,174 Investment Amt ($Bil) 3.0 0.7 0.4 4.1 Figure 3.03 Venture Capital Investments Top 5 States in 2012 State California Massachusetts New York Washington Texas Total* # Companies 1,280 326 287 101 134 2,128 # Deals 1,532 414 331 117 159 2,553 Amt Invested ($Bil) 14.1 3.1 1.9 0.9 0.9 20.9 *Total includes top 5 states only Thomson Reuters 29
  31. 31. National Venture Capital Association Figure 3.04 Venture Capital Investments in 2012 Industry Sector by Dollars Invested Telecommunications 2% Other 0.2% Biotechnology 15% Business Products and Services 0.4% Computers and Peripherals 2% Consumer Products and Services 5% Electronics/ Instrumentation 1% Financial Services 1% Healthcare Services 1% Software 31% Semiconductors 3% Retailing/ Distribution 2% Networking and Equipment 1% Medical Devices and Equipment 9% Industrial/Energy 10% IT Services 7% Media and Entertainment 7% Figure 3.05 Venture Capital Investments in 2012 Stage By Dollars Invested Seed 3% Later Stage 32% Early Stage 30% Expansion 35% 30 Thomson Reuters
  32. 32. 2013 NVCA Yearbook Figure 3.06 Amount of Capital Invested By State in 2012 ($ Millions) 61 NH 932 574 WA WA 6 15 MT MT 124 101 OR OR 15 15 ID ID 7 NV 15 NV 14,129 CA 2 7 ND ND 0 SD WY WY 95 WI 23 5 84 IA IA 304 178 UT UT 111 212 AZ AZ 468 564 CO CO 46 8 KS KS 35 7 NM NM 286 OH 84 IN 429 NJ 11 LA 931 TX TX 18 9 DE DE 169 NC 87 TN 10 0 MS MS 85 RI 158 CT 15 VW 372 VA 23 KY 5 AR 3,068 MA 518 PA AR 645 AK AK 570 IL 21 24 MO MO 34 OK 1,857 NY 232 MI WI 11 NE NE 13 ME 4 VT 243 263 MN MN 302 265 GA GA 23 43 AL AL 277 280 MD MD 6 DC 39 SC 203 FL GU 17 HI HI PR VI Figure 3.07 Number of Companies Invested in By State in 2012 8 12 NH NH 101 WA 3 1 MT MT 24 OR 4 ID 1 2 ND ND 1 SD WY WY 12 WI WI 1 IA 5 NE 1,280 CA 37 31 UT UT 13 AZ 85 56 CO CO 9 15 KS KS 7 OK 12 12 NM NM 134 94 TX TX AK 8 12 MO 76 IL 41 MI 5 KY 3 2 MS MS 6 8 AL AL 44 38 GA GA 12 RI 38 CT 49 NJ 2 WV 62 VA 5 6 DE DE 57 50 MD 25 DC MD 5 SC 31 FL 3 2 HI HI MA 154 PA 33 NC 30 TN 1 AR AR 4 LA 51 44 OH OH 14 IN MO 250 326 MA 287 NY 9 NE 4 NV 5 ME 45 VT VT 26 33 MN MN GU 1 PR VI Thomson Reuters 31
  33. 33. National Venture Capital Association Figure 3.08 Venture Capital Investments in 1985 to 2012 By Region ($ Millions) Region Silicon Valley NewEngland NYMetro LA/Orange County Midwest SanDiego Northwest Texas Southeast DC/Metroplex Colorado SouthWest Philadelphia Metro North Central South Central Upstate NY Unknown Sacramento/N.Cal AK/HI/PR Total 1985 758.8 435.4 221.2 196.5 157.5 99.6 142.2 249.0 166.4 99.1 77.0 40.1 52.6 37.0 13.7 14.2 16.0 2,776.4 1986 1,016.3 436.6 211.0 186.9 139.9 95.4 142.9 228.4 234.2 61.1 113.8 82.5 63.3 44.5 11.4 10.7 45.5 3,124.5 1987 849.9 525.1 273.9 276.9 198.4 107.8 153.3 211.0 271.0 111.8 111.4 57.5 79.2 73.6 19.8 10.2 0.5 32.0 3,363.6 1988 985.9 496.9 308.0 222.5 132.3 149.8 141.2 240.7 266.5 129.9 107.8 59.7 71.8 41.6 11.7 5.3 0.8 33.6 3,406.0 1989 916.5 404.7 360.4 242.1 183.2 145.5 118.0 228.3 224.4 139.5 157.8 50.7 65.3 51.2 14.5 7.3 6.1 4.2 3,319.6 1990 1991 914.1 780.5 425.0 287.0 190.1 181.5 174.7 119.4 155.9 181.4 113.3 115.7 88.2 59.9 141.0 161.4 145.9 109.4 96.9 51.3 93.7 54.2 30.3 49.0 105.9 34.7 92.2 44.9 11.6 4.2 11.1 3.4 13.0 0.2 19.5 15.7 - 0.3 2,822.4 2,254.0 1992 1993 1,119.5 903.2 417.0 358.4 239.0 222.3 179.4 176.4 165.2 276.9 111.2 133.0 252.1 118.4 149.6 240.7 346.6 405.8 65.8 384.1 129.7 135.0 98.4 49.7 168.9 108.3 89.1 109.6 6.5 8.6 9.1 5.7 30.8 0.8 8.5 19.1 0.0 1.0 3,586.3 3,656.8 1994 1,074.4 440.4 283.3 198.4 432.6 220.5 165.7 311.8 362.3 137.8 197.4 38.0 137.6 87.4 15.2 0.7 0.1 20.0 22.0 4,157.6 