- Venture capital fundraising and investments reached record levels in 2015, with more money coming from non-traditional investors. However, public tech valuations have dropped and private valuations are correcting from unsustainable highs.
- Most venture capitalists expect valuations to decline further in 2016 and are advising portfolio companies to cut costs. Fewer IPO and acquisition exits also have VCs taking a more cautious approach to new investments.
- Limited partner investors in venture funds remain concerned about high investment pacing, valuations, and company burn rates. However, most will maintain rather than decrease their commitments to venture capital over the next three years.
Many people get frustrated by advertising, but it's often the same few things that frustrate people over and over again. This report shares the findings of some research that We Are Social conducted on behalf of the WFA to identify the things that irritate people most about advertising, and offers a wealth of tips to help marketers avoid those marketing 'sins', and find the path back to redemption. For more information and richer insights into the findings, read our accompanying blog post at http://bit.ly/mktg7sins
The SaaS sector is undergoing a ‘reset’: on the public side, revenue multiples went down from 17x a year ago to 6x today. On the private side, funding is down 42% in Q3 with similar trends observed in the US and Europe. What does this mean for European and Israeli SaaS companies? In this presentation, we will dive deeper into:
- How should founders think about their company valuation?
- Are public markets overcorrected?
- How are the public market dynamics impacting the private funding market?
- Will we see a flurry of down round for the 120+ Cloud Unicorns created in Europe and Israel over the past few years?
- Which top 100 companies have been selected for the 2022 Accel Euroscape?
Decision Analysis in Venture Capital workshop for Stanford Angels and Entrepr...Ulu Ventures
This is a workshop given for Stanford Angels and Entrepreneurs India on Jul 10, 2018 at Nexus Venture Partners, Bangalore. The video for this talk is at: https://vimeo.com/279467353
A report by thenetworkone and Kurio.
The contributing experts and agencies are (in an alphabetical order): Megan Encarnacion, Associate Director Social Media & Christopher Dimmock, SVP Integrated Strategy, Abelson Taylor (USA); Ramaa Mosley, CEO Adolescent Content/Youthtellers & Serenity Griffin, Community Manager & Michelle Castillo, Youthteller Consultant &Jola Adeoye, Youthteller Consultant & Sophie Wieters, Youthteller Consultant & Rea Sweets, Youthteller Consultant & Nathalie Alvarez, Youthteller Consultant & Jacob Thompson, Youthteller Consultant § Jadon Velasquez, Youthteller Consultant § Maya Minhas, Youthteller Consultant & Khrystina Warnstadt, Youthteller Consultant, Adolescent Content (USA); Alex Casanovas, Digital Director. Atrevia (ES); Natalie Chaney, Social Strategist, Barrett (USA); Seyi Alawode, Founder & Head of Strategy, CHL (NGA / UK); Eli Williams, Sr. Creative Strategist, Day One Agency (USA); Francesca Trevisan, Strategist, Different (IT); Jide Agbana, Global Product Marketing Manager, Enterfive (US / UK / NGA); Olivia Hussey, Junior Planner, The Hallway (AUS); James Hebbert, Managing Director, Hylink UK (CH / UK); Laura Marzec, Content Strategy at Imagination, part of The Mx Group (USA); Valentina Lagos, Social Media Manager & Felipe "Peluche" León, Digital Director & Mundy Álvarez, Planning Director & Pancho González, CCO, Inbrax (CH); Oana Oprea, Head of Digital Planning, Jam Session Agency (RO); Alix Le Bourgeois, Lead Strategist, JIN (UK/FR); Leigh Tayler, Integrated Strategy Director, Joe Public (SA); Amy Bottrill, Social Account Director, Launch (UK); Gaby Arriaga, Founder of Leonardo1452, Leonardo1452 (MX), Rajesh Mehta, Chief Strategy Officer & Dhruv Gaur, Digital Planning Lead, Medulla (IN); Maira Genovese, Founder and President, MG Empower (UK); Aryana Noorbakhsh, Senior Digital Marketing Executive, Osaka Labs (UK); Timotée Louise Gbaguidi, Digital Communications Director, PIABO (DE); Alexandre Ouairy, Founder and Director, PLTFRM (CN); Daffi Ranandi, Junior Insights Manager, Radarr (SGP); Hannah Nickels, Head Paid & Owned Media Thinker, Thinkerbell (AUS); Allison Lee, Social Team Co-Lead, UltraSuperNew (JP)
Many people get frustrated by advertising, but it's often the same few things that frustrate people over and over again. This report shares the findings of some research that We Are Social conducted on behalf of the WFA to identify the things that irritate people most about advertising, and offers a wealth of tips to help marketers avoid those marketing 'sins', and find the path back to redemption. For more information and richer insights into the findings, read our accompanying blog post at http://bit.ly/mktg7sins
The SaaS sector is undergoing a ‘reset’: on the public side, revenue multiples went down from 17x a year ago to 6x today. On the private side, funding is down 42% in Q3 with similar trends observed in the US and Europe. What does this mean for European and Israeli SaaS companies? In this presentation, we will dive deeper into:
- How should founders think about their company valuation?
