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The 2014 U.S. Venture Capital Year in Review: Financing & Exit Analysis

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The 2014 U.S. Venture Capital Year in Review, compiled by CB Insights, covers the financing & exit trends in the venture capital space. Highlights include:

-Highest funding since 2011. $47.3B was invested across 3,617 deals.
-Funding is vibrant; exit picture is mixed
-2014 saw the highest number of seed VC deals since 2009
-New Enterprise Associates, Andreessen Horowitz & Kleiner Perkins were the most active VC firms of 2014
-Mobile VC funding hits a record at $7.8B
-New York tech has a breakout year
-Intarcia, Moderna buoy healthcare funding

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The 2014 U.S. Venture Capital Year in Review: Financing & Exit Analysis

  1. 1. @cbinsights #VC2014 FINANCING AND EXIT ANALYSIS
  2. 2. @cbinsights #VC2014 2 CB Insights is a National Science Foundation-backed company that uses data to provide VCs, corporate strategy, M&A teams and business development professionals with intelligence on emerging companies and disruptive technology trends. To see how our data can make your life easier, visit: www.cbinsights.com
  3. 3. @cbinsights #VC2014 3
  4. 4. @cbinsights #VC2014 4 Even versus 2013, the past year was huge as venture capital skyrocketed 62% YoY due to multiple $500M+ mega-rounds. Deal growth was more modest climbing 8%. Although there were 738 VC-backed exits in 2014, the IPO picture was a bit mixed. The healthcare IPO market continued its momentum from 2013 with 64 US-companies going public in 2014, up 68% YoY. Venture-backed tech IPO activity stalled a bit after Alibaba’s IPO in September but did finish up versus 2013 and closed out with a strong Dec. Healthcare and tech M&A were up 27% and 34% YoY, respectively. 2014 saw the highest number of seed VC deals since 2009 at 976. Seed VC dollars deployed hit a five-year high in 2014 at $1.33B. Seed funding has increased for four straight quarters. Seed VC deal sizes continued their steady increase with a sharp uptick in Q4’14. In Q4’14, they bumped up to their highest levels in four years with the average hitting $1.9M and the median at $1.7M up 25% and 30% versus the same quarter a year prior. As it targets a new $2.5B fund, New Enterprise Associates topped all venture investors by unique company deals in 2014, followed by fellow mega-funds Andreessen Horowitz and Kleiner Perkins, which ranked 5th in 2013. In Q4’14, VC funding to the mobile sector topped $3B for the first time ever due to mega-financings to Uber, Snapchat, Instacart, and Square. Overall VC funding to the mobile sector was up 109% versus 2013 driven by these mega-deals. Deal volume was up only 10%. NY saw every quarter eclipse $1B in VC financing for the first time ever. NY VC funding was up 54% YoY and saw 7% growth in deals versus 2013. However, on the IPO front, NY is a distant 3rd to Massachusetts. Healthcare VC funding totaled $8.2B in 2014, up 28% YoY. Moderna and Intarcia raised a total of $650M making them the year’s largest healthcare deals. We tracked a number of mega-deals this quarter whose investors included hedge funds or mutual funds for example. This report only includes only U.S.-based rounds in which VCs participated so that we can accurately reflect (and not inflate) VC investments. Page 100 details the rules and definitions we use.
  5. 5. @cbinsights #VC2014 “Designed by a VC insider who truly knows the space and understands end-user needs.” Greg Bae Investments & Biz Dev Comcast Ventures Jack Leeney Portfolio Manager Telefonica Ventures “CB Insights are changing the way investors access private company information.” Kevin Diestel Investor Sapphire Ventures “We've found CBI to have the best data for the most accurate market view.” “They have the best quality data in the market for anyone looking to get an inside look at private company financings.” Ian Sigalow Partner Greycroft Partners “CB Insights' intuitive user interface, analytical capabilities, and detailed investment information create a very powerful tool for our team's research needs.” Nate D’Anna Corporate Development Cisco “We track dealflow, understand valuation multiples, analyze industry trends and identify comparable companies. It is great to see CB Insights innovating in the venture capital data space. Will Porteous General Partner RRE Ventures 5
  6. 6. @cbinsights #VC2014 6
  7. 7. @cbinsights #VC2014 2014 hit the highest funding mark since 2001. A mix of traditional VC money coupled with corporate VCs, hedge funds, private equity investors and even sovereign wealth funds created a potent cocktail in 2014 lifting funding levels to the highs seen during the dot com boom. 7
  8. 8. @cbinsights #VC2014 2014 saw venture capital deals rise a modest 8% versus 2013, but funding skyrocketed 62% due to multiple $500M+ rounds to a six-year high. 8
  9. 9. @cbinsights #VC2014 9 The CB Insights platform has the details on each and every deal in 2014. That includes all 3,617 of the financings and 738 exits in this report. Some of our happy customers
  10. 10. @cbinsights #VC2014 On a monthly basis, venture capital deals in 2014 topped those in 2013 in all but 2 months. April ’14 was the highest month for U.S. venture deals over the past year with 345 deals. 10
  11. 11. @cbinsights #VC2014 2014 ended with a bang on the funding front as VC-backed deals hit $7.1B in the final month of the year. The massive funding figure was largely driven by mega tech deals to companies including Uber and Snapchat. 11
  12. 12. @cbinsights #VC2014 As it targets a new $2.5B fund, New Enterprise Associates topped all venture investors by unique company deals in 2014, followed by fellow mega-funds Andreessen Horowitz and Kleiner Perkins, which ranked 5th in 2013. 12 Rank Investor 2013 Rank Rank Investor 2013 Rank 1 New Enterprise Associates 4 11 Atlas Venture - 2 Andreessen Horowitz 1 12 Accel Partners 18 3 Kleiner Perkins Caufield & Byers 5 13 Intel Capital 14 4 Google Ventures 3 13 Foundry Group - 5 Khosla Ventures 6 15 Lerer Hippeau Ventures 8 6 SV Angel 8 16 Bessemer Venture Partners 10 6 500 Startups 2 17 True Ventures 18 8 Sequoia Capital 10 18 Lightspeed Venture Partners 15 9 First Round Capital - 19 Greylock Partners 16 10 General Catalyst Partners 12 20 Redpoint Ventures - Most Active Venture Capital Investors in 2014 Ranked by Unique Company Count Note: Venture Capital investors with a minimum of 42 unique companies invested in 2014. For addition on this list next time please email info@cbinsights.com with your deals data.
