Venture Capital Activity Report | Q4 2010TABLE OF CONTENTSQUARTER SUMMARY                                               2Q...
2                                                                   Venture Capital Activity Report | Q4 2010Q4 2010 – Thi...
3                                                       Venture Capital Activity Report | Q4 2010$6.5B over 735 Deals – Hi...
4                                                        Venture Capital Activity Report | Q4 2010Cali Maintains, NY Gains...
5                                                           Venture Capital Activity Report | Q4 2010The Big Three’s Share...
6                                                          Venture Capital Activity Report | Q4 2010CB Insights is the Pre...
7                                                             Venture Capital Activity Report | Q4 20102010 Ends with a Ba...
8                                                                    Venture Capital Activity Report | Q4 2010Seed VC Stay...
9                                                                   Venture Capital Activity Report | Q4 2010Internet Clim...
10                                                Venture Capital Activity Report | Q4 2010Get Started for Free with CB In...
11                             Venture Capital Activity Report | Q4 2010     Q4 2010 Venture Capital     INTERNETwww.cbins...
12                                                  Venture Capital Activity Report | Q4 2010Internet VC Hits 5 Quarter Hi...
13                                                              Venture Capital Activity Report | Q4 2010NY Takes Hold of ...
14                                                                           Venture Capital Activity Report | Q4 2010~70%...
15                                                                 Venture Capital Activity Report | Q4 2010Early Stage In...
16                                                                    Venture Capital Activity Report | Q4 2010VC Internet...
17                                                               Venture Capital Activity Report | Q4 2010Early Stage Medi...
18                             Venture Capital Activity Report | Q4 2010     Q4 2010 Venture Capital     HEALTHCAREwww.cbi...
19                                                Venture Capital Activity Report | Q4 2010Healthcare Investment Dips Afte...
20                                                             Venture Capital Activity Report | Q4 2010 Mass and Cali Att...
21                                                                      Venture Capital Activity Report | Q4 2010Cali Stay...
22                                                                 Venture Capital Activity Report | Q4 2010Early Stage He...
23                                                      Venture Capital Activity Report | Q4 2010Medical Device Investment...
24                                                               Venture Capital Activity Report | Q4 2010More Small Serie...
25                             Venture Capital Activity Report | Q4 2010     Q4 2010 Venture Capital     GREEN & CLEAN TEC...
26                                                   Venture Capital Activity Report | Q4 2010Green Tech Performance In-Li...
27                                                               Venture Capital Activity Report | Q4 2010Colorado Shows I...
28                                                                       Venture Capital Activity Report | Q4 2010Californ...
29                                                                  Venture Capital Activity Report | Q4 2010Green Tech Se...
30                                                                   Venture Capital Activity Report | Q4 2010Renewables a...
31                                                                   Venture Capital Activity Report | Q4 2010Late Stage G...
32                             Venture Capital Activity Report | Q4 2010     Q4 2010 Venture Capital     CALIFORNIAwww.cbi...
33                                                         Venture Capital Activity Report | Q4 2010CB Insights is the Pre...
34                                                     Venture Capital Activity Report | Q4 2010California Deal Volume Exp...
35                                                             Venture Capital Activity Report | Q4 2010Internet & Healthc...
36                                                                     Venture Capital Activity Report | Q4 2010Internet I...
37                                                                  Venture Capital Activity Report | Q4 2010Early Stage D...
38                             Venture Capital Activity Report | Q4 2010     Q4 2010 Venture Capital     MASSACHUSETTSwww....
