Venture Capital Outlook
2014
San Diego Venture Group
January 23, 2014
Bobby Franklin
NVCA President & CEO
The Number of U.S. Venture Firms:
Back to Rational Levels

Year

Number of
Active Firms

Capital
Managed

1970

28

$1B

1...
VC Raised $17B in 2013: Down but
hardly out

Year

Number of
Funds

VC Dollars
Raised

2009

159

$16.1B

2010

173

$13.2...
VC Investment by Year
$120

$100

$105
B
$32
B

$60

$29.
4B

$40

Source: PricewaterhouseCoopers/National Venture Capital...
VC Fundraising vs. Investment in
2013

Six consecutive years with a considerable gap
between venture capital fundraising a...
100%
80%
25%

60%

37
%

15
%

19%

40%
20%

Software

2013

2011

2009

2007

2005

2003

2001

1999

1997

0%
1995

% of...
Seed stage slowing, Early stage
increasing

7
San Diego Metro VC Investment

300

2.4
2.297

250

1.9

1.846
1.579

150

100

1.4
1.197 1.203 1.23

1.209

0.997
235

1....
2013 San Diego Metro VC Investment
by Industry
$ Funded
7%
4%
9%

51%

12%
17%

Biotech
Medical Devices
Software
Industria...
2013: More Life Sciences IPOs
than the prior 5 years combined

Source: Thomson Reuters/National Venture Capital Associatio...
M&A Exits are Down

600
500
# Deals

400
300
200

543
499488

485488
443
423
402
380384363
360
323

377

227
189
143

100
...
The future of venture capital

• Today, capital is essential to grow a company,
not necessarily to start it
• Tomorrow, be...
The Washington Environment

• Gridlock: Last year, Congress passed only 57
bills that got the President’s signature and
be...
In Summary...
• Venture capital had a great 2013 and 2014 will
likely be even better
• Venture capital continues to play a...
nvca.org
nvcaccess.nvca.org
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SDVG VC Outlook 2014 NVCA slides

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Data presented by Bobby Franklin, President of NVCA

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Transcript of "SDVG VC Outlook 2014 NVCA slides"

  1. 1. Venture Capital Outlook 2014 San Diego Venture Group January 23, 2014 Bobby Franklin NVCA President & CEO
  2. 2. The Number of U.S. Venture Firms: Back to Rational Levels Year Number of Active Firms Capital Managed 1970 28 $1B 1980 87 $4B 1990 96 $28B 2000 1,022 $220B 2010 462 $177B 2013 382 $203B
  3. 3. VC Raised $17B in 2013: Down but hardly out Year Number of Funds VC Dollars Raised 2009 159 $16.1B 2010 173 $13.2B 2011 186 $18.9B 2012 208 $19.5B 2013 186 $16.7B
  4. 4. VC Investment by Year $120 $100 $105 B $32 B $60 $29. 4B $40 Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, Data: Thomson Reuters 4 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 $0 1989 $20 1988 $ Billion Invested $80
  5. 5. VC Fundraising vs. Investment in 2013 Six consecutive years with a considerable gap between venture capital fundraising and dollars invested. Is it an issue?
  6. 6. 100% 80% 25% 60% 37 % 15 % 19% 40% 20% Software 2013 2011 2009 2007 2005 2003 2001 1999 1997 0% 1995 % of Total VC Investment $ IT Software Attracting Most VC Dollars Biotech Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, Data: Thomson Reuters 6
  7. 7. Seed stage slowing, Early stage increasing 7
  8. 8. San Diego Metro VC Investment 300 2.4 2.297 250 1.9 1.846 1.579 150 100 1.4 1.197 1.203 1.23 1.209 0.997 235 1.156 0.939 0.825 0.881 0.927 0.9 0.757 169 156 114 125 132 143 130 0.4 135 134 114 Billions Invested # of Deals 200 114 105 97 50 -0.1 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, Data: Thomson Reuters 8
  9. 9. 2013 San Diego Metro VC Investment by Industry $ Funded 7% 4% 9% 51% 12% 17% Biotech Medical Devices Software Industrial/Energy IT Services Other Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, Data: Thomson Reuters 9
  10. 10. 2013: More Life Sciences IPOs than the prior 5 years combined Source: Thomson Reuters/National Venture Capital Association 10
  11. 11. M&A Exits are Down 600 500 # Deals 400 300 200 543 499488 485488 443 423 402 380384363 360 323 377 227 189 143 100 0 1997 1999 2001 2003 2005 2007 2009 2011 2013 Source: Thomson Reuters/National Venture Capital Association 11
  12. 12. The future of venture capital • Today, capital is essential to grow a company, not necessarily to start it • Tomorrow, better fund performance and returns to LPs • Venture Capital continues to fuel innovation in a way unlike any other asset class
  13. 13. The Washington Environment • Gridlock: Last year, Congress passed only 57 bills that got the President’s signature and became law – lowest in history • The obvious right thing to do is often widely supported by elected officials, but it gets tangled with other issues • Immigration • Tax Reform • NVCA can and does make a difference
  14. 14. In Summary... • Venture capital had a great 2013 and 2014 will likely be even better • Venture capital continues to play an important role in the entrepreneurial ecosystem • Washington is messy but necessary for the innovation economy
  15. 15. nvca.org nvcaccess.nvca.org
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