1995 1,807.8 796.6 509.7 1,004.1 470.3 276.8 379.7 479.2 876.6 420.2 325.1 113.1 220.9 223.8 45.2 35.5 0.3 20.0 7.8 8,012.6 1996 1997 3,417.7 4,632.3 1,159.4 1,606.7 743.2 1,289.4 702.9 875.2 743.3 919.6 485.2 516.0 557.6 564.4 553.4 908.7 1,165.0 1,366.1 586.3 515.1 321.2 405.0 184.6 303.1 349.9 534.2 208.5 341.6 81.1 67.4 22.7 90.3 2.2 4.4 28.6 21.4 28.7 14.0 11,341.5 14,974.9 1998 5,878.3 2,353.4 1,817.6 1,250.6 1,653.5 669.1 820.3 1,205.6 1,794.8 1,148.5 838.9 411.2 703.9 429.6 196.7 195.4 39.1 86.8 5.5 21,489.9 1999 17,801.6 5,641.6 4,532.3 3,596.9 2,729.2 1,429.5 2,877.6 3,162.7 4,831.0 2,395.1 1,845.8 843.1 1,732.6 770.0 360.1 212.4 2.4 119.1 17.4 54,900.3 2000 33,452.0 12,019.9 10,300.4 6,808.1 5,776.7 2,302.3 3,603.4 6,262.9 7,976.1 5,785.3 4,091.9 1,387.5 2,591.5 1,426.7 446.9 293.9 50.4 375.3 248.6 105,200.0 2001 12,599.3 5,431.2 3,512.8 2,285.8 2,182.4 1,579.1 1,426.8 3,104.3 2,684.7 2,103.1 1,244.4 515.1 1,073.3 669.4 110.4 159.1 14.3 203.0 69.8 40,968.3 2002 7,242.9 2,992.3 1,569.4 1,286.8 976.9 996.2 746.4 1,187.6 1,772.7 1,095.6 588.0 393.8 607.8 431.5 69.3 104.5 65.4 4.9 22,132.3 2003 6,755.6 2,990.4 1,422.0 1,069.4 913.6 825.8 643.5 1,221.0 1,117.9 794.6 644.8 220.5 555.1 268.5 65.5 122.7 32.2 17.9 19,681.1 2004 7,999.3 3,345.5 1,648.2 1,319.8 712.5 1,197.8 993.3 1,215.1 1,439.2 1,086.6 363.2 393.6 768.4 464.1 130.1 104.8 38.4 15.1 23,235.1 2005 8,116.3 2,967.1 1,998.5 1,506.1 918.0 1,203.9 1,011.3 1,189.4 1,101.3 1,220.4 653.4 524.8 597.8 367.0 96.1 60.1 37.7 43.3 23,612.5 2006 9,816.8 3,310.8 2,185.5 1,902.7 1,010.1 1,223.6 1,318.2 1,519.7 1,228.2 1,361.6 688.8 526.6 845.5 382.1 64.3 156.2 29.4 47.1 27,617.2 2007 2008 11,554.7 11,436.4 3,964.5 3,788.3 1,902.8 2,148.7 1,906.3 2,041.1 1,167.9 1,364.6 1,844.4 1,209.4 1,636.2 1,134.7 1,496.9 1,122.6 1,812.4 1,389.3 1,443.5 1,145.8 686.3 872.3 577.7 490.1 953.6 861.9 535.7 644.6 152.8 91.3 136.5 92.3 - 82.0 71.3 20.9 21.3 31,871.5 29,925.9 2009 8,220.5 2,577.6 1,737.3 1,060.1 952.8 949.0 678.7 665.5 1,045.0 678.4 623.2 277.5 433.7 400.3 25.0 26.9 0.5 18.8 7.4 20,378.3 2 01 0 9,302.8 2,604.3 1,886.2 1,704.5 1,340.0 896.9 774.9 1,070.9 1,109.4 967.2 447.9 263.8 444.7 343.3 77.7 44.8 22.5 14.0 23,315.7 2 011 11,656.8 3,318.1 2,859.8 2,080.4 1,769.2 926.6 796.6 1,580.2 1,210.2 987.2 615.7 543.1 458.9 392.5 106.2 106.7 88.3 0.6 29,497.2 2 01 2 10,907.4 3,237.4 2,334.6 2,067.2 1,386.7 1,116.7 1,076.0 930.5 796.2 727.4 564.2 558.4 399.0 355.8 95.7 48.7 29.5 20.1 0.7 26,652.4 2 01 1 1,248 448 415 311 233 211 162 167 167 119 113 107 84 70 21 58 8 3 1 3,946 2 01 2 1,160 452 396 300 264 171 163 159 154 118 101 100 77 50 24 22 5 4 3 3,723 Figure 3.08b Venture Capital Investments in 1985 to 2012 By Region (Number of Deals) Region Silicon Valley New England NY Metro Midwest LA/Orange County Southeast DC/Metroplex Texas Northwest Philadelphia Metro San Diego Colorado SouthWest North Central Upstate NY South Central Sacramento/N.Cal AK/HI/PR Unknown Total 32 1985 323 235 89 98 90 91 45 106 47 38 43 43 20 37 17 11 11 1 1,345 1986 340 214 100 116 101 117 45 93 49 35 35 58 30 50 10 10 18 1,421 1987 343 257 131 133 114 134 65 106 62 54 54 62 42 54 10 12 12 1 1,646 1988 362 231 108 101 106 115 59 105 70 44 56 63 26 52 10 6 10 2 1,526 1989 394 222 121 127 112 113 51 91 64 41 56 53 32 39 12 7 6 3 1,544 1990 398 217 90 103 97 130 62 85 48 48 47 49 22 44 6 5 10 1 1,462 1991 337 170 89 99 89 112 54 70 41 43 43 35 30 40 4 4 9 3 1 1,273 1992 421 159 81 93 97 108 48 70 50 65 46 53 34 39 9 5 9 3 2 1,392 1993 316 149 80 85 63 117 41 71 49 47 49 48 30 38 10 6 8 1 4 1,212 1994 336 146 85 