39                                                   Venture Capital Activity Report | Q4 2010                            ...
40                                                              Venture Capital Activity Report | Q4 2010                 ...
Venture capital activity report q4 2010
Venture capital activity report q4 2010
Venture capital activity report q4 2010
Venture capital activity report q4 2010
Venture capital activity report q4 2010
Venture capital activity report q4 2010
Venture capital activity report q4 2010
Venture capital activity report q4 2010
Venture capital activity report q4 2010
Venture capital activity report q4 2010
Venture capital activity report q4 2010
Venture capital activity report q4 2010
Venture capital activity report q4 2010
Venture capital activity report q4 2010
Venture capital activity report q4 2010
Venture capital activity report q4 2010
Venture capital activity report q4 2010
Venture capital activity report q4 2010
Venture capital activity report q4 2010
Venture capital activity report q4 2010
Venture capital activity report q4 2010
Upcoming SlideShare
Loading in...5
×

Venture capital activity report q4 2010

1,062

Published on

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
1,062
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
32
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Transcript of "Venture capital activity report q4 2010"

  1. 1. Venture Capital Activity Report | Q4 2010TABLE OF CONTENTSQUARTER SUMMARY 2QUARTERLY TRENDS 3SECTOR REVIEW 111 INTERNET 112 HEALTHCARE 183 GREEN / CLEAN TECH 25GEOGRAPHIC REVIEW1 CALIFORNIA 322 MASSACHUSETTS 383 NEW YORK 434 WASHINGTON 495 TEXAS 54DEFINITIONS & DATA INTEGRITY 59 © 2011, CB Insights. All rights reserved. For more information about CB Insights, please email info@cbinsights.com.www.cbinsights.com
  2. 2. 2 Venture Capital Activity Report | Q4 2010Q4 2010 – This Quarter in Venture CapitalQuarter sees highest dealflow and funding of last eight quarters. Internet saw Year-over-Year deal count up 21%, Green Tech up 7% and Healthcare up 2%.At $6.5B of venture capital funding over 735 deals, Q4 2010’s venture capital stats have something for everyone. Forthose of you looking for a data point that suggests VC is back and on the road to recovery after 2009’s tough sledding, theeight quarter high on deals and dollars gives you something to hang your hat on. For those of you who think VC isoverheated and we’re headed for a bubble, the eight quarter high on deals and dollars gives you something to hang yourhat on. Yes – it’s all a matter of perspective.Overall, 2010 saw $23.7B of funding into 2792 deals which represented 14% growth in funding and 13% growth in dealsover 2009’s VC nadir.Say Bye Bye Massachusetts – NY is #2 for Tech VC Healthcare VC – A Mixed Bag Over the last five quarters, NY has seen 208 tech deals Deals in the Healthcare space were up modestly YoY but vs. 207 for Massachusetts. Funding to NY tech funding was down almost 16%. The growth in funding companies came in at $1.22B vs. $1.21B for and deals seen over the last 2 quarters ceased as well. Massachusetts. The margin of victory for NY is ever so Mass and Cali took over 50% of Healthcare funding but slight, but most striking is the trend for both states which Mass’ share of Healthcare VC fell to a five-quarter low. are going in very different directions. (Trend can be Early stage activity in Healthcare hit a five quarter high. seen here: http://bit.ly/dLmLYG) Calis Number of VC Deals Grows, Funding DownSeed VC Retains Its Share | Early Stage Grows California retained its belt as uncontested venture capital Q3 2010 saw 11% of deals going to Seed VC deals and heavyweight champion. Relative to 2009, California saw that share stayed consistent in Q4 2010. The share of 3% growth in deals and a 2% drop in VC funding. The Series A deals increased over Q3 2010. Early stage state saw 14% growth in deals on a sequential basis over deal activity was nearly 50% of total deals representing Q3 2010. 60% of the states funding went to Internet and the highest level seen in five quarters. Healthcare companies. Mobile also took its largest share of deals in the last five quarters.VCs Connecting With Internet Deals Often Colorado - The New Green Tech Hub? The growth in the quarter was driven largely by a red- hot internet sector which hit a five quarter high (by a lot) Three of the top 10 green tech deals in the quarter were on both deals and dollars. Early stage activity remained in Colorado. The state which is usually 3-4% of green strong as did NY on the internet deal and dollar front. tech deals jumped to 10%.Green Tech / Clean Tech Investments Stay Flat Texas Gets the Early Stage Bug After two quarters of VC funding to Green Tech/Clean In aggregate, Texas