  13. 13. @cbinsights #VC2014 13 1 - 25 26 - 50 51 - 75 76 - 102 New Enterprise Associates Greycroft Partners Insight Venture Partners Mohr Davidow Ventures Andreessen Horowitz Norwest Venture Partners Founders Fund Lowercase Capital Kleiner Perkins Caufield & Byers Canaan Partners Benchmark Capital Novartis Venture Funds Google Ventures Sigma Partners VegasTech Fund Floodgate Khosla Ventures InterWest Partners Polaris Partners Domain Associates SV Angel SoftTech VC Institutional Venture Partners Correlation Ventures 500 Startups Venrock Felicis Ventures Connecticut Innovations Sequoia Capital Menlo Ventures CRV Austin Ventures First Round Capital Data Collective Comcast Ventures Salesforce Ventures General Catalyst Partners Spark Capital Mayfield Fund Union Square Ventures Atlas Venture Crosslink Capital Madrona Venture Group IDG Ventures Accel Partners Softbank Capital Matrix Partners Ignition Partners Intel Capital US Venture Partners Highland Capital Partners Avalon Ventures Foundry Group Qualcomm Ventures Versant Ventures Sapphire Ventures Lerer Hippeau Ventures Draper Fisher Jurvetson North Bridge Venture Partners Tenaya Capital Bessemer Venture Partners Great Oaks Venture Capital Kapor Capital Lux Capital True Ventures FirstMark Capital Samsung Ventures ENIAC Ventures Lightspeed Venture Partners Foundation Capital Thrive Capital Adams Street Partners Greylock Partners Bain Capital Ventures Sherpa Ventures DAG Ventures Redpoint Ventures Trinity Ventures Metamorphic Ventures Sutter Hill Ventures Index Ventures OrbiMed Advisors ff Venture Capital Scale Venture Partners RRE Ventures August Capital Grotech Ventures Voyager Capital Battery Ventures CrunchFund Founder Collective LaunchCapital BoxGroup The Social+Capital Partnership Upfront Ventures Morgenthaler Ventures Shasta Ventures Formation 8 Rothenberg Ventures Doll Capital Management Hyde Park Venture Partners GGV Capital
  14. 14. @cbinsights #VC2014 California, New York, Massachusetts, Texas and Washington were the top five states for funding and deals for the second straight year. New York saw 22% more deals than Mass. and also beat The Bay State with over $300M more in funding. 14 Rank State Deals Dollars ($M) Rank State Deals Dollars ($M) Rank State Deals Dollars ($M) 1 California 1631 26840.6 19 New Jersey 31 322.6 36 Louisiana 5 6.8 2 New York 422 4510.9 19 DC 31 247.4 38 Kentucky 4 60.4 3 Massachusetts 346 4163.8 21 Minnesota 29 329.8 38 Delaware 4 14.9 4 Texas 143 1203.1 21 Arizona 29 254.4 40 Arkansas 2 13.4 5 Washington 97 1144.6 21 Wisconsin 29 144.8 40 Maine 2 0.3 6 Illinois 89 1051.9 24 Oregon 25 160.2 42 Montana 1 26.0 7 Colorado 77 690.0 25 Missouri 20 179.8 42 Wyoming 1 4.6 8 Pennsylvania 73 711.9 26 Indiana 15 48.5 42 South Dakota 1 3.0 9 Maryland 54 350.0 27 New Hampshire 10 116.0 42 Oklahoma 1 2.4 10 Virginia 49 276.6 28 Nevada 9 65.5 42 Mississippi 1 1.5 11 Georgia 48 892.7 28 Nebraska 9 37.8 42 West Virginia 1 0.9 12 Utah 46 867.0 30 South Carolina 8 93.2 42 Idaho 1 0.9 12 North Carolina 46 355.2 31 Rhode Island 7 108.6 42 Alabama 1 0.5 14 Connecticut 38 377.3 31 Kansas 7 42.3 14 Michigan 38 296.0 31 Vermont 7 14.5 14 Ohio 38 257.9 31 Hawaii 7 11.7 17 Florida 36 867.6 31 New Mexico 7 10.3 17 Tennessee 36 110.7 36 Iowa 5 12.2
  15. 15. @cbinsights #VC2014 On a year-over-year basis, California, Massachusetts, and New York saw deals increase by 13%, 9%, and 7% respectively. Among the big five, Washington actually saw a 17% decrease in deals versus 2013. 15
  16. 16. @cbinsights #VC2014 “Designed by a VC insider who truly knows the space and understands end-user needs.” Greg Bae Investments & Biz Dev Comcast Ventures Jack Leeney Portfolio Manager Telefonica Ventures “CB Insights are changing the way investors access private company information.” Kevin Diestel Investor Sapphire Ventures “We've found CBI to have the best data for the most accurate market view.” See what other customers have to say at http://www.cbinsights.com/customer-love “They have the best quality data in the market for anyone looking to get an inside look at private company financings.” Ian Sigalow Partner Greycroft Partners “CB Insights' intuitive user interface, analytical capabilities, and detailed investment information create a very powerful tool for our team's research needs.” Nate D’Anna Corporate Development Cisco “We track dealflow, understand valuation multiples, analyze industry trends and identify comparable companies. It is great to see CB Insights innovating in the venture capital data space. Will Porteous General Partner RRE Ventures
  17. 17. @cbinsights #VC2014 While venture capital investment rose across all major states, none saw a bigger increase than California which jumped 81% YoY. Funding totals were boosted by the 30+ $100M financings. 17
  18. 18. @cbinsights #VC2014 Venture capital deal share to early-stage startups (Seed/Series A) remained at a combined 55% in 2014, while all other stages were relatively range-bound as compared to 2013 totals. 18
  19. 19. @cbinsights #VC2014 Series B funding share saw the largest jump in 2014 to 23% from 19% in 2013, while Series C and D funding share fell to 19% and 16%. With increased competition for deals and rising early- stage deal sizes, 2014 early-stage funding (Seed/Series A) share increased to 22% versus 20% in 2013. 19
  20. 20. @cbinsights #VC2014 Venture capital deal share remained largely unchanged in 2014 versus 2013. Tech sectors (Internet, mobile, software, electronics & hardware) accounted for 75% of all VC deals in 2014, slightly up from 73% in 2013. 20