83 55 112 47 69 50 46 61 53 29 37 5 9 10 2 2 1,237 1995 509 232 135 132 92 181 72 101 84 78 77 58 37 70 8 15 7 4 2 1,894 1996 771 333 158 192 134 226 113 135 112 91 109 83 55 69 9 22 9 9 7 2,637 1997 867 383 240 239 166 294 135 172 134 142 100 98 71 116 21 25 7 6 7 3,223 1998 1,043 469 274 250 217 308 162 197 132 138 123 127 88 106 31 27 17 5 14 3,728 1999 1,685 663 491 311 356 454 272 318 264 145 161 162 116 114 31 30 19 5 3 5,600 2000 2,159 904 818 515 518 665 510 484 329 231 236 222 146 151 36 50 36 15 16 8,041 2001 1,103 597 448 276 251 391 261 341 192 142 156 115 89 125 29 28 27 10 8 4,589 2002 817 457 232 243 164 270 199 173 140 102 114 91 68 75 24 24 7 3 3,203 2003 874 446 193 174 149 247 183 173 108 88 125 74 55 71 22 21 11 8 3,022 2 004 958 427 227 178 150 246 187 177 148 105 132 72 58 77 29 31 9 6 3,217 2005 1,006 440 192 181 178 198 222 181 160 97 143 93 84 67 28 11 11 8 3,300 2 006 1,236 458 294 230 219 238 220 201 184 116 128 110 93 73 39 26 8 14 3,887 2007 1,305 521 296 272 234 246 220 188 216 138 169 114 106 95 33 31 18 10 1 4,213 2 008 1,290 510 342 304 243 227 208 161 205 153 134 116 84 88 31 40 20 9 4,165 2 0 09 990 387 287 252 170 159 139 123 129 97 115 94 71 68 13 32 9 3 1 3,139 2 01 0 1,092 411 393 272 227 216 152 165 161 124 134 86 59 58 21 42 8 4 1 3,626 Thomson Reuters
  34. 34. 2013 NVCA Yearbook Figure 3.09 Venture Capital Investments 1985 to 2012 By Stage ($ Millions) Stage S SSeed Early Stage Expansion LaterStage Total 1985 526.2 517.8 1,245.7 486.8 2,776.4 1986 759.7 620.3 1,198.8 545.7 3,124.5 1987 623.4 750.5 1,495.1 494.6 3,363.6 1988 670.5 714.6 1,563.2 457.7 3,406.0 1989 558.4 737.6 1,595.8 427.8 3,319.6 1990 397.1 684.4 1,269.2 471.7 2,822.4 1991 241.8 548.7 1,100.2 363.3 2,254.0 1992 556.5 566.8 1,778.7 684.3 3,586.3 1993 629.6 575.8 1,866.0 585.4 3,656.8 1994 781.2 839.7 1,539.1 985.7 4,145.7 1995 1,272.9 1,733.4 3,564.2 1,442.2 8,012.6 1996 1,271.7 2,640.5 5,540.4 1,888.9 11,341.5 1997 1,374.2 3,420.5 7,588.6 2,591.6 14,974.9 1998 1,766.2 5,460.1 10,367.0 3,905.5 21,498.9 1999 3,666.2 11,360.2 29,406.8 10,467.0 54,900.3 2000 3,156.1 25,335.4 59,121.5 17,587.0 105,200.0 2001 800.7 8,606.3 22,911.7 8,649.6 40,968.3 2002 340.2 3,935.3 12,135.5 5,721.1 22,132.0 2003 365.7 3,608.5 9,805.5 5,901.4 19,681.1 2004 951.6 4,045.9 9,046.2 9,191.5 23,235.1 2005 1,006.3 4,056.3 8,607.9 9,942.0 23,612.5 2006 1,293.6 4,727.4 11,154.8 10,441.5 27,617.2 2007 2008 1,819.6 1,917.3 6,081.5 5,731.0 11,091.8 10,857.4 12,882.2 11,420.1 31,875.1 29,925.9 2009 1,870.7 4,906.9 6,824.2 6,776.5 20,378.3 2010 1,661.3 5,867.0 8,702.0 7,085.4 23,315.7 2011 2011 1,052.6 8,794.4 9,830.5 9,819.7 29,497.2 2012 2012 726.4 7,876.3 9,376.4 8,673.3 26,652.4 2004 234 899 1,201 883 3,217 2005 264 859 1,116 1,061 3,300 2006 396 1,001 1,380 1,110 3,887 2007 524 1,129 1,277 1,283 4,213 2008 537 1,137 1,242 1,249 4,165 2009 375 973 888 903 3,139 2010 409 1,271 1,074 872 3,626 2011 445 1,562 1,021 918 3,946 2012 280 1,647 962 834 3,723 1988-1Q 164.7 144.0 314.5 135.3 758.5 1988-2Q 150.0 216.6 497.1 105.0 968.6 1988 1988-3Q 1988-4Q 1988 Total 240.6 115.2 670.5 184.7 169.4 714.6 320.2 431.4 1,563.2 151.4 66.0 457.7 896.9 781.9 3,406.0 Figure 3.09b Venture Capital Investments 1985 to 2012 By Stage (Number of Deals) Stage 1985 Seed 357 Early Stage 290 Expansion 525 Later Stage 173 Total 1,345 1986 388 333 504 196 1,421 1987 387 412 616 231 1,646 1988 371 359 614 182 1,526 1989 355 338 664 187 1,544 1990 258 370 603 231 1,462 1991 193 278 544 258 1,273 1992 252 291 606 243 1,392 1993 290 184 515 223 1,212 1994 332 256 429 220 1,237 