SlideShare a Scribd company logo
Venture Capital 2016
Data & Views from VCs and LPs
1
VC Survey Data
With more money (and new non VC entrants) venture financings have
obviously increased. 2015 was an enormous year (2x pre recession)
2
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
$23
2,574
3,145
4,119
4,533 4,316
5,193
6,428
7,572
8,563
9,381
8,097
Source: PitchBook 2015 Annual U.S. Venture Industry Report; Upfront analysis.
Angel & Seed deals have grown fastest but dollars have scaled massively into
a smaller number of later-stage deals (doubling in just 2 years)
3 Source: PitchBook 2015 Annual U.S. Venture Industry Report; Upfront analysis.
US VC # of rounds closed by stage US VC capital invested ($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
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)
4 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%
M&A pace hasn’t matched the increases in funding pace so VC mark-ups
have been good but cash distributions less so
5
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.
IPO exits are down 32% in volume and 38% in value
6
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
With fewer VC exits many partners are more overloaded with boards and
financings. 77% of surveyed VCs sit on or observe 4+ boards
7
2%3%
23%
39%
24%
9%
Source: Upfront Survey Jan 2016, 158 VCs.
How many boards do you sit on or observe?
11 - 14 0
7 - 10
4 - 6
1 - 3
15+
About 2/3rd of respondents and their partners write 1-4 first checks each year
8
How many first check investments do you and a typical partner at your
firm make each year?
0%
25%
50%
75%
100%
Respondent Typical partner at respondent's firm
6%6%
32%27%
34%
28%
24%
25%
5%
13%
10+
5-10
3-4
2
1
Source: Upfront Survey Jan 2016, 159 VCs for Respondent and 158 VCs for Typical partner at respondent’s firm.
88% of Surveyed VCs are conservative on valuations
9
6%
42%
41%
11%1%
Source: Upfront Survey Jan 2016, 156 VCs.
How would you describe your outlook on valuations
right now?
Not much should change in 2016 over 2015
I expect valuations to continue to rise and you
have to pay if you want to be in the best deals
My best years are years where valuations are soft. If I
get a great deal, I’m in. Otherwise I’ll wait until later
in the year. Prices can only continue to drop
I’ve already reset valuations expectations in
my mind. If I don’t get what I consider a fair
valuation I’ll just move on. There are plenty
of deals out there and I’m not in a rush I find myself getting a little bit more
conservative on valuations and am even
willing to miss a deal if I feel it’s overpriced
Specifically more than 90% of respondents expected valuations to go down in
2016 with a full 1/3rd of investors expecting significant price corrections
10
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.
There is a clear feeling that fund raising cycles are taking longer and 77% of
respondents felt this pace is likely to slow down even further in 2016
11
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.
This has swung sentiment for many experienced VCs, with 62% of
respondents advising companies to cut costs / burn as markets tighten
12
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
65% of respondents think their firms will make about the same first check
investments in 2016 as they had in 2015
13
23%
65%
11%
Source: Upfront Survey Jan 2016, 159 VCs.
Do you think your firm will make more new first
check investments or fewer in 2016 vs. 2015?
More New Investments
Fewer New Investments
About the Same Pace
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
14
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
With the sentiment of the markets it’s no surprise that a full 82% of VCs
expressed caution or concern going into 2016
15
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
159 VCs surveyed
16
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

More Related Content

What's hot

Final san diego venture group keynote 2016
Final san diego venture group keynote   2016Final san diego venture group keynote   2016
Final san diego venture group keynote 2016
Mark Suster
 
UK Startup Outlook Report 2017
UK Startup Outlook Report 2017UK Startup Outlook Report 2017
UK Startup Outlook Report 2017
Silicon Valley Bank
 
SVB UK Startup Outlook 2016
SVB UK Startup Outlook 2016SVB UK Startup Outlook 2016
SVB UK Startup Outlook 2016
Silicon Valley Bank
 
SVB China Startup Outlook 2016
SVB China Startup Outlook 2016SVB China Startup Outlook 2016
SVB China Startup Outlook 2016
Silicon Valley Bank
 
Future of Asia
Future of AsiaFuture of Asia
United States Wealth Report 2015 infographic
United States Wealth Report 2015 infographicUnited States Wealth Report 2015 infographic
United States Wealth Report 2015 infographic
Capgemini
 
SVB US Startup Outlook 2016
SVB US Startup Outlook 2016SVB US Startup Outlook 2016
SVB US Startup Outlook 2016
Silicon Valley Bank
 
LA Venture Capital Report Q1 2015 – CB Insights & Upfront Venture
LA Venture Capital Report Q1 2015 – CB Insights & Upfront VentureLA Venture Capital Report Q1 2015 – CB Insights & Upfront Venture
LA Venture Capital Report Q1 2015 – CB Insights & Upfront Venture
Upfront Ventures
 
"What is Different This Time Around" at SaaStr Annual 2016
"What is Different This Time Around" at SaaStr Annual 2016"What is Different This Time Around" at SaaStr Annual 2016
"What is Different This Time Around" at SaaStr Annual 2016
saastr
 
Talent crisis in middle_market_tom_steward_ncmm
Talent crisis in middle_market_tom_steward_ncmmTalent crisis in middle_market_tom_steward_ncmm
Talent crisis in middle_market_tom_steward_ncmm
Marcie Taylor
 
