1. JVCA 勉強会 2009 年 米国の VC 投資動向 This document is not intended to be an offering or solicitation of any kind in relation to the activities of SunBridge Partners or any of its affiliated companies. Any such offering will be represented exclusively by an official Private Placement Memorandum. January 22, 2010
28. China IPOs rising The Number of Exit Deals Fell Slightly; IPOs Are on the Rise The global financial tsunamis delivered a death blow to Chinese VC market, especially the exits on the market. In H1'09, capital markets abroad were in persistent depression while Chinese A-share Market suspended the issuance of new stocks, leading to a narrower exit channel via IPOs; in H2'09, the number of IPOs and financing amount in overseas markets soared in companion with the rebound of the economies worldwide, as well as the domestic market experienced a turnaround coupled with the reopening of exit channel via IPOs, because of the stable growth of Chinese economy, launch of ChiNext, and reform of issuance of news stocks. 2009 witnessed 123 exit deals, falling by 12 from that in 2008, a decrease of 8.9%. As for exit option, 82 exit deals completed via IPOs , accounting for 66.7% of the total, up by 39 or 34.8% over 31.9% in the prior year. There were 24 exit deals taking place via trade sale, a slightly fall from 23 in 2008, and six via M&As as the same as that in 2008. (See Chart 10)
Venture-Backed Exit Market Improves Marginally at Year End M&A Exits See Highest Average Value Since Fourth Quarter 2007 While IPO Market Shows Preliminary Signs of Life New York, New York, January 4, 2010 – Venture-backed company exit activity showed promising signs of life during the fourth quarter of 2009 but fell far short of historical norms for the year, according to the Exit Poll report by Thomson Reuters and the National Venture Capital Association (NVCA). The year ended with 13 venture-backed Initial Public Offerings (IPOs) and 262 M&A transactions. While there were five venture-backed IPOs in the fourth quarter, a slight uptick from the third quarter of 2009, the last two years have been the slowest consecutive years for US venture-backed IPO activity since 1974-1975. The tally of M&A exits as of the last day of the quarter was 67 with 36 disclosed deals averaging $215.9 million, the highest quarterly average since the fourth quarter of 2007. “ While 2009 was a year many venture capitalists and entrepreneurs would choose to soon forget, the fourth quarter offered signs of hope for the coming year in terms of improved exit activity,” said Mark Heesen, president of the NVCA. “Clearly, we have a long way to go towards a full recovery but we are encouraged by the increasing acquisition values and the number of companies that have filed a registration with the SEC to go public. We expect to see a gradual but marked improvement in 2010 and hope to have exponential improvements this time next year.” CONTACTS Emily Mendell NVCA 1.610.565.3904 [email_address] Daniel Billings Thomson Reuters 1.646 223 5985 [email_address] Page 2 of 5 January 4, 2009 Venture-Backed Liquidity Events by Year/Quarter, 2003-2009 Quarter/Year Total M&A Deals M&A Deals with Disclosed Values *Total Disclosed M&A Value ($M) *Average M&A Deal Size ($M) **Number of IPO's Total Offer Amount ($M) Average IPO Offer Amount ($M) 2003 285 120 7,521.1 62.7 29 2,022.7 69.8 2004 348 188 16,043.8 85.3 94 11,378.0 121.0 2005 350 164 17,342.6 105.7 57 4,485.0 78.7 2006-1 107 52 5,607.5 107.8 10 540.8 54.1 2006-2 107 40 4,018.5 100.5 19 2,011.0 105.8 2006-3 96 44 3,538.0 80.4 8 934.2 116.8 2006-4 65 27 5,745.8 212.8 20 1,631.1 81.6 2006 375 163 18,909.8 116.0 57 5,117.1 89.8 2007-1 88 31 4,640.3 149.7 18 2,190.6 121.7 2007-2 90 37 3,912.1 105.7 25 4,146.8 165.9 2007-3 107 54 11,113.7 205.8 12 945.2 78.8 2007-4 93 45 9,645.8 214.4 31 3,043.8 98.2 2007 378 167 29,312.0 175.5 86 10,326.3 120.1 2008-1 108 42 4,885.2 116.3 5 282.7 56.6 2008-2 87 27 3,321.2 123.0 0 0.0 0.0 2008-3 89 32 3,080.2 96.3 1 187.5 187.5 2008-4 64 18 2,390.9 132.8 0 0.0 0.0 2008 348 119 13,677.4 114.9 6 470.2 78.4 2009-1 63 14 657.3 46.9 0 0.0 0.0 2009-2 64 13 2,570.1 197.7 5 720.7 144.1 2009-3 68 22 1,262.4 57.4 3 572.1 190.7 2009-4 67 36 7,765.4 215.9 5 649.3 129.9 2009 262 85 12,255.18 144.2 13 1,942.1 149.4 Thomson Reuters & National Venture Capital Association *Only accounts for deals with disclosed values **Includes all companies with at least one U.S. VC investor