The IPO Window Reopens:
We finally saw the IPO window crack open in Q3 2016, as proceeds from technology M&A are leaving investors flush with cash to reinvest and driving demand for IPOs and follow-on offerings.
In this third-quarter update on State of the Markets, my team analyzed investment and exit data to identify key trends impacting clients:
1. The number of IPOs exceeded private IPOs for the first time since Q2 2013, as crossover investors’ interest in large pre-IPO financings dropped off.
2. In the U.S., the pace of unicorn exits in Q3 exceeded new entrants.
3. After plummeting in the first half of 2016, values of publicly traded unicorns showed signs of recovery.
Learn more by reading the new State of the Markets report. As with any review of the markets, conditions can turn quickly. We are, however, confident that the fundamentals driving innovation will be strong through the end of 2016.
What does the rest of 2016 hold for innovation companies? In a mid-year update on State of the Markets, the SVB Analytics team analyzed data from the first half of 2016 to identify key trends impacting SVB's clients.
Silicon Valley Bank’s annual Startup Outlook survey provides insight into how startups in the US, UK and China are feeling about the year ahead. The 2016 report finds that while startups across the globe are eternally optimistic, they are preparing for a new reality.
Learn more about the Startup Outlook Report and view the UK and China reports at www.svb.com/IEO.
What does the rest of 2016 hold for the innovation economy? SVB Analytics' State of the Markets Report provides a summary of key market indicators impacting the innovation economy, including venture capital funding and valuation trends, crossover investor activity, and what’s ahead for the second half of 2016.
Silicon Valley Bank’s annual Startup Outlook survey provides insight into how startups in the UK, US and China are feeling about the year ahead. The 2016 report finds that while startups across the globe are eternally optimistic, they are preparing for a new reality.
Learn more about the Startup Outlook Report and view the US and China reports at www.svb.com/IEO.
What does 2017 hold for the Innovation Economy? In the latest State of the Markets report, SVB Analytics took a rear-view approach, identifying the factors that mattered most in 2016 and examining which trends and themes will play out in 2017.
In its mid-year report on the healthcare industry, Silicon Valley Bank analyzes the fundraising, investment, M&A and IPO activity of private, venture-backed biopharma, medical device and diagnostic/tools companies. Report author Jonathan Norris also provides his view of what's on the horizon for the second half of 2016.
Silicon Valley Bank’s Trends in Healthcare Investments and Exits report analyzes the fundraising, investment, M&A and IPO activity of private, venture-backed biopharma, medical device and diagnostic/tools companies. Report author Jon Norris also gives his annual forecast of what’s likely to happen in 2016.
Silicon Valley Bank’s annual Startup Outlook survey provides insight into how startups in China, the US and UK are feeling about the year ahead. The 2016 report finds that while startups across the globe are eternally optimistic, they are preparing for a new reality.
Learn more about the Startup Outlook Report and view the US and UK reports at www.svb.com/IEO.
What does the rest of 2016 hold for innovation companies? In a mid-year update on State of the Markets, the SVB Analytics team analyzed data from the first half of 2016 to identify key trends impacting SVB's clients.
Silicon Valley Bank’s annual Startup Outlook survey provides insight into how startups in the US, UK and China are feeling about the year ahead. The 2016 report finds that while startups across the globe are eternally optimistic, they are preparing for a new reality.
Learn more about the Startup Outlook Report and view the UK and China reports at www.svb.com/IEO.
What does the rest of 2016 hold for the innovation economy? SVB Analytics' State of the Markets Report provides a summary of key market indicators impacting the innovation economy, including venture capital funding and valuation trends, crossover investor activity, and what’s ahead for the second half of 2016.
Silicon Valley Bank’s annual Startup Outlook survey provides insight into how startups in the UK, US and China are feeling about the year ahead. The 2016 report finds that while startups across the globe are eternally optimistic, they are preparing for a new reality.
Learn more about the Startup Outlook Report and view the US and China reports at www.svb.com/IEO.
What does 2017 hold for the Innovation Economy? In the latest State of the Markets report, SVB Analytics took a rear-view approach, identifying the factors that mattered most in 2016 and examining which trends and themes will play out in 2017.
In its mid-year report on the healthcare industry, Silicon Valley Bank analyzes the fundraising, investment, M&A and IPO activity of private, venture-backed biopharma, medical device and diagnostic/tools companies. Report author Jonathan Norris also provides his view of what's on the horizon for the second half of 2016.