The Affluent Millenial Opportunity Study - India
The Affluent Millenial Opportunity Study - India The Affluent Millenial Opportunity Study - India
The Affluent Millenial Opportunity Study - India
LinkedIn India
 
The 10 Year Project
The 10 Year ProjectThe 10 Year Project
The 10 Year Project
First Round Capital
 
Less is More: How to Make Your Funding Go Further with Market Focus from Main...
Less is More: How to Make Your Funding Go Further with Market Focus from Main...Less is More: How to Make Your Funding Go Further with Market Focus from Main...
Less is More: How to Make Your Funding Go Further with Market Focus from Main...
saastr
 
Infographic: World Wealth Report 2015
Infographic: World Wealth Report 2015Infographic: World Wealth Report 2015
Infographic: World Wealth Report 2015
Capgemini
 
Us Startup Outlook Report 2017
Us Startup Outlook Report 2017Us Startup Outlook Report 2017
Us Startup Outlook Report 2017
Webrazzi
 
2019 Venture Limited Partner survey
2019 Venture Limited Partner survey2019 Venture Limited Partner survey
2019 Venture Limited Partner survey
Samir Kaji
 
Women In UK Venture Capital 2017
Women In UK Venture Capital 2017 Women In UK Venture Capital 2017
Women In UK Venture Capital 2017
Diversity VC
 
CEO Succession - Data Spotlight
CEO Succession - Data SpotlightCEO Succession - Data Spotlight
How talent management drives your organization's goals
How talent management drives your organization's goalsHow talent management drives your organization's goals
How talent management drives your organization's goals
Cornerstone OnDemand
 

What's hot (19)

Final san diego venture group keynote 2016
Final san diego venture group keynote   2016Final san diego venture group keynote   2016
Final san diego venture group keynote 2016
 
UK Startup Outlook Report 2017
UK Startup Outlook Report 2017UK Startup Outlook Report 2017
UK Startup Outlook Report 2017
 
SVB UK Startup Outlook 2016
SVB UK Startup Outlook 2016SVB UK Startup Outlook 2016
SVB UK Startup Outlook 2016
 
SVB China Startup Outlook 2016
SVB China Startup Outlook 2016SVB China Startup Outlook 2016
SVB China Startup Outlook 2016
 
Future of Asia
Future of AsiaFuture of Asia
Future of Asia
 
United States Wealth Report 2015 infographic
United States Wealth Report 2015 infographicUnited States Wealth Report 2015 infographic
United States Wealth Report 2015 infographic
 
SVB US Startup Outlook 2016
SVB US Startup Outlook 2016SVB US Startup Outlook 2016
SVB US Startup Outlook 2016
 
LA Venture Capital Report Q1 2015 – CB Insights & Upfront Venture
LA Venture Capital Report Q1 2015 – CB Insights & Upfront VentureLA Venture Capital Report Q1 2015 – CB Insights & Upfront Venture
LA Venture Capital Report Q1 2015 – CB Insights & Upfront Venture
 
"What is Different This Time Around" at SaaStr Annual 2016
"What is Different This Time Around" at SaaStr Annual 2016"What is Different This Time Around" at SaaStr Annual 2016
"What is Different This Time Around" at SaaStr Annual 2016
 
Talent crisis in middle_market_tom_steward_ncmm
Talent crisis in middle_market_tom_steward_ncmmTalent crisis in middle_market_tom_steward_ncmm
Talent crisis in middle_market_tom_steward_ncmm
 
The Affluent Millenial Opportunity Study - India
The Affluent Millenial Opportunity Study - India The Affluent Millenial Opportunity Study - India
The Affluent Millenial Opportunity Study - India
 
The 10 Year Project
The 10 Year ProjectThe 10 Year Project
The 10 Year Project
 
Less is More: How to Make Your Funding Go Further with Market Focus from Main...
Less is More: How to Make Your Funding Go Further with Market Focus from Main...Less is More: How to Make Your Funding Go Further with Market Focus from Main...
Less is More: How to Make Your Funding Go Further with Market Focus from Main...
 
Infographic: World Wealth Report 2015
Infographic: World Wealth Report 2015Infographic: World Wealth Report 2015
Infographic: World Wealth Report 2015
 
Us Startup Outlook Report 2017
Us Startup Outlook Report 2017Us Startup Outlook Report 2017
Us Startup Outlook Report 2017
 
2019 Venture Limited Partner survey
2019 Venture Limited Partner survey2019 Venture Limited Partner survey
2019 Venture Limited Partner survey
 
Women In UK Venture Capital 2017
Women In UK Venture Capital 2017 Women In UK Venture Capital 2017
Women In UK Venture Capital 2017
 
CEO Succession - Data Spotlight
CEO Succession - Data SpotlightCEO Succession - Data Spotlight
CEO Succession - Data Spotlight
 
How talent management drives your organization's goals
How talent management drives your organization's goalsHow talent management drives your organization's goals
How talent management drives your organization's goals
 

Viewers also liked

Startup Ideas and Validation
Startup Ideas and ValidationStartup Ideas and Validation
Startup Ideas and Validation
Yevgeniy Brikman
 