that trade on U.S. exchanges, regardless of domicile. IPO Activity Overview There were five venture-backed IPOs valued at $649.3 million in the fourth quarter of 2009, a slight increase from the third quarter of 2009. With 13 venture-backed initial public offerings during full year 2009, the annual total more than doubles activity in seen 2008, by Page 3 of 5 January 4, 2009 dollars raised and number of offerings. However, the last two years have been the slowest consecutive years for US venture-backed IPO activity since 1974-1975. Two of the five IPO exits for the quarter were in the information technology sector, accounting for a total of $236.2 million. Within this sector, Sunnyvale, California-based, Fortinet, Inc, a developer of network protection systems, raised $156.3 million. Echo Global Logistics, a Chicago-based provider of transportation management solutions began trading on October 2nd and raised $79.8 million in the communications and media sector. Venture-Backed IPO Industry Breakdown Q4 2009 Industry *Number of Venture- Backed IPO's in the U.S. Total Venture- Backed Offering Size ($M) Computer Software/Services 1 156.3 Information Communications and Media 1 79.8 Technology TOTAL 2 236.1 Medical/Health 1 45 Life Biotechnology 1 68.2 Sciences TOTAL 2 113.2 Non-High Other Products 1 300 Technology TOTAL 1 300 TOTAL 5 649.3 *Includes all companies with at least one U.S. VC investor that trade on U.S. exchanges, regardless of domicile In the biggest IPO of the quarter, KAR Auction Services, an automotive services holding company based in Carmel, Indiana raised $300 million via a listing on the New York Stock Exchange. There were no initial public offerings by US venture-backed companies on a foreign exchange in the third quarter. Of the five IPOs in the third quarter, two were trading at or above their offering prices as of 12/30/2009. For the year, nine out of the thirteen IPOs were trading at or above their offering. Twenty-nine venture-backed companies are currently filed for an initial public offering with the SEC. Mergers and Acquisitions Overview Page 4 of 5 January 4, 2009 As of December 30, 2009, 67 venture-backed M&A deals were reported for the fourth quarter, 36 of which had an aggregate deal value of $7.8 billion. The average disclosed deal value was $215.7 million. The information technology sector led the venture-backed M&A landscape, with 48 deals and a disclosed total dollar value of $4.7 billion. Within this sector, internet specific and communications and media companies accounted for the bulk of the targets, with 26 and 11 transactions, respectively, across these sector subsets. The life sciences sector saw the next highest level of activity with 14 deals and a combined disclosed value of $2.8 billion. Venture-Backed M&A Industry Breakdown Q4 2009 Industry Number of Venture- Backed M&A deals Number of Venture- Backed M&A deals with a disclosed value Total Disclosed Venture- Backed Deal Value ($M) Internet Specific 15 7 2238.1 Communications and Media 11 9 1352.0 Computer Software and Services 17 7 629.9 Semiconductors/Other Elect. 4 3 467.1 Information Computer Hardware 1 - - Technology TOTAL 48 26 4,687.1 Biotechnology 9 4 1773.3 Medical/Health 5 4 1061.0 Life Sciences TOTAL 14 8 2,834.3 Industrial/Energy 2 1 120.0 Non-High Other Products 3 1 124.0 Technology TOTAL 5 2 244.0 TOTAL 68 37 7,803.7 Source: Thomson Reuters & National Venture Capital Association In the biggest venture-backed deal of the quarter and the year, Amazon.com Inc acquired Zappos.com Inc, a Henderson, Nevada-based online shoe retailer for $930 million. In the year’s second biggest M&A deal, Onyx Pharmaceuticals acquired Proteolix, Inc., a biotechnology company specializing in cancer and immune diseases, for $851 million in October. Deals bringing in the top returns, those with disclosed values greater than four times the venture investment, accounted for 20 percent of the total in the fourth quarter of 2009, Page 5 of 5 January 4, 2009 Venture-backed M&A deals returning less than the amount invested accounted for 23 percent of the quarter’s total, compared to 50 percent of the total in the previous quarter. Analysis of Transaction Values versus Amount Invested Relationship between transaction value and investment Q309 M&A** Q409 M&A** Deals where transaction value is less than total venture investment 11 8 Deals where transaction value is 1-4x total venture investment 