  21. 21. @cbinsights #VC2014 Behind two mega-rounds to Uber totaling over $2B, mobile startup funding share increased from 13% to 17% in 2014. Healthcare funding share fell from 22% in 2013 to 17% in 2014. 21
  22. 22. @cbinsights #VC2014 2014 saw the highest number of seed VC deals since 2009 with 976 financings. 4 of the 5 most active quarters for seed deals since 2011 occurred in 2014. Overall, seed VC funding hit a five-year high in 2014 at $1.33B as funding has increased in four straight quarters. 22
  23. 23. @cbinsights #VC2014 Seed VC deal sizes continued their steady increase with a sharp uptick in Q4’14. In Q4’14, they bumped up to their highest levels in four years with the average hitting $1.9M and the median at $1.7M up 25% and 30% versus the same quarter a year prior. 23
  24. 24. @cbinsights #VC2014 24
  25. 25. @cbinsights #VC2014 2014 was an active one for U.S. venture capital-backed IPOs, topping the previous year’s tally for the third straight year. Venture-backed M&A was also up 45% versus 2013. 25 Note: Venture-backed IPOs in this report covers public offerings of companies headquartered in the U.S.
  26. 26. @cbinsights #VC2014 Nine of the ten largest states for venture-backed financing saw more overall VC-backed exits in 2014 than in 2013. California saw a 42% increase, while Massachusetts and New York increased 105% and 28% respectively. The only state to see fewer VC-backed exits versus 2013 was New Jersey. 26
  27. 27. @cbinsights #VC2014 Overall venture-backed tech exits (both M&A and IPOs) increased 42% in 2014 but was driven primarily by M&A activity. Venture-backed healthcare exits swelled 44% behind healthy IPO activity. 27 Note: “Other” includes Agriculture, Business / Consumer Products & Services, Financial, Food & Beverage, Industrial, Risk & Security, Retail and Traditional Media
  28. 28. @cbinsights #VC2014 28 The CB Insights platform has the details on each and every deal in 2014. That includes all 3,617 of the financings and 738 exits in this report. Some of our happy customers
  29. 29. @cbinsights #VC2014 The IPO market for healthcare companies caught fire in 2013 and continued in 2014 with 64 US-based VC-backed healthcare companies going public, up 68% YoY. Venture-backed tech IPOs slowed a bit after Alibaba’s IPO in September but still finished slightly up versus 2013 after a strong December finish. 29
  30. 30. @cbinsights #VC2014 California and Mass took 62% of the U.S.-headquartered venture-backed IPOs in 2014. California saw a whopping 45% jump in venture-backed IPOs on a YoY basis. New York grew its # of IPOs significantly versus 2013 but remains a distant 3rd to Massachusetts. 30
  31. 31. @cbinsights #VC2014 Venture-backed tech M&A exits in 2014 ticked up 43% as balance sheets and low interest rates contributed to spending sprees by some of tech’s biggest companies. The healthcare and energy sectors saw 27% and 122% growth respectively in venture-backed M&A activity. 31
  32. 32. @cbinsights #VC2014 Venture-backed M&A saw increased totals in all major U.S. tech hubs including California, which increased 41% and Massachusetts, which saw M&A exit levels grow by 112%. 32
  33. 33. @cbinsights #VC2014 3333 Just click this button (yes, it’s that easy) It’s free! Follow us on Twitter – we’d love to hear from you If you’re a data junkie, you can also sign up for our newsletter here @cbinsights info@cbinsights.com (212) 292-3148
  34. 34. @cbinsights #VC2014 Facebook’s acquisition of Sequoia Capital-backed WhatsApp for $22B was the largest venture-backed exit of 2014, followed by the IPOs of Lending Club and Zayo Group Holdings. Together, the 10 exits saw $48.55B in aggregate value. 34 Company State Sector Valuation ($M) Exit Type Acquirer WhatsApp California Mobile & Telecomm 22000 M&A Facebook Lending Club California Financial 5416.67 IPO Public Zayo Group Holdings Colorado Mobile & Telecomm 4447.9 IPO Public Nest Labs California Energy & Utilities 3200 M&A Google GoPro California Consumer Products & Services 3100 IPO Public Arista Networks California Computer Hardware & Services 2734.04 IPO Public GrubHub Seamless Illinois Internet 2038.03 IPO Public Oculus VR California Software 2000 M&A Facebook Juno Therapeutics Washington Healthcare 1870.53 IPO Public Alios BioPharma California Healthcare 1750 M&A Johnson & Johnson Top Venture Backed Exits of 2014
  35. 35. @cbinsights #VC2014 35
  36. 36. @cbinsights #VC2014 VC funding in the Internet sector hit $5.6B in Q2’14, but cooled off a bit to $4.5B and $4.6B in Q3 and Q4. Still, Q4 funding was up 39% compared to the same period last year. Internet VC deal activity was up modestly versus 2013 climbing 7%. 36 Year Funding ($B) Deals 2013 $11.8 1562 2014 $19.6 1675 YoY Growth 67% 7%
  37. 37. @cbinsights #VC2014 San Francisco topped the list of U.S. cities for Internet venture capital deals and funding. The top two largest Internet deals of the year went to Cloudera’s $900M Series F and AirBnB’s $475M Series D. 37 Top Cities Deals Dollars ($M) Company Round Amount ($M) Quarter San Francisco 343 $5,198 Cloudera Series F $900 Q1'14 New York 237 $2,554 AirBnB Series D $475 Q2'14 Palo Alto 56 $1,852 SurveyMonkey Private Equity $250 Q4'14 Boston 56 $378 Vice Media Growth Equity $250 Q3'14 Mountain View 46 $710 AvantCredit Series D $225 Q4'14 San Mateo 39 $378 Pinterest Series F $200 Q2'14 Seattle 39 $398 Houzz Series D $165 Q3'14 Chicago 38 $526 Automattic Series C $160 Q2'14 Austin 37 $237 Qualtrics Series B $150 Q3'14 Cambridge 29 $169 Pluralsight Series B $135 Q3'14 Top Cities for Internet: 2014 Top Internet Deals: 2014 Note:Venture capital deals included in the ranking may be tranched fundings.