1995 431 519 706 238 1,894 1996 504 754 1,045 334 2,637 1997 542 896 1,402 383 3,223 1998 670 1,019 1,572 467 3,728 1999 811 1,735 2,445 609 5,600 2000 703 2,855 3,703 780 8,041 2001 279 1,299 2,392 619 4,589 2002 181 875 1,585 562 3,203 2003 216 799 1,355 652 3,022 Figure 3.09c-1 Quarterly Venture Capital Investments 1985 to 2012 By Stage ($ Millions) 1985 Stage 1985-1Q 1985-2Q 1985-3Q 1985-4Q 1985 Total Seed 153.0 146.5 93.7 133.0 526.2 Early Stage 96.3 185.3 106.3 129.9 517.8 Expansion 219.5 319.6 312.8 393.7 1,245.7 Later Stage 154.4 89.4 164.4 78.5 486.8 Total 623.1 740.8 677.2 735.1 2,776.4 1986-1Q 185.6 129.6 270.0 125.3 710.5 1986 1986-2Q 1986-3Q 270.0 114.7 135.3 176.6 381.4 252.6 93.2 180.4 879.9 724.4 1986-4Q 1986 Total 189.4 759.7 178.7 620.3 294.8 1,198.8 146.7 545.7 809.6 3,124.5 1987-1Q 145.7 170.7 423.3 100.1 839.7 1987-2Q 199.4 183.9 354.2 164.9 902.4 1987 1987-3Q 142.0 205.1 402.5 118.9 868.5 1987-4Q 1987 Total 136.3 623.4 190.8 750.5 315.1 1,495.1 110.7 494.6 752.9 3,363.6 Figure 3.09c-2 Quarterly Venture Capital Investments 1985 to 2012 By Stage ($ Millions) 1989 Stage 1989-1Q 1989-2Q 1989-3Q 1989-4Q 1989 Total Seed 138.1 174.6 115.4 130.3 558.4 Early Stage 255.9 127.7 163.1 190.9 737.6 Expansion 399.6 434.1 305.5 456.6 1,595.8 Later Stage 95.5 97.7 78.3 156.4 427.8 Total 889.1 834.1 662.2 934.2 3,319.6 Thomson Reuters 1990-1Q 81.9 139.7 307.2 123.1 651.9 1990 1990-2Q 1990-3Q 116.7 114.8 199.1 133.1 356.1 208.0 105.5 126.3 777.4 582.2 1990-4Q 1990 Total 83.8 397.1 212.5 684.4 397.9 1,269.2 116.7 471.7 810.9 2,822.4 1991-1Q 45.8 137.9 249.5 89.5 522.8 1991-2Q 84.6 130.3 276.2 115.8 606.9 1991 1991-3Q 53.4 140.4 262.9 57.9 514.5 1991-4Q 1991 Total 58.0 241.8 140.0 548.7 311.7 1,100.2 100.1 363.3 609.9 2,254.0 1992-1Q 67.6 123.0 496.3 203.2 890.2 1992-2Q 210.2 187.6 434.8 175.3 1,007.9 1992 1992-3Q 71.8 102.7 352.2 107.0 633.8 1992-4Q 1992 Total 206.8 556.5 153.4 566.8 495.4 1,778.7 198.8 684.3 1,054.5 3,586.3 33
  35. 35. National Venture Capital Association Figure 3.09c-3 Quarterly Venture Capital Investments 1985 to 2012 By Stage ($ Millions) 1993 Stage 1993-1Q 1993-2Q 1993-3Q Seed 139.7 144.1 164.3 Early Stage 164.3 136.8 106.6 Expansion 355.0 412.3 461.3 Later Stage 189.2 111.2 116.8 848.3 804.4 849.0 Total 1993-4Q 1993 Total 181.5 629.6 168.0 575.8 637.3 1,866.0 168.3 585.4 1,155.2 3,656.8 1994 1994-1Q 1994-2Q 1994-3Q 1994-4Q 1994 Total 190.0 225.8 160.2 205.1 781.2 177.6 196.4 157.8 307.9 839.7 325.3 390.5 344.2 479.1 1,539.1 186.6 190.5 262.0 346.6 985.7 879.5 1,003.3 924.2 1,338.7 4,145.7 1995 1995-2Q 1995-3Q 1995-4Q 396.6 229.9 329.8 393.6 366.8 564.1 1,328.2 800.4 815.7 428.0 308.7 361.1 2,546.4 1,705.8 2,070.6 1995-1Q 316.6 408.8 620.0 344.5 1,689.9 1996 1995 Total 1996-1Q 1996-2Q 1996-3Q 1,272.9 322.7 431.9 200.6 1,733.4 597.8 714.0 574.6 3,564.2 1,151.9 1,509.9 1,277.0 1,442.2 346.4 460.3 545.4 8,012.6 2,418.8 3,116.1 2,597.6 1996-4Q 316.5 754.1 1,601.6 536.8 3,208.9 1996 Total 1,271.7 2,640.5 5,540.4 1,888.9 11,341.5 Figure 3.09c-4 Quarterly Venture Capital Investments 1985 to 2012 By Stage ($ Millions) Stage Seed Early Stage Expansion Later Stage Total 1997-1Q 400.6 769.5 1,358.4 594.7 3,123.3 1997-2Q 330.8 846.8 1,958.5 531.6 3,667.8 1997 1997-3Q 323.3 760.1 1,970.6 669.3 3,723.3 1997-4Q 1997 Total 319.5 1,374.2 1,044.1 3,420.5 2,301.0 7,588.6 795.9 2,591.6 4,460.5 14,974.9 1998-1Q 402.6 1,164.7 1,753.9 854.6 4,175.7 1998-2Q 426.4 1,014.5 3,359.1 973.6 5,773.5 1998 1998-3Q 459.9 1,290.4 2,716.0 949.5 5,415.7 1998-4Q 1998 Total 477.3 1,766.2 1,990.6 5,460.1 2,538.0 10,367.0 1,127.9 3,905.5 