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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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/
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.
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 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
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.
Презентация Арсения Даббаха, CEO и управляющего партнера RMG partners, с конференции СтартUp Travel 2016, проходившей 22 июня 2016 года в технопарке Строгино.
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.
global Venture funding and start up data : top 10 chartsSumit Roy
2015 VC FUNDING HITS ALL-TIME HIGH. ENDS WITH PULLBACK.
Multi-year highs in funding: Globally, funding to VC-backed companies in 2015 hit an all-time high of $128.5B, up 44 percent versus 2014’s total of $89.4B.
Deals see steep decline: Large deals were the headline of 2015, largely driving the funding trends and leaving deal activity to fall for the final 2 quarters, including Q4’15, which saw just 1742 deals, the lowest quarterly total since Q1’13.
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.
StartUp Health Insights Funding Report Q3 2017 YTDStartUp Health
Digital health funding broke all previous records in Q3, with 2017 YTD funding surpassing $9.0B. Assuming
momentum continues through Q4, we’ll finish 2017 well past $10B, a significant signal of support for
entrepreneurs working to achieve their Health Moonshots. Despite the headlines and uncertainty surrounding
healthcare reform, investment into digital health companies continues to accelerate.
Private Equity and Venture Capital volume is depressed amid uncertainty and a changing capital environment during the first quarter of 2017. Read Bridgepoint Merchant Banking's latest Midwest Capital Raise Update, measuring private equity and venture capital throughout the Midwest.
Private Funding Trends Presentation - SVB at OIS@AAO 2016.
Presenter:
Jonathan Norris, Managing Director
Powered by:
Healthegy
For more ophthalmology innovation
Visit us at www.ois.net
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.
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.
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.
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.
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.
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/
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.
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 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
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.
Презентация Арсения Даббаха, CEO и управляющего партнера RMG partners, с конференции СтартUp Travel 2016, проходившей 22 июня 2016 года в технопарке Строгино.
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.
global Venture funding and start up data : top 10 chartsSumit Roy
2015 VC FUNDING HITS ALL-TIME HIGH. ENDS WITH PULLBACK.
Multi-year highs in funding: Globally, funding to VC-backed companies in 2015 hit an all-time high of $128.5B, up 44 percent versus 2014’s total of $89.4B.
Deals see steep decline: Large deals were the headline of 2015, largely driving the funding trends and leaving deal activity to fall for the final 2 quarters, including Q4’15, which saw just 1742 deals, the lowest quarterly total since Q1’13.
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.
StartUp Health Insights Funding Report Q3 2017 YTDStartUp Health
Digital health funding broke all previous records in Q3, with 2017 YTD funding surpassing $9.0B. Assuming
momentum continues through Q4, we’ll finish 2017 well past $10B, a significant signal of support for
entrepreneurs working to achieve their Health Moonshots. Despite the headlines and uncertainty surrounding
healthcare reform, investment into digital health companies continues to accelerate.
Private Equity and Venture Capital volume is depressed amid uncertainty and a changing capital environment during the first quarter of 2017. Read Bridgepoint Merchant Banking's latest Midwest Capital Raise Update, measuring private equity and venture capital throughout the Midwest.
Private Funding Trends Presentation - SVB at OIS@AAO 2016.
Presenter:
Jonathan Norris, Managing Director
Powered by:
Healthegy
For more ophthalmology innovation
Visit us at www.ois.net
A stream of new money flowing into loan and credit funds overwhelmed new issue supply, providing issuers (and their agents) the opportunity to run robust offering processes and gamer attractive economic and structural terms. The recent tightening in monetary policy and strong macroeconomic conditions notwithstanding, all-in-cost of leverage has, thus far, remained near recent lows.
Mercer Capital's Portfolio Valuation: Private Equity and Venture Capital Mark...Mercer Capital
Mercer Capital's Portfolio Valuation: Private Equity and Venture Capital Marks and Trends Newsletter provides a brief digest and commentary of some of the most relevant market trends influencing the fair value regarding private equity portfolio investments.