stayed within its recent historical Tech investments declining, the space saw deals and range, but it did see growth in early-stage deals with 6 of dollars hold vs. the prior quarter. On a year-over-year 10 deals in the quarter being into early stage deals. basis, investment funding was up 40%. Early stage investment on a deals basis into Green Tech fell to a Washington At Five Quarter Low in VC Funding five-quarter low. Renewables and Energy Efficiency maintained their positions as the top 2 areas for Green Over 50% of Washington deals were in early-stage Tech investment and in aggregate, they garnered their companies and almost 60% of deals were to Internet largest share of deals of the last five quarters. firms. The smaller checks to less capital-hungry web companies helped to drive Washington to a five quarter low on VC funding.It is worth noting what we included and what we didn’t as this quarter had some mega-deals which can and did greatlyimpact results. For example, Groupon’s funding was included as there was VC participation although we only included theportion of their funding that closed in 2010, i.e. $500M. We’d recommend you also review our definitions and methodologyon p. 59 for details on our approach to VC data.www.cbinsights.com
  3. 3. 3 Venture Capital Activity Report | Q4 2010$6.5B over 735 Deals – Highest Totals of Last 8 QuartersContinued strength in seed VC funding led to a two-year high in number of deals.Total VC funding hit high on back of mega-deals which buoyed funding total. Quarterly VC Investment and Deal Volume Trend Q1 09 to Q4 10 730 715 735 678 687 613 612 $6.5 483 $6.1 $5.9 $5.9 $5.3 $5.5 $5.4 $3.9 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Funding ($B) # of Deals www.cbinsights.comwww.cbinsights.com
  4. 4. 4 Venture Capital Activity Report | Q4 2010Cali Maintains, NY Gains and Mass Wanes in Deal ShareBig Three (NY, Mass, Cali) bounced back from Q3 2010 lows based on strength ofCali and NY. Mass and Washington share of deals dipped. Share of Venture Capital by State - Number of Deals Five Quarter Trend 28% 31% 26% 29% 33% 4% 4% 4% 5% 4% 6% 5% 5% 5% 6% 8% 5% 8% 9% 7% 13% 14% 11% 12% 12% 44% 41% 43% 42% 38% Q409 Q110 Q210 Q310 Q410 California Massachusetts New York Texas Washington Other www.cbinsights.comwww.cbinsights.com
  5. 5. 5 Venture Capital Activity Report | Q4 2010The Big Three’s Share of VC Funding Falls to 5 Quarter LowNY gained in terms of dollars as did Mass. Cali, Texas and Washington all fell. Impactof a mega-deal (Groupon) is clearly evident given the large Other category. Share of Venture Capital by State - Dollars of Funding Five Quarter Trend 26% 23% 23% 27% 36% 2% 4% 3% 4% 4% 4% 4% 5% 6% 7% 5% 2% 12% 5% 5% 12% 15% 9% 7% 10% 49% 49% 52% 49% 40% Q409 Q110 Q210 Q310 Q410 California Massachusetts New York Texas Washington Other www.cbinsights.comwww.cbinsights.com
  6. 6. 6 Venture Capital Activity Report | Q4 2010CB Insights is the Premiere VentureCapital and Angel Investment Database.With CB Insights you can access deep private company info that was once exclusivelyavailable behind prohibitively expensive paywalls.CB Insights is accessible for free by visiting http://www.cbinsights.com 82,000+ Private Company Profiles. Coverage Universe Over 82,000 high value private company profiles across industries and • Venture Capital – 1999 to present sectors. Medical devices to • Angel Investment mobile. Industrial to internet. • Private Equity • Federal SBIR Grants – 3 years • State Grant Programs From Angel to Private Equity. • Incubators – Over 300 Angel investment to venture capital to • Middle Market Private Companies private equity to government funding to under the radar mid-market private Sector Coverage companies. • Green/clean tech • Internet Company & Investor Updates via Email. • Mobile & Telecom • Software Add companies and investors of • Energy & Utilities interest to your CBI Watchlist and get • Computer Hardware & Services notified of changes and updates • Healthcare automatically. • Industrial • Automotive & Transportation Management & Board Information • Business Products & Services • Consumer Products & Services Find out about the people behind the • Electronics companies including management and • Environmental Services & board of directors profiles. Equipment • Financial Services • Food & Beverages • Leisure Analytics & Reporting • Media • Metals & Mining Downloadable reports and analytics • Retail which allow you to manipulate data • Risk & Security when and how you want to.www.cbinsights.com