  38. 38. @cbinsights #VC2014 While California took 46% of overall Internet VC deal share in 2014, New York came in a solid second at 16% and captured more than double the Internet VC deals of rival tech hub Massachusetts for the second straight year. 38
  39. 39. @cbinsights #VC2014 California again took the majority of Internet VC funding (57%). NY took 15% of VC dollars (down from 19% share in 2013) behind nine-figure financings to Vice Media and Flatiron Health. Massachusetts came in third with a 5% internet funding share. 39
  40. 40. @cbinsights #VC2014 Internet deal share at the Seed and Series A stage fell slightly in 2014. All other stages were relatively range-bound, with modest increases for Series C and Series E+ deal share versus 2013. 40
  41. 41. @cbinsights #VC2014 With Internet companies staying private longer, 2014 saw Series E+ funding share continue to rise from 21% in 2013 to 26% in 2014. 41
  42. 42. @cbinsights #VC2014 Business Intelligence (BI) and Advertising, Sales & Marketing grabbed the highest share of Internet deals in 2014, followed by CRM and Monitoring & Security. Deal distribution across Internet sub-industries remains quite diverse across both consumer and enterprise markets. 42
  43. 43. @cbinsights #VC2014 BI saw double the VC funding versus any other internet area in 2014. Ad, Sales & Marketing, CRM, and Monitoring and security trailed with 5% funding share each. 43
  44. 44. @cbinsights #VC2014 44
  45. 45. @cbinsights #VC2014 In Q4’14, VC funding to the mobile sector topped $3B for the first time ever due to mega- financings to Uber, Snapchat, Instacart, and Square. Overall VC funding to the mobile sector in 2014 was up 109% versus 2013, despite only a 10% increase in deals. The Uber impact was clear in the mobile numbers. 45 Year Funding ($B) Deals 2013 $3.7 521 2014 $7.8 571 YoY Growth 109% 10%
  46. 46. @cbinsights #VC2014 San Francisco and New York top the list of U.S. cities for Mobile & Telecom venture capital deals. Uber’s Series D and E rounds which cumulatively raised $2.4B were the largest mobile VC deals of 2014, while Snapchat closed the third-largest mobile deal shortly before the new year. 46 Top Cities Deals Dollars ($M) Company Round Amount ($M) Quarter San Francisco 139 $4,141 Uber Series E $1,200 Q4'14 New York 73 $394 Uber Series D $1,200 Q2'14 Palo Alto 19 $95 Snapchat Series D $486 Q4'14 Boston 19 $123 TangoMe Series D $280 Q1'14 Mountain View 17 $450 Lyft Series D $250 Q2'14 Austin 10 $53 Instacart Series C $210 Q4'14 Redwood City 9 $76 Square Series E $150 Q4'14 Seattle 9 $43 Lookout Series F $150 Q3'14 Menlo Park 9 $26 NextNav Series D $70 Q3'14 San Diego 9 $46 Yik Yak Series B $62 Q4'14 Top Cities for Mobile: 2014 Top Mobile Deals: 2014 Note:Venture capital deals included in the ranking may be tranched fundings. $220
  47. 47. @cbinsights #VC2014 The trifecta of California, New York and Massachusetts increased their mobile deal share to 76% in 2014, up from 71% in 2013. 47
  48. 48. @cbinsights #VC2014 California once again sits atop mobile venture capital by investment dollars. New York and Massachusetts were the only two states with funding share greater than 1%. 48
  49. 49. @cbinsights #VC2014 Early stage investments at the Seed and Series A stage made up 70% of VC deals in the mobile sector as investors increasingly bet on the promise of mobile. 49
  50. 50. @cbinsights #VC2014 Late-stage mega-deals saw 58% of funding going to Series D+ stages. 50
  51. 51. @cbinsights #VC2014 VCs chased deals in a wide range of mobile sub-industries in 2014, but none more than Health & Wellness, which took 8% of all deals in the mobile sector. Social, CRM, and Conferencing & Communication followed. 51
  52. 52. @cbinsights #VC2014 With the rise of Uber and Lyft in 2014, Travel dominated funding share in Mobile, accounting for 35% of all VC dollars to Mobile startups. Photo garnered the second most funding largely due to Snapchat’s $485.6M Series D at 7%. 52
  53. 53. @cbinsights #VC2014 “Designed by a VC insider who truly knows the space and understands end-user needs.” Greg Bae Investments & Biz Dev Comcast Ventures Jack Leeney Portfolio Manager Telefonica Ventures “CB Insights are changing the way investors access private company information.” Kevin Diestel Investor Sapphire Ventures “We've found CBI to have the best data for the most accurate market view.” See what other customers have to say at http://www.cbinsights.com/customer-love “They have the best quality data in the market for anyone looking to get an inside look at private company financings.” Ian Sigalow Partner Greycroft Partners “CB Insights' intuitive user interface, analytical capabilities, and detailed investment information create a very powerful tool for our team's research needs.” Nate D’Anna Corporate Development Cisco “We track dealflow, understand valuation multiples, analyze industry trends and identify comparable companies. It is great to see CB Insights innovating in the venture capital data space. Will Porteous General Partner RRE Ventures