6,133.9 21,498.9 1999-1Q 591.5 1,215.0 3,210.3 1,605.2 6,622.0 1999-2Q 840.4 1,993.7 5,498.5 2,999.2 11,331.8 1999 1999-3Q 989.7 2,661.8 7,348.1 2,597.5 13,597.1 1999-4Q 1,244.5 5,489.7 13,350.0 3,265.1 23,349.3 1999 Total 3,666.2 11,360.2 29,406.8 10,467.0 54,900.3 2000-1Q 807.0 7,138.2 16,113.3 4,382.9 28,441.3 2000-2Q 984.1 6,937.9 15,761.4 4,343.2 28,026.6 2000 2000-3Q 878.3 5,912.3 15,263.6 4,572.9 26,627.0 2000-4Q 486.8 5,347.0 11,983.2 4,288.1 22,105.1 2000 Total 3,156.1 25,335.4 59,121.5 17,587.0 105,200.0 Figure 3.09c-5 Quarterly Venture Capital Investments 1985 to 2012 By Stage ($ Millions) Stage Seed Early Stage Expansion Later Stage Total 2001-1Q 256.6 3,459.5 6,939.3 2,447.6 13,103.0 2001-2Q 265.3 2,102.1 6,622.1 2,513.1 11,502.5 2001 2001-3Q 128.5 1,712.2 4,563.8 1,802.4 8,206.9 2001-4Q 150.3 1,332.5 4,786.5 1,886.5 8,155.9 2001 Total 800.7 8,606.3 22,911.7 8,649.6 40,968.3 2002-1Q 76.4 1,182.2 3,804.8 1,927.7 6,991.1 2002-2Q 93.5 1,134.1 3,544.3 1,339.6 6,111.4 2002 2002-3Q 84.2 827.7 2,462.6 1,094.4 4,468.8 2002-4Q 2002 Total 86.1 340.2 791.4 3,935.3 2,323.8 12,135.5 1,359.4 5,721.1 4,560.7 22,132.0 2003-1Q 84.5 690.0 2,468.7 1,159.6 4,402.8 2003-2Q 95.2 1,015.7 2,513.9 1,368.7 4,993.4 2003 2003-3Q 100.3 806.8 2,202.5 1,520.5 4,630.1 2003 Total 365.7 3,608.5 9,805.5 5,901.4 19,681.1 2004-1Q 104.8 904.9 2,063.3 2,312.6 5,385.6 2004-2Q 124.3 1,030.3 2,680.0 2,481.9 6,316.6 2004 2004-3Q 168.0 1,028.6 2,043.1 1,856.6 5,096.3 2004-4Q 2004 Total 554.5 951.6 1,082.0 4,045.9 2,259.7 9,046.2 2,540.4 9,191.5 6,436.6 23,235.1 2007-4Q 556.0 1,780.0 2,986.9 3,093.8 8,416.7 2007 Total 1,819.6 6,081.5 11,091.8 12,882.2 31,875.1 2008-1Q 459.3 1,376.9 3,427.7 2,813.0 8,076.8 2008-2Q 535.3 1,524.3 2,697.9 3,272.5 8,030.0 2008 2008-3Q 557.9 1,372.6 2,556.8 3,137.7 7,625.0 2008-4Q 2008 Total 364.9 1,917.3 1,457.2 5,731.0 2,175.0 10,857.4 2,197.1 11,420.1 6,194.1 29,925.9 2011-4Q 192.4 2,458.5 2,608.9 2,135.5 7,395.3 2011 Total 1,052.6 8,794.4 9,830.5 9,819.7 29,497.2 2012-1Q 157.9 1,933.7 1,789.2 2,355.8 6,236.6 2012-2Q 230.6 2,190.2 2,715.7 2,187.7 7,324.2 2012 2012-3Q 181.0 1,824.0 2,614.1 1,983.2 6,602.3 2012-4Q 2012 Total 156.9 726.4 1,928.3 7,876.3 2,257.5 9,376.4 2,146.6 8,673.3 6,489.4 26,652.4 2003-4Q 85.8 1,096.0 2,620.3 1,852.6 5,654.7 Figure 3.09c-6 Quarterly Venture Capital Investments 1985 to 2012 By Stage ($ Millions) 2005 Stage 2005-1Q 2005-2Q 2005-3Q 2005-4Q 2005 Total 2006-1Q Seed 148.5 530.5 165.0 162.2 1,006.3 246.7 Early Stage 867.8 1,001.6 1,192.0 994.8 4,056.3 930.1 Expansion 2,132.9 2,367.4 1,759.6 2,348.1 8,607.9 2,604.7 Later Stage 2,082.1 2,551.8 2,972.5 2,335.5 9,942.0 2,847.4 Total 5,231.3 6,451.3 6,089.1 5,840.7 23,612.5 6,629.0 2006-2Q 374.0 1,018.4 3,211.1 2,793.3 7,396.8 2006 2006-3Q 366.6 1,112.3 2,881.2 2,529.5 6,889.6 2006-4Q 306.2 1,666.6 2,457.7 2,271.4 6,701.9 2006 Total 1,293.6 4,727.4 11,154.8 10,441.5 27,617.2 2007-1Q 319.3 1,337.9 2,646.9 3,108.6 7,412.6 2007-2Q 489.2 1,700.5 2,353.2 3,289.9 7,832.8 2007 2007-3Q 455.0 1,263.1 3,104.8 3,389.9 8,213.0 Figure 3.09c-7 Quarterly Venture Capital Investments 1985 to 2012 By Stage ($ Millions) 2009 Stage 2009-1Q 2009-2Q 2009-3Q 2009-4Q 2009 Total Seed 319.7 672.4 511.0 367.6 1,870.7 Early Stage 767.3 1,179.6 1,213.6 1,746.5 4,906.9 Expansion 1,223.8 1,770.3 1,824.4 2,005.7 6,824.2 Later Stage 1,531.5 1,606.8 1,844.7 1,793.6 6,776.5 Total 3,842.2 5,229.1 5,393.7 5,913.3 20,378.3 34 2010-1Q 407.9 1,147.8 1,788.9 1,723.4 5,067.9 2010-2Q 687.8 1,740.3 2,796.5 1,925.7 7,150.2 2010 2010-3Q 332.5 1,410.4 1,685.3 1,999.1 5,427.4 2010-4Q 2010 Total 233.1 1,661.3 1,568.5 5,867.0 2,431.3 8,702.0 1,437.1 7,085.4 5,670.2 23,315.7 2011-1Q 225.2 1,830.3 2,257.4 2,220.8 6,533.7 2011-2Q 413.4 2,272.4 2,418.9 3,037.1 8,141.7 2011 2011-3Q 221.7 2,233.2 2,545.3 2,426.3 7,426.5 Thomson Reuters