  7. 7. 7 Venture Capital Activity Report | Q4 20102010 Ends with a Bang – VCs Scurry to Get Deals DoneQ4 2010 started flat but ended with a flurry of activity. December 2010 saw the 2ndhighest deal flow and the highest venture funding of the last 15 months. Monthly VC Investment and Deal Volume Trend October 2009 to December 2010 298 275 283 259 237 244 $3.2 230 223 232 220 205 212 190 193 178 $2.5 $2.3 $2.1 $1.9 $1.9 $2.0 $1.8 $1.6 $1.7 $1.7 $1.6 $1.7 $1.7 $1.5 Funding ($B) # of Deals www.cbinsights.comwww.cbinsights.com
  8. 8. 8 Venture Capital Activity Report | Q4 2010Seed VC Stays Strong. Early Stage Continues ClimbQ4 saw seed deals retain share of deals and also saw Series A deals climb. Laterstage deals garnered an increased share of venture funding. Share of Venture Capital by Series - Number of Deals Five Quarter Trend 4% 7% 11% 10% 10% 12% 7% 10% 9% 8% 18% 15% 18% 14% 19% 24% 22% 24% 28% 27% 33% 36% 33% 31% 28% 6% 6% 9% 11% 11% Q409 Q110 Q210 Q310 Q410 Seed Series A Series B Series C Series D Series E + www.cbinsights.com Share of Venture Capital by Series - Dollars of Funding Five Quarter Trend 6% 16% 19% 16% 16% 23% 16% 12% 15% 20% 20% 21% 19% 32% 28% 26% 30% 34% 22% 20% 20% 17% 20% 14% 15% 0% 0% 1% 1% 1% Q409 Q110 Q210 Q310 Q410 Seed Series A Series B Series C Series D Series E + www.cbinsights.comwww.cbinsights.com
  9. 9. 9 Venture Capital Activity Report | Q4 2010Internet Climbs & Healthcare Dips; Energy VC Stays FlatPerennial top 2 sectors retain their positions with internet gaining. Mobile also seeshighest share of deals of last 5 quarters. Energy & utilities stagnant. Share of Venture Capital by Sector - Number of Deals Five Quarter Trend 16% 14% 17% 13% 20% 8% 7% 10% 9% 8% 4% 4% 3% 4% 7% 8% 3% 8% 10% 8% 7% 6% 6% 4% 7% 33% 38% 33% 37% 30% 25% 24% 23% 26% 24% Q409 Q110 Q210 Q310 Q410 Healthcare Internet Energy & Utilities Software (non-internet/mobile) Computer Hardware & Services Mobile & Telecommunications Other www.cbinsights.com Share of Venture Capital by Sector - Dollars of Funding Five Quarter Trend 14% 12% 15% 14% 22% 6% 6% 7% 4% 5% 4% 8% 3% 8% 6% 7% 9% 4% 8% 17% 8% 5% 7% 9% 15% 27% 23% 28% 39% 21% 33% 28% 33% 24% 24% Q409 Q110 Q210 Q310 Q410 Healthcare Internet Energy & Utilities Software (non-internet/mobile) Computer Hardware & Services Mobile & Telecommunications Other www.cbinsights.comwww.cbinsights.com
  10. 10. 10 Venture Capital Activity Report | Q4 2010Get Started for Free with CB InsightsBasic membership to CB Insights venture capital and angel investor database is free.Just visit http://www.cbinsights.com. And also connect with us via any of the following. Twitter Newsletter Follow us @cbinsights Click here to receive our dealflow newsletter. Email Telephone 212-292-3148 info@cbinsights.comwww.cbinsights.com
  11. 11. 11 Venture Capital Activity Report | Q4 2010 Q4 2010 Venture Capital INTERNETwww.cbinsights.com
  12. 12. 12 Venture Capital Activity Report | Q4 2010Internet VC Hits 5 Quarter HighOptimism around internet deals didn’t abate with both deals and dollars way up. VC Internetdeals and funding even after excluding Groupon stands at 5 quarter high. Internet VC Investment and Deal Volume Trend Last Five Quarters 272 224 233 233 221 $2,543 $1,618 $1,483 $1,265 $1,253 Q409 Q110 Q210 Q310 Q410 $ Funding # of Deals www.cbinsights.comwww.cbinsights.com
  13. 13. 13 Venture Capital Activity Report | Q4 2010NY Takes Hold of #2 Spot for Internet VC Deals and DollarsCalifornia continued to dominate internet VC followed by New York on deals. InternetExcluding Groupon, NY would be #2 on funding as well. Quarter Highlights VC Deal Volume (#) in Internet by State, Q410 272 deals | $2,543M2% California2% Illinois Top Five Deals 13% 1% New York Groupon DC Twitter 6% Massachusetts LivingSocial 47% Whale Shark Media3% Texas FleetMatics Washington 8% North Carolina Top Cities Georgia Chicago, IL 1% 14% Maryland 7 deals | $540M All Other San Francisco, CA 36 deals | $398M 3% www.cbinsights.com New York, NY 38 deals | $244M Washington, DC 3 deals | $204M VC Investment ($) in Internet by State, Q410 Austin, TX 8 deals | $102M 2% 1% 1% Mountain View, CA4% California 9 deals | $98M 2% 4% Illinois Arlington Heights, IL 1 deals | $68M New York Los Angeles, CA 5% DC 8 deals | $66M 39% Redwood City, CA Massachusetts 8% 5 deals | $62M Texas Seattle, WA Washington 9 deals | $49M 10% North Carolina Georgia Maryland 24% All Other www.cbinsights.comwww.cbinsights.com
  14. 14. 14 Venture Capital Activity Report | Q4 2010~70% of Internet Deals Go To Big Three StatesInternet VC deals maintained similar geographic pattern as prior quarters. Mass Internetinternet share dropped to five quarter low. Share of Internet VC by State - Number of Deals Last Five Quarters 26% 24% 23% 21% 29% 5% 3% 6% 6% 5% 10% 8% 11% 10% 9% 2% 3% 1% 1% 1% 12% 15% 15% 14% 13% 46% 43% 47% 44% 47% Q409 Q110 Q210 Q310 Q410 California New York Illinois Massachusetts Washington Other www.cbinsights.com Share of Internet VC by State - Dollars of Funding Last Five Quarters 12% 21% 17% 21% 1% 25% 7% 4% 7% 9% 5% 7% 7% 5% 2% 1% 8% 15% 0% 9% 16% 24% 12% 10% 56% 52% 56% 50% 39% Q409 Q110 Q210 Q310 Q410 California New York Illinois Massachusetts Washington Other www.cbinsights.comwww.cbinsights.com