Silicon Valley Bank’s Trends in Healthcare Investments and Exits report analyzes the fundraising, investment, M&A and IPO activity of private, venture-backed biopharma, medical device and diagnostic/tools companies. Report author Jon Norris also gives his annual forecast of what’s likely to happen in 2016.
Silicon Valley Bank’s annual Startup Outlook survey provides insight into how startups in China, the US and UK are feeling about the year ahead. The 2016 report finds that while startups across the globe are eternally optimistic, they are preparing for a new reality.
Learn more about the Startup Outlook Report and view the US and UK reports at www.svb.com/IEO.
Key insights from Silicon Valley Bank's Startup Outlook Report. SoCal startups are fueled by a flourishing ecosystem that includes a growing number of local equity capital sources from both venture capitalists and corporate investors. While their outlook is cautiously optimistic, they continue to hire.
Silicon Valley Bank presents its eighth annual Startup Outlook report, capturing the sentiment of about 1,000 tech and healthcare entrepreneurs at a time of rapid transitions around the globe.
U.K. startups are planning for Brexit, and tech and healthcare entrepreneurs tell Silicon Valley Bank that while they are less optimistic about future business conditions compared to recent years, most plan to hire and keep their headquarters in Britain.
Trends in Healthcare Investments and Exits: Mid-Year 2017Silicon Valley Bank
In our mid-year 2017 report on healthcare investing, SVB analyzed the fundraising, investment, M&A and IPO activity of private, venture-backed biopharma, medical device and diagnostic/tools companies.
Investment and fundraising in the healthcare ecosystem saw a banner first half of 2017, driven in part by advancements in artificial intelligence and machine learning for healthcare applications and a surge in Series A investments, particularly in biopharma.
In our annual report on the healthcare industry, Silicon Valley Bank analyzes the fundraising, investment, M&A and IPO activity of private, venture-backed biopharma, medical device and diagnostic/tools companies.
Silicon Valley Bank's Life Science and Healthcare Startup Outlook Report examines how the industry's executives view 2017's opportunities and challenges. The report includes startups' thoughts on public policy issues as well as their expectations for fundraising and hiring.
Four months in, 2017 is shaping up to be a year of harvesting and replanting for the innovation economy.
The SVB Analytics team examined the private-company growth propelled by the large capital raises of 2014-15
and the subsequent plunge in large investments and exits in 2016. Given the activity we’ve seen in the first
quarter of 2017, we are forecasting significant harvesting of returns resulting from the last decade of sweeping
innovations.
In a new report, SVB Analytics examines the challenges facing stakeholders in the U.S. healthcare system, the solutions made possible by technology advancements and opportunities for entrepreneurs and investors.
Learn more here: http://www.svb.com/Blogs/Alex_Lee/Digital_Health__Mapping_Digital_Health_Solutions/
The State of the Venture Capital Industry is an annual report produced by TrueBridge Capital Partners highlighting the trends in venture fundraising, investing, valuations, exits, and performance.
All data sourced from Dow Jones VentureSource, Dow Jones LP Source, CB Insights, PitchBook, and Cambridge Associates.
Silicon Valley Bank’s annual healthcare M&A report, Trends in Healthcare Investments and Exits, examines the merger and acquisition and IPO activity of private, venture-backed bio-pharma and medical device companies.
The study found that healthcare IPOs tripled in 2013, leading to record potential IPO/big exit returns of $12.5 billion.
For a detailed analysis access the report at: http://www.svb.com/healthcare-report_2014/.
**Report updated on 8/4/2014
Презентация Арсения Даббаха, CEO и управляющего партнера RMG partners, с конференции СтартUp Travel 2016, проходившей 22 июня 2016 года в технопарке Строгино.
Trends in Healthcare Investments and Exits 2018 - Mid-Year ReportSilicon Valley Bank
In our mid-year Healthcare Investments and Exits report, we analyzed the fundraising, investment, M&A and IPO activity of private, venture-backed biopharma, medical device and diagnostic/tools companies.
The State of the Venture Capital Industry is an annual report produced by TrueBridge Capital Partners highlighting the trends in venture fundraising, investing, valuations, exits, and performance.
All data sourced from Thomson Reuters, VentureSource, CB Insights, PitchBook, and Cambridge Associates.
The SVB State of the Markets report provides a quarterly update on the health and productivity of the global innovation economy. This quarter's report includes a special section on the booming Chinese tech industry.