  36. 36. 2013 NVCA Yearbook Figure 3.09d-1 Quarterly Venture Capital Investments 1985 to 2012 By Stage (Number of Deals) Stage Seed Early Stage Expansion Later Stage Total 1985 1986 1987 1988 1985-1Q 1985-2Q 1985-3Q 1985-4Q 1985 Total 1986-1Q 1986-2Q 1986-3Q 1986-4Q 1986 Total 1987-1Q 1987-2Q 1987-3Q 1987-4Q 1987 Total 1988-1Q 1988-2Q 1988-3Q 1988-4Q 1988 Total 110 88 61 98 357 134 107 65 82 388 116 101 85 85 387 120 79 88 84 371 88 69 60 73 290 111 70 72 80 333 131 83 103 95 412 99 94 87 79 359 138 122 114 151 525 166 136 96 106 504 182 139 158 137 616 158 182 133 141 614 65 40 37 31 173 60 55 31 50 196 64 64 51 52 231 54 48 42 38 182 401 319 272 353 1,345 471 368 264 318 1,421 493 387 397 369 1,646 431 403 350 342 1,526 Figure 3.09d-2 Quarterly Venture Capital Investments 1985 to 2012 By Stage (Number of Deals) 1989 1990 1991 1992 Stage 1989-1Q 1989-2Q 1989-3Q 1989-4Q 1989 Total 1990-1Q 1990-2Q 1990-3Q 1990-4Q 1990 Total 1991-1Q 1991-2Q 1991-3Q 1991-4Q 1991 Total 1992-1Q 1992-2Q 1992-3Q 1992-4Q 1992 Total Seed 106 100 77 72 355 60 69 59 70 258 51 49 42 51 193 49 68 49 86 252 Early Stage 101 65 84 88 338 87 97 73 113 370 79 69 60 70 278 73 86 52 80 291 Expansion 215 160 127 162 664 148 153 145 157 603 137 127 126 154 544 156 160 104 186 606 Later Stage 52 33 38 64 187 55 57 48 71 231 49 69 54 86 258 74 47 44 78 243 Total 474 358 326 386 1,544 350 376 325 411 1,462 316 314 282 361 1,273 352 361 249 430 1,392 Figure 3.09d-3 Quarterly Venture Capital Investments 1985 to 2012 By Stage (Number of Deals) 1993 1994 1995 1996 Stage 1993-1Q 1993-2Q 1993-3Q 1993-4Q 1993 Total 1994-1Q 1994-2Q 1994-3Q 1994-4Q 1994 Total 1995-1Q 1995-2Q 1995-3Q 1995-4Q 1995 Total 1996-1Q 1996-2Q 1996-3Q 1996-4Q 1996 Total Seed 69 68 66 87 290 91 67 83 91 332 125 95 95 116 431 130 140 97 137 504 Early Stage 41 49 38 56 184 64 61 54 77 256 130 136 116 137 519 148 206 175 225 754 Expansion 145 121 116 133 515 105 111 98 115 429 187 179 164 176 706 235 247 245 318 1,045 Later Stage 67 53 52 51 223 50 69 43 58 220 61 55 58 64 238 71 82 85 96 334 Total 322 291 272 327 1,212 310 308 278 341 1,237 503 465 433 493 1,894 584 675 602 776 2,637 Figure 3.09d-4 Quarterly Venture Capital Investments 1985 to 2012 By Stage (Number of Deals) Stage Seed Early Stage Expansion Later Stage Total 1997 1998 1999 2000 1997-1Q 1997-2Q 1997-3Q 1997-4Q 1997 Total 1998-1Q 1998-2Q 1998-3Q 1998-4Q 1998 Total 1999-1Q 1999-2Q 1999-3Q 1999-4Q 1999 Total 2000-1Q 2000-2Q 2000-3Q 2000-4Q 2000 Total 163 120 120 139 542 152 162 164 192 670 166 211 249 185 811 196 197 172 138 703 662 1,735 763 793 680 619 2,855 201 208 228 259 896 242 221 243 313 1,019 245 380 448 900 2,445 1,009 981 899 814 3,703 310 361 320 411 1,402 366 407 405 394 1,572 383 567 595 174 150 145 609 192 172 207 209 780 100 87 90 106 383 108 121 114 124 467 140 774 776 758 915 3,223 868 911 926 1,023 3,728 934 1,332 1,442 1,892 5,600 2,160 2,143 1,958 1,780 8,041 Figure 3.09d-5 Quarterly Venture Capital Investments 1985 to 2012 By Stage (Number of Deals) 2001 2002 2003 2004 Stage 2001-1Q 2001-2Q 2001-3Q 2001-4Q 2001 Total 2002-1Q 2002-2Q 2002-3Q 2002-4Q 2002 Total 2003-1Q 2003-2Q 2003-3Q 2003-4Q 2003 Total 2004-1Q 2004-2Q 2004-3Q 2004-4Q 2004 Total Seed 80 73 68 58 279 47 53 40 41 181 57 60 44 55 216 46 75 45 68 234 213 799 207 238 222 232 899 Early Stage 436 338 271 254 1,299 247 242 193 193 875 188 215 183 353 1,355 281 349 261 310 1,201 Expansion 650 670 543 529 2,392 410 447 348 380 1,585 346 320 336 192 652 205 216 194 268 883 Later Stage 155 156 148 160 619 160 136 128 138 562 132 160 168 731 813 3,022 739 878 722 878 3,217 Total 1,321 1,237 1,030 1,001 4,589 864 878 709 752 3,203 723 755 Thomson Reuters 35