  15. 15. 15 Venture Capital Activity Report | Q4 2010Early Stage Internet Investing Represented 50+% of DealsEarly stage (Seed / Series A) dealflow dipped slightly from last quarter but still over Internet50%. Series C, D and E+ deals increased share of funding. Share of Internet VC by Series - Number of Deals Last Five Quarters 4% 6% 1% 4% 6% 7% 8% 6% 5% 5% 13% 18% 15% 17% 19% 23% 20% 27% 18% 28% 40% 42% 38% 38% 33% 11% 11% 12% 13% 13% Q409 Q110 Q210 Q310 Q410 Seed Series A Series B Series C Series D Series E + www.cbinsights.com Share of Internet VC by Series - Dollars of Funding Last Five Quarters 5% 1% 13% 10% 16% 19% 25% 7% 10% 23% 28% 24% 40% 27% 27% 28% 33% 19% 19% 16% 31% 22% 19% 20% 12% 1% 1% 2% 1% 1% Q409 Q110 Q210 Q310 Q410 Seed Series A Series B Series C Series D Series E + www.cbinsights.comwww.cbinsights.com
  16. 16. 16 Venture Capital Activity Report | Q4 2010VC Internet Investment Remains Diverse Across IndustriesSocial and Advertising remained strong. Gaming made a come back from Q3 2010. Internet VC Deal Volume (#) in Internet by Sub-Industry, Q410 2% Discount 11% Social Advertising, Sales & Marketing Bus. Intelligence, Analytics & Performance Mgmt 12% Video 44% Gaming 4% Data Storage Data & Document Management 4% Health & Wellness 8% Conferencing & Communication Information Providers & Portals eCommerce enablement 3% 1% Travel (internet) 2% 3% 2% Content Management 2% 1% All Other 1% www.cbinsights.com VC Investment ($) in Internet by Sub-Industry, Q410 Discount 1% Social 18% Advertising, Sales & Marketing 2% 26% Bus. Intelligence, Analytics & Performance Mgmt 1% Video Gaming 2% 2% Data Storage 2% Data & Document Management 2% Health & Wellness 3% Conferencing & Communication 24% Information Providers & Portals 3% 5% eCommerce enablement 3% 6% Travel (internet) Content Management All Other www.cbinsights.comwww.cbinsights.com
  17. 17. 17 Venture Capital Activity Report | Q4 2010Early Stage Medians Fall. Late Stage Medians Up Big.Seed, Series A and Series C median deal sizes all were smaller. Series B up with InternetSeries D and Series E+ were up big on back of many larger late stage web deals. Internet Median Deal Size by Quarter ($ Million) $20.0 $19.0 $9.0 $7.0 $2.4 $0.6 Seed Series A Series B Series C Series D Series E + Q409 Q110 Q210 Q310 Q410 www.cbinsights.comwww.cbinsights.com
  18. 18. 18 Venture Capital Activity Report | Q4 2010 Q4 2010 Venture Capital HEALTHCAREwww.cbinsights.com
  19. 19. 19 Venture Capital Activity Report | Q4 2010Healthcare Investment Dips After 2 Qtrs of Funding Growth HealthcareHealthcare deals were up modestly YoY but funding levels down almost 16% vs. yearago. Deals down vs. prior quarter and funding down over 12% qoq. Healthcare VC Investment and Deal Volume Trend Last Five Quarters 184 169 173 173 138 $1,830 $1,753 $1,639 $1,541 $1,405 Q409 Q110 Q210 Q310 Q410 $ Funding # of Deals www.cbinsights.comwww.cbinsights.com
  20. 20. 20 Venture Capital Activity Report | Q4 2010 Mass and Cali Attract Over 50% of Healthcare VC Funding Healthcare Cali increased over Q3 2010 while Mass declined on # of deals basis. Pennsylvania and Texas continue to hold strong. Quarter Highlights VC Deal Volume (#) in Healthcare by State, Q410 173 deals | $1,541M California Massachusetts Top Five Deals 23% Pennsylvania Pearl Therapeutics 33% Texas Moksha81% New Jersey IDev Technologies Sutro Biopharma New York 3% Genocea Biosciences North Carolina 3% Colorado3% Minnesota Top Cities 13% 4% 7% Michigan 4% 6% Cambridge, MA All Other 9 deals | $143M Redwood City, CA www.cbinsights.com 4 deals | $135M San Diego, CA 11 deals | $104M Palo Alto, CA VC Investment ($) in Healthcare by State, Q410 3 deals | $70M South San Francisco, CA 2 deals | $67M 2% California Wayne, PA 11% Massachusetts 1 deals | $61M 2% 3% Pennsylvania New York, NY 5 deals | $59M 3% Texas Malvern, PA 39% New Jersey 2 deals | $48M 4% Webster, TX New York 5% 1 deals | $46M North Carolina Pleasanton, CA 6% Colorado 2 deals | $34M Minnesota 9% Michigan 16% All Other www.cbinsights.com www.cbinsights.com
  21. 21. 21 Venture Capital Activity Report | Q4 2010Cali Stays on Top. Mass Share of Deals Falls to 5 Qtr Low. HealthcareMassachusetts share of deals continued downward trend. Healthcare sector is mostgeographically diverse with 4 of 10 deals occurring outside of top states. Share of Healthcare VC by State - Number of Deals Last Five Quarters 36% 30% 38% 37% 42% 6% 3% 3% 4% 3% 5% 5% 4% 4% 2% 6% 3% 4% 8% 6% 17% 23% 18% 13% 17% 32% 34% 33% 33% 28% Q409 Q110 Q210 Q310 Q410 California Massachusetts Pennsylvania New Jersey Washington Other www.cbinsights.com Share of Healthcare VC by State - Dollars of Funding Last Five Quarters 22% 31% 33% 29% 29% 7% 4% 4% 1% 0% 7% 5% 5% 4% 4% 8% 4% 10% 6% 4% 23% 13% 17% 18% 27% 40% 42% 39% 35% 31% Q409 Q110 Q210 Q310 Q410 California Massachusetts Pennsylvania New Jersey Washington Other www.cbinsights.comwww.cbinsights.com