Capital Markets Industry Insights - Fall 2016Duff & Phelps
Middle-market issuers were greeted by strong demand this quarter from mainstream credit sources as well as those seeking higher degrees of risk and return. Macroeconomic fundamentals continued to improve, though the focus remained on monetary policy. With an increasingly stark dichotomy of views at the Federal Reserve, volatility persisted in anticipation of clearer guidance on the pace and timing of rate hikes.
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.
This slide was created by Malaysia Venture Capital (MAVCAP), an organisation formed by the Malaysian government in 2001 to help nurture infant ICT companies into big thriving businesses.
Summary of findings
2018 VC-backed fintech deals and funding set an annual record: In 2018, - VC-backed fintech companies raised $39.57B across 1,707 deals globally. Deals were up 15% year-over-year while funding surged 120% on the back of 52 mega-rounds ($100M+) worth $24.88B combined.
Fintech is happening on global scale with deals outside of core markets (US, UK, and China) accounting for 39% of deals: Fintech deal hubs are starting to emerge globally. The count of unique fintech startups raising funding topped an annual high of 1,463 companies, and the unique number of investors reached 2,745 boosted by an influx of corporate investors.
Early-stage deals, as a percentage, fell to a 5-year low as investors concentrated bets in perceived winners: Global seed and Series A fintech deals grew 5% on an annual basis in 2018, but fell as a percentage of total deals to 57%. US early-stage deals were flat YOY as investors concentrated their bets in established fintech unicorns.
There are 39 VC-backed fintech unicorns worth a combined $147.37B: Q4'18 saw five new unicorns births (Plaid, Brex, Monzo, DevotedHealth, and Toss) and two in the first month of Q1’19 (N26 and Confluent). The cohort’s total valuation in 2018 was boosted by a record year for megarounds to existing unicorns, including Gusto and Robinhood, among others.
With the positive momentum of the first half, 2017 is poised to surpass 2016 global IPO levels by both number and proceeds.
The US NASDAQ and NYSE saw 80 IPOs during the first half of 2017 (an 82% increase compared to the same period in prior year), with $22.0b proceeds and median IPO deal size of $127.6M. Some key trends by sector for Q2 2017 in the Americas were: (1) Health care 14 IPOs/$1.0b proceeds, (2) Technology 10 IPOs/$1.3b proceeds, Industrials 8 IPOs/$2.5b proceeds, Real Estate 6 IPOs/$1.2b proceeds and Financials 5 IPOs/$575m proceeds.
Asia-Pacific’s position as the leading center of IPO activity will remain unchallenged through the remainder of 2017. Greater China was the world’s standout market in the first half of 2017 and this lead is expected to continue in the second half of 2017. Overall, the Greater China market saw 317 IPOs during the first half of 2017 (a 217% increase compared to the same period in prior year), with $25.4b proceeds. In Q2 2017, the Hong Kong Main Market saw 13 IPOs with $5.1b proceeds, while the Shanghai and Shenzhen Markets saw 115 IPOs with $8.1b proceeds. Some key trends by sector for Q2 2017 in the Greater China Market were: (1) Industrials 25 IPOs/$1.4b proceeds, (2) Technology 24 IPOs/$1.4b proceeds, (3) Consumer products 16 IPOs/$754m proceeds, (4) Financials 3 IPOs/$3.5b proceeds and (5) Energy 2 IPOs/$606m proceeds.
The investment climate entering 2017 has shifted from last year, most markedly following the election of President Trump in November.
This event set in motion a rapid rise in interest rates, and opened numerous questions about what investors should expect in
fi scal, tax, monetary, trade, immigration and regulatory policies. Nonetheless, expectations of steady economic and employment
growth offer investors a positive outlook, particularly for offi ce assets, which have enjoyed six years of steady performance gains.
