The LA Tech

Venture

Capital

Report 2014 Year in Review

Produced / Issued by:

3 LA Almanac

About Upfront Ventures Upfront Ventures is the largest and longest-serving venture capital fund in Los Angeles having invested more than $1 billion since 1996 in companies such as Maker Studios, TrueCar, and Overture. While Upfront is a national investment firm, it invests at least 50% of its capital in Southern California-based technology companies from San Diego to Santa Barbara. Upfront recently announced it closed its 5th fund of $280 million.

About CB Insights CB Insights is a National Science Foundation-backed company that uses data to provide VCs, corporate strategy, M&A teams and business development professionals with intelligence on emerging companies and disruptive technology trends. To see how our data can make your life easier, visit: cbinsights.com

TABLE OF CONTENTS

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Highlights 5 Financing Trends 7 Exit Trends Investor League Tables Most Well Funded Startups

16 21 28

Investor Syndicate Dashboards 33

GEOGRAPHY This report covers companies headquartered in or around the Greater Los Angeles / SoCal Area (with the exclusion of San Diego). The areas represented by the companies in this report are listed below in alphabetical order.

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Agoura Hills Foothill Ranch Mission Viejo Santa Monica

Aliso Viejo Glendale Monrovia Sherman Oaks

Altadena Goleta Monterey Park South Pasadena

Anaheim Hawthorne Newbury Park Studio City

Baldwin Park Hollywood Newport Beach Thousand Oaks

Beverly Hills Huntington Beach North Hollywood Torrance

Burbank Inglewood Northridge Valley Village

Calabasas Irvine Orange Van Nuys

Camarillo La Crescenta Pasadena Venice

Canoga Park Laguna Hills Playa del Rey Ventura

Carpinteria Lake Forest Rancho Dominguez Walnut

Costa Mesa Long Beach Riverside West Covina

Culver City Los Angeles San Juan Capistrano West Hollywood

El Segundo Manhattan Beach Santa Ana Westlake Village

Encino Marina del Rey Santa Barbara Woodland Hills

LOS ANGELES TECH

FINANCING TRENDS

2014: FUNDING TO LA TECH ECOSYSTEM HITS

$2 BILLION ACROSS 194 DEALS Funding to venture-backed tech startups in the greater LA area jumped 25% year-over-year to reach $2B in 2014. At the current run rate, 2015 in on track for a new funding high.

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$0.7 $0.7 $1.0 $0.9

$1.6 $2.0

$0.7

100

137 152

187 201 194

37

2009 2010 2011 2012 2013 2014 Q1 '15

Los Angeles Tech Financing History: Deals and Dollars 2009 - Q1'15

Investments ($B) Deals

OH SNAP: FUNDING TO LA TECH TOPS $600M IN

EACH OF LAST TWO QUARTERS Despite a drop in deals, Q4’14 and Q1’15 saw spikes in funding due to megadeals to Snapchat and just-acquired Lynda.com. Snapchat alone raked in more than $685M in the last four months.

9

LA TECH SEED DEAL SHARE DROPS AS LATE-

STAGE PICKS UP Seed deal share to LA tech companies dropped for the second consecutive year in 2014 and fell to just 26% in Q1’15. Meanwhile, late-stage deal share (Series D+) hit a four-year high in 2014 at a combined 10% and took 16% of all deals in Q1’15.

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LATE STAGE DEALS DOMINATE DOLLAR SHARE On the funding front, late-stage deals (Series D+) took over 40% of all funding in LA tech in 2014. 2015 is off to a similar skew as Series D+ deals have taken over 60% of all funding dollars behind Snapchat’s $200M investment from Alibaba.

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THE RISE OF MOBILE LA: 1 OF EVERY FIVE

DEALS NOW GO TO MOBILE STARTUPS Over the last five years, over 60% of all LA tech deals have gone to the Internet sector. But mobile has emerged as a key tech sector in greater LA, taking close to 1/5th of annual deal share between 2011 and 2014.

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MOBILE FUNDING SHARE RISES TO SIX-YEAR

HIGH IN 2014, OFF TO BIG START IN 2015. Internet funding share reached a peak of 75% in 2011, but has decreased every consecutive year taking 57% in 2014. That’s because mobile funding has exploded largely behind Snapchat, which has raised more than $800M since its inception in 2012.

LA FUNDING GROWTH SLOWS COMPARED TO

NY AND MA Funding in LA grew by 25% between 2013 and 2014, compared to 50% in NY and 93% in MA. All three states are on track to exceed their 2014 funding levels.

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MA AND NY DEAL GROWTH IS INCREASING, LA

SLOWS DOWN While NY and MA had positive YoY deal growth between 2013 and 2014, tech dealflow in LA decreased. Currently, MA is the only hub of the three on track to exceed their 2014 deal count in 2015 based on their Q1’15 numbers.

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100 137 152

187 201 194

37

145

243

380 404 482 503

102 166

209 226 248 244 271

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2009 2010 2011 2012 2013 2014 2015 Q1

Tech Deal Comparison: LA vs NY vs MA 2009 - Q1 2015, $B

LA NY MA

LOS ANGELES TECH

EXIT TRENDS

VC-BACKED TECH EXITS HIT HIGH IN 2014 VC-backed tech exits in LA hit a six-year high in 2014 with 37 exits including two IPOs, TrueCar, backed by Upfront Ventures & Anthem Ventures, and Rubicon Project, which counts backers including Mayfield Fund and Clearstone Venture Partners.

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5

15 23

27 24

37

4

2009 2010 2011 2012 2013 2014 Q1 2015

Los Angeles Exit History: VC-backed Tech Exits 2009 - Q1 2015

VC-Backed Tech Exits

LARGEST LA VC-BACKED TECH EXITS SINCE

2009

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Company Type Select VC Investors Valuation Year

M&ASpark Capital, Founders Fund, Formation 8

$2B 2014

IPO Oak Investment Partners $1.5B 2011

*

M&AAccel Partners, Meritech Capital Partners

$1.5B 2014

M&AUpfront Ventures, Greycroft Partners

$950M 2014

IPO Upfront Ventures $639M 2014

*The acquisition of Lynda.com was in Q2’15, but was included in this chart for its notability

LARGEST LA VC-BACKED TECH EXITS SINCE

2009

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Company Type Select VC Investors Valuation Year

IPOBessemer Venture Partners, ff Venture Capital

$606M 2011

IPOIDG Ventures, Mayfield Fund

$521M 2014

M&ABenchmark Capital, FirstMark Capital

$472M 2011

M&AIntel Capital, New Enterprise Associates, Qualcomm Ventures

$380M 2012

M&AMenlo Ventures, Steamboat Ventures

$350M 2013

UPFRONT VENTURES AND GREYCROFT HAVE

THE MOST LA TECH EXITS Upfront Ventures and Greycroft Partners have the most LA tech exits in their portfolios, while Rustic Canyon Partners was a close second. There were 9 investors with at least 5 LA tech exits.

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Rank Investor Rank Investor1 Upfront Ventures 10 CrossCut Ventures1 Greycroft Partners 10 Clearstone Venture Partners3 Rustic Canyon Partners 10 Intel Capital4 Redpoint Ventures 10 CRV4 New Enterprise Associates 10 Mission Ventures4 Coffin Capital & Ventures 10 Founders Fund7 Bessemer Venture Partners 10 Founder Collective7 Qualcomm Ventures 10 Google Ventures7 Benchmark Capital 10 Rincon Venture Partners

10 Miramar Venture Partners 10 True Ventures10 Insight Venture Partners 10 Wavemaker Partners

Top VC Investors in Los Angeles-Based Exited Tech Companies, 2009 - Q1 2015

LOS ANGELES TECH

INVESTOR LEAGUE TABLES

UPFRONT VENTURES IS THE MOST ACTIVE

INVESTOR IN LA TECH Upfront Ventures topped the list for most active investors in LA, with investments in more than 30 LA based tech companies. The top 3 was rounded out by 500 Startups and Wavemaker Partners (formerly Siemer Ventures).

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Rank Investor Rank Investor

1 Upfront Ventures 12 Founder Collective2 500 Startups 12 Accel Partners3 Wavemaker Partners 16 Redpoint Ventures4 Greycroft Partners 16 Rustic Canyon Partners5 Mucker Capital 16 Benchmark Capital6 SV Angel 19 Intel Capital7 Rincon Venture Partners 19 Lerer Hippeau Ventures8 Double M Partners 19 Andreessen Horowitz9 Baroda Ventures 22 BoxGroup9 CrossCut Ventures 22 Social Starts9 Google Ventures 22 US Venture Partners

12 First Round Capital 22 Anthem Venture Partners12 New Enterprise Associates 22 Qualcomm Ventures

Most Active VC Investors in Los Angeles Tech Companies, 2009 - Q1 2015

THE MOST ACTIVE EARLY-STAGE INVESTORS IN

LA TECH 500 Startups topped the list for most active seed investors, but 6 of the top 8 investors at the early-stage were headquartered in the LA area. Mucker Capital and Upfront Ventures were the top LA firms leading the growth in seed stage investments in the LA area.

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Rank Investor Rank Investor

1 500 Startups 9 Google Ventures2 Mucker Capital 9 Founder Collective3 Upfront Ventures 11 Greycroft Partners4 Wavemaker Partners 11 Social Starts5 CrossCut Ventures 11 Lerer Hippeau Ventures6 Double M Partners 14 First Round Capital7 SV Angel 14 Andreessen Horowitz8 Baroda Ventures 14 TenOneTen Ventures

Most Active Seed VC Investors in Los Angeles Tech Companies, 2009 - Q1 2015

ACCEL PARTNERS IS THE MOST ACTIVE LATE

STAGE INVESTOR Accel Partners edged out the number one ranking in late stage investments. Late stage tech investments in LA are spread between different firms ranging from Kleiner Perkins to Redpoint Ventures.

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Rank Investor

1 Accel Partners

2 Kleiner Perkins Caufield & Byers

2 Redpoint Ventures

2 US Venture Partners

2 Norwest Venture Partners

2 Benchmark Capital

2 Intel Capital

2 Meritech Capital Partners

Most Active Late-Stage VC Investors in Los Angeles Tech Companies, 2009 - Q1 2015

UPFRONT IS AN ACTIVE INVESTOR IN INTERNET

COMPANIES IN LA With the bulk of their portfolio in Internet companies, Upfront Ventures topped the list of most active LA Internet investors, followed by 500 Startups and Wavemaker Partners.

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Rank Investor Rank Investor

1 Upfront Ventures 11 Pritzker Group Venture Capital

2 500 Startups 11 Accel Partners

3 Wavemaker Partners 11 Baroda Ventures

4 Mucker Capital 11 Andreessen Horowitz

5 Greycroft Partners 17 Social Starts

6 Rincon Venture Partners 17 Coffin Capital & Ventures

7 SV Angel 17 Polaris Partners

8 Redpoint Ventures 17 Anthem Venture Partners

9 Rustic Canyon Partners 17 Karlin Ventures9 CrossCut Ventures 17 Google Ventures

11 First Round Capital 17 New Enterprise Associates

11 Double M Partners 17 Lerer Hippeau Ventures

Most Active VC Investors in Los Angeles