For the 10th year, Silicon Valley Bank is proud to present
our Startup Outlook Report. The innovation economy has
expanded greatly in the US and abroad in the past decade,
and so has Startup Outlook. In our first report, we surveyed
300 people, most of them in California. The 2019 report
includes the perspectives of nearly 1,400 technology and
healthcare founders and executives primarily in major
innovation hubs across the US, the UK, China and, for the
first time, Canada.
The outlook for the Chinese tech sector is strong, with a large number of startups saying they expect more M&A opportunities. Access to talent and raising capital remain challenging. Compared to the US and UK, a higher percentage of Chinese startups have women in senior company roles and at least one woman on
the founding team.
For the first time, SVB surveyed technology and life science entrepreneurs based in Canada. Like their counterparts in the US, UK and China, Canadian startups are optimistic about the year ahead even amid economic volatility. And while eager to hire and fundraise, they recognize the challenges they face. Most startups say Canadian government support of the innovation economy is having a positive impact. When it comes to gender parity, 60 percent of Canadian startups have at least one woman in an executive position. Looking ahead, we asked which technologies will have the most promise a decade from now: Canadian startups say AI and life science.
In our annual Healthcare Investments and Exits report, SVB analyzed the fundraising, investment, M&A and IPO activity of private, venture-backed biopharma, medical device and diagnostic/tools companies.
The SVB Asset Management Economic Report, Q1 2017, is a review of and outlook on economic and market factors that impact global markets and business health.
In this edition, the team discusses the Fed's recent activity and its intentions to raise benchmark interest rates three times in 2017. The report also focuses on how the new U.S. administration will impact domestic and global economies.
Key insights from Silicon Valley Bank's Startup Outlook Report. SoCal startups are fueled by a flourishing ecosystem that includes a growing number of local equity capital sources from both venture capitalists and corporate investors. While their outlook is cautiously optimistic, they continue to hire.
Silicon Valley Bank presents its eighth annual Startup Outlook report, capturing the sentiment of about 1,000 tech and healthcare entrepreneurs at a time of rapid transitions around the globe.
U.K. startups are planning for Brexit, and tech and healthcare entrepreneurs tell Silicon Valley Bank that while they are less optimistic about future business conditions compared to recent years, most plan to hire and keep their headquarters in Britain.
Trends in Healthcare Investments and Exits: Mid-Year 2017Silicon Valley Bank
In our mid-year 2017 report on healthcare investing, SVB analyzed the fundraising, investment, M&A and IPO activity of private, venture-backed biopharma, medical device and diagnostic/tools companies.
Investment and fundraising in the healthcare ecosystem saw a banner first half of 2017, driven in part by advancements in artificial intelligence and machine learning for healthcare applications and a surge in Series A investments, particularly in biopharma.
In our annual report on the healthcare industry, Silicon Valley Bank analyzes the fundraising, investment, M&A and IPO activity of private, venture-backed biopharma, medical device and diagnostic/tools companies.
Silicon Valley Bank's Life Science and Healthcare Startup Outlook Report examines how the industry's executives view 2017's opportunities and challenges. The report includes startups' thoughts on public policy issues as well as their expectations for fundraising and hiring.
Four months in, 2017 is shaping up to be a year of harvesting and replanting for the innovation economy.
The SVB Analytics team examined the private-company growth propelled by the large capital raises of 2014-15
and the subsequent plunge in large investments and exits in 2016. Given the activity we’ve seen in the first
quarter of 2017, we are forecasting significant harvesting of returns resulting from the last decade of sweeping
innovations.
In a new report, SVB Analytics examines the challenges facing stakeholders in the U.S. healthcare system, the solutions made possible by technology advancements and opportunities for entrepreneurs and investors.
Learn more here: http://www.svb.com/Blogs/Alex_Lee/Digital_Health__Mapping_Digital_Health_Solutions/
The State of the Venture Capital Industry is an annual report produced by TrueBridge Capital Partners highlighting the trends in venture fundraising, investing, valuations, exits, and performance.
All data sourced from Dow Jones VentureSource, Dow Jones LP Source, CB Insights, PitchBook, and Cambridge Associates.
Silicon Valley Bank’s annual healthcare M&A report, Trends in Healthcare Investments and Exits, examines the merger and acquisition and IPO activity of private, venture-backed bio-pharma and medical device companies.
The study found that healthcare IPOs tripled in 2013, leading to record potential IPO/big exit returns of $12.5 billion.
For a detailed analysis access the report at: http://www.svb.com/healthcare-report_2014/.
**Report updated on 8/4/2014
Презентация Арсения Даббаха, CEO и управляющего партнера RMG partners, с конференции СтартUp Travel 2016, проходившей 22 июня 2016 года в технопарке Строгино.