  22. 22. 22 Venture Capital Activity Report | Q4 2010Early Stage Healthcare Hits Five-Quarter High HealthcareSeed and Series A healthcare grew to 45% of total healthcare funding. Later stagehealthcare companies took 57% of total funding. Share of Healthcare VC by Series - Number of Deals Last Five Quarters 8% 6% 6% 11% 13% 7% 10% 9% 12% 10% 21% 16% 13% 21% 16% 23% 24% 30% 30% 26% 36% 39% 27% 30% 29% 6% 9% 6% 3% 3% Q409 Q110 Q210 Q310 Q410 Seed Series A Series B Series C Series D Series E + www.cbinsights.com Share of Healthcare VC by Series - Dollars of Funding Last Five Quarters 10% 11% 9% 6% 16% 7% 16% 11% 19% 14% 19% 36% 15% 35% 22% 31% 36% 23% 30% 19% 24% 22% 25% 24% 17% 0% 0% 0% 1% 1% Q409 Q110 Q210 Q310 Q410 Seed Series A Series B Series C Series D Series E + www.cbinsights.comwww.cbinsights.com
  23. 23. 23 Venture Capital Activity Report | Q4 2010Medical Device Investment Remains Strong HealthcareMedical Devices continued their dominance of the Healthcare sector followed byPharmaceuticals, Biotech, Medical Facilities & Services and Drug Development. VC Deal Volume (#) in Healthcare by Industry, Q410 2% 2% Medical Devices & Equipment 1% Pharmaceuticals / Drugs 1% 7% Biotechnology Drug Development 11% 37% Medical Facilities & Services Drug Manufacturing 8% Disease Diagnosis Drug Discovery 14% NULL 17% All Other www.cbinsights.com VC Investment ($) in Healthcare by Industry, Q410 2% 2% 2% 2% Medical Devices & Equipment 4% Pharmaceuticals / Drugs Biotechnology 5% Drug Development 37% Medical Facilities & Services 12% Drug Manufacturing Disease Diagnosis Drug Discovery 14% NULL 20% All Other www.cbinsights.comwww.cbinsights.com
  24. 24. 24 Venture Capital Activity Report | Q4 2010More Small Series A Healthcare Deals HealthcareThe increased # of Series A deals (p. 22) also saw smaller amounts of funding. SeedVC, Series C and D medians all climbed. Healthcare Median Deal Size by Quarter ($ Million) $24.0 $16.0 $13.0 $7.3 $2.6 $1.3 Seed Series A Series B Series C Series D Series E + Q409 Q110 Q210 Q310 Q410 www.cbinsights.comwww.cbinsights.com
  25. 25. 25 Venture Capital Activity Report | Q4 2010 Q4 2010 Venture Capital GREEN & CLEAN TECHwww.cbinsights.com
  26. 26. 26 Venture Capital Activity Report | Q4 2010Green Tech Performance In-Line with Last QuarterGreen Tech figures consistent with Q3 – Funding steadied at $790M, while deal count Greenfell slightly. Investment dollars were up 40% year-over-year. Green VC Investment and Deal Volume Trend Last Five Quarters 85 61 59 55 $1,322 55 $1,046 $790 $790 $565 Q409 Q110 Q210 Q310 Q410 $ Funding # of Deals www.cbinsights.comwww.cbinsights.com
  27. 27. 27 Venture Capital Activity Report | Q4 2010Colorado Shows Its Greener SideColorado emerged as a serious destination for Green Tech investment, taking 3 of the Greentop 10 Green deals in Q4. As usual, California was the overall leader. Quarter Highlights VC Deal Volume (#) in Green by State, Q410 California 59 deals | $790M Colorado 15% Top Five Deals 3% Illinois Abound Solar2% Massachusetts Elevance Renewable Sciences 2% 41% Michigan Solopower Soladigm 5% Arizona LS9 2% New York 5% Oregon Top Cities Ohio 13% Loveland, CO 10% Texas 1 deals | $110M All Other Bolingbrook, IL 2% 1 deals | $100M www.cbinsights.com San Jose, CA 2 deals | $57M Milpitas, CA 2 deals | $43M VC Investment ($) in Green by State, Q410 Cambridge, MA 1% 1% 3 deals | $38M 1% 1% 2% Fremont, CA2% California 2 deals | $37M Colorado Lansing, MI 2 deals | $37M 5% Illinois South San Francisco, CA Massachusetts 1 deals | $30M 39% Michigan North Lexington, MA 11% 2 deals | $26M Arizona Windsor, CO New York 1 deals | $24M 13% Oregon Ohio Texas 24% All Other www.cbinsights.com www.cbinsights.com
  28. 28. 28 Venture Capital Activity Report | Q4 2010California Loses Green Share for Fourth Straight QuarterThe downward trend for California continued, as Texas, Colorado, Massachusetts and GreenIllinois ate into The Golden State’s Green Tech dominance. Share of Green VC by State - Number of Deals Last Five Quarters 25% 28% 27% 28% 31% 2% 4% 4% 4% 3% 2% 5% 2% 7% 7% 15% 10% 9% 8% 13% 3% 8% 14% 53% 55% 47% 46% 41% Q409 Q110 Q210 Q310 Q410 California Massachusetts Texas Colorado Illinois Other www.cbinsights.com Share of Green VC by State - Dollars of Funding Last Five Quarters 13% 15% 12% 12% 25% 1% 1% 3% 6% 4% 1% 13% 1% 9% 21% 2% 5% 4% 10% 4% 24% 1% 11% 79% 64% 62% 59% 39% Q409 Q110 Q210 Q310 Q410 California Massachusetts Texas Colorado Illinois Other www.cbinsights.comwww.cbinsights.com