  37. 37. National Venture Capital Association Figure 3.09d-6 Quarterly Venture Capital Investments 1985 to 2012 By Stage (Number of Deals) 2005 2006 2007 2008 Stage 2005-1Q 2005-2Q 2005-3Q 2005-4Q 2005 Total 2006-1Q 2006-2Q 2006-3Q 2006-4Q 2006 Total 2007-1Q 2007-2Q 2007-3Q 2007-4Q 2007 Total 2008-1Q 2008-2Q 2008-3Q 2008-4Q 2008 Total Seed 52 68 68 76 264 82 93 121 100 396 90 139 136 159 524 135 134 156 112 537 Early Stage 212 219 214 214 859 205 241 236 319 1,001 257 326 257 289 1,129 265 301 284 287 1,137 275 295 242 304 1,116 328 360 345 347 1,380 277 322 319 359 1,277 344 331 282 285 1,242 Expansion Later Stage 223 280 286 272 1,061 290 314 253 253 1,110 282 326 336 339 1,283 310 338 323 278 1,249 Total 762 862 810 866 3,300 905 1,008 955 1,019 3,887 906 1,113 1,048 1,146 4,213 1,054 1,104 1,045 962 4,165 Figure 3.09d-7 Quarterly Venture Capital Investments 1985 to 2012 By Stage (Number of Deals) 2009 2010 2011 2012 Stage 2009-1Q 2009-2Q 2009-3Q 2009-4Q 2009 Total 2010-1Q 2010-2Q 2010-3Q 2010-4Q 2010 Total 2011-1Q 2011-2Q 2011-3Q 2011-4Q 2011 Total 2012-1Q 2012-2Q 2012-3Q 2012-4Q 2012 Total Seed 70 87 99 119 375 93 119 99 98 409 94 128 114 109 445 61 78 73 68 280 Early Stage 195 213 244 321 973 268 361 308 334 1,271 344 392 401 425 1,562 350 433 411 453 1,647 Expansion 183 217 219 269 888 252 300 244 278 1,074 225 275 277 244 1,021 221 250 244 247 962 Later Stage 229 244 199 231 903 205 239 230 198 872 234 279 212 193 918 229 197 192 216 834 Total 677 761 761 940 3,139 818 1,019 881 908 3,626 897 1,074 1,004 971 3,946 861 958 920 984 3,723 Figure 3.10 Venture Capital Investments 1985 to 2012 By Industry ($ Millions) Industry SSoftware Biotechnology Industrial/Energy Medical Devices and Equipment IT Services Media and Entertainment Consumer Products and Services Semiconductors Telecommunications Retailing/Distribution Computers and Peripherals Networking and Equipment Healthcare Services Financial Services Electronics/Instrumentation Business Products and Services Other Total 1985 1986 1987 1988 1989 1990 1991 1992 1993 612 577 519 482 457 519 463 614 459 136 223 290 369 334 314 287 581 479 201 208 290 222 345 242 183 285 278 181 182 259 340 347 325 235 514 393 26 38 51 39 36 38 41 29 54 101 118 155 166 151 93 69 132 278 69 135 176 153 86 159 126 123 159 253 293 255 294 165 190 90 156 93 178 174 148 161 124 128 117 200 251 32 114 296 232 217 89 48 97 103 449 473 392 370 311 245 174 205 164 224 164 143 137 197 174 140 250 516 81 125 140 97 155 92 72 191 202 81 96 62 209 233 63 25 120 102 120 121 122 77 110 58 74 51 50 29 81 64 53 52 94 77 39 70 3 3 0 6 0 33 0 6 2,776 3,125 3,364 3,406 3,320 2,822 2,254 3,586 3,657 1994 1995 1996 1997 1998 1999 2000 2001 2002 671 1,186 2,350 3,462 4,721 10,690 25,251 10,820 5,509 585 832 1,186 1,368 1,551 2,101 4,270 3,480 3,312 294 527 498 704 1,260 1,464 2,627 1,250 826 439 668 618 1,026 1,256 1,577 2,403 2,046 1,863 119 175 442 640 1,093 4,323 8,890 2,475 978 275 944 1,154 1,056 1,873 7,408 10,598 2,370 784 176 534 510 742 680 2,718 3,220 702 256 157 214 340 597 631 1,380 3,806 2,474 1,654 463 937 1,323 1,562 3,024 8,032 16,468 5,179 2,168 103 303 269 326 769 2,810 3,209 368 139 178 316 363 394 383 939 1,628 693 457 250 372 631 962 1,446 4,658 11,730 5,791 2,671 