- Are public markets overcorrected?
- How are the public market dynamics impacting the private funding market?
- Will we see a flurry of down round for the 120+ Cloud Unicorns created in Europe and Israel over the past few years?
- Which top 100 companies have been selected for the 2022 Accel Euroscape?
Decision Analysis in Venture Capital workshop for Stanford Angels and Entrepr...Ulu Ventures
This is a workshop given for Stanford Angels and Entrepreneurs India on Jul 10, 2018 at Nexus Venture Partners, Bangalore. The video for this talk is at: https://vimeo.com/279467353
A report by thenetworkone and Kurio.
The contributing experts and agencies are (in an alphabetical order): Megan Encarnacion, Associate Director Social Media & Christopher Dimmock, SVP Integrated Strategy, Abelson Taylor (USA); Ramaa Mosley, CEO Adolescent Content/Youthtellers & Serenity Griffin, Community Manager & Michelle Castillo, Youthteller Consultant &Jola Adeoye, Youthteller Consultant & Sophie Wieters, Youthteller Consultant & Rea Sweets, Youthteller Consultant & Nathalie Alvarez, Youthteller Consultant & Jacob Thompson, Youthteller Consultant § Jadon Velasquez, Youthteller Consultant § Maya Minhas, Youthteller Consultant & Khrystina Warnstadt, Youthteller Consultant, Adolescent Content (USA); Alex Casanovas, Digital Director. Atrevia (ES); Natalie Chaney, Social Strategist, Barrett (USA); Seyi Alawode, Founder & Head of Strategy, CHL (NGA / UK); Eli Williams, Sr. Creative Strategist, Day One Agency (USA); Francesca Trevisan, Strategist, Different (IT); Jide Agbana, Global Product Marketing Manager, Enterfive (US / UK / NGA); Olivia Hussey, Junior Planner, The Hallway (AUS); James Hebbert, Managing Director, Hylink UK (CH / UK); Laura Marzec, Content Strategy at Imagination, part of The Mx Group (USA); Valentina Lagos, Social Media Manager & Felipe "Peluche" León, Digital Director & Mundy Álvarez, Planning Director & Pancho González, CCO, Inbrax (CH); Oana Oprea, Head of Digital Planning, Jam Session Agency (RO); Alix Le Bourgeois, Lead Strategist, JIN (UK/FR); Leigh Tayler, Integrated Strategy Director, Joe Public (SA); Amy Bottrill, Social Account Director, Launch (UK); Gaby Arriaga, Founder of Leonardo1452, Leonardo1452 (MX), Rajesh Mehta, Chief Strategy Officer & Dhruv Gaur, Digital Planning Lead, Medulla (IN); Maira Genovese, Founder and President, MG Empower (UK); Aryana Noorbakhsh, Senior Digital Marketing Executive, Osaka Labs (UK); Timotée Louise Gbaguidi, Digital Communications Director, PIABO (DE); Alexandre Ouairy, Founder and Director, PLTFRM (CN); Daffi Ranandi, Junior Insights Manager, Radarr (SGP); Hannah Nickels, Head Paid & Owned Media Thinker, Thinkerbell (AUS); Allison Lee, Social Team Co-Lead, UltraSuperNew (JP)
Backbone pitch deck: $40M for bringing Xbox games to iPhonePitch Decks
Backbone is the brainchild of a young entrepreneur Maneet Khaira, who was working at Google as an intern when he came up with his startup idea for a device that could turn an iPhone into a portable Xbox.
