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1001  J V C A    N V C A 2010  Survey
 

1001 J V C A N V C A 2010 Survey

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    1001  J V C A    N V C A 2010  Survey 1001 J V C A N V C A 2010 Survey Presentation Transcript

    • Venture View: 2010 NVCA Predictions Survey Results
    • Venture View: 2010 VC Predictions Survey Results • Fourth Annual Predictions Survey of the NVCA • Conducted in Nov. 30 – Dec. 8, 2009 • More than 325 responses from VCs across the US • For more information – Contact: Emily Mendell (emendell@nvca.org) – Contact: Channa Brooks (channa@tenorcom.com)
    • In 2010, venture capital investment will: 11% 7% 9% 44% 29% Increase substantially >$25 BN Increase slightly $21-25 BN Decrease slightly $15-21 BN Decrease substantailly <$15 BN Remain unchanged from 2009
    • In 2010, our firm will invest in: 33% 49% 18% More portfolio companies Fewer portfolio companies The same number of portfolio companies
    • The percentage of deals outside our current geographic footprint in 2010 will: 20% 8% 72% Increase Decrease Remain the Same
    • Investment in 2010 in the following sectors will: 54% Clean Tech 20% 26% 46% Internet 39% 15% Increase Unchanged 33% Decrease Media/Entertain. 37% 30% 32% Software 43% 25% 0% 20% 40% 60%
    • Investment in 2010 in the following sectors will: 30% Wireless 34% 37% 30% Biotech 36% 34% Increase Unchanged 29% Decrease Med Devices 38% 33% 5% Semiconductors 31% 64% 0% 10% 20% 30% 40% 50% 60% 70%
    • Investment in 2010 in the following regions will: 70% China 17% 12% 58% India 26% 16% Increase Unchanged 20% Decrease Israel 53% 27% 15% Europe 40% 45% 0% 20% 40% 60% 80%
    • Investment in 2010 in the following stages will: 55% Growth Equity 30% 15% 53% Late 28% 19% Increase 49% Expansion 32% Unchanged 20% Decrease 45% Early 25% 30% 45% Seed 25% 31% 0% 20% 40% 60%
    • In 2010 the number of venture-backed IPOs will be: 45% 43.3% Mean: 26.32 40% Min: 5 Max: 120 Median: 25 35% 30% 26.1% 25% 20.4% 20% 15% 10.2% 10% 5% 0% 0-19 20-29 30-50 >50
    • In 2010 the venture-backed acquisitions market will improve. In 2010 the # of venture- In 2010 the value of venture- backed acquisitions will: backed acquisitions will: 8% 1% 25% 11% 64% 91% Increase Decrease Same Increase Decrease Same
    • In 2010 firms resources are expected to remain largely unchanged. In 2010 the # of venture In 2010 the # of admin investors in our firm will: professionals in our firm will: 22% 12% 17% 15% 63% 71% Increase Decrease Same Increase Decrease Same
    • In 2010, venture funds raised on average will be: 10% 3% 87% Smaller Larger Same size
    • In 2010, the US venture industry will see foreign limited partners in: 25% 48% 27% More Funds Fewer Funds Same Number of Funds
    • In the next five years, the number of firms in the venture industry will: 4% 6% 90% Shrink Expand Remain the same
    • In the next five years the venture capital industry will shrink by: 1% 0% 21% 20% 58% < 15% 16-30% 31-50% 51-70% >70%
    • What will you do differently in 2010? “Take more companies public.” – Richard Kramlich, General Partner/Co-Founder, NEA “We will find new mistakes to make that we “It's the global economy, stupid. Focus on 2010 will be Brazil's Skype have not made before; but all in all things investments in the USA targeting customers in the moment.” - Simon Olson, Partner, look pretty strong and the team is ROW (rest of the world).” – Trevor Loy, General Draper Fisher Jurvetson, FIR optimistic.” - Bob More, General Partner, Partner, Flywheel Ventures Capital Brazil Frazier Healthcare Ventures “The IPO market for VC backed companies will finally reopen in the US "2010 will be another difficult year for the US and several IPOs will reach $1 billion market capitalizations or more.” - venture capital industry as the consolidation of our Pascal Levensohn, Founder and Managing Partner, Levensohn Venture industry continues and very bad 10yr return numbers Partners are released. The silver lining: it will be a great year “In 2010 we are going to Carpe to make a few excellent investments." - Bob Pavey, We will look