Trends in Healthcare Investments and Exits 2018 - Mid-Year ReportSilicon Valley Bank
In our mid-year Healthcare Investments and Exits report, we analyzed the fundraising, investment, M&A and IPO activity of private, venture-backed biopharma, medical device and diagnostic/tools companies.
The State of the Venture Capital Industry is an annual report produced by TrueBridge Capital Partners highlighting the trends in venture fundraising, investing, valuations, exits, and performance.
All data sourced from Thomson Reuters, VentureSource, CB Insights, PitchBook, and Cambridge Associates.
The SVB State of the Markets report provides a quarterly update on the health and productivity of the global innovation economy. This quarter's report includes a special section on the booming Chinese tech industry.
For the 10th year, Silicon Valley Bank is proud to present
our Startup Outlook Report. The innovation economy has
expanded greatly in the US and abroad in the past decade,
and so has Startup Outlook. In our first report, we surveyed
300 people, most of them in California. The 2019 report
includes the perspectives of nearly 1,400 technology and
healthcare founders and executives primarily in major
innovation hubs across the US, the UK, China and, for the
first time, Canada.
The outlook for the Chinese tech sector is strong, with a large number of startups saying they expect more M&A opportunities. Access to talent and raising capital remain challenging. Compared to the US and UK, a higher percentage of Chinese startups have women in senior company roles and at least one woman on
the founding team.
For the first time, SVB surveyed technology and life science entrepreneurs based in Canada. Like their counterparts in the US, UK and China, Canadian startups are optimistic about the year ahead even amid economic volatility. And while eager to hire and fundraise, they recognize the challenges they face. Most startups say Canadian government support of the innovation economy is having a positive impact. When it comes to gender parity, 60 percent of Canadian startups have at least one woman in an executive position. Looking ahead, we asked which technologies will have the most promise a decade from now: Canadian startups say AI and life science.
In our annual Healthcare Investments and Exits report, SVB analyzed the fundraising, investment, M&A and IPO activity of private, venture-backed biopharma, medical device and diagnostic/tools companies.
The SVB Asset Management Economic Report, Q1 2017, is a review of and outlook on economic and market factors that impact global markets and business health.
In this edition, the team discusses the Fed's recent activity and its intentions to raise benchmark interest rates three times in 2017. The report also focuses on how the new U.S. administration will impact domestic and global economies.
Brief introduction about the ideas of the Blockchain technology.
Written in Korean.
Starts with Hash function, Hashcash, proof-of-work, and how Blockchain adopted and extended the idea.
Just how closely should financial executives be paying attention? Is the disruption of blockchain technology a distant rumble or an imminent strike? Fintech is shaking the foundation of the traditional financial services industry and blockchain alone could be a game-changer, transforming transactions, custody, accounting, currency exchange, and more.
Navigating the associated business implications and expected timeline is no easy task for financial professionals. This webinar can help firms sift through the noise and will identify the most significant blockchain trends and tangible applications.
Sponsored by ALFI
Blockchain: The Information Technology of the FutureMelanie Swan
The blockchain concept may be one of the most transformative ideas to impact the world since the Internet. Cryptocurrencies like bitcoin are merely one application of the blockchain concept. The blockchain is a public transaction ledger built in a decentralized network structure based on cryptographic principles so that any kind of trading, buying and selling of assets does not need to go through a centralized intermediary. Any kind of asset may be encoded into the blockchain and transacted, validated, or preserved in a much more efficient manner than at present including ideas, health data, financial assets, automobiles, and government documents. Venture Capitalists are calling the blockchain the next big investment wave.
Tracxn Research Ad Tech Landscape, October 2016Tracxn
Investments in the adtech industry are driven by mobile, digital video, cross-screen advertising and programmatic buying targeting specific sectors or audience groups.
State of the Capital Markets – First Quarter 2018 Review and Second Quarter 2...The Lead Left
Review of Current Market Conditions
Analysis of Capital Markets Metrics Including Covenants, Pricing, and Leverage
Review of Credit Quality
Outlook for Second Quarter 2018
AdTech Late Stage Deal & M&A Analysis (Thomvest Ventures)Thomvest Ventures
This report is a compilation of data on late stage investment in advertising technology (adtech) companies over the last several years, as well as a summary of M&A activity in the sector.
Mercer Capital's Value Focus: Venture Capital | Mid-Year 2016Mercer Capital
Mercer Capital's Venture Capital newsletter provides perspective on some of the most relevant market trends affecting venture capital firms and other financial sponsors.