  54. 54. @cbinsights #VC2014 54
  55. 55. @cbinsights #VC2014 Healthcare VC funding totaled $8.2B in 2014, up 28% YoY. Q2’14 was the biggest quarter on both a funding and deals basis buoyed by Intarcia Therapeutics’ $200M growth equity round. 55 Year Funding ($B) Deals 2013 $6.4 550 2014 $8.2 537 YoY Growth 28% -2%
  56. 56. @cbinsights #VC2014 Leading life sciences hubs Cambridge and San Diego saw the most healthcare VC deals in 2014. RNA therapeutics company Moderna’s $450M Series E deal in December was the biggest of the year and in biotech history. 56 Top Cities Deals Dollars ($M) Company Round Amount ($M) Quarter Cambridge 41 $1,182 Moderna Series E $450 Q4'14 San Diego 30 $452 Intarcia Therapeutics Growth Equity $200 Q2'14 Redwood City 21 $556 Juno Therapeutics Series B $134 Q3'14 San Francisco 19 $377 Alignment Healthcare Growth Equity $125 Q2'14 Menlo Park 15 $261 InVitae Series F $120 Q4'14 Sunnyvale 11 $121 Naurex Series C $80 Q4'14 New York 11 $121 Spark Therapeutics Series B $73 Q2'14 Waltham 10 $171 Melinta Therapeutics Growth Equity $70 Q1'14 Seattle 9 $266 Data Driven Delivery Systems Series B $61 Q3'14 South San Francisco 9 $193 Kolltan Pharmaceuticals Series D $60 Q1'14 Top Cities for Healthcare: 2014 Top Healthcare Deals: 2014 Note:Venture capital deals included in the ranking may be tranched fundings.
  57. 57. @cbinsights #VC2014 California and Massachusetts continued their dominance of healthcare venture deals in 2014, taking 55% of all deal activity in the sector. Pennsylvania’s growing life sciences hub took 5% of all deals. 57
  58. 58. @cbinsights #VC2014 California and Massachusetts owned healthcare VC funding in 2014, taking 65% of total funding share. 58
  59. 59. @cbinsights #VC2014 Seed and Series A deals took 36% of deal share in 2014, down from 38% in 2013. Later- stage deals both ticked up modestly, with Series D+ rounds accounting for 24% of all healthcare deals versus 21% in the year prior. 59
  60. 60. @cbinsights #VC2014 Series A rounds in the healthcare sector saw the largest drop in funding share across all stages to 16% from 23% in 2013. Late-stage rounds both saw modest increases on a YoY basis, while Series B deal share rose to 29% from 24%. 60
  61. 61. @cbinsights #VC2014 For the second straight year, medical device companies garnered the most healthcare deals of any industry. Biotech and drug discovery rounded out the top three, as the three industries combined to take over 7 of every 10 healthcare deals in 2014. 61
  62. 62. @cbinsights #VC2014 Funding share to medical devices firms took 28% of healthcare VC funding in 2014. Biotech firms trailed closely with a 27% funding share, while only three industries saw more than 10% of healthcare dollars. 62
  63. 63. @cbinsights #VC2014 63
  64. 64. @cbinsights #VC2014 After deal activity fell 22% in 2013 compared to 2012, 2014 saw a smaller 2% drop in YoY deals. Total funding increased 17% YoY which was a good sign for green tech although the year ended on a sour note with funding and deals declining in both Q3’14 and Q4’14. 64 Year Funding ($B) Deals 2013 $1.7 161 2014 $2.0 158 YoY Growth 17% -2%
  65. 65. @cbinsights #VC2014 San Francisco led the list for Green Tech VC by overall deals and dollars deployed. Solar service company SunRun had the biggest round of the year in a $150M Series E financing that valued the company at $1B. 65 Note:Venture capital deals included in the ranking may be tranched fundings. Top Cities Deals Dollars ($M) Company Round Amount ($M) Quarter San Francisco 10 $213 SunRun Series E $150 Q2'14 Oakland 9 $160 Atieva Series C $100 Q2'14 Boston 8 $88 Sungevity Growth Equity $70 Q2'14 Austin 7 $90 LanzaTech Series D $60 Q1'14 San Jose 5 $32 GlassPoint Solar Series C $53 Q3'14 New York 5 $9 Cool Planet Energy Systems Series D - III $51 Q1'14 San Diego 4 $32 SolarBridge Technologies Series E $42 Q1'14 Scotts Valley 4 $18 Quench USA Growth Equity $39 Q1'14 Menlo Park 4 $63 Kateeva Series D $38 Q3'14 Cambridge 2 $37 Chromatin Series E $36 Q1'14 Top Cities for Green Tech: 2014 Top Green Tech Deals: 2014
  66. 66. @cbinsights #VC2014 California dominated green tech VC, taking 42% of deals in 2014 followed by Massachusetts and Texas at 12% and 7%, respectively. 66