2 9 Deals where transaction value is 4x-10x total venture investment 7 10 Deals where transaction value is greater than 10x venture investment 2 7 Total Disclosed Deals 22 34 Source: Thomson Reuters & National Venture Capital Association ** Disclosed deals that do not have a disclosed total investment amount are not included. About Thomson Reuters Thomson Reuters is the world's leading source of intelligent information for businesses and professionals. We combine industry expertise with innovative technology to deliver critical information to leading decision makers in the financial, legal, tax and accounting, healthcare and science and media markets, powered by the world's most trusted news organization. With headquarters in New York and major operations in London and Eagan, Minnesota, Thomson Reuters employs more than 50,000 people and operates in over 100 countries. Thomson Reuters shares are listed on the Toronto Stock Exchange and New York Stock Exchange. For more information, go to www.thomsonreuters.com. About National Venture Capital Association The National Venture Capital Association (NVCA) represents more than 400 venture capital firms in the United States. NVCA's mission is to foster greater understanding of the importance of venture capital to the U.S. economy and support entrepreneurial activity and innovation. According to a 2008 Global Insight study, venture-backed companies accounted for 12.1 million jobs and $2.9 trillion in revenue in the United States in 2008. The NVCA represents the public policy interests of the venture capital community, strives to maintain high professional standards, provides reliable industry data, sponsors professional development, and facilitates interaction among its members. For more information about the NVCA, please visit www.nvca.org.
DESPITE FOURTH QUARTER INCREASE VENTURE CAPITAL INDUSTRY EXPERIENCES SLOWEST ANNUAL PERIOD FOR DOLLARS COMMITED SINCE 2003 New York, January 11, 2010 – US venture capital firms raised $3.8 billion in the fourth quarter of 2009 from 32 funds, according to Thomson Reuters and the National Venture Capital Association (NVCA). For full year 2009, venture capital fundraising totaled $15.2 billion from 120 funds, a 47% decline by dollars committed and slowest year for fundraising since 2003. By numbers of funds, fundraising activity in 2009 will mark the slowest annual period since 1993. Fundraising by Venture Funds Year/Quarter Number of Funds Venture Capital ($M) 2004 218 19,154.4 2005 242 28,962.7 2006 242 31,964.9 2007 250 36,131.4 2008 223 28,571.3 2009 120 15,220.2 4Q'07 86 12,322.5 1Q'08 74 7,228.5 2Q'08 82 9,284.5 3Q'08 63 8,497.4 4Q'08 48 3,560.9 1Q'09 53 5,173.8 2Q'09 29 4,127.4 3Q'09 25 2,094.2 4Q'09 32 3,824.8 Source: Thomson Reuters & National Venture Capital Association CONTACTS Channa Brooks Tenor Communications for NVCA 1.302 368 2345 [email_address] Daniel Billings Thomson Reuters 1.646 223 5985 [email_address] Page 2 of 3 January 11, 2009 "Many venture firms voluntarily stayed out of the fundraising market in 2009, a dynamic that clearly is reflected in the lower volumes,” said Mark Heesen, president of the NVCA. “ However, most of these firms will not be afforded the luxury of continuing to wait for market conditions to improve in 2010. They will be out in the market raising funds alongside firms that were already scheduled to raise this year. It promises to be a defining period as we will gain a better sense as to what the venture capital industry will resemble in the next decade. All signs point to a leaner, more capital efficient asset class comprised of firms with proven track records of delivering value to limited partners. Not all firms will make that cut, but the ones that do will be very well positioned to invest.” There were seven new funds and 25 follow-on funds raised in the fourth quarter of 2009, a ratio of over 3.5 -to-1 of follow-on to new funds. The ratio of follow-to-new funds for full year 2009 was 4.5-to-1 with 22 new funds this year and 98 follow-on funds. The largest new fund reporting commitments during 2009 was Andreessen Horowitz Fund I, L.P, which raised $300 million in its inaugural fund. A “new” fund is defined as the first fund at a newly established firm, although the general partner of that firm may have previous experience investing in venture capital. VC Funds: New vs. Follow-On No. of New No. of Followon Total 2004 63 155 218 2005 67 175 