  29. 29. 29 Venture Capital Activity Report | Q4 2010Green Tech Seed Investment Disappears in Q4 2010Early stage Green Tech investment share crept back to Q2 2010 levels. Investors Greenfavored Series C and later in Q4. Share of Green VC by Series - Number of Deals Last Five Quarters 3% 7% 2% 8% 9% 3% 11% 10% 7% 12% 18% 10% 19% 23% 19% 32% 39% 29% 38% 25% 32% 27% 33% 31% 31% 8% 10% 2% 3% Q409 Q110 Q210 Q310 Q410 Seed Series A Series B Series C Series D Series E + www.cbinsights.com Share of Green VC by Series - Dollars of Funding Last Five Quarters 7% 6% 4% 16% 26% 19% 22% 28% 3% 18% 12% 25% 14% 41% 27% 44% 27% 44% 27% 29% 19% 16% 8% 10% 8% Q409 Q110 Q210 Q310 Q410 Seed Series A Series B Series C Series D Series E + www.cbinsights.comwww.cbinsights.com
  30. 30. 30 Venture Capital Activity Report | Q4 2010Renewables and Energy Efficiency See an Uptick in ShareGreen Tech Software yielded to Renewable and Energy Efficiency investments. GreenEnergy Storage investments held steady. Share of Green VC by Industry - Number of Deals Last Five Quarters 29% 31% 29% 42% 40% 5% 7% 8% 5% 11% 4% 11% 15% 5% 7% 4% 2% 2% 3% 4% 2% 7% 6% 3% 49% 46% 44% 40% 39% Q409 Q110 Q210 Q310 Q410 Renewables Automobile Manufacturing Green/Environmental Software Energy Efficiency Energy Storage Other www.cbinsights.com Share of Green VC by Industry - Dollars of Funding Last Five Quarters 13% 19% 7% 28% 37% 4% 38% 2% 6% 3% 6% 19% 7% 3% 5% 3% 15% 7% 18% 1% 1% 68% 55% 49% 38% 42% Q409 Q110 Q210 Q310 Q410 Renewables Automobile Manufacturing Green/Environmental Software Energy Efficiency Energy Storage Other www.cbinsights.comwww.cbinsights.com
  31. 31. 31 Venture Capital Activity Report | Q4 2010Late Stage Green Tech Deals See Uptick in SizeWith investment share shifting from Green Tech Software to Renewables, late stage Greenmedian deal values climbed higher. Overall median stayed flat at $6.2 million. Green Median Deal Size by Quarter ($ Million) $26.0 $24.0 $21.5 $7.4 $6.2 $2.8 $0.0 Seed Series A Series B Series C Series D Series E + Overall Q409 Q110 Q210 Q310 Q410 www.cbinsights.comwww.cbinsights.com
  32. 32. 32 Venture Capital Activity Report | Q4 2010 Q4 2010 Venture Capital CALIFORNIAwww.cbinsights.com
  33. 33. 33 Venture Capital Activity Report | Q4 2010CB Insights is the Premiere VentureCapital and Angel Investment Database.With CB Insights you can access deep private company info that was once exclusivelyavailable behind prohibitively expensive paywalls.CB Insights is accessible for free by visiting http://www.cbinsights.com 82,000+ Private Company Profiles. Coverage Universe Over 82,000 high value private company profiles across industries and • Venture Capital – 1999 to present sectors. Medical devices to • Angel Investment mobile. Industrial to internet. • Private Equity • Federal SBIR Grants – 3 years • State Grant Programs From Angel to Private Equity. • Incubators – Over 300 Angel investment to venture capital to • Middle Market Private Companies private equity to government funding to under the radar mid-market private Sector Coverage companies. • Green/clean tech • Internet Company & Investor Updates via Email. • Mobile & Telecom • Software Add companies and investors of • Energy & Utilities interest to your CBI Watchlist and get • Computer Hardware & Services notified of changes and updates • Healthcare automatically. • Industrial • Automotive & Transportation Management & Board Information • Business Products & Services • Consumer Products & Services Find out about the people behind the • Electronics companies including management and • Environmental Services & board of directors profiles. Equipment • Financial Services • Food & Beverages • Leisure Analytics & Reporting • Media • Metals & Mining Downloadable reports and analytics • Retail which allow you to manipulate data • Risk & Security when and how you want to.www.cbinsights.com
  34. 34. 34 Venture Capital Activity Report | Q4 2010California Deal Volume Experiences Five Quarter HighFunding levels in California remained relatively flat from last quarter, but deal count Californiasaw a 14% uptick from Q3, and 3% year-over-year growth. California VC Investment and Deal Volume Trend Last Five Quarters 300 310 297 264 271 $3,062 $2,929 $2,685 $2,607 $2,630 Q409 Q110 Q210 Q310 Q410 $ Funding # of Deals www.cbinsights.comwww.cbinsights.com