  67. 67. @cbinsights #VC2014 California, Massachusetts and Texas combined to take 70% of green tech funding in 2014, down from 77% in 2013. Pennsylvania and Illinois each accounted for 6% as well behind multiple $20M+ financings. 67
  68. 68. @cbinsights #VC2014 Series B deal share fell from 26% to 18% YoY in 2014, while Series C deal share fell to 20%. Meanwhile each end of the spectrum saw deal share increase drastically as Seed jumped to 13% deal share, while Series E+ grew to 18% in 2014 from 10% a year prior. 68
  69. 69. @cbinsights #VC2014 Mid-stage funding share followed the deal share trends. Series E+ dollar share jumped drastically from 17% in 2013 to 30% in 2014 in part due to SunRun’s $150M Series E and Sungevity’s $70M growth equity financing. 69
  70. 70. @cbinsights #VC2014 Renewables took 20% of all green tech VC deals in 2014. Green tech software and services, energy efficiency, and green/environmental software companies each took 8% of deals in the space. 70
  71. 71. @cbinsights #VC2014 Renewables led all green tech industries in VC dollar share as the previously-mentioned SunRun $150M financing was the largest in all of green tech in 2014. 71
  72. 72. @cbinsights #VC2014 72
  73. 73. @cbinsights #VC2014 73 The CB Insights platform has the details on each and every deal in 2014. That includes all 3,617 of the financings and 738 exits in this report. Click here to sign up for free Some of our happy customers
  74. 74. @cbinsights #VC2014 California saw another strong year in venture capital. On a year-over-year basis, California deals increased a modest 13% while funding levels were up 81%, ballooning to $26.8B in 2014. 74 Year Funding ($B) Deals 2013 $14.8 1449 2014 $26.8 1631 YoY Growth 81% 13%
  75. 75. @cbinsights #VC2014 The usual suspects of SF, Palo Alto, and Mountain View dominated with the most deals in California in 2014. Snapchat was the only non-Valley based company to make the top 10. 75 Top Cities Deals Dollars ($M) Company Round Amount ($M) Quarter San Francisco 584 $10,948 Uber Series E $1,200 Q4'14 Palo Alto 103 $2,872 Uber Series D $1,200 Q2'14 Mountain View 85 $1,715 Cloudera Series F $900 Q1'14 Sunnyvale 66 $731 Snapchat Series D $486 Q4'14 San Jose 62 $1,095 AirBnB Series D $475 Q2'14 San Diego 60 $715 Palantir Technologies Series H - III $337 Q3'14 San Mateo 59 $514 TangoMe Series D $280 Q1'14 Redwood City 59 $1,324 SurveyMonkey Private Equity - II $250 Q4'14 Menlo Park 55 $603 Lyft Series D $250 Q2'14 Santa Clara 39 $452 Pure Storage Series F $225 Q2'14 Top Cities in California: 2014 Top California Deals: 2014 Note:Venture capital deals included in the ranking may be tranched fundings.
  76. 76. @cbinsights #VC2014 Tech sectors (Internet, mobile, software, computer hardware, electronics) accounted for 79% of all VC deals in California in 2014. 76
  77. 77. @cbinsights #VC2014 Mobile VC funding jumped from 15% to 23% in 2014 behind multiple mega-financings to Uber. The Internet sector led with 41% of total VC funding in California. Healthcare trailed at 13%. 77
  78. 78. @cbinsights #VC2014 Early-stage deal share at the Seed and Series A stage accounted for a combined 55% of all California deals in 2014. All other stages remained relatively range-bound versus 2013. 78
  79. 79. @cbinsights #VC2014 After a down 2013, Series D and E+ VC dollar share in California bounced back. All other stages were casualties, all falling YoY in 2014. 79
  80. 80. @cbinsights #VC2014 80
  81. 81. @cbinsights #VC2014 Deal activity finished strong in Massachusetts giving the state 9% YoY growth in deals in 2014. Mass. also finished the year strong on a funding basis, with an eight quarter high in VC funding at $1.6B which resulted in 37% funding growth YoY. 81 Year Funding ($B) Deals 2013 $3.0 318 2014 $4.2 346 YoY Growth 37% 9%
  82. 82. @cbinsights #VC2014 Cambridge and Boston combined to take $2.42B across 195 deals. Healthcare accounted for 5 of the top 10 deals in Massachusetts in 2014. 82 Top Cities Deals Dollars ($M) Company Round Amount ($M) Quarter Boston 103 $817 Moderna Series E $450 Q4'14 Cambridge 92 $1,602 ActiFio Series E $100 Q1'14 Waltham 26 $429 SimpliSafe Series A $57 Q2'14 Burlington 10 $201 Thinking Phone Networks Series D $57 Q4'14 Woburn 9 $144 Civitas Therapeutics Series C $55 Q3'14 Watertown 8 $75 Syros Pharmaceuticals Series B $53 Q4'14 Acton 8 $59 Kaminario Series E $53 Q4'14 Wellesley Hills 4 $16 Blueprint Medicines Series C $50 Q4'14 Westborough 4 $20 Acquia Series F $50 Q2'14 Somerville 4 $10 Seres Health Series C $48 Q4'14 Top Cities in Massachusetts: 2014 Top Massachusetts Deals: 2014 Note:Venture capital deals included in the ranking may be tranched fundings.
