IT/Consumer had massive investment in late 90s. Volume and distribution has dropped significantly over time. Life Sciences has been more stable over time Industrial/Energy spiked more recently, although lack of capital efficiency scared some off in 2009 - Retailing/Distribution has practically disappeared as a category - Financial Services has dropped as well
- Focus by sector, stage and geography
“ Funding a Technology Startup – Insights into the World of Venture Capital” Tom Weithman Managing Director, CIT GAP Funds Remarks to Capital Technology Management Hub November 10, 2009
From 1991-97, 80% of IPOs were under $50M. By 2000, this declined to less than 20%
1996 On-Line Brokerage Proliferates - Beginning with Charles Schwab, on-line brokerages usher in unprecedented levels of individual investment in stock market, erode margins of traditional retail brokerage houses, and push participants our of commission-based brokerage business
2001 Decimalization ; SEC mandates that price changes be expressed in penny increments v fractions. The result was a savings on brokerage fees for consumers but significantly higher participation in arguably speculative investment activity. Wall Street’s sell-side research capacity is gutted.
2002 Sarbanes Oxley increases time and expense to go public
2003 Global Research Analyst Settlement Ruling requires Investment Bankers to insulate research analysts from investment banking transactions. Result has been that a larger number of co-managers and bookrunners must participate in transactions to guarantee research coverage.
Source: University of New Hampshire Center for Venture Research, Price Waterhouse Coopers Early Stage Private Equity 2007 Angel Investments 2007 VC Investments $25+ Billion 51,000 Deals Average Deal Size : $500,000 $25+ Billion 3,416 Deals Average Deal Size : $7,500,000 Early Stage to Late Stage
Where Do VCs Invest? Life Sciences Clean Technology Information Technology