Venture Capital Unlocked (Stanford) / Venture Capital 2.0
Venture Capital Unlocked (Stanford) / Venture Capital 2.0Venture Capital Unlocked (Stanford) / Venture Capital 2.0
Venture Capital Unlocked (Stanford) / Venture Capital 2.0
Dave McClure
 
Benchmarking Exceptional Series A SaaS Companies
Benchmarking Exceptional Series A SaaS CompaniesBenchmarking Exceptional Series A SaaS Companies
Benchmarking Exceptional Series A SaaS Companies
Tomasz Tunguz
 
8 Things Your VC Won’t Tell You
8 Things Your VC Won’t Tell You8 Things Your VC Won’t Tell You
8 Things Your VC Won’t Tell You
Abhishek Shah
 
When & How to Raise Venture Capital
When & How to Raise Venture CapitalWhen & How to Raise Venture Capital
When & How to Raise Venture Capital
New York University
 
Startup Roadkill??....these financing tools will help you avoid the 18 wheelers
Startup Roadkill??....these financing tools will help you avoid the 18 wheelersStartup Roadkill??....these financing tools will help you avoid the 18 wheelers
Startup Roadkill??....these financing tools will help you avoid the 18 wheelers
Inflection Point Executive Coaching & Consulting for Med/Tech, BioPharma and Healthcare Services
 
Twitter Q4 2015 Earnings Deck
Twitter Q4 2015 Earnings DeckTwitter Q4 2015 Earnings Deck
Twitter Q4 2015 Earnings Deck
Jan Dawson
 
LinkedIn Q4 2015 Earnings Call
LinkedIn Q4 2015 Earnings CallLinkedIn Q4 2015 Earnings Call
LinkedIn Q4 2015 Earnings Call
LinkedIn
 
How to Become a Thought Leader in Your Niche
How to Become a Thought Leader in Your NicheHow to Become a Thought Leader in Your Niche
How to Become a Thought Leader in Your Niche
Leslie Samuel
 
Pollen VC Building A Digital Lending Business
Pollen VC Building A Digital Lending BusinessPollen VC Building A Digital Lending Business
Pollen VC Building A Digital Lending Business
Pollen VC
 
UX, ethnography and possibilities: for Libraries, Museums and Archives
UX, ethnography and possibilities: for Libraries, Museums and ArchivesUX, ethnography and possibilities: for Libraries, Museums and Archives
UX, ethnography and possibilities: for Libraries, Museums and Archives
Ned Potter
 
How Much Further Will Internet Stocks Fall? (Share Price Performance)
How Much Further Will Internet Stocks Fall? (Share Price Performance)How Much Further Will Internet Stocks Fall? (Share Price Performance)
How Much Further Will Internet Stocks Fall? (Share Price Performance)
Mahesh Vellanki
 
Visual Design with Data
Visual Design with DataVisual Design with Data
Visual Design with Data
Seth Familian
 
Study: The Future of VR, AR and Self-Driving Cars
Study: The Future of VR, AR and Self-Driving CarsStudy: The Future of VR, AR and Self-Driving Cars
Study: The Future of VR, AR and Self-Driving Cars
LinkedIn
 
Final LA tech and venture landscape
Final LA tech and venture landscapeFinal LA tech and venture landscape
Final LA tech and venture landscape
Mark Suster
 
The Changing Structure of the Venture Capital Industry
The Changing Structure of the Venture Capital IndustryThe Changing Structure of the Venture Capital Industry
The Changing Structure of the Venture Capital Industry
Mark Suster
 
Designing Teams for Emerging Challenges
Designing Teams for Emerging ChallengesDesigning Teams for Emerging Challenges
Designing Teams for Emerging Challenges
Aaron Irizarry
 
Investment Thesis Fundamentals (April 2016)
Investment Thesis Fundamentals (April 2016)Investment Thesis Fundamentals (April 2016)
Investment Thesis Fundamentals (April 2016)
Dave McClure
 

Viewers also liked (18)

Startup Ideas and Validation
Startup Ideas and ValidationStartup Ideas and Validation
Startup Ideas and Validation
 
Venture Capital Unlocked (Stanford) / Venture Capital 2.0
Venture Capital Unlocked (Stanford) / Venture Capital 2.0Venture Capital Unlocked (Stanford) / Venture Capital 2.0
Venture Capital Unlocked (Stanford) / Venture Capital 2.0
 
Benchmarking Exceptional Series A SaaS Companies
Benchmarking Exceptional Series A SaaS CompaniesBenchmarking Exceptional Series A SaaS Companies
Benchmarking Exceptional Series A SaaS Companies
 
8 Things Your VC Won’t Tell You
8 Things Your VC Won’t Tell You8 Things Your VC Won’t Tell You
8 Things Your VC Won’t Tell You
 
When & How to Raise Venture Capital
When & How to Raise Venture CapitalWhen & How to Raise Venture Capital
When & How to Raise Venture Capital
 
Startup Roadkill??....these financing tools will help you avoid the 18 wheelers
Startup Roadkill??....these financing tools will help you avoid the 18 wheelersStartup Roadkill??....these financing tools will help you avoid the 18 wheelers
Startup Roadkill??....these financing tools will help you avoid the 18 wheelers
 
Twitter Q4 2015 Earnings Deck
Twitter Q4 2015 Earnings DeckTwitter Q4 2015 Earnings Deck
Twitter Q4 2015 Earnings Deck
 