242 2006 56 186 242 2007 61 189 250 2008 49 174 223 2009 22 98 120 4Q'07 27 59 86 1Q'08 12 62 74 2Q'08 22 60 82 3Q'08 14 49 63 4Q'08 11 37 48 1Q'09 4 49 53 2Q'09 8 21 29 3Q'09 7 18 25 4Q'09 7 25 32 Source: Thomson Reuters & National Venture Capital Association The largest funds raised during 2009 were New Enterprise Associates 13, L.P. raising $2.46 billion for a follow-on fund, followed by Norwest Venture Partners XI, L.P. which saw $1.2 billion in fund commitments during the fourth quarter of 2009. Page 3 of 3 January 11, 2009 About Thomson Reuters Thomson Reuters is the world's leading source of intelligent information for businesses and professionals. We combine industry expertise with innovative technology to deliver critical information to leading decision makers in the financial, legal, tax and accounting, healthcare and science and media markets, powered by the world's most trusted news organization. With headquarters in New York and major operations in London and Eagan, Minnesota, Thomson Reuters employs more than 50,000 people and operates in over 100 countries. Thomson Reuters shares are listed on the Toronto Stock Exchange and New York Stock Exchange (symbol: TRI). For more information, go to www.thomsonreuters.com. About National Venture Capital Association The National Venture Capital Association (NVCA) represents more than 400 venture capital firms in the United States. NVCA's mission is to foster greater understanding of the importance of venture capital to the U.S. economy and support entrepreneurial activity and innovation. According to a 2009 Global Insight study, venture-backed companies accounted for 12.1 million jobs and $2.9 trillion in revenue in the United States in 2008. The NVCA represents the public policy interests of the venture capital community, strives to maintain high professional standards, provides reliable industry data, sponsors professional development, and facilitates interaction among its members. For more information about the NVCA, please visit www.nvca.org.
Contact: Emily Mendell, NVCA, emendell@nvca.org, 610-565-3904 Channa Brooks, Tenor Communications for NVCA, channa@tenorcom.com, 302-368-2345 VENTURE CAPITALISTS ARE OPTIMISTIC FOR 2010 DESPITE PREDICTIONS FOR INDUSTRY CONTRACTION NVCA Venture View Survey Forecasts Improvement in Investments and Exits Amidst Fewer and Smaller VC Funds Washington D.C., December 16, 2009 – Venture capitalists are cautiously optimistic about the improving nature of their ecosystem in the coming year, yet are realistic about an inevitable contraction of industry resources, according to Venture View 2010, the annual predictions survey conducted by the National Venture Capital Association (NVCA). According to respondents, the venture industry will begin to see gradual increases in investment levels and exit transactions in 2010, but the asset class will continue to shrink in size over the next five years. Specific areas of optimism include clean technology investing, growth equity and later stage companies, and ongoing opportunities overseas. “ It is readily understood by the venture capital community that our industry is going to contract in size going forward,” said Mark Heesen, president of the NVCA. “That will mean fewer firms, for sure, but not necessarily fewer companies funded. There is a great deal of innovation taking place and venture capitalists who have the track record to raise funds will be well positioned to build companies. Most venture capitalists will agree that a smaller industry is a better one.” The NVCA survey was conducted from November 30 – December 8, 2009 and includes responses from more than 325 venture capitalists across the United States. 2010 Investment: More Dollars into More Companies Most respondents predict more venture dollars going into more portfolio companies in 2010. Sixty-three percent of all respondents expect venture investment dollar levels to remain the same or increase from 2009 with 44 percent forecasting a level between $21-25 billion. Half of the respondents predict more companies will receive venture financing, while one-third believes the number of portfolio companies will remain the same. Clean Technology Continues to Garner Optimism Clean Technology is the industry where most VCs predict growth with 54 percent forecasting higher investment levels in 2010. Other favorable industries include Internet (46 percent predicting higher investment