Global Technology Trends & Startup Hubs 2015Bernard Moon
Provides an overview of general technology trends, global venture capital trends, and startup trends around the world. Snapshots of the top 10 startup hubs in the world: Silicon Valley, NYC, London, Stockholm, Berlin, Tel Aviv, Beijing, Seoul, Boston, and Los Angeles.
The seed stage of the venture capital industry went through a boom cycle from 2006-2014 but has lately seen a sharp decline. What's happening? Is it temporary or are their structural problems? This deck answers that question.
A look at the Venture Capital industry heading into 2020. Some have questioned whether the industry has a future. This deck does a detailed look at where the industry is and why the future of VC still looks bright.
Tracxn Startup Research: Data as a Service Landscape, August 2016Tracxn
The top three funded sub-sectors till date are market intelligence (149 investments, $1.3B), financial data providers (158 investments, $1.2B), and geospatial data providers.
New startup funding in the finance sector witnessed a decline in Q1 2019 while early-stage startups form the biggest chunk. Discover the global trends in our latest Insights Report here http://bit.ly/fi_sector
Similar to SVB Q3 State of the Markets Report (20)
Our annual report finds significant numbers of startups continue to have no women in leadership, yet a growing percentage have programs in place to change that.
Silicon Valley Bank's Startup Outlook 2018 captures perspectives from US technology and healthcare entrepreneurs on the opportunities and challenges they see ahead for startups.
US startups tell SVB they are entering 2018 with confidence:
- Nearly two of three US startups believe that 2018 will be better than last year
- The number that plan to hire is at a five-year high
- Most startups expect M&A activity to stay strong
- Venture capital remains the go-to source for future funding
Read more at http://bit.svb.com/2DLLcgZ
How Paperless Payables Can Streamline Ops and Improve Cash FlowSilicon Valley Bank
Digitizing your accounts payable can make your whole company more agile by simplifying accounting and monitoring costs. Use Silicon Valley Bank’s checklist to help with your company’s transition to paperless payables.
Paying your suppliers by credit card is a smart financial move that is good for cash flow, financial management and overall expense reduction. But to access these gains, your vendors must first agree to accept your card payments.
The SVB Asset Management Economic Report, Q2 2017, is a review of and outlook on economic factors that impact global markets and business health.
In this edition, the team discusses the U.K.’s Article 50 notice and the FOMC’s current path towards normalization. The report also examines the Trump Administration’s first 100 days in office and current business sentiment.
Silicon Valley Bank presents its eighth annual Startup Outlook report, capturing the sentiment of about 1,000 tech and healthcare entrepreneurs at a time of rapid transitions around the globe.
U.S. startups are emerging from a healthy recalibration, and tech and healthcare entrepreneurs tell SVB that while they are less optimistic about future business conditions compared to recent years, they expect to hire, see improved exit paths and plan to tap venture capital to grow.
Silicon Valley Bank 2017 State of the Wine Industry ReportSilicon Valley Bank
The Silicon Valley Bank 2017 State of the Wine Industry Report identifies trends and current issues facing the U.S. wine industry and offers data and observations wineries can use to develop their business strategies.
Silicon Valley Bank's wine report is based on its in-house expertise as one of the largest bankers to the West Coast wine industry for nearly 20 years, a proprietary database of more than a decade of winery financials, ongoing research, and an annual survey of 500+ West Coast wineries. Learn more at http://www.svb.com/wine-report/.
Major Forecasts for 2017:
- Wines sold between $12 and $25 will grow in demand as will high-end luxury wines with an established brand. We expect to see small price increases in these segments, with volume and price drops for bottles priced under $9.
- Premium wine sales will increase between 10 and 14 percent above 2016 levels.
- Per capita consumption faces crosscurrents with retiring wine-loyal baby boomers being replaced by less affluent millennials who are ambivalent about their alcoholic beverage of choice. If economic conditions continue to improve, however, per capita consumption should be slightly higher in 2017.
- Today, millennials are beginning to affect the lower price range of premium sales. Their presence is most visible in the $8 to $11.99 red blend category, but they gradually will shift from blends to varietal wines or imports as their incomes grow.
- Even with winery M&A facing headwinds from higher interest rates, winery acquisitions should remain quite active through 2017.
- Farm labor supply and costs are the dominant concerns in the wine business in 2017.