LinkedIn Q4 2015 Earnings Call
LinkedIn Q4 2015 Earnings CallLinkedIn Q4 2015 Earnings Call
LinkedIn Q4 2015 Earnings Call
 
How to Become a Thought Leader in Your Niche
How to Become a Thought Leader in Your NicheHow to Become a Thought Leader in Your Niche
How to Become a Thought Leader in Your Niche
 
Pollen VC Building A Digital Lending Business
Pollen VC Building A Digital Lending BusinessPollen VC Building A Digital Lending Business
Pollen VC Building A Digital Lending Business
 
UX, ethnography and possibilities: for Libraries, Museums and Archives
UX, ethnography and possibilities: for Libraries, Museums and ArchivesUX, ethnography and possibilities: for Libraries, Museums and Archives
UX, ethnography and possibilities: for Libraries, Museums and Archives
 
How Much Further Will Internet Stocks Fall? (Share Price Performance)
How Much Further Will Internet Stocks Fall? (Share Price Performance)How Much Further Will Internet Stocks Fall? (Share Price Performance)
How Much Further Will Internet Stocks Fall? (Share Price Performance)
 
Visual Design with Data
Visual Design with DataVisual Design with Data
Visual Design with Data
 
Study: The Future of VR, AR and Self-Driving Cars
Study: The Future of VR, AR and Self-Driving CarsStudy: The Future of VR, AR and Self-Driving Cars
Study: The Future of VR, AR and Self-Driving Cars
 
Final LA tech and venture landscape
Final LA tech and venture landscapeFinal LA tech and venture landscape
Final LA tech and venture landscape
 
The Changing Structure of the Venture Capital Industry
The Changing Structure of the Venture Capital IndustryThe Changing Structure of the Venture Capital Industry
The Changing Structure of the Venture Capital Industry
 
Designing Teams for Emerging Challenges
Designing Teams for Emerging ChallengesDesigning Teams for Emerging Challenges
Designing Teams for Emerging Challenges
 
Investment Thesis Fundamentals (April 2016)
Investment Thesis Fundamentals (April 2016)Investment Thesis Fundamentals (April 2016)
Investment Thesis Fundamentals (April 2016)
 

Similar to VC survey data 2016

Venture Capital 2016
Venture Capital 2016Venture Capital 2016
Venture Capital 2016
Bastri fetahu
 
Healthcare Investments and Exits Mid-Year 2016 Report
Healthcare Investments and Exits Mid-Year 2016 Report Healthcare Investments and Exits Mid-Year 2016 Report
Healthcare Investments and Exits Mid-Year 2016 Report
Silicon Valley Bank
 
SVB State of the Markets Report
SVB State of the Markets Report SVB State of the Markets Report
SVB State of the Markets Report
Silicon Valley Bank
 
Final venture outlook 2016
Final venture outlook 2016Final venture outlook 2016
Final venture outlook 2016
Mark Suster
 
ClearPath Investment Perspectives - Nov 17 2014
ClearPath Investment Perspectives - Nov  17 2014ClearPath Investment Perspectives - Nov  17 2014
ClearPath Investment Perspectives - Nov 17 2014
bcdconna
 
State of Private Capital Markets 2011: Update
State of Private Capital Markets 2011: UpdateState of Private Capital Markets 2011: Update
State of Private Capital Markets 2011: Update
Pepperdine University Graziadio School of Business and Management
 
Stocks from the Gurus, Goldman Sachs and Hedge Funds Now
Stocks from the Gurus, Goldman Sachs and Hedge Funds NowStocks from the Gurus, Goldman Sachs and Hedge Funds Now
Stocks from the Gurus, Goldman Sachs and Hedge Funds Now
Alpesh Patel
 
Baxon Breakfast Seminar: ‘Navigating in uncertain times: An outlook on H1 Pri...
Baxon Breakfast Seminar: ‘Navigating in uncertain times: An outlook on H1 Pri...Baxon Breakfast Seminar: ‘Navigating in uncertain times: An outlook on H1 Pri...
Baxon Breakfast Seminar: ‘Navigating in uncertain times: An outlook on H1 Pri...
Preqin Solutions
 
2016 State of the Venture Capital Industry
2016 State of the Venture Capital Industry2016 State of the Venture Capital Industry
2016 State of the Venture Capital Industry
TrueBridge Capital Partners
 
Trends in Healthcare Investments and Exits 2016
Trends in Healthcare Investments and Exits 2016Trends in Healthcare Investments and Exits 2016
Trends in Healthcare Investments and Exits 2016
Silicon Valley Bank
 
TRENDS IN PRIVATE COMPANY FINANCING & EXITS IN OPHTHALMOLOGY
TRENDS IN PRIVATE COMPANY FINANCING & EXITS IN OPHTHALMOLOGYTRENDS IN PRIVATE COMPANY FINANCING & EXITS IN OPHTHALMOLOGY
TRENDS IN PRIVATE COMPANY FINANCING & EXITS IN OPHTHALMOLOGY
Healthegy
 
Startup India - An Overview
Startup India - An Overview Startup India - An Overview
Startup India - An Overview
Mainak Mitra
 