for valuations to come Per Diem - Sieze the day to make Morgenthaler Ventures into equilibrium and do more money for our LPs.” - Venky transactions at that time.” – Jim “Corporate venturing & Relentlessly & w/ seemingly Ganesan, Managing Director, Hale, Founding Partner, FTV Capital job creation funds.” - undue precision reverse Globespan Capital Partners Thomas O. Gephart, engineer the early exit to “500K to 1M as early as possible in great teams = early stage investing.” Managing Partner, drive w/ great focus what - Steve Fredrick, General Partner, Grotech Ventures Ventana Capital founders do now to grow “For 2010, we plan to broaden our geographic “We will do more investment under better environment their cos.” - Becca Braun, focus to include investments in Europe.” - John President, JumpStart for new deals.” - Masatoshi Ueno, CEO/Technology, Huntz, Executive Director, Arcapita Ventures Ventures Yasuda Enterprise Development America Inc. Since Sep08 we have focused on firms that can reach “We will raise our next fund and continue to invest in breakeven on this round. In 2010 our willingness to take consumer-facing Internet companies like Twitter and Zynga.” - finance risk will likely return.” - Bronson Lingamfelter, Norman Fogelsong, General Partner, Institutional Venture Associate, Rose Tech Ventures Partners
    • What will you do differently in 2010? “We will fund growth more aggressively in As start-up capital efficiency continues to improve, we will do more earlier 2010 as we come out of the recession.” – Don stage deals.” – John Backus, Managing Partner, New Atlantic Ventures Rainey, General Partner, Grotech Ventures “With our new $1.2Bn NVP XI fund, we plan to “2010 will likely mark the renewal of Corporate Venture Capital as continue our expansion along 3 vectors: 1. Stages corporations will rediscover the value of tapping external innovation.” - (early & late)2. Regions and 3. Sectors.” - Sergio Bernard Slede, Portfolio Manager, HP Corporate Venture Capital Monsalve, Principal, NVP “More reserve capacity per deal and less deals per fund; also “Hopefully nothing. We're rockin' here at build broader syndicate up front at initial investment.” - George Catamount.” - Jed Smith, Managing Director, Arida, Managing Director, Venture Investors LLC Catamount Ventures “Work harder, maintain “Expect to see us be more aggressive high standards, and see “We will increase our investment pace because seeding new opportunities.” - Michael more companies.” - C.W. we believe this a great time to invest - Greeley, General Partner, Flybridge Capital Newhall, General Partner, innovation and strong companies abound!” - Partners Co-Founder, NEA Jeanne M Sullivan, General Partner, StarVest Partners L.P. Actually spend meaningful time with investment bankers, again.” - Gerry Langeler, Managing Director, OVP Venture Partners “Move to accelerate the “Embrace more universities development of investment “The makeup of seed syndicates will evolve in 2010, as more into our seed stage model.” - candidates and portfolio traditional venture capitalists seek earlier access to capital- Rudy Garza, Managing companies.” - Greg Knudson, efficient deals.” - Christine Herron, Principal, First Round Partner, G51 Capital Director, Rocket Ventures Capital
    • Historical Data for the Venture Industry
    • Venture Capital Fundraising 1997-2009 120.0 100.0 80.0 60.0 40.0 20.0 0.0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Q309 BN Raised 18.1 30.6 58.2 106.6 38.0 3.8 10.6 19.2 28.9 31.9 36.1 28.6 8.3 Source: Thomson Reuters/NVCA
    • Venture Capital Investment 1997-2009 $120 $101 $100 $ Billions Invested $80 $52 $60 $39 $40 $31 $28 $26 $20 $21 $19 $22 $23 $14 $12 $20 $0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Q309 Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, Data: Thomson Reuters
    • Venture Capital Exits 1997-2009 700 M&A IPO 600 500 Number of Issues 400 300 200 100 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Q3 09 M&A 164 209 240 317 353 319 285 348 350 375 378 348 189 IPO 136 77 260 264 41 24 29 93 56 57 86 6 8 Source: Thomson Reuters/National Venture Capital Association