The economic cycle is now well into its seventh year of growth. During this time, more than 15 million jobs have been created and in
excess of 460 million square feet of offi ce space was absorbed. Though many believe that the longevity of the cycle alone predicts a
slowdown, few signs of a pending downturn are evident. Hiring remains sound, with employers adding between 2.0 million and 2.5
million jobs to the economy each year, while the unemployment rate has held steady in the sub-5.0 percent range. These trends will
bolster new demand for offi ce space during a period of subdued offi ce construction and will converge to sustain the downward trend
in offi ce vacancy rates. Suburban properties, often overlooked amid the intense focus on urban cores of recent years, continue to
record solid performance gains and offer investors enticing investment options.
The investment climate will remain vibrant as a confl uence of buyers seeking the stable returns of offi ce assets make acquisitions from
property owners ready to monetize recent performance gains. Liquidity in secondary and tertiary markets remains positive, with many
metros yet to recover prior pricing peaks. The dynamics point to an engaging year of investment activity with a wide range of buyers
and sellers repositioning portfolios as they recalibrate their strategies ahead of the anticipated changes the new president will bring.
Many unknowns assuredly await investors in the coming year, with prospects of steady economic growth offsetting a rising interest
rate environment, a potentially more aggressive Federal Reserve and a wide range of unexpected decisions coming from Capitol Hill.
We hope this report provides useful insights that will help our clients navigate the changing landscape. As you recalibrate your strategies, our investment professionals look forward to assisting you in meeting your goals.
With investor sentiment now showing signs of improvement after a challenging period in emerging markets, our sixth edition of the CSRI Emerging Consumer Survey provides investors timely insights with which to revisit the theme of a fast developing consumer culture shaped by technological innovation. The countries that top our ECS Scorecard are India, China and Saudi Arabia with a key demographic accent on the role of the youthful consumer.
- Download the full report: http://bit.ly/1YnhtyR
- Order hard copy: http://bit.ly/1RQb79r
- Visit the website: bit.ly/18Cxa0p
Similar to SVB State of the Markets: Second Quarter 2017 (20)
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.
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 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.
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.
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.
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 State of the Markets: Second Quarter 2017
1. State of the
Markets 2017
The Early Harvest: IPOs Spring to Life
Second Quarter 2017
Written by
SVB Analytics:
Steve Allan, CFA
Head of External
Insights & Analytics
Sean Lawson
Senior Manager
Steven Pipp
Senior Associate
Visit www.svb.com
Twitter @SVB_Financial
Engage #SVBSOTM
2. State of the Markets: Second Quarter 2017
State of the Markets 2
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.
We predict many private companies will find numerous avenues open in 2017 for raising cash. For those
companies with the strongest growth stories ― those who are reaching their previously frothy valuations ― the
public equity market, sparingly available in 2016, is opening to new issuances. For companies still growing into
their private valuations, yet in need of capital, there are exceedingly well-capitalized private equity firms
seeking buyout opportunities.
Further, as technology accelerates disruption of incumbent business models, we expect an increase in strategic
corporate acquisitions — designed in many cases to help the corporates stay relevant in the 21st century.
But 2017 isn’t only about harvesting returns. Venture capitalists, flush with cash after raising $42 billion in
2016, will have many opportunities to fund the next crop of innovative companies that are poised to drive
disruption for the next decade.
Steve Allan, CFA
Head of External Insights & Analytics
3. State of the Markets: Second Quarter 2017
State of the Markets 3
1 Predictions: Year to Date
2 Market Dynamics
3 Decisions Ahead for Late Stage
4 The Early Harvest: IPO Conditions
5 Closing Thoughts
4. Preliminary Grades on 2017 Predictions
State of the Markets 4
The themes of 2016 have provided reliable insight into what 2017 holds for the venture landscape.
But risks remain: Unexpected economic or geopolitical events could shock the innovation economy.
Q1 Predictions Q2 Updates
With plenty of capital in VC war chests, valuations
remain stable across early stages but fall in later
stages without crossover participation.
Valuations
Early indications for 2017 point toward a
plateau in valuations, as comparable capital
levels flow to fewer deals.