  83. 83. @cbinsights #VC2014 Internet led Massachusetts’ deal share in 2014 at 37% followed closely by healthcare, which fell to 26% deal share versus 30% in 2013. Mobile & Telecom came in a distant third in the state at 14%. 83
  84. 84. @cbinsights #VC2014 While the Internet sector topped 2014 deal activity in Mass., healthcare took a whopping 46% of funding share vs. Internet funding, which made up 25% of all VC Funding in the state. 84
  85. 85. @cbinsights #VC2014 Series E+ deal share grew from 7% of overall deal volume in Mass. in 2013 to 10% in 2014. Series A saw the most deals across the spectrum taking 28% of deal share in the state. 85
  86. 86. @cbinsights #VC2014 After 2013 saw Series B deals take 31% of all funding, funding share fell to 20%, while Series E+ funding share skyrocketed from 17% to 29% funding share in 2014 behind Moderna’s $450M Series E and ActiFio’s $100M Series E. 86
  87. 87. @cbinsights #VC2014 87
  88. 88. @cbinsights #VC2014 Venture capital funding levels broke out in NY in 2014 with every quarter clocking in above $1B in total funding. NY VC funding was up 53% YoY while deals grew at a more modest 7% YoY. 88 Year Funding ($B) Deals 2013 $2.9 396 2014 $4.5 422 YoY Growth 53% 7%
  89. 89. @cbinsights #VC2014 New York saw multiple nine-figure deals in 2014. Top deals covered a broad array of industries ranging from eCommerce to Media to Finance. Real estate venture, WeWork, which offers co-working spaces, had 2 of the 3 largest NY deals of the year. 89 Note:Venture capital deals included in the ranking may be tranched fundings. Top Cities Deals Dollars ($M) Company Round Amount ($M) Quarter New York 365 $3,957 WeWork Series B $355 Q4'14 Brooklyn 33 $446 Vice Media Growth Equity $250 Q3'14 Long Island City 5 $48 WeWork Series A $157 Q1'14 Rochester 3 $5 Flatiron Health Series B $130 Q2'14 Troy 2 $3 Oscar Health Insurance Co. Series A $80 Q2'14 West Henrietta 2 $6 OnDeck Capital Series E $77 Q1'14 Forest Hills 2 $5 IEX Group Series C $75 Q3'14 Geneva 1 $2 Harry's Razor Company Series B $75 Q4'14 Victor 1 $1 Harry's Razor Company Series A $75 Q1'14 Tappan 1 $1 FanDuel Series D $70 Q3'14 Top Cities in New York: 2014 Top New York Deals: 2014
  90. 90. @cbinsights #VC2014 63% of deals in New York went to Internet firms in 2014. Mobile saw an increased deal share for the second straight year at 19%, coming in at a solid #2 to Internet in NY. 90
  91. 91. @cbinsights #VC2014 2014 saw 67% of venture capital dollars in NY go to the Internet sector, followed by Mobile & Telecom at 9% of funding share. Business Products & Services were buoyed by a combined $512M in funding to co-working space WeWork. 91
  92. 92. @cbinsights #VC2014 Seed deal share grew from 34% to 40% of all NY VC deals in 2014. Series A deal share decreased for the third straight year, falling from 31% in 2012 to 28% in 2013 and reaching just 26% in 2014. 92
  93. 93. @cbinsights #VC2014 With huge deals including Flatiron Health in 2014, Series B jumped to a 32% funding share for the year. Series C and D deal share fell drastically as a result of this, while Series E+ deals saw modest growth to 19% funding share behind large deals including now-public OnDeck Capital. 93
  94. 94. @cbinsights #VC2014 94
  95. 95. @cbinsights #VC2014 Washington funding grew 34% YoY behind several sizable deals led by Juno Therapeutics. But yearly deal totals were down 17% YoY. 95 Year Funding ($B) Deals 2013 $0.9 117 2014 $1.1 97 YoY Growth 34% -17%
  96. 96. @cbinsights #VC2014 Seattle took the lion’s share of venture capital deals and dollars in Washington. Juno Therapeutics saw the largest deal in the state for the second straight year, followed by real estate tech company Redfin and wire data analytics company ExtraHop Networks. 96 Top Cities Deals Dollars ($M) Company Round Amount ($M) Quarter Seattle 71 $853 Juno Therapeutics Series B $134 Q3'14 Redmond 7 $45 Redfin Series G $71 Q4'14 Bellevue 7 $86 ExtraHop Networks Series C $41 Q2'14 Kirkland 5 $56 Avvo Series D $38 Q2'14 Bainbridge Island 2 $56 SmartSheet Series E $35 Q2'14 Bellingham 1 $4 Skytap Series D $35 Q4'14 Tacoma 1 $14 Juno Therapeutics Series A - III $31 Q2'14 Renton 1 $5 Integrated Diagnostics Series B $30 Q2'14 Arlington 1 $17 Julep Beauty Series C $30 Q2'14 Liberty Lake 1 $10 Avalara Series E $30 Q1'14 Top Cities in Washington: 2014 Top Washington Deals: 2014 Note:Venture capital deals included in the ranking may be tranched fundings.