Backbone One is truly the first mobile gaming controller that turns an iPhone into a portable gaming console. Backbone's $40 million Series A investment was led by Index Ventures, with celebrity investors including Kevin Hart, The Weeknd, Post Malone, Amy Schumer, and music producer Christopher Comstock, aka "Marshmello," who previously invested in Backbone's earlier round.
Compact, natural, and comfortable, the Backbone One iOS controller wraps your iPhone in a high-quality gamepad shell that’s satisfying to play, well-constructed, and accompanied by a genuinely useful app. iPhone’s Lightning port automatically pick up connectivity to Backbone One and the companion app has a lot of useful features too. It can capture, edit and upload gaming content as well as supports voice chat with friends that works across any app.
Read more: vip.graphics/backbone-pitch-deck/
See the deck: bestpitchdeck.com/backbone
We’re thrilled to announce that we’ve raised Kleiner Perkins’ 18th venture fund -- $600 million to focus on early stage investing. This marks 47 years for our firm, and with a fresh team and strategy, we’re incredibly excited for the next 47 years.
GTX's $25M pitch deck: new crypto exchange by 3AC & CoinFLEX foundersPitch Decks
The founders of the now-defunct crypto hedge fund, Three Arrows Capital (3AC) and co-founders of CoinFLEX (which filed for restructuring last year) are teaming up to raise $25 million to establish a new crypto exchange called GTX.
The launch of this new exchange comes two months after the infamous collapse of leading crypto exchange FTX, which left over a million creditors without compensation. The name of the exchange, GTX, is even a play on FTX, with one pitch deck opening with the line “because G comes after F.”
Regardless of the surrounding controversy, the GTX pitch deck offers unique insight into how repeat founders can bounce back from a failed startup and raise funding from investors for new ventures:
Read more: vip.graphics/gtx-pitch-deck
See details: bestpitchdeck.com/gtx
January 2022 - Monthly Social Media Update Andy Lambert
There's not a single platform that's not experiencing significant growth right now, get the latest on all of the social media trends, changes, and updates you need to know for this month.
Weekend Fund 3.0 - VC Pitch Deck ExamplesPitch Decks
Weekend Fund is a two-person team: Ryan Hoover (founder of Product Hunt) and Vedika Jain writing $100k-300k checks into early-stage startups around the world across consumer and B2B.
After raising an initial $3M angel fund in 2017, then a $10M early-stage fund in 2019, Weekend Fund used this pitch deck to raise a $21M Fund "3.0" in 2022.
Weekend Fund is backed by notable LPs like Naval Ravikant, Troy Carter, Marc Andreessen, Chris Dixon, Suzy Ryoo, Miyuki Matsumoto, Kevin Rose, Chris & Crystal Sacca. They have funded startups like Intercom, Faze Clan, Deel, VoiceFlow & more.
Delivering Outstanding VC Results with DAUlu Ventures
Slides of guest lecture by Dr. Clint Korver, Partner, Ulu Ventures, at Stanford University's class Professional Decision Analysis (MS&E 352) on Feb 27, 2018
How to Use Social Media to Influence the WorldSean Si
Here's the deck to my talk for the 23rd ASA Congress which was at The Grand Ballroom of Marriott Hotel. It was an awesome experience and I only had two points:
1) Use social media for good and
2) You have to have authority to use social media influentially.
My company: https://seo-hacker.net
We are big advocates of transparency at Seedcamp and understand first hand just how tough the fundraising process can be. It's not just startups who go through this but funds too. In the spirit of openness, we're sharing the deck we used to go out to investors for Seedcamp Fund IV.
Read more about our plans to invest in 100 new European startups with our biggest and boldest fund yet over on our blog: http://seedcamp.com/seedcamp-fund-iv-announcement/
How to VC: Creating a VC fund portfolio modelDave McClure
This article aims to help VCs figure out how to size a venture capital fund, how many companies to include in your portfolio, and when and how to do follow-on investments. Most VCs aim to make a 3X (net) return on initial fund capital, at a ~20% net IRR. Note however, likely less than 10% of most VC funds achieve that goal.
6-Step Guide to B2B Content Marketing that WorksLinkedIn
70 percent of marketers report that they plan
to produce more content this year than last
year. At the same time, only 30% rate their
efforts as “effective” or “very effective.”
That means a lot of us still struggle with the
marketing aspect of content marketing. Use
the 6 steps in the following slides as a
blueprint of how to build a content strategy
that produces measurable results.