Jerry Ganz, CFP – Proactive Advisor Magazine – Volume 5 Issue 3
Jerry Ganz, CFP – Proactive Advisor Magazine – Volume 5 Issue 3Jerry Ganz, CFP – Proactive Advisor Magazine – Volume 5 Issue 3
Jerry Ganz, CFP – Proactive Advisor Magazine – Volume 5 Issue 3
Proactive Advisor Magazine
 
AmCham 2016 Business Climate Survey Full results Jan 19
AmCham 2016 Business Climate Survey Full results Jan 19AmCham 2016 Business Climate Survey Full results Jan 19
AmCham 2016 Business Climate Survey Full results Jan 19
Gordon Stewart
 
AmCham Taipei 2016 Business Climate Survey - Full results Jan 19
AmCham Taipei 2016 Business Climate Survey - Full results Jan 19AmCham Taipei 2016 Business Climate Survey - Full results Jan 19
AmCham Taipei 2016 Business Climate Survey - Full results Jan 19
Gordon Stewart
 
CB Insights - Corporate VC 2016
CB Insights - Corporate VC 2016CB Insights - Corporate VC 2016
CB Insights - Corporate VC 2016
Roger Atkins
 
US Startup Outlook 2018
US Startup Outlook 2018US Startup Outlook 2018
US Startup Outlook 2018
Silicon Valley Bank
 
Pitch book 2016 annual vc valuations report
Pitch book 2016 annual vc valuations reportPitch book 2016 annual vc valuations report
Pitch book 2016 annual vc valuations report
Ian Beckett
 
AgencyFood_Q3
AgencyFood_Q3AgencyFood_Q3
AgencyFood_Q3
Jason Neale
 
Agency Food - Quarter 3 2015
Agency Food - Quarter 3 2015Agency Food - Quarter 3 2015
Agency Food - Quarter 3 2015
The Agency Works
 

Similar to VC survey data 2016 (20)

Venture Capital 2016
Venture Capital 2016Venture Capital 2016
Venture Capital 2016
 
Healthcare Investments and Exits Mid-Year 2016 Report
Healthcare Investments and Exits Mid-Year 2016 Report Healthcare Investments and Exits Mid-Year 2016 Report
Healthcare Investments and Exits Mid-Year 2016 Report
 
SVB State of the Markets Report
SVB State of the Markets Report SVB State of the Markets Report
SVB State of the Markets Report
 
Final venture outlook 2016
Final venture outlook 2016Final venture outlook 2016
Final venture outlook 2016
 
ClearPath Investment Perspectives - Nov 17 2014
ClearPath Investment Perspectives - Nov  17 2014ClearPath Investment Perspectives - Nov  17 2014
ClearPath Investment Perspectives - Nov 17 2014
 
State of Private Capital Markets 2011: Update
State of Private Capital Markets 2011: UpdateState of Private Capital Markets 2011: Update
State of Private Capital Markets 2011: Update
 
Stocks from the Gurus, Goldman Sachs and Hedge Funds Now
Stocks from the Gurus, Goldman Sachs and Hedge Funds NowStocks from the Gurus, Goldman Sachs and Hedge Funds Now
Stocks from the Gurus, Goldman Sachs and Hedge Funds Now
 
Baxon Breakfast Seminar: ‘Navigating in uncertain times: An outlook on H1 Pri...
Baxon Breakfast Seminar: ‘Navigating in uncertain times: An outlook on H1 Pri...Baxon Breakfast Seminar: ‘Navigating in uncertain times: An outlook on H1 Pri...
Baxon Breakfast Seminar: ‘Navigating in uncertain times: An outlook on H1 Pri...
 
2016 State of the Venture Capital Industry
2016 State of the Venture Capital Industry2016 State of the Venture Capital Industry
2016 State of the Venture Capital Industry
 
Trends in Healthcare Investments and Exits 2016
Trends in Healthcare Investments and Exits 2016Trends in Healthcare Investments and Exits 2016
Trends in Healthcare Investments and Exits 2016
 
TRENDS IN PRIVATE COMPANY FINANCING & EXITS IN OPHTHALMOLOGY
TRENDS IN PRIVATE COMPANY FINANCING & EXITS IN OPHTHALMOLOGYTRENDS IN PRIVATE COMPANY FINANCING & EXITS IN OPHTHALMOLOGY
TRENDS IN PRIVATE COMPANY FINANCING & EXITS IN OPHTHALMOLOGY
 
Startup India - An Overview
Startup India - An Overview Startup India - An Overview
Startup India - An Overview
 
Jerry Ganz, CFP – Proactive Advisor Magazine – Volume 5 Issue 3
Jerry Ganz, CFP – Proactive Advisor Magazine – Volume 5 Issue 3Jerry Ganz, CFP – Proactive Advisor Magazine – Volume 5 Issue 3
Jerry Ganz, CFP – Proactive Advisor Magazine – Volume 5 Issue 3
 
AmCham 2016 Business Climate Survey Full results Jan 19
AmCham 2016 Business Climate Survey Full results Jan 19AmCham 2016 Business Climate Survey Full results Jan 19
AmCham 2016 Business Climate Survey Full results Jan 19
 
AmCham Taipei 2016 Business Climate Survey - Full results Jan 19
AmCham Taipei 2016 Business Climate Survey - Full results Jan 19AmCham Taipei 2016 Business Climate Survey - Full results Jan 19
AmCham Taipei 2016 Business Climate Survey - Full results Jan 19
 