Migrate Your Payments Platform Without Disrupting Your BusinessSilicon Valley Bank
Switching to a more robust payment platform can deliver benefits including better approval ratios, enhanced reporting, quicker funding, global payment acceptance and improved security. We'll review five key questions to gain an understanding of platform transition steps and share a helpful checklist for creating a project plan.
When you need tighter controls and maximum spending visibility, the way your company pays is key. Try these five tactics for sharpening your use of company credit cards.
Women hold influential positions in technology companies around the world, but there’s clearly room for more women in the C-suites and the boardrooms of the world’s most innovative companies. In our Innovation Economy Outlook 2016 survey of 900 executives worldwide, 63 percent say they have no women on their boards, and 44 percent have no women in executive positions, although that varies greatly when you look at it geographically.
Startup Outlook 2016: Women in Technology Leadership
SVB Q3 State of the Markets Report
1. State of the Markets
The IPO Window Reopens
Third Quarter 2016
Written by SVB Analytics:
Steve Allan, CFA
Head of Analytics
Sean Lawson
Manager
Steven Kakowski
Associate
Steven Pipp
Associate
John Ortelle
Manager
2. State of the Markets
State of the Markets 2
1 Market Dynamics
⁻ Investment and Exit Trends
2
Key Themes
⁻ M&A Restores Valuation Confidence
⁻ Public Unicorns Grow into Their Private Values
4. Equity Markets Weather Macro Storms
State of the Markets 4
Nasdaq Composite Index: Sep. 2008 – Sep. 2016
The U.S. equity markets have withstood several cycles of global macroeconomic and geopolitical
uncertainty since early 2014, but in Q3 2016 reached all-time highs.
0
1,000
2,000
3,000
4,000
5,000
6,000
Sep '08 Sep '09 Sep '10 Sep '11 Sep '12 Sep '13 Sep '14 Sep '15 Sep '16
Source: S&P Capital IQ, Bloomberg, FiveThirtyEight
Year 2000 Peak
Market Movers: Q3 2016
26% 26%
47% 48%
53%
Sep '16 Nov '16 Dec '16 Feb '17 Mar '17
Implied Probability: Fed Funds Futures
25
50
75
100%
Sep ‘16
67.5%
32.5%
Clinton
Trump
Presidential Election Forecasts
5. Negative Yields Become New Normal
State of the Markets 5
WGBI Country Yields: 9/30/2016
Source: S&P Capital IQ, Citi Research
10-Year Bond Yields: G-7 Nations:
Q1 2015 – Q3 2016
Country 1 2 5 7 10 15 30
Switzerland
Germany
Japan
Sweden
Denmark
Netherlands
France
Spain
Italy
United Kingdom
United States
Australia
Norway
Canada
Negative
-1.0%
-0.5%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16
Italy Japan
Germany France
United Kingdom Canada
United StatesPositive
Years to Maturity
Through Q3 2016, the yields for more than one third of debt outstanding – totaling over $10 trillion –
issued by countries in the World Government Bond Index (WGBI) traded below zero, while yields for
many G7 nations continued a descent towards zero.
6. Crossovers Curtail Private Funding
State of the Markets 6Source: CBInsights
Global Investments in Venture Rounds: Crossover Investors
TotalRounds
AverageRoundSize
$35M
$46M
$139M
$153M
$90M
$0M
$20M
$40M
$60M
$80M
$100M
$120M
$140M
$160M
$180M
0
10
20
30
40
50
60
2012 2013 2014 2015 Q1 - Q3 2016
Tiger Global Management Goldman Sachs Wellington Management
Fidelity Investments Coatue Management T. Rowe Price
Blackrock Average Round Size ($MM)
Some of the largest fund managers who took a primary role in funding large, late-stage private rounds
have become less active through Q3 2016.
7. 2016: Return of the Tech IPO
State of the Markets 7Source: CB Insights, S&P Capital IQ
IPO and PIPO Transactions for U.S. Technology Firms: Q1 2013 – Q3 2016
0
5
10
15
20
25
30
Q1 '13 Q3 '13 Q1 '14 Q3 '14 Q1 '15 Q3 '15 Q1 '16 Q3 '16
IPOs
Private IPOs
27
4
11
7
Tech IPO “Boom”
Tech PIPO Boom
Since 2013, late-stage companies have opted to raise private capital rather than enter the public
markets, as 2015 saw four times as many private IPOs (PIPOs: rounds >$100M) as IPOs. In Q3 2016,
however, that trend reversed as tech IPOs exceeded PIPOs as a result of crossover investors pulling
back from large, new investments and the IPO window opening.