"What is Different This Time Around" at SaaStr Annual 2016saastr
Mark Suster shares his thoughts on the change in funding climate in 2016, what is the same this time around, and what most certainly isn't at SaaStr Annual 2016 held in San Francisco Feb 9-11th. www.saastrannual.com
Backbone pitch deck: $40M for bringing Xbox games to iPhonePitch Decks
Backbone is the brainchild of a young entrepreneur Maneet Khaira, who was working at Google as an intern when he came up with his startup idea for a device that could turn an iPhone into a portable Xbox.
Backbone One is truly the first mobile gaming controller that turns an iPhone into a portable gaming console. Backbone's $40 million Series A investment was led by Index Ventures, with celebrity investors including Kevin Hart, The Weeknd, Post Malone, Amy Schumer, and music producer Christopher Comstock, aka "Marshmello," who previously invested in Backbone's earlier round.
Compact, natural, and comfortable, the Backbone One iOS controller wraps your iPhone in a high-quality gamepad shell that’s satisfying to play, well-constructed, and accompanied by a genuinely useful app. iPhone’s Lightning port automatically pick up connectivity to Backbone One and the companion app has a lot of useful features too. It can capture, edit and upload gaming content as well as supports voice chat with friends that works across any app.
Read more: vip.graphics/backbone-pitch-deck/
See the deck: bestpitchdeck.com/backbone
We’re thrilled to announce that we’ve raised Kleiner Perkins’ 18th venture fund -- $600 million to focus on early stage investing. This marks 47 years for our firm, and with a fresh team and strategy, we’re incredibly excited for the next 47 years.
GTX's $25M pitch deck: new crypto exchange by 3AC & CoinFLEX foundersPitch Decks
The founders of the now-defunct crypto hedge fund, Three Arrows Capital (3AC) and co-founders of CoinFLEX (which filed for restructuring last year) are teaming up to raise $25 million to establish a new crypto exchange called GTX.
The launch of this new exchange comes two months after the infamous collapse of leading crypto exchange FTX, which left over a million creditors without compensation. The name of the exchange, GTX, is even a play on FTX, with one pitch deck opening with the line “because G comes after F.”
Regardless of the surrounding controversy, the GTX pitch deck offers unique insight into how repeat founders can bounce back from a failed startup and raise funding from investors for new ventures:
Read more: vip.graphics/gtx-pitch-deck
See details: bestpitchdeck.com/gtx
January 2022 - Monthly Social Media Update Andy Lambert
There's not a single platform that's not experiencing significant growth right now, get the latest on all of the social media trends, changes, and updates you need to know for this month.
Weekend Fund 3.0 - VC Pitch Deck ExamplesPitch Decks
Weekend Fund is a two-person team: Ryan Hoover (founder of Product Hunt) and Vedika Jain writing $100k-300k checks into early-stage startups around the world across consumer and B2B.
After raising an initial $3M angel fund in 2017, then a $10M early-stage fund in 2019, Weekend Fund used this pitch deck to raise a $21M Fund "3.0" in 2022.
Weekend Fund is backed by notable LPs like Naval Ravikant, Troy Carter, Marc Andreessen, Chris Dixon, Suzy Ryoo, Miyuki Matsumoto, Kevin Rose, Chris & Crystal Sacca. They have funded startups like Intercom, Faze Clan, Deel, VoiceFlow & more.
Delivering Outstanding VC Results with DAUlu Ventures
Slides of guest lecture by Dr. Clint Korver, Partner, Ulu Ventures, at Stanford University's class Professional Decision Analysis (MS&E 352) on Feb 27, 2018
How to Use Social Media to Influence the WorldSean Si
Here's the deck to my talk for the 23rd ASA Congress which was at The Grand Ballroom of Marriott Hotel. It was an awesome experience and I only had two points:
1) Use social media for good and
2) You have to have authority to use social media influentially.
My company: https://seo-hacker.net
We are big advocates of transparency at Seedcamp and understand first hand just how tough the fundraising process can be. It's not just startups who go through this but funds too. In the spirit of openness, we're sharing the deck we used to go out to investors for Seedcamp Fund IV.