levels), Media and Entertainment (33 percent) and Software (32 percent). Opinions on life sciences investing in 2010 are closely split, both in Medical Devices and Biotechnology. Respondents are almost equally divided as to whether investment in Biotechnology will increase, decrease, or stay the same. In Medical Devices, 38 percent expect investment levels to stay the same while roughly one-third each predict levels to increase or decrease. The Semiconductor industry is the sector in which most VCs believe we'll see a decrease next year. Sixty-four percent predict lower investment levels in 2010. Many venture capitalists believe that the Wireless sector will experience declines with 37 percent predicting lower levels for next year as well. More Venture Dollars to Flow to Asia A majority of respondents believe that there will be more investment in Asia with 70 percent of VCs anticipating growth in China-based investments and 58 percent seeing greater investment levels in India in 2010. To the contrary, most VCs (53 percent) believe investments in Israel will decline in the coming year. Forty-five percent of respondents believe that VC investment in Europe will remain the same. Later Stage Investment Predicted to Increase According the survey, most VCs expect the Growth Equity stage of development to increase with 55 percent of all respondents predicting increased investment there in 2010. Fifty-three percent see growth in Later Stage investing; 49 percent in Expansion stage investing. Fewer VCs think the number of younger company investments will grow with 45 percent of respondents predicting growth in Early and Seed stage investments. “ Of all the predictions put forth this year, a collective lack of enthusiasm for seed and early stage investing is the most concerning,” said Heesen. “The weak exit market combined with proposed tax policy which would discourage long term investment puts tremendous pressure on our industry to move towards later stage investing. Yet, seed and early stage companies represent a pipeline that must be supported if our country is to continue building new and innovative companies. We need the environment to improve for these early stage investors.” Improving Exit Signs On the exit market front, most VCs predict a mild improvement in the number of venture-backed IPOs in 2010. Seventy-four percent of the respondents believe there will be more than 20 IPOs next year with the average forecasted IPO volume at 26.3 offerings. Only 10 percent of VCs predict more than 50 IPOs. More VCs are optimistic about the acquisitions market with 91 percent believing the number of deals will increase and 63 percent of respondents predicting the value of those deals will be higher. A Contracting Industry Respondents were consistent in their predictions for a smaller venture capital industry over time. Eighty-seven percent believe that funds raised in 2010 will be on average smaller than previous funds. Respondents also predict a changing limited partner base with 48 percent predicting more foreign LPs investing in U.S. venture funds in the coming year. An overwhelming percentage of VCs (90 percent) predict that the number of venture capital firms will decline over the next five years. Most of these respondents (72 percent) believe the industry will contract between one and 30 percent. Despite these longer term predictions for consolidation, most VCs do not anticipate significant “ in-house” changes during the next year. Sixty-three percent believe the number of investment professionals within their firms will stay the same and 71 percent say there will be no change in staffing at the administrative level. “ The consolidation of the venture industry will not occur overnight,” said Heesen. “This process will be a gradual one as fewer firms than has been the case historically will be able to raise funds. Those funds that are raised will generally be smaller and over time, the firms will contract accordingly. Venture capitalists will have to do more with less.” Most venture capitalists predict that they will remain in their geographic footprint in 2010, with only 20 percent predicting an increased number of deals outside their immediate region. Seventytwo percent expect to maintain their current investment strategy from a geographical standpoint. For More Information As part of this year’s survey, the NVCA asked the respondents to share something the VC or firm will do