  35. 35. 35 Venture Capital Activity Report | Q4 2010Internet & Healthcare Continue Dominance in Cali CaliforniaInternet and Healthcare combined for more than 60% of overall VC investment inCalifornia; Mobile continued its growth. Quarter Highlights VC Deal Volume (#) in California by Sector, Q410 4% 0% 2% Healthcare 310 deals | $2,630M 3% 4% Internet 18% Top Sector Energy & Utilities # of Deals – Internet Software (non-internet/mobile) $ of Funding – Internet 12% Computer Hardware & Services Mobile & Telecommunications Top Five Deals 3% Twitter Industrial Pearl Therapeutics 8% Electronics Solopower Business Products & Services Space Exploration Technologies 5% 41% Fallbrook Technologies Consumer Products & Services All Other Top Cities www.cbinsights.com San Francisco 64 deals | $517M Redwood City VC Investment ($) in California by Sector, Q410 13 deals | $237M Mountain View 0% 1% 19 deals | $216M 2% Healthcare San Diego 3% 6% 20 deals | $185M Internet San Jose 23% Energy & Utilities 13 deals | $152M 9% Software (non-internet/mobile) Palo Alto 21 deals | $141M2% Computer Hardware & Services Sunnyvale Mobile & Telecommunications 11 deals | $106M 7% Los Angeles Industrial 14 deals | $97M Electronics South San Francisco 9% Business Products & Services 3 deals | $97M 38% San Mateo Consumer Products & Services 9 deals | $67M All Other www.cbinsights.comwww.cbinsights.com
  36. 36. 36 Venture Capital Activity Report | Q4 2010Internet Investment Expands in CaliforniaInternet saw its most dominant position of the last 5 quarters and grew its share of Californiainvestment by 14% versus Q3. Healthcare and Energy lost ground. Share of VC in California by Sector - Number of Deals Last Five Quarters 27% 23% 24% 24% 30% 5% 5% 3% 6% 6% 8% 5% 7% 9% 4% 7% 7% 5% 5% 8% 41% 38% 41% 34% 32% 18% 20% 17% 19% 18% Q409 Q110 Q210 Q310 Q410 Healthcare Internet Energy & Utilities Software (non-internet/mobile) Computer Hardware & Services Other www.cbinsights.com Share of VC in California by Sector - Dollars of Funding Last Five Quarters 22% 19% 21% 21% 34% 5% 2% 7% 6% 8% 7% 10% 9% 9% 6% 19% 6% 3% 11% 20% 31% 24% 38% 30% 23% 24% 28% 23% 21% 15% Q409 Q110 Q210 Q310 Q410 Healthcare Internet Energy & Utilities Software (non-internet/mobile) Computer Hardware & Services Other www.cbinsights.comwww.cbinsights.com
  37. 37. 37 Venture Capital Activity Report | Q4 2010Early Stage Deal Volume Remains Strong in CaliforniaEarly stage deal volume increased share by 5% as Seed and Series A both continued Californiatheir upward trend in California. Series C took larger portion of investment dollars. Share of VC in California by Series - Number of Deals Last Five Quarters 9% 4% 6% 11% 11% 14% 8% 15% 13% 10% 21% 23% 18% 16% 23% 23% 23% 24% 25% 28% 31% 28% 27% 25% 22% 7% 8% 11% 12% 4% Q409 Q110 Q210 Q310 Q410 Seed Series A Series B Series C Series D Series E + www.cbinsights.com Share of VC in California by Series - Dollars of Funding Last Five Quarters 4% 14% 13% 14% 17% 29% 20% 16% 12% 24% 21% 22% 35% 32% 28% 31% 33% 21% 20% 21% 13% 13% 16% 15% 11% 0% 0% 1% 1% 1% Q409 Q110 Q210 Q310 Q410 Seed Series A Series B Series C Series D Series E + www.cbinsights.comwww.cbinsights.com
  38. 38. 38 Venture Capital Activity Report | Q4 2010 Q4 2010 Venture Capital MASSACHUSETTSwww.cbinsights.com
  39. 39. 39 Venture Capital Activity Report | Q4 2010 MassachusettsMassachusetts Recovers, but Levels Still Down Versus Q2VC funding in Massachusetts jumped 35% versus Q3, but still was down 4% year-over-year. Mass’ deal count hit its lowest point in five quarters. Massachusetts VC Investment and Deal Volume Trend Last Five Quarters 88 87 87 84 $898 78 $689 $653 $630 $466 Q409 Q110 Q210 Q310 Q410 $ Funding # of Deals www.cbinsights.comwww.cbinsights.com
  40. 40. 40 Venture Capital Activity Report | Q4 2010 MassachusettsHealthcare & Internet Remain Atop the Rest in MassHealthcare and Internet combined for 68% of investment dollars and 61% of dealvolume. Mobile doubled its share in terms of deals and investment dollars versus Q3. Quarter Highlights VC Deal Volume (#) in Massachusetts by Sector, Q410 78 deals | $630M 4% 1% Healthcare 4% Top Sector 0% Internet # of Deals – Healthcare / 6% Software (non-internet/mobile) Internet (tie) 29% $ of Funding - Healthcare Energy & Utilities 10% Mobile & Telecommunications Top Five Deals Computer Hardware & Services Genocea Biosciences 6% Industrial NinePoint Medical Rive Technology 9% Business Products & Services Cerulean Pharma 29% Electronics Aspen Aerogels All Other Top Cities www.cbinsights.com Cambridge 18 deals | $258M Waltham VC Investment ($) in Massachusetts by Sector, Q410 8 deals | $45M Newton 2% 2% 3 deals | $44M Boston Healthcare 11 deals | $41M 4% Internet North Lexington 2 deals | $26M 12% Software (non-internet/mobile) Burlington 0% 41% Energy & Utilities 2 deals | $22M Northborough 6% Mobile & Telecommunications 1 deals | $22M Computer Hardware & Services Woburn 6% 4 deals | $19M Industrial Beverly 8% Business Products & Services 3 deals | $17M Boxborough Electronics 1 deals | $16M 20% All Other www.cbinsights.comwww.cbinsights.com

×