Read more about our plans to invest in 100 new European startups with our biggest and boldest fund yet over on our blog: http://seedcamp.com/seedcamp-fund-iv-announcement/
How to VC: Creating a VC fund portfolio modelDave McClure
This article aims to help VCs figure out how to size a venture capital fund, how many companies to include in your portfolio, and when and how to do follow-on investments. Most VCs aim to make a 3X (net) return on initial fund capital, at a ~20% net IRR. Note however, likely less than 10% of most VC funds achieve that goal.
6-Step Guide to B2B Content Marketing that WorksLinkedIn
70 percent of marketers report that they plan
to produce more content this year than last
year. At the same time, only 30% rate their
efforts as “effective” or “very effective.”
That means a lot of us still struggle with the
marketing aspect of content marketing. Use
the 6 steps in the following slides as a
blueprint of how to build a content strategy
that produces measurable results.
"What is Different This Time Around" at SaaStr Annual 2016saastr
Mark Suster shares his thoughts on the change in funding climate in 2016, what is the same this time around, and what most certainly isn't at SaaStr Annual 2016 held in San Francisco Feb 9-11th. www.saastrannual.com
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.
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 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.
Every year Upfront Ventures surveys our peer group for their sentiment on the fund raising environment, burn rates, areas of technology interest and the year ahead. This report summarizes the views as of January 2017.
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.
TRENDS IN PRIVATE COMPANY FINANCING & EXITS IN OPHTHALMOLOGYHealthegy
Presentation by Silicon Valley Bank at OIS@ASRS 2016.
Participant:
Jonathan Norris, Managing Director - Silicon Valley Bank
Powered by:
Healthegy
For more ophthalmology innovation
Visit us at www.ois.net
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.
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.
Stocks from the Gurus, Goldman Sachs and Hedge Funds NowAlpesh Patel
We look at the picks which hedge funds and big banks have in common and our own stringent criteria which narrows down 10k to the top 1%. Part of our www.campaignforamillion.com
Dr. Don Levy of the Siena College Research institute analyzed the results of the Annual Survey of Upstate NY business leaders and what they mean for the Buffalo region.
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.
If you want to understand how decisions are made at a VC firm it is important to understand the staff who work there. Here is a guide but you can also read more at this blog post: https://bothsidesofthetable.com/how-to-improve-your-odds-of-getting-to-yes-with-a-vc-land-and-expand-b46a0a102a07
Upfront Ventures surveys VC firms every year to gauge their views on technology markets. This year we asked people their views about cryptocurrencies & blockchain.
Upfront Ventures blockchain and crypto deckMark Suster
Mark Suster of Upfront Ventures gives a presentation primer on Cryptocurrencies & Blockchain. This is best consumed with a video that will be released and available on Upfront's YouTube page: https://www.youtube.com/user/upfrontventures/videos
Fundstrat Bitcoin & Blockchain presentation for Upfront SummitMark Suster
An equity analyst case for the value in cryptocurrencies. Thomas Lee of Fundstrat was lead equity researcher for JP Morgan before founding Fundstrat. He takes a market approach to valuing Bitcoin and other cryptocurrencies. Here is his presentation for the #UpfrontSummit 2018.
Upfront LP Survey of the Venture Capital & Startup IndustryMark Suster
Upfront Ventures surveyed Limited Partners (LPs) on their outlook on the venture capital markets and the underlying technology startups we back. This presentation created in Q1 2017 shares this outlook.
A 2016 overview of the technology & venture capital industries in Los Angeles presented by Mark Suster, Managing Partner of Upfront Ventures for the Mayor's LP / VC Summit.
The Changing Structure of the Venture Capital IndustryMark Suster
I presented this deck at the 2014 PreMoney Conference. I wrote a blog post here that goes into more detail: http://bit.ly/ChangingVC
The video of the presentation I gave is here: http://youtu.be/5MClCBUjbbE
The VC industry is changing. The press has focused on the wrong story - crowd funding. The bigger story is the shift from public financing to private financing and the bifurcation of the venture industry. This presentation examines the case.
Want to build an online video company? Interested in the YouTube MCN space? Learn some lessons from one of the first and largest investors in this space- Mark Suster of Upfront Ventures. The doc will give you guidance on how to build more profitably.
2. There is Some Stuff We All Know
We all know the funding markets for venture-backed
startups have been strong for 7 straight years
2
3. LP contributions to the VC industry are back to pre-recession levels
and anecdotally 2016 seems likely to increase further
3
US VC fundraising activity
0
75
150
225
300
$0
$15
$30
$45
$60
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Capital raised ($B)
# of funds closed
235
271
209
218
192
176
162
214
235236233
$28
$31
$18
$20$19
$13
$16
$25
$30$31$30
233 236 235
214
162
176
192
218
209
271
235
Source: Dow Jones VentureSource; Upfront analysis.