CB Insights - Corporate VC 2016
CB Insights - Corporate VC 2016CB Insights - Corporate VC 2016
CB Insights - Corporate VC 2016
 
US Startup Outlook 2018
US Startup Outlook 2018US Startup Outlook 2018
US Startup Outlook 2018
 
Pitch book 2016 annual vc valuations report
Pitch book 2016 annual vc valuations reportPitch book 2016 annual vc valuations report
Pitch book 2016 annual vc valuations report
 
AgencyFood_Q3
AgencyFood_Q3AgencyFood_Q3
AgencyFood_Q3
 
Agency Food - Quarter 3 2015
Agency Food - Quarter 3 2015Agency Food - Quarter 3 2015
Agency Food - Quarter 3 2015
 

More from Mark Suster

Funding in the time of Corona Virus
Funding in the time of Corona VirusFunding in the time of Corona Virus
Funding in the time of Corona Virus
Mark Suster
 
Managing Your Startup Board
Managing Your Startup BoardManaging Your Startup Board
Managing Your Startup Board
Mark Suster
 
Seed stage 2019 final
Seed stage 2019   finalSeed stage 2019   final
Seed stage 2019 final
Mark Suster
 
Is vc still a thing final
Is vc still a thing   finalIs vc still a thing   final
Is vc still a thing final
Mark Suster
 
Staff at vc firms
Staff at vc firmsStaff at vc firms
Staff at vc firms
Mark Suster
 
ICO 2.0 Summit - Keynote Presetnation
ICO 2.0 Summit - Keynote PresetnationICO 2.0 Summit - Keynote Presetnation
ICO 2.0 Summit - Keynote Presetnation
Mark Suster
 
Upfront Ventures Bitcoin & Blockchain VC Survey
Upfront Ventures Bitcoin & Blockchain VC SurveyUpfront Ventures Bitcoin & Blockchain VC Survey
Upfront Ventures Bitcoin & Blockchain VC Survey
Mark Suster
 
Upfront Ventures blockchain and crypto deck
Upfront Ventures blockchain and crypto deckUpfront Ventures blockchain and crypto deck
Upfront Ventures blockchain and crypto deck
Mark Suster
 
Fundstrat Bitcoin & Blockchain presentation for Upfront Summit
Fundstrat Bitcoin & Blockchain presentation for Upfront SummitFundstrat Bitcoin & Blockchain presentation for Upfront Summit
Fundstrat Bitcoin & Blockchain presentation for Upfront Summit
Mark Suster
 
There is Something Going on in the LA Tech Market by Upfront Ventures
There is Something Going on in the LA Tech Market by Upfront VenturesThere is Something Going on in the LA Tech Market by Upfront Ventures
There is Something Going on in the LA Tech Market by Upfront Ventures
Mark Suster
 
Why It's Morning in Venture Capital
Why It's Morning in Venture CapitalWhy It's Morning in Venture Capital
Why It's Morning in Venture Capital
Mark Suster
 
Final web summit (dublin oct 2013)
Final web summit (dublin oct 2013)Final web summit (dublin oct 2013)
Final web summit (dublin oct 2013)
Mark Suster
 
Online video market sept 2013
Online video market sept 2013Online video market sept 2013
Online video market sept 2013
Mark Suster
 
Future of TV
Future of TVFuture of TV
Future of TV
Mark Suster
 
Final le web london (june 2013)
Final le web   london (june 2013)Final le web   london (june 2013)
Final le web london (june 2013)
Mark Suster
 
Final startup grind
Final startup grindFinal startup grind
Final startup grind
Mark Suster
 
V4 ypo january 2013 (santa barbara)
V4 ypo   january 2013 (santa barbara)V4 ypo   january 2013 (santa barbara)
V4 ypo january 2013 (santa barbara)
Mark Suster
 
Optimistic vs pessimistic case for entrepreneurs
Optimistic vs pessimistic case for entrepreneursOptimistic vs pessimistic case for entrepreneurs
Optimistic vs pessimistic case for entrepreneurs
Mark Suster
 
Marketing Strategies for 2013
Marketing Strategies for 2013Marketing Strategies for 2013
Marketing Strategies for 2013
Mark Suster
 
Entrepreneurshit. The Truth About Building Starutps
Entrepreneurshit. The Truth About Building StarutpsEntrepreneurshit. The Truth About Building Starutps
Entrepreneurshit. The Truth About Building Starutps
Mark Suster
 

More from Mark Suster (20)

Funding in the time of Corona Virus
Funding in the time of Corona VirusFunding in the time of Corona Virus
Funding in the time of Corona Virus
 
Managing Your Startup Board
Managing Your Startup BoardManaging Your Startup Board
Managing Your Startup Board
 
Seed stage 2019 final
Seed stage 2019   finalSeed stage 2019   final
Seed stage 2019 final
 
Is vc still a thing final
Is vc still a thing   finalIs vc still a thing   final
Is vc still a thing final
 
Staff at vc firms
Staff at vc firmsStaff at vc firms
Staff at vc firms
 
ICO 2.0 Summit - Keynote Presetnation
ICO 2.0 Summit - Keynote PresetnationICO 2.0 Summit - Keynote Presetnation
ICO 2.0 Summit - Keynote Presetnation
 