differently in 2010, in 140 characters or less. Read selected responses here: www.nvca.org/predictions2010_quotes.pdf. For complete survey results including charts, please visit: www.nvca.org/predictions2010_presentation.pdf About the National Venture Capital Association The National Venture Capital Association (NVCA) represents more than 400 venture capital firms in the United States. NVCA's mission is to foster greater understanding of the importance of venture capital to the U.S. economy and support entrepreneurial activity and innovation. According to a 2008 Global Insight study, venture-backed companies accounted for 12.1 million jobs and $2.9 trillion in revenue in the United States in 2008. The NVCA represents the public policy interests of the venture capital community, strives to maintain high professional standards, provides reliable industry data, sponsors professional development, and facilitates interaction among its members. For more information about the NVCA, please visit www.nvca.org.
Contact: Emily Mendell, NVCA, emendell@nvca.org, 610-565-3904 Channa Brooks, Tenor Communications for NVCA, channa@tenorcom.com, 302-368-2345 VENTURE CAPITALISTS ARE OPTIMISTIC FOR 2010 DESPITE PREDICTIONS FOR INDUSTRY CONTRACTION NVCA Venture View Survey Forecasts Improvement in Investments and Exits Amidst Fewer and Smaller VC Funds Washington D.C., December 16, 2009 – Venture capitalists are cautiously optimistic about the improving nature of their ecosystem in the coming year, yet are realistic about an inevitable contraction of industry resources, according to Venture View 2010, the annual predictions survey conducted by the National Venture Capital Association (NVCA). According to respondents, the venture industry will begin to see gradual increases in investment levels and exit transactions in 2010, but the asset class will continue to shrink in size over the next five years. Specific areas of optimism include clean technology investing, growth equity and later stage companies, and ongoing opportunities overseas. “ It is readily understood by the venture capital community that our industry is going to contract in size going forward,” said Mark Heesen, president of the NVCA. “That will mean fewer firms, for sure, but not necessarily fewer companies funded. There is a great deal of innovation taking place and venture capitalists who have the track record to raise funds will be well positioned to build companies. Most venture capitalists will agree that a smaller industry is a better one.” The NVCA survey was conducted from November 30 – December 8, 2009 and includes responses from more than 325 venture capitalists across the United States. 2010 Investment: More Dollars into More Companies Most respondents predict more venture dollars going into more portfolio companies in 2010. Sixty-three percent of all respondents expect venture investment dollar levels to remain the same or increase from 2009 with 44 percent forecasting a level between $21-25 billion. Half of the respondents predict more companies will receive venture financing, while one-third believes the number of portfolio companies will remain the same. Clean Technology Continues to Garner Optimism Clean Technology is the industry where most VCs predict growth with 54 percent forecasting higher investment levels in 2010. Other favorable industries include Internet (46 percent predicting higher investment levels), Media and Entertainment (33 percent) and Software (32 percent). Opinions on life sciences investing in 2010 are closely split, both in Medical Devices and Biotechnology. Respondents are almost equally divided as to whether investment in Biotechnology will increase, decrease, or stay the same. In Medical Devices, 38 percent expect investment levels to stay the same while roughly one-third each predict levels to increase or decrease. The Semiconductor industry is the sector in which most VCs believe we'll see a decrease next year. Sixty-four percent predict lower investment levels in 2010. Many venture capitalists believe that the Wireless sector will experience declines with 37 percent predicting lower levels for next year as well. More Venture Dollars to Flow to Asia A majority of respondents believe that there will be more investment in Asia with 70 percent of VCs anticipating growth in China-based investments and 58 percent seeing greater investment levels in India in 2010. To the contrary, most