4. With more money (and new non VC entrants) venture financings have
obviously increased. 2015 was an enormous year (2x pre recession)
4
US VC financing activity
0
2,500
5,000
7,500
10,000
$0
$25
$50
$75
$100
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Capital invested ($B)
# of rounds closed
8,097
9,381
8,563
7,572
6,428
5,193
4,3164,533
4,119
3,145
2,574
$77
$68
$44
$40$42
$30
$26
$36$35
$28
$23
2,574
3,145
4,119
4,533 4,316
5,193
6,428
7,572
8,563
9,381
8,097
Source: PitchBook 2015 Annual U.S. Venture Industry Report; Upfront analysis.
5. And what's interesting is that if you look at the spread between dollars raised by VCs
and dollars invested, you see the huge shift from a decade ago of non-VC capital
5 Source: Upfront analysis.
US VC fundraising vs financing (2006-07, $B)
0
35
70
105
140
175
Funds raised by VCs Funds invested by VCs
6361
1x
US VC fundraising vs financing (2014-15, $B)
0
35
70
105
140
175
Funds raised by VCs Funds invested by VCs
145
59
2.5x
6. Angel & Seed deals have grown fastest but dollars have scaled massively into
a smaller number of later-stage deals (doubling in just 2 years)
6 Source: PitchBook 2015 Annual U.S. Venture Industry Report; Upfront analysis.
US VC # of rounds closed by stage US VC capital invested ($B) by stage
0
10
20
30
40
50
2010 2011 2012 2013 2014 2015
0
1,000
2,000
3,000
4,000
5,000
2010 2011 2012 2013 2014 2015
Early
Stage
CAGR
21%
36%
16%
CAGR
1%
22%
3%
Angel/
Seed
Late
Stage
Early
Stage
Late
Stage
Angel/
Seed
7. And the dollars into late-stage deals has largely been driven by non-
traditional VCs entering the market (up 50% in the last 3 years)
7 Source: CBInsights, VC-backed $20M+ rounds; non-VC defined as Asset Mgmt, Corporate/Corporate VC, Family Office, Hedge & Mutual Funds; Upfront analysis.
Non-VC participation in US $20 million-plus rounds
0%
15%
30%
45%
60%
2012 2013 2014 2015
55%
47%47%
37%
CAGR
’12-’15
15%
8. M&A pace hasn’t matched the increases in funding pace so VC mark-ups
have been good but cash distributions less so
8
US VC-backed M&A activity
300
375
450
525
600
$0
$38
$75
$113
$150
2011 2012 2013 2014 2015
Amount Paid ($B)
Number of M&As
473
510
470
462
542
$54
$81
$42$43$47
542
462
470
510
473
Source: Dow Jones VentureSource Venture Capital Report 4Q’15; Upfront analysis.
9. IPO exits are down 32% in volume and 38% in value
9
US VC-backed IPO activity
0
30
60
90
120
$0
$4
$8
$11
$15
2011 2012 2013 2014 2015
Raised ($B) through IPO
Number of IPOs
66
107
73
50
46
$6
$9
$8
$11
$5
46
50
73
107
66
Source: Dow Jones VentureSource Venture Capital Report 4Q’15; Upfront analysis.
50
10. But there are other truths that people have only
recently begun to speak about
10
11. 11
Public Tech Markets are obviously off dramatically in the past three months
beginning the question of what this means for private valuations
NASDAQ
LinkedIn
Apple
Twitter
(9%)
(18%)
(19%)
(41%)
Source: 3-month valuations November 02, 2015 to January 29, 2016; Upfront analysis.
12. Private market valuations had risen beyond what some believe are sustainable (up 3x in 2 years).
Q4 saw massive correction (we asked VCs if they thought it was an anomaly or a trend).
12
US VC-backed financing median pre-money valuation ($M)
$0
$20
$40
$60
$80
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15
$28
$68
$53
$60
$58
$37
$51
$22$21
$19
$24
$17
Source: Dow Jones VentureSource Venture Capital Report 4Q’15; Upfront analysis.