8. Unicorn Births Decelerate
State of the Markets 8Source: The Wall Street Journal
Private Companies with Reported $1B+ Valuations:
Q1 2014 – Q3 2016
Unicorn Market Value Concentration:
September 2016
Uber $68B
Xiaomi
$46B
Didi Chuxing
$33B
Airbnb $26B
Palantir $20B
Lufax $19B
Meituan-Dianping
$18B
Snapchat $18B
WeWork
$16B
Flipkart $15B
SpaceX $12B
Pinterest $11B
Dropbox $10B
All Others
$280B
0
20
40
60
80
100
120
140
160
180
Less than $2B $2-5B $5-10B
$10-15B $15-20B Greater than $20B
The number of private companies with $1B+ valuations has tripled since 2014, with more than half
of all unicorn value concentrated in the top 13 “decacorns.” The pace of newly minted unicorns,
however, began declining in Q4 2015.
9. Tech Companies Stay Private Longer
State of the Markets 9
Years from Founding to IPO (Median): 1999 – Q3 2016
0
2
4
6
8
10
12
14
16
1999 2001 2003 2005 2007 2009 2011 2013 2015 Q3 2016
Source: Dr. Jay Ritter, University of Florida
U.S. Unicorns
2000
Dotcom Crash
2008
Financial Crisis
90th
10th
Median
25th
75th
With access to funding from traditional and nontraditional sources, tech companies are choosing to delay
the scrutiny and transparency of public markets, and the median age of current U.S. unicorns suggests
this trend will continue.
10. Net Change in Unicorns by Year: 2014 – September 2016
Unicorn Exits Converge with New Entrants
State of the Markets 10
Total
Market Values
All Unicorns
$591B
1Exits include IPOs, M&A and revaluations below $1B.
2Sum of market caps for unicorns at the close of their respective first day of trading
Source: The Wall Street Journal, S&P Capital IQ
Year End
Unicorns
2013
Exits Entrants Year End
Unicorns
2015
Year End
Unicorns
2014
Exits Entrants Exits Entrants Sep. End
Unicorns
2016
45 -15
+49 79 -11
+76 144
149
0
20
40
60
80
100
120
140
160
Apple
$609B
Google
$543B
Facebook
$368B
Unicorns at IPO2
$92B
The number of new companies reaching $1B+ valuations still exceeds the number of exits.1 While
this has created a backlog of private companies with a combined market value of more than $550B,
the pace of unicorn exits is converging with the pace of entrants.
-10
+15
11. As Exit Conditions Improve, IPO Window Opens
State of the Markets 11Source: S&P Capital IQ; Yahoo! Finance
U.S. Tech IPO Count: H1 2012 – Q3 2016
20
15
10
5
0
^VIX: Jan 2012 – June 2016
0
10
20
30
40
50
Jan 12 Jul 12 Jan 13 Jul 13 Jan 14 Jul 14 Jan 15 Jul 15 Jan 16 Jul 16
H1 2012 H2 2012 H1 2013 H1 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 Q3 2016
Companies look for a sustained period of low volatility before going public. Decreased volatility in Q3
2016 signals improving market conditions and a reopening of the IPO window.
13. Market Downswing and Idle Cash Spur SaaS M&A
State of the Markets 13
Cloud Software M&A Deals Announced: Q2 – Q3 2016
Source: S&P Capital IQ
$26.0B
ImpliedEnterpriseValue($B)
NTMRevenueMultiple
Financial Buyers
Median Rev Multiple: 3.5x
Strategic Buyers
Median Rev Multiple: 5.6x
3.4x
6.1x
5.1x
3.4x
3.6x
2.1x
3.0x
5.6x
5.0x
3.2x 3.1x
8.3x
7.7x
8.5x
6.7x
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
7.0x
8.0x
9.0x
10.0x
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
$9.0
$10.0
SciQuest Cvent Marketo Infoblox Qlik Rackspace Opower Textura Apigee inContact ININ Demandware Blue Coat NetSuite LinkedIn
Accel-KKR Vista Equity Vista Equity Vista Equity Thoma Bravo Apollo Group Oracle Oracle Google Nice Genesys Salesforce Symantec Oracle Microsoft
On the heels of the Q1 market downswing, Q2 and Q3 saw a wave of M&A interest from both strategic and
financial buyers for publicly-traded1 high-growth cloud software companies.