  97. 97. @cbinsights #VC2014 The Internet sector took nearly half of the venture capital deals in Washington in 2014. Mobile overtook healthcare in 2014, taking 16% of deals, as healthcare fell from 20% in 2013 to just 13% in 2014. 97
  98. 98. @cbinsights #VC2014 Internet funding in Washington accounted for 44% of all VC dollars in 2014 taking three of the five largest deals in the state. Healthcare fell to a 28% funding share, while mobile and software were the only other sectors with more than 5% funding share. 98
  99. 99. @cbinsights #VC2014 After seed-stage deals grew from 20% in 2012 to 28% in 2013, it fell back to 24% in 2014. 99
  100. 100. @cbinsights #VC2014 Funding share to Series A rounds fell from 30% in 2013 to 22% in 2014, while all later stages saw modest gains. Series B rounds saw the largest growth driven by Juno Therapeutics $134M financing. 100
  101. 101. @cbinsights #VC2014 101
  102. 102. @cbinsights #VC2014 Texas saw funding activity hit an eight-quarter high in Q1’14. Compared to 2013, funding was up 21% while deals steadily grew up 8%. 102 Year Funding ($B) Deals 2013 $1.0 132 2014 $1.2 143 YoY Growth 21% 8%
  103. 103. @cbinsights #VC2014 Austin dominated Texas venture capital financing activity in 2014, seeing over 5x as much funding as the second most active city, Houston. Geospatial solutions provider Surveying and Mapping’s $123M growth equity round was the biggest of the year. 103 Note:Venture capital deals included in the ranking may be tranched fundings. Top Cities Deals Dollars ($M) Company Round Amount ($M) Quarter Austin 83 $741 Surveying and Mapping Growth Equity - II $123 Q1'14 Houston 15 $141 Spiceworks Series E $57 Q1'14 Dallas 8 $74 ZS Pharma Series D $55 Q1'14 Plano 7 $57 Bellicum Pharmaceuticals Series C $55 Q3'14 San Antonio 6 $41 TelaDoc Series F $50 Q3'14 Tomball 2 $4 BigCommerce Series D $50 Q4'14 Georgetown 2 $7 SolarBridge Technologies Series E $42 Q1'14 Richardson 2 $1 Surveying and Mapping Growth Equity $37 Q1'14 Grand Prairie 2 $18 Spredfast Series D $33 Q1'14 Spring 2 $2 Phunware Series E $30 Q1'14 Top Cities in Texas: 2014 Top Texas Deals: 2014
  104. 104. @cbinsights #VC2014 Concentrated primarily in Austin, Internet and mobile combined to take 50% of Texas VC deals in 2014. Healthcare saw 16% of deals in the state. 104
  105. 105. @cbinsights #VC2014 On the funding front, Internet, healthcare, and software all took over 20% of overall share. Software’s 22% funding share was largely driven by the state’s biggest deal of the year, a $123M growth equity financing for Surveying and Mapping. 105
  106. 106. @cbinsights #VC2014 Seed and Series A activity took a combined 49% of deal volume in Texas versus 44% in 2013 as VCs invested in more seed-stage deals. Series D deal share grew modestly to 8%, while all other stages ticked down YoY. 106
  107. 107. @cbinsights #VC2014 After eRecyclingCorps $105M round buoyed Series C dollar share in 2013, Series D and E+ funding share grew drastically behind multiple $50M+ fundings. 107
  108. 108. @cbinsights #VC2014 “Designed by a VC insider who truly knows the space and understands end-user needs.” Greg Bae Investments & Biz Dev Comcast Ventures Jack Leeney Portfolio Manager Telefonica Ventures “CB Insights are changing the way investors access private company information.” Kevin Diestel Investor Sapphire Ventures “We've found CBI to have the best data for the most accurate market view.” See what other customers have to say at http://www.cbinsights.com/customer-love “They have the best quality data in the market for anyone looking to get an inside look at private company financings.” Ian Sigalow Partner Greycroft Partners “CB Insights' intuitive user interface, analytical capabilities, and detailed investment information create a very powerful tool for our team's research needs.” Nate D’Anna Corporate Development Cisco “We track dealflow, understand valuation multiples, analyze industry trends and identify comparable companies. It is great to see CB Insights innovating in the venture capital data space. Will Porteous General Partner RRE Ventures
  109. 109. @cbinsights #VC2014 109 We encourage you to review the methodology and definitions employed by us to better understand the numbers presented in this report. If you have any questions about our definitions or methodological principles, we encourage you to reach out to us directly. What is included? Equity financings into emerging companies. Funding must come from venture capital firms including corporate venture groups. • Fundings of only private companies. Public companies of any kind on any exchange (including Pink Sheets) are excluded from our numbers even if they received investment by a venture firm(s) • Companies must be headquartered in the USA. Our geographic data is based on the city and state where the company receiving investment is headquartered. If a company has a satellite office/presence in multiple cities or was founded in a particular city but has moved its HQ, our results reflect only this HQ address. • Only include the investment made in the quarter for tranched investments. If a company does a second closing of its Series B round for $5M and previously had closed $2M in a prior quarter, only the $5M is reflected in our results. • Round #s reflect what has closed –not what is intended. If a company indicates the closing of $5M out of a desired raise of $15M, our numbers reflect only the amount which has closed. • Only verifiable fundings are included. Fundings are verified via (1) various federal & state regulatory filings (2) direct confirmation with firm or investor or (3) press release. • Funding close date matters. Fundings are provided based on funding close date and not on announcement date. What is not? • Angel investment. These are not included in numbers unless an investment round included Angels investing alongside a venture capital firm or corporate venture group. • No contingent funding. If a company receives a commitment for $20M subject to hitting certain milestones but first gets $8M, only the $8M is included in our data. • No business development/R&D arrangements whether transferable into equity now, later or never. If a company signs a $300M R&D partnership with a larger corporation, this is not equity financing nor is it from venture capital firms. As a result, it is not included. • Buyouts, Consolidations and Recapitalizations. All three of these of transaction types are commonly employed by private equity firms and are tracked by CB Insights. However, they are excluded for the purposes of this report. Private equity investments into companies which may have received venture capital investment prior are also not included. • Private placements. These investments also known as PIPEs (Private Investment in Public Equities) even if made by a venture capital firm(s) • are not included. • Debt/loans of any kind. Venture debt or any kind of debt/loan issued to emerging, startup companies even if included as an additional part of an equity financing is not included. If a company receives $3M with $2M from venture investors and $1M in debt, only the $2M is included in these statistics. • Government funding. Grants, loans, equity financings by the federal government, state agencies or public -private partnerships to • emerging, startup companies are not included. Strictly venture or corporate venture outfits. • Incubator investments. Investments of money as equity or debt and/or services by incubators are not included. • Strategic corporate investments. Corporations making strategic investments in companies but not as part of a specific organized venture group are not included.

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