13. More than 90% of respondents in the Upfront VC Survey expected valuations to go
down in 2016 with a full 1/3rd of investors expecting significant price corrections
13
Do you expect valuations to go up, down or remain about the same as
previous quarters?
0%
25%
50%
75%
100%
Q4'15 1H'16 Proj
30%
5%
61%
61%
8%
28%
6% Increase
About the same
Marginally down
Significantly down
Source: Upfront Survey Jan 2016, 156 VCs for Q4’15, 158 VCs for 1H’16; Upfront analysis.
14. This is coupled with a very visible recalibration of valuations of the pre-IPO
mutual fund cohort at places like Fidelity
14
Fidelity’s holdings: % valuation change since purchase
Blue Bottle
MongoDB Series F
Taboola.com Series E
Turn Inc.
Zenefits Series C
Dataminr Series D
Dropbox Series C
Snapchat Series F
0% 25% 50% 75% 100%
Source: Fortune; Blue Bottle, Dropbox, Snapchat and Benefits data as 11/30/2015, rest as of 9/30/2015; Upfront analysis.
0% -25% -50% -75% -100%
-61%
-54%
-45%
-44%
-35%
-29%
-15%
-47%
15. 15
This has swung sentiment for many experienced VC firms firmly toward
controlling burn over rapid growth
16. This was clearly borne out in the Upfront VC Survey where 62% of firms are
advising companies to cut costs / burn as markets tighten
16
4%
35%
62%
Source: Upfront Survey Jan 2016, 156 VCs.
Which statement best describes the spending behavior at most
of the companies in which you are on the board or observe?
Generally cutting costs expecting
markets to tighten
Don’t see much change from a year ago
Generally not too worried about burn rates
100%
19. And with fewer VC exits many partners are more overloaded with boards and
financings and feel less pressure to do new deals quickly. FOMO is on the decline.
19
Average number of board / observer seats
0
2
4
6
8
10
Years of investment experience
0-3 years 3-6 years 6-10 years 10-15 years 15+ years
8
7
5
4
3
Source: Upfront Investor Survey, sample size of 76 early to late stage VCs, excluding angel/seed and corporate VCs; Upfront analysis.
20. There is a clear feeling that fund raising cycles are taking longer and 77% felt
this pace is likely to slow down even further in 2016
20
Do you expect deals to take longer in the process than previous funding
quarters, the same or shorter?
0%
25%
50%
75%
100%
Q4'15 1H'16 Proj
77%45%
22%
51%
1%4% Shorter than normal
About the same as normal
Getting longer
Source: Upfront Survey Jan 2016, 159 VCs for Q4’15 and 158 VCs for 1H’16.
21. 50% of respondents indicate they may slow down their pace, 35% thought it
would be the same pace as 2015 and only 16% expect 2016 to be robust
21
1%4%
43%
35%
16%
Source: Upfront Survey Jan 2016, 158 VCs.
How would you generally describe your investment
mindset heading into 2016?
“Seeing tons of great deal flow and expect this to be
a solid year”
“Unless a deal is amazing I’m likely to slow my pace a bit”
“I don’t feel compelled to do deals”
“2016 about the same pace as my last
several years”
“I’d rather fund when the dust settles
22. With the sentiment of the markets it’s no surprise that a full 82% of VCs
expressed caution or concern going into 2016
22
2%
30%
50%
9%
9%
Source: Upfront Survey Jan 2016, 155 VCs.
Hugely bullish
I’m very concerned
Things are bad & getting worse
Generally cautious
Generally optimistic
Which of the following statements best describes
your mood heading into 2016
100%
23. And how does the growth in funding, valuations and
anxiety play in the minds of LPs who fund the VC
industry ultimately?
23
24. The good news is that only 7% of LPs believe they will cut back on venture
programs with 26% of funds looking to increase exposure
24
4%
22%
67%
7%
Source: Upfront Survey Jan 2016, 73 LPs.
How would you describe your fund’s current
allocation to VC?
About the right allocation
Aggressively growing venture Too much allocated to venture
Trying to grow our venture program
25. But LPs expressed caution, too. Nearly 75% of LPs have concerns about
investment pace, valuation levels and burn rates of underlying companies.
25
6%
68%
26%
Source: Upfront Survey Jan 2016, 72 LPs.
How would you describe your fund’s outlook on your
existing (VC) managers activities?