With public company valuation confidence
restored and a stable of maturing unicorns, 2017
sees 2 to 3 times the number of IPOs as 2016.
IPOs
After a slow start to 2017 following the U.S.
presidential election, IPOs have picked up steam.
Bellwether Snap Inc. successfully listed in March.
Tech giants’ spending spree reaches the
VC-backed ecosystem but with mixed success
compared to the most recent private valuation.
M&A
Two unicorns were acquired in Q1’17 — as many as
went public. Expect future deals both explosive
(AppDynamics, $3.6B) and tame (SimpliVity, <$1B).
With full coffers, fundraising in 2017 falls from the
2016 high, but interest from LPs stays high. Fundraising
After peak fundraising in 2016, Q1’17 saw the
fewest VC funds closed since Q3’15. LPs seem to
have turned their attention to private equity firms.
With rates rising, asset managers look for growth
elsewhere. This helps deflate the overheated
market for late-stage capital.
Crossovers
Late-stage mega-rounds appear to be a thing of
the past. The Fed raised rates again in March, and
expectations are high for additional hikes.
Sources: S&P Capital IQ, The Wall Street Journal, Bloomberg and PitchBook.
6. Post-Election Rally Reaches New Peaks
State of the Markets 6
Nasdaq Composite Index: Q2’16–Q1’17
The bull run in U.S equities showed no signs of slowing post-election, touching all-time highs even in the
face of fiscal policy stumbles and geopolitical uncertainty.
• U.S. investment
incentives
• Tax reform
• Geopolitical
concerns
• Reduced trade
and/or immigration
• Rising rates
Source: S&P Capital IQ.
4000
4500
5000
5500
6000
6500
7000
Post 2016 Election:
+14%
Year 2000 Peak
April May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.
2016 2017
7. The Federal Reserve Tightens Monetary Policy
State of the Markets 7
Fed Funds Effective Overnight Rate: Q2’07–Q1’17
Strong economic growth indicators in the United States have led the Fed to hike rates three times since
October 2015, departing from a decade of dovish interest rates. The market believes there are more to come.
Sources: S&P Capital IQ and Bloomberg.
Probability of a Rate Hike based on Fed Funds Futures:
As of 3/31/2017
13.3%
56.7%
63.0%
80.0%
May June July Sept.
0%
1%
2%
3%
4%
5%
6%
Three rate hikes
in the last 18 months
April Jan. Jan. Jan. Jan. Jan.
2007 2009 2011 2013 2015 2017
8. Rising Rates Lead to Real Capital Movement
State of the Markets 8
Quarterly Volume of Corporate Leveraged-Loan Repricing: Q1’02–Q1’17
$0B
$50B
$100B
$150B
$200B
$250B
As the sun sets on an era of historically low rates, fund managers are once again able to find yields in
debt instruments. Investors in Q1’17 clamored for floating-rate corporate loans, which perform well in
rising interest rate environments, with outsized demand actually reducing the cost of borrowing for
firms. This led to the highest quarterly volume of repricings in the last 15 years.
Adopted from: Wirz, Matt. “U.S. Firms Slash Interest Tab in $100 Billion Refinancing Blitz.” The Wall Street Journal. Feb. 8, 2017.
https://www.wsj.com/articles/u-s-firms-slash-interest-tab-in-100-billion-refinancing-blitz-1486549801
Data source: Leveraged Commentary and Data, an offering of S&P Global Market Intelligence.
9. State of the Markets 9
Decisions Ahead
for Late Stage
10. $0B
$2B
$4B
$6B
$8B
$10B
$12B
$14B
$16B
$18B
$20B
Froth Subsides from an Otherwise Healthy Ecosystem
State of the Markets 10Source: PitchBook.
Venture Capital Invested in Information Technology by Round Size: 2012–Q1’17
As crossover investors chase returns elsewhere, $100M-plus rounds are again something of a rarity.