Upfront Ventures Bitcoin & Blockchain VC Survey
Upfront Ventures Bitcoin & Blockchain VC SurveyUpfront Ventures Bitcoin & Blockchain VC Survey
Upfront Ventures Bitcoin & Blockchain VC Survey
 
Upfront Ventures blockchain and crypto deck
Upfront Ventures blockchain and crypto deckUpfront Ventures blockchain and crypto deck
Upfront Ventures blockchain and crypto deck
 
Fundstrat Bitcoin & Blockchain presentation for Upfront Summit
Fundstrat Bitcoin & Blockchain presentation for Upfront SummitFundstrat Bitcoin & Blockchain presentation for Upfront Summit
Fundstrat Bitcoin & Blockchain presentation for Upfront Summit
 
There is Something Going on in the LA Tech Market by Upfront Ventures
There is Something Going on in the LA Tech Market by Upfront VenturesThere is Something Going on in the LA Tech Market by Upfront Ventures
There is Something Going on in the LA Tech Market by Upfront Ventures
 
Why It's Morning in Venture Capital
Why It's Morning in Venture CapitalWhy It's Morning in Venture Capital
Why It's Morning in Venture Capital
 
Final web summit (dublin oct 2013)
Final web summit (dublin oct 2013)Final web summit (dublin oct 2013)
Final web summit (dublin oct 2013)
 
Online video market sept 2013
Online video market sept 2013Online video market sept 2013
Online video market sept 2013
 
Future of TV
Future of TVFuture of TV
Future of TV
 
Final le web london (june 2013)
Final le web   london (june 2013)Final le web   london (june 2013)
Final le web london (june 2013)
 
Final startup grind
Final startup grindFinal startup grind
Final startup grind
 
V4 ypo january 2013 (santa barbara)
V4 ypo   january 2013 (santa barbara)V4 ypo   january 2013 (santa barbara)
V4 ypo january 2013 (santa barbara)
 
Optimistic vs pessimistic case for entrepreneurs
Optimistic vs pessimistic case for entrepreneursOptimistic vs pessimistic case for entrepreneurs
Optimistic vs pessimistic case for entrepreneurs
 
Marketing Strategies for 2013
Marketing Strategies for 2013Marketing Strategies for 2013
Marketing Strategies for 2013
 
Entrepreneurshit. The Truth About Building Starutps
Entrepreneurshit. The Truth About Building StarutpsEntrepreneurshit. The Truth About Building Starutps
Entrepreneurshit. The Truth About Building Starutps
 

Recently uploaded

VYAPAR TRENDS JUNE-2024 e-EDITION (VOL-2, ISSUE-05)
VYAPAR TRENDS JUNE-2024 e-EDITION (VOL-2, ISSUE-05)VYAPAR TRENDS JUNE-2024 e-EDITION (VOL-2, ISSUE-05)
VYAPAR TRENDS JUNE-2024 e-EDITION (VOL-2, ISSUE-05)
ftiiassociation
 
一比一原版(UAL毕业证)伦敦艺术大学毕业证如何办理
一比一原版(UAL毕业证)伦敦艺术大学毕业证如何办理一比一原版(UAL毕业证)伦敦艺术大学毕业证如何办理
一比一原版(UAL毕业证)伦敦艺术大学毕业证如何办理
ocqunu
 
1:1制作英国伦敦大学毕业证(london毕业证书)学历学位证书原版一模一样
1:1制作英国伦敦大学毕业证(london毕业证书)学历学位证书原版一模一样1:1制作英国伦敦大学毕业证(london毕业证书)学历学位证书原版一模一样
1:1制作英国伦敦大学毕业证(london毕业证书)学历学位证书原版一模一样
es4hjcss
 
Complete Self-write Restaurant Business Plan Guide for Entrepreneurs
Complete Self-write Restaurant Business Plan Guide for EntrepreneursComplete Self-write Restaurant Business Plan Guide for Entrepreneurs
Complete Self-write Restaurant Business Plan Guide for Entrepreneurs
Kopa Global Technologies
 
1比1定做(aub毕业证书)伯恩茅斯艺术大学毕业证硕士学历证书原版一模一样
1比1定做(aub毕业证书)伯恩茅斯艺术大学毕业证硕士学历证书原版一模一样1比1定做(aub毕业证书)伯恩茅斯艺术大学毕业证硕士学历证书原版一模一样
1比1定做(aub毕业证书)伯恩茅斯艺术大学毕业证硕士学历证书原版一模一样
es4hjcss
 
Exploring the Contrast Silicone Sponge Rubber Versus Foam Rubber.pptx
Exploring the Contrast Silicone Sponge Rubber Versus Foam Rubber.pptxExploring the Contrast Silicone Sponge Rubber Versus Foam Rubber.pptx
Exploring the Contrast Silicone Sponge Rubber Versus Foam Rubber.pptx
Elastostar Rubber Corporation
 

Recently uploaded (6)

VYAPAR TRENDS JUNE-2024 e-EDITION (VOL-2, ISSUE-05)
VYAPAR TRENDS JUNE-2024 e-EDITION (VOL-2, ISSUE-05)VYAPAR TRENDS JUNE-2024 e-EDITION (VOL-2, ISSUE-05)
VYAPAR TRENDS JUNE-2024 e-EDITION (VOL-2, ISSUE-05)
 