1Including Blue Coat
14. 0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
7.0x
8.0x
9.0x
10.0x
3/31/15 6/30/15 9/30/15 12/31/15 3/31/16 6/30/16 9/30/16
M&A Flurry Restores Valuation Confidence
State of the Markets 14
Cloud Software includes enterprise software companies with IPOs since 2004 on major markets.
NTM Revenue Multiples for IPOs based on earliest estimates adjusted to IPO closing price.
Source: S&P Capital IQ
Third
Quartile
Median
StrategicAcquisitions
Median:5.3x
TEAM: 12xRPD: 11x
FinancialAcquisitions
Median:3.5x
LNKD: 6.7x
N: 8.5x
TWLO: 9x
APIC: 6x
APIC: 5.0x
INST: 6x
4.5 Month Gap
Between IPOs
14 Public SaaS
Acquisitions
RAX: 2.1x
CVT: 6.1x
NTNX: ~8x
EVBG: ~6x
SCWX: 3x
“Good Times”
Valuations for cloud software companies plummeted in early 2016, and financial and strategic
buyers took the opportunity to purchase 14 public SaaS companies. This activity has helped to
restore confidence in high-growth software valuations.
Cloud Software NTM Revenue Multiples: Q2 2015 – Q3 2016
15. Flurry of M&A Leaves Cash-Flush Investors
State of the Markets 15Source: S&P Capital IQ
$12B
$16B
$25B $25B
$62B
$72B
$1.5B $2.2B $2.8B $2.9B $3.7B $4.6B
$0
$10
$20
$30
$40
$50
$60
$70
$80
Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16
$BUSD
Announced M&A – Proceedsto Floating Shares
Closed M&A – Proceedsto Floating Shares
IPO and Follow-On Offerings
Cumulative U.S. Software M&A and Public Offerings
Q2 2015 – Q3 2016
5.0%
17.1%
34.6%
S&P 500 S&P 500 Software &
Services
Median U.S. Technology
IPO "Pop"
Total Returns: Q1 – Q3 2016
From Q2 2015 to Q3 2016, capital returned to investors and money managers (e.g. capital that must be
reinvested) as software M&A in the U.S. reached $72 billion while IPOs and follow-on offerings only hit
$4.6 billion. This dynamic has left investors flush with cash and seeking reinvestment opportunities.
16. Public Unicorns Grow into Their Private Values
State of the Markets 16Source: Wall Street Journal, S&P Capital IQ
Total Returns Compared to Tech Unicorns’ Last Private Round Last Private June 2016 Sep 2016
-400%
-300%
-200%
-100%
0%
100%
200%
300%
400%
500%
600%
0%
-20%
-40%
-60%
-80%
IPO Date: 2014
2015
2016
6/30 Median Return: -29%
9/30 Median Return: +6%
Publicly traded unicorns had seen their valuations plummet in 1H 2016. In Q3, however, investors sought
to reinvest capital gained through successful software M&A in the public unicorns.
17. Private Valuations Reveal Divergence
State of the Markets 17Source: Pitchbook
Median Pre-Money Valuations
Series Seed through Series B: 2012 – Q3 2016
Median Pre-Money Valuations
Series C through Series D+: 2012 – Q3 2016
$4 $5 $5 $6 $6
$8 $9
$12
$14 $14
$21
$26
$33
$41
$38
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
2012 2013 2014 2015 Q3 '16*
Seed Series A Series B
$50
$56
$60
$74
$90
$92
$99
$135
$180
$200
$0
$50
$100
$150
$200
$250
2012 2013 2014 2015 Q3 '16*
Series C Series D+
*As of 8/1/2016 *As of 8/1/2016
Investors are focusing on the most promising companies, curtailing early-stage bets while doubling down
on later rounds. As of Q3 2016, capital deployed to venture rounds is on track to exceed 2015 levels. The
volume of closed deals, however, is expected to decline as capital is concentrated in fewer companies.
18. Companies Seek Employee Liquidity Workarounds
State of the Markets 18Source: The Wall Street Journal, BuzzFeed News, MIT Technology Review, Bloomberg Technology
Even with access to additional capital, mature companies may need to seek nontraditional sources of
liquidity to satisfy near-term employee needs and retain talent.
19. Report Authors
State of the Markets 19
Steven Pipp
Associate, SVB Analytics
spipp@svb.com
Steve Allan, CFA
Head of SVB Analytics
sallan@svb.com
Sean Lawson
Manager, SVB Analytics
selawson@svb.com
John Ortelle
Manager, SVB Analytics
jortelle@svb.com
Steven Kakowski
Associate, SVB Analytics
skakowski@svb.com