Late-stage companies, which may have otherwise continued to rely on growth capital, will face
decisions as to how to adapt to a shifted landscape.
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2012 2013 2014 2015 2016 2017
Split by Round Size:
$100–999M $1B+
$25–50M $50–100M
$0–9M $10–24M
$100M+ Rounds
11. Options Available to the Late Stage
State of the Markets 11
Lacking the crossover mega-rounds of 2014 and 2015, which extended private runway, today’s late-stage
ventures face a familiar assortment of possibilities worth exploring ― some more lucrative than others.
$100M+
Rounds
Strategic
Buyers IPO
Financial
Buyers
12. Turning to Strategic Investors ― Sell or Raise?
State of the Markets 12
1. Mobileye, NXP and Quip had been announced but had not closed as of March 31, 2017.
Sources: S&P Capital IQ and PitchBook.
Notable Strategics’ $200M+ Acquisitions: 2016–Q1’17
Consolidation continues as tech giants look for inorganic growth and accelerated access to hot
markets — particularly autotech and developer tools. Many of these acquisitions were of publicly
traded companies, including the four largest: NXP, LinkedIn, Mobileye and NetSuite.1
Apple Alphabet Microsoft
Oracle Intel Cisco
Qualcomm Adobe Salesforce
Most Active CVC’s Deal Participation: 2016–Q1’17
0
10
20
30
40
50
60
70
80
90
GV Intel
Capital
Qualcomm
Ventures
Salesforce
Ventures
Comcast
Ventures
Deals $50M+ Deals <$50M
Split by Total Round Size:
1
1
1
13. Names to Know in Private Equity
State of the Markets 13
1. According to The PE Hub; March 7, 2017.
2. Denotes participation.
Sources: Company websites, Crunchbase, Bloomberg, The PE Hub, S&P Capital IQ and PitchBook.
Notable Private Equity Firms: Technology
Private equity took notice of steep declines in tech valuations in mid-2016, prompting a string of
acquisitions. Be on the lookout for more investment following new fundraising in 2016 and 2017.
Vista
Equity Partners
KKR Insight
Venture Partners
Thoma Bravo Silver Lake
HQ
Austin, TX New York, NY New York, NY Chicago, IL Menlo Park, CA
Fundraise
$10.5B
March 2017
$13.9B
March 2017
$6.0B
In Process1
$7.6B
Sept. 2016
$15.0B
April 2017
NotableInvestments
$1.8B Acquisition
May 2016
$1.6B Acquisition
April 2016
$1.5B Acquisition
Sept. 2016
Series G2
Apr. 2017
Series C2
Feb. 2016
Series D2
June 2016
Series F
Jun. 2014
Series D
Oct. 2015
Series C
April 2017
Minority Investment
Apr. 2017
$3.0B Acquisition
June 2016
$2.4B Acquisition
Dec. 2014
$24B MBO2 / $67B Acq.2
Feb. 2013 / Oct. 2015
Series G
March 2017
Growth Financing
Aug. 2015
14. What Does It Take to Go Public Today?
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
-80% -70% -60% -50% -40% -30% -20% -10% 0%
State of the Markets 14
*The “Rule of 40” is a guideline for software-as-a-service companies to manage growth (approximated by revenue) in
sacrifice of profitability (approximated by operating margin). Growth rate + profitability should exceed 40%.
For further reading: http://feld.com/archives/2015/02/rule-40-healthy-saas-company.html
Source: Company SEC filings.
Selected Metrics from Last 11 SaaS S-1 Filings: 2016–Q1’17
Despite investor sentiment shifting away from “growth at all costs,” all 11 of the most recently
announced cloud software offerings were unprofitable as of their S-1 filing. In fact, just two exceeded
the “Rule of 40”* guideline for measuring software-as-a-service company growth vs. profitability.