一比一原版(UAL毕业证)伦敦艺术大学毕业证如何办理
一比一原版(UAL毕业证)伦敦艺术大学毕业证如何办理一比一原版(UAL毕业证)伦敦艺术大学毕业证如何办理
一比一原版(UAL毕业证)伦敦艺术大学毕业证如何办理
 
1:1制作英国伦敦大学毕业证(london毕业证书)学历学位证书原版一模一样
1:1制作英国伦敦大学毕业证(london毕业证书)学历学位证书原版一模一样1:1制作英国伦敦大学毕业证(london毕业证书)学历学位证书原版一模一样
1:1制作英国伦敦大学毕业证(london毕业证书)学历学位证书原版一模一样
 
Complete Self-write Restaurant Business Plan Guide for Entrepreneurs
Complete Self-write Restaurant Business Plan Guide for EntrepreneursComplete Self-write Restaurant Business Plan Guide for Entrepreneurs
Complete Self-write Restaurant Business Plan Guide for Entrepreneurs
 
1比1定做(aub毕业证书)伯恩茅斯艺术大学毕业证硕士学历证书原版一模一样
1比1定做(aub毕业证书)伯恩茅斯艺术大学毕业证硕士学历证书原版一模一样1比1定做(aub毕业证书)伯恩茅斯艺术大学毕业证硕士学历证书原版一模一样
1比1定做(aub毕业证书)伯恩茅斯艺术大学毕业证硕士学历证书原版一模一样
 
Exploring the Contrast Silicone Sponge Rubber Versus Foam Rubber.pptx
Exploring the Contrast Silicone Sponge Rubber Versus Foam Rubber.pptxExploring the Contrast Silicone Sponge Rubber Versus Foam Rubber.pptx
Exploring the Contrast Silicone Sponge Rubber Versus Foam Rubber.pptx
 

VC survey data 2016

  • 1. Venture Capital 2016 Data & Views from VCs and LPs 1 VC Survey Data
  • 2. With more money (and new non VC entrants) venture financings have obviously increased. 2015 was an enormous year (2x pre recession) 2 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 $23 2,574 3,145 4,119 4,533 4,316 5,193 6,428 7,572 8,563 9,381 8,097 Source: PitchBook 2015 Annual U.S. Venture Industry Report; Upfront analysis.
  • 3. Angel & Seed deals have grown fastest but dollars have scaled massively into a smaller number of later-stage deals (doubling in just 2 years) 3 Source: PitchBook 2015 Annual U.S. Venture Industry Report; Upfront analysis. US VC # of rounds closed by stage US VC capital invested ($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
  • 4. 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) 4 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%
  • 5. M&A pace hasn’t matched the increases in funding pace so VC mark-ups have been good but cash distributions less so 5 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.
  • 6. IPO exits are down 32% in volume and 38% in value 6 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
  • 7. With fewer VC exits many partners are more overloaded with boards and financings. 77% of surveyed VCs sit on or observe 4+ boards 7 2%3% 23% 39% 24% 9% Source: Upfront Survey Jan 2016, 158 VCs. How many boards do you sit on or observe? 11 - 14 0 7 - 10 4 - 6 1 - 3 15+
  • 8. About 2/3rd of respondents and their partners write 1-4 first checks each year 8 How many first check investments do you and a typical partner at your firm make each year? 0% 25% 50% 75% 100% Respondent Typical partner at respondent's firm 6%6% 32%27% 34% 28% 24% 25% 5% 13% 10+ 5-10 3-4 2 1 Source: Upfront Survey Jan 2016, 159 VCs for Respondent and 158 VCs for Typical partner at respondent’s firm.
  • 9. 88% of Surveyed VCs are conservative on valuations 9 6% 42% 41% 11%1% Source: Upfront Survey Jan 2016, 156 VCs. How would you describe your outlook on valuations right now? Not much should change in 2016 over 2015 I expect valuations to continue to rise and you have to pay if you want to be in the best deals My best years are years where valuations are soft. If I get a great deal, I’m in. Otherwise I’ll wait until later in the year. Prices can only continue to drop I’ve already reset valuations expectations in my mind. If I don’t get what I consider a fair valuation I’ll just move on. There are plenty of deals out there and I’m not in a rush I find myself getting a little bit more conservative on valuations and am even willing to miss a deal if I feel it’s overpriced
  • 10. Specifically more than 90% of respondents expected valuations to go down in 2016 with a full 1/3rd of investors expecting significant price corrections 10 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.
  • 11. There is a clear feeling that fund raising cycles are taking longer and 77% of respondents felt this pace is likely to slow down even further in 2016 11 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.
  • 12. This has swung sentiment for many experienced VCs, with 62% of respondents advising companies to cut costs / burn as markets tighten 12 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
  • 13. 65% of respondents think their firms will make about the same first check investments in 2016 as they had in 2015 13 23% 65% 11% Source: Upfront Survey Jan 2016, 159 VCs. Do you think your firm will make more new first check investments or fewer in 2016 vs. 2015? More New Investments Fewer New Investments About the Same Pace
  • 14. 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 14 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
  • 15. With the sentiment of the markets it’s no surprise that a full 82% of VCs expressed caution or concern going into 2016 15 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
  • 16. 159 VCs surveyed 16 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