202 460 734 939 959 1,495 1,386 543 380 123 181 323 385 843 2,215 4,131 1,238 331 65 151 211 307 202 274 797 400 309 40 176 369 434 706 2,590 4,726 1,085 478 6 37 21 71 102 225 60 55 17 4,146 8,013 11,341 14,975 21,499 54,900 105,200 40,968 22,132 2003 4,855 3,745 774 1,613 747 662 157 1,767 1,674 64 360 1,739 229 413 209 673 19,681 2004 5,483 4,388 847 1,905 748 1,410 334 2,166 1,854 217 538 1,559 389 530 395 460 14 23,235 2005 5,144 3,930 1,138 2,209 1,057 1,200 363 1,855 2,150 249 535 1,695 364 903 412 408 23,612 2006 5,449 4,816 1,996 2,778 1,482 1,888 424 2,307 2,414 189 388 1,252 416 528 703 586 27,617 2007 6,124 5,713 3,082 3,759 1,930 2,166 454 2,041 2,191 340 550 1,443 307 580 557 621 18 31,875 2008 6,069 4,970 4,631 3,603 2,108 1,796 418 1,595 1,514 222 470 756 159 464 646 475 30 29,926 2009 4,205 3,972 2,564 2,605 1,228 1,371 489 773 636 156 345 753 171 404 393 260 56 20,378 2010 5,116 3,903 3,465 2,341 1,661 1,572 571 1,046 792 165 408 678 272 408 422 491 4 23,316 2011 7,516 4,825 3,595 2,883 2,264 2,258 1,399 1,345 631 454 494 357 394 394 437 215 37 29,497 2012 8,293 4,115 2,792 2,511 1,993 1,976 1,208 926 582 498 453 316 309 284 244 97 53 26,652 Figure 3.10b Venture Capital Investments 1985 to 2012 By Industry (Number of Deals) Industry SSoftware Biotechnology Media and Entertainment Medical Devices and Equipment IT Services Industrial/Energy Consumer Products and Services Semiconductors Telecommunications Retailing/Distribution Electronics/Instrumentation Computers and Peripherals Financial Services Healthcare Services Networking and Equipment Business Products and Services Other Total 36 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 321 323 307 280 296 302 287 296 243 253 435 686 73 98 138 153 138 145 138 164 136 140 176 236 56 68 92 75 71 58 54 79 82 97 138 191 128 117 166 151 185 191 161 188 148 128 179 212 23 25 33 24 27 31 30 22 19 33 62 127 122 138 162 140 144 157 125 132 102 101 128 155 43 51 72 59 52 67 48 51 54 66 114 132 84 72 92 91 80 78 51 60 45 38 64 74 86 77 94 80 81 63 67 64 73 73 141 211 18 32 71 81 73 46 38 34 35 28 54 70 77 68 70 57 60 50 47 38 27 37 49 47 157 148 131 138 135 104 78 84 65 66 93 95 22 28 36 43 44 25 24 24 31 31 47 61 33 56 56 46 55 41 38 46 52 45 73 139 80 76 73 69 71 74 65 83 65 77 82 123 20 42 51 38 32 28 20 25 32 22 50 69 2 2 2 1 2 2 2 3 2 9 9 1,345 1,421 1,646 1,526 1,544 1,462 1,273 1,392 1,212 1,237 1,894 2,637 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 820 980 1,411 2,165 1,298 1,005 965 949 955 1,027 1,073 1,098 815 1,035 1,178 1,277 242 274 260 355 337 326 357 400 405 483 526 530 458 493 466 463 219 266 701 944 372 167 127 140 209 329 399 400 266 345 441 395 272 294 288 295 257 234 248 280 286 358 399 402 345 349 370 319 162 207 456 687 324 170 147 151 172 236 281 286 221 303 362 315 213 186 205 254 204 131 142 158 154 225 306 365 255 307 311 243 162 163 287 285 119 72 47 67 78 79 110 103 86 114 137 162 116 120 148 256 209 169 214 258 218 266 224 206 132 137 136 108 268 340 529 858 481 275 214 232 236 309 279 230 131 120 124 95 91 121 230 282 83 49 31 38 40 40 41 42 38 33 68 59 54 56 53 76 59 63 55 72 84 96 93 94 63 67 58 51 115 91 104 133 81 59 57 61 65 60 70 61 54 56 61 48 91 115 190 334 137 76 64 68 63 90 85 68 54 74 60 45 152 155 159 165 105 70 70 64 64 51 57 51 40 45 47 43 140 211 279 481 335 232 186 193 186 137 146 106 101 63 49 38 94 139 279 459 177 102 97 83 83 99 113 119 72 75 61 35 12 10 21 12 11 3 1 3 2 2 11 4 8 10 17 27 3,223 3,728 5,600 8,041 4,589 3,203 3,022 3,217 3,300 3,887 4,213 4,165 3,139 3,626 3,946 3,723 Thomson Reuters

×