Operating Margin
RevenueGrowth
Twilio5
Yext3
Alteryx2
MuleSoft2
AppDynamics3
Okta3
Apptio4
Everbridge4
Coupa4
BlackLine4
Notes:
1. Growth: Fiscal Year 2017 vs. Fiscal Year 2016; Margin: Fiscal Year 2017
2. Growth: Full Year 2016 vs. Full Year 2015; Margin: Full Year 2016
3. Growth: 9 months ended Oct. 31, 2016 vs. 9 months ended Oct. 31, 2015; Margin: 9 months ended Oct. 31, 2016
4. Growth: 6 months ended June 30, 2016 vs. 6 months ended June 30, 2015; Margin: 6 months ended June 30, 2016
5. Growth: Full Year 2015 vs. Full Year 2016; Margin: Full Year 2015
Cloudera1
Listed
Filed
Acquired
15. State of the Markets 15
The Early Harvest:
IPO Conditions
16. 0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
Multiples Climb Following 2016 M&A Blitz
State of the Markets 16
1. NTM revenue multiples for IPOs based on earliest estimates, adjusted to IPO date.
2. Multiples above 10x at IPO are represented with an arrow.
Sources: S&P Capital IQ and Bessemer Venture Partners.
Atlassian: 12x
Restored
Confidence
“Good Times”
6-Month Gap
Between IPOs
Cloud software companies continue to ride a wave of restored confidence in valuation metrics as they
enter the public market. After a post-election pause at the start of the year, as of March 31, 2017 two
cloud software companies had successfully listed and three more had filed: Okta, Yext and Cloudera.
NTM Revenue Multiples1
Twilio: 10xShopify: 11x
Q2-Q3 Cloud M&A
Box
ApptioInstructure
Xactly
Cloud IPOs2
BVP Cloud Index
Constituents (Median)
Demandware
LinkedIn
Opower
Jan. ’15 April ’15 July ’15 Oct. ’15 Jan. ’16 April ’16 July ’16 Oct. ’16 Jan. ’17
Coupa: 12x
Alteryx
MuleSoft: 12x
17. Recent Listings Exceed Their Private Values
State of the Markets 17
Includes venture-backed technology companies with available private valuation data within five years of IPO.
Sources: PitchBook and S&P Capital IQ.
Market Cap Relative to Last Private Round for Venture-Backed Tech Companies Listing in 2016–Q1’17:
As of 3/31/2017
The success of recent IPOs serves as an indication of public market confidence. These companies
represent a diverse range of sectors ― from social media and adtech to communications hardware.
-50%
0%
50%
100%
150%
200%
Acacia
.Comm.
Impinj Twilio MuleSoft The Trade
Desk
Quantenna
.Comm.
Coupa Nutanix Snap Everspin
.Tech.
Alteryx Apptio
IPO Date: 2016
2017
+1061% +423%
18. Markets’ Calm Waters Ideal for IPO Plunges
State of the Markets 18Sources: S&P Capital IQ and Yahoo! Finance.
23 25 2 1 4 2 13 11 16 10 20 10 16 16 23 9 10 7 3 13 4
After the 2016 U.S. election, the VIX experienced its longest streak of sub-15 closes since 2007.
Despite this period of calm, just two technology companies priced in the three months following the
election. Snap broke that streak with its $3.4 billion capital raise in early March.
0
10
20
30
40
50
60
70
80
90
Jan/07 Jan/08 Jan/09 Jan/10 Jan/11 Jan/12 Jan/13 Jan/14 Jan/15 Jan/16 Jan/17
VIX Volatility Index (Daily) vs. U.S. Tech IPO Count (Semiannual): 2007–Q1’17
2016
Election
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1’17
IPO
Count
19. Q3
Field of $1B+ IPO Candidates Remains Crowded
State of the Markets 19
U.S. Tech IPOs with Market Caps $1B+ Sized by First-Day Market Cap or Last Private Valuation: 2012–Q1’17
1. For illustrative purposes only.
Sources: S&P Capital IQ and The Wall Street Journal.
Snap’s IPO was just the third U.S. tech debut greater than $10 billion since Facebook’s 2012 offering.
Seven others have attained that lofty valuation through private funding, with another 82 above $1 billion.
2017 …and Beyond12012 2013 2014 2015 2016
Q1
Q4 x13
x35
x30
21. Tech Drives Overall Economic Growth
State of the Markets 21
Since the hype and collapse of the dot-com era almost two decades ago, technology has steadily
increased in importance (and value) for the U.S. economy. Tech companies comprise nearly one-quarter
of the S&P 500 index value. As a consequence, all industries face disruption from tech-native companies.
1. Amazon.com has been included in the technology sector.
2. Value change for Marriott is based on stock price. Marriott acquired Starwood for $13B in cash and stock in September 2016.
3. Airbnb value is based on most recent private valuation (March 2017).
Sources: Company websites, PitchBook, Siblis Research, CNBC and S&P Capital IQ.
S&P 500 Technology Sector1 Weighting: 1995–2016
LodgingAutos
Tech-Native Other
0%
5%
10%
15%
20%
25%
30%
35%
1995 1998 2001 2004 2007 2010 2013 2016
Technology
Trigger
Peak of
Inflated
Expectations
Trough of
Disillusionment
Slope of
Enlightenment
23%
Largest U.S. Companies by Market Cap as of 3/31/2017
with Value Change Since 3/31/2015
-13%
-28%
+91%
-34%
+17%2
+210%
-19%
-19%
3
22. Corporates Take up the Innovation Imperative
0
200
400
600
800
1000
1200
1400
1600
0
20
40
60
80
100
120
State of the Markets 22
Old-guard companies have recognized and embraced the need to innovate — from soup to nuts and
bolts, no sphere of the global economy has been unaffected by this next generation of technology.
1. Denotes launch of CVC and/or first investment.
2. Denotes announcement of corporate initiative (accelerator, research facility, etc.)
Sources: Company websites, Crunchbase, Fortune, Bloomberg, The Wall Street Journal, Star Tribune, Xconomy, Skift and CB Insights.
Number of New Corporate Venture Capital Groups: 2011–2016 Deals with CVC Participation: 2011–2016
2011 2012 2013 2014 2015 2016 2017
1
1
2
2
1
1
1
1
2
2
2
1
1
2
2
1
2
1
1
1
1
1
11
23. Updated: SVB’s Interactive Unicorn Navigator
State of the Markets 23
Use our Unicorn Navigator to follow the journeys of the billion-dollar club as they traverse the venture
landscape toward an eventual exit – now updated with 2017 entrants: C3 IoT, View and Zoom Video.
Sources: The Wall Street Journal, PitchBook and S&P Capital IQ.
https://www.svb.com/state-of-the-markets-report/
24. Report Authors
State of the Markets 24
Steve Allan, CFA
Head of External
Insights & Analytics
sallan@svb.com
Sean Lawson
Senior Manager
SVB Analytics
selawson@svb.com
Steve Allan, CFA is the Head of External
Insights & Analytics and Strategic Advisory,
responsible for the three areas of information
services provided to the innovation economy:
Strategic Advisory Services, Compliance
Valuations and Insights. Strategic Advisory
Services provides consultative guidance
around valuations, benchmarking and
inorganic growth strategies.
Sean Lawson is a Senior Manager with
SVB Analytics and SVB Securities, responsible
for leading research and insights spanning
early- and growth-stage venture-backed
technology companies.
Steven Pipp
Senior Associate
SVB Analytics
spipp@svb.com
Steven Pipp is a Senior Associate with
SVB Analytics and SVB Securities, responsible
for valuation, research and strategic advisory
engagements for venture-backed technology
companies.
Special Thanks
Tim Lee, CFA
Senior Credit Analyst
SVB Asset Management
Daeyoung Choi, CFA
Credit Analyst
SVB Asset Management
Steven Kakowski
Senior Associate
SVB Analytics
Natalie Dillon
Senior Associate
SVB Analytics
Drew Gonzales
Associate
SVB Analytics
Melina Bergkamp
Associate
Silicon Valley Bank