Very happy with investment activities of
our existing managers
Deeply concerned about the market behavior
A bit concerned by pace, valuation
creep and burn rates
100%
26. 61% of LPs believe that VCs are coming back to market to raise money at too
quick of a pace - a reflection of anxieties of the over-funding of portfolios
26
61% 15%
24%
Source: Upfront Survey Jan 2016, 72 LPs.
How would you describe your fund’s outlook in your
existing (VC) managers funding (and fund raising) pace?
Managers come back at a normal
cadence and it hasn’t changed much
Managers have been coming back more quickly
than in the past and we’re fine with this
Managers have been coming back more
quickly than in the past and it concerns us
100%
27. But a full 82% of LPs are likely to maintain their existing investment pace
27
10%
82%
8%
Source: Upfront Survey Jan 2016, 73 LPs.
How would you describe your likely investment pace
in venture over the next 3 years?
We’re likely to increase our investment pace
We’re likely to keep the same investment pace
We’re likely to slow down our investment pace
100%
28. While the market for Seed Funds grew enormously in the past 7 years, many
LPs still express some concerns about capacity and market crowding
28
23%
66%
11%
Source: Upfront Survey Jan 2016, 70 LPs.
What is your fund’s outlook on the seed market?
Seed delivers the highest potential returns and we’ll
continue to invest heavilyThere are too many seed funds and we’re worried they
won’t have enough capacity
We fund seed VCs but we’re very
discerning on which ones we’ll fund
29. Also it’s not too surprising that LPs are most cautious about growth stage
funds - in particular concerns about late-stage valuations
29
68%
32%
Source: Upfront Survey Jan 2016, 71 LPs.
What is your fund’s outlook on later stage venture
capital / growth equity?
We like growth stage but want a healthy balance of
seed, A/B and growth
We’re worried that the growth stage is
the most over-valued part of the market
100%
30. What to make of all of the uncertainty and potential
change in the VC markets?
30
31. 31
Expect loss ratios to go up. But ultimately the creative destruction
of these storms can be good. New startup cohorts will sprout where
others get cleared out.
32. 32
A slowing pace should be
healthy for startups and for
VC returns. We believe the
next 3 years will value
patience over speed at all
costs.
33. 33
And despite market concerns in the short-term, as an asset class we see so
many industries ripe for innovation and disruption
Aerial & Space-techVR & ARTransportation Computational Biology Food & Agriculture
35. 159 VCs surveyed
35
Fund type
0
20
40
60
Angel Seed VC (Early) VC (Mid) VC (Late) PE Corp (blank)
11
96
19
47
60
7
Source: Upfront Survey Jan 2016.
Fund size ($ million)
0
20
40
60
$1-20 $20-100 $300-999 $100-300 $1000+ Evergreen Personal
779
2833
47
19
Survey respondent geography
0
40
80
Norcal SoCal NE US Other US ROW (blank)
178
24
31
79
Position
0
47
93
140
Partner / MD Analyst to Principal Sole proprietor/personal investor
79
134
How long has your firm existed (years)
0
35
70
0-3 3-10 10-20 20+
22
36
61
31
Personal investment experience (years)
0
40
80
0-3 3-6 6-10 10-15 15+
41
23
43
30
13
36. 73 LPs surveyed, part 1
36
Fund type
0
10
20
30
9
445
23
28
Fund size
0
10
20
$0-250M $250-750M $750M-1.5B $1.5-5B $5-10B $10B+ Blank
4
16
7
18
3
11
14
Which of the following best describes your focus on VC?
0
25
50
Only VC Mostly VC Very diverse Not much VC
2
42
10
19
Foundation or
Endowment
Fund of
Funds
Family
Office
Discretionary
Advisor
Insurance
Company
Other
Survey respondent geography
0
15
30
NorCal SoCal NE US Other US ROW Blank
2
4
28
11
6
22
Source: Upfront Survey Jan 2016.
37. 73 LPs surveyed, part 2
37
Position
0
20
40
60
Partner / MD Analyst to Principal Blank
1
18
54
How long has your firm been investing in VC (years)
0
20
40
0-3 3-10 10-20 20+
1
23
30
16
3
How long has your firm existed (years)
0
20
40
0-3 3-10 10-20 20+
38
1614
5
Personal investment experience (years)
0
20
40
0-3 3-6 6-10 10-15 15+
27
23
15
44
Haven’t invested
much in VC
Source: Upfront Survey Jan 2016.