VCs (53 percent) believe investments in Israel will decline in the coming year. Forty-five percent of respondents believe that VC investment in Europe will remain the same. Later Stage Investment Predicted to Increase According the survey, most VCs expect the Growth Equity stage of development to increase with 55 percent of all respondents predicting increased investment there in 2010. Fifty-three percent see growth in Later Stage investing; 49 percent in Expansion stage investing. Fewer VCs think the number of younger company investments will grow with 45 percent of respondents predicting growth in Early and Seed stage investments. “ Of all the predictions put forth this year, a collective lack of enthusiasm for seed and early stage investing is the most concerning,” said Heesen. “The weak exit market combined with proposed tax policy which would discourage long term investment puts tremendous pressure on our industry to move towards later stage investing. Yet, seed and early stage companies represent a pipeline that must be supported if our country is to continue building new and innovative companies. We need the environment to improve for these early stage investors.” Improving Exit Signs On the exit market front, most VCs predict a mild improvement in the number of venture-backed IPOs in 2010. Seventy-four percent of the respondents believe there will be more than 20 IPOs next year with the average forecasted IPO volume at 26.3 offerings. Only 10 percent of VCs predict more than 50 IPOs. More VCs are optimistic about the acquisitions market with 91 percent believing the number of deals will increase and 63 percent of respondents predicting the value of those deals will be higher. A Contracting Industry Respondents were consistent in their predictions for a smaller venture capital industry over time. Eighty-seven percent believe that funds raised in 2010 will be on average smaller than previous funds. Respondents also predict a changing limited partner base with 48 percent predicting more foreign LPs investing in U.S. venture funds in the coming year. An overwhelming percentage of VCs (90 percent) predict that the number of venture capital firms will decline over the next five years. Most of these respondents (72 percent) believe the industry will contract between one and 30 percent. Despite these longer term predictions for consolidation, most VCs do not anticipate significant “ in-house” changes during the next year. Sixty-three percent believe the number of investment professionals within their firms will stay the same and 71 percent say there will be no change in staffing at the administrative level. “ The consolidation of the venture industry will not occur overnight,” said Heesen. “This process will be a gradual one as fewer firms than has been the case historically will be able to raise funds. Those funds that are raised will generally be smaller and over time, the firms will contract accordingly. Venture capitalists will have to do more with less.” Most venture capitalists predict that they will remain in their geographic footprint in 2010, with only 20 percent predicting an increased number of deals outside their immediate region. Seventytwo percent expect to maintain their current investment strategy from a geographical standpoint. For More Information As part of this year’s survey, the NVCA asked the respondents to share something the VC or firm will do differently in 2010, in 140 characters or less. Read selected responses here: www.nvca.org/predictions2010_quotes.pdf. For complete survey results including charts, please visit: www.nvca.org/predictions2010_presentation.pdf About the National Venture Capital Association The National Venture Capital Association (NVCA) represents more than 400 venture capital firms in the United States. NVCA's mission is to foster greater understanding of the importance of venture capital to the U.S. economy and support entrepreneurial activity and innovation. According to a 2008 Global Insight study, venture-backed companies accounted for 12.1 million jobs and $2.9 trillion in revenue in the United States in 2008. The NVCA represents the public policy interests of the venture capital community, strives to maintain high professional standards, provides reliable industry data, sponsors professional development, and facilitates interaction among its members. For more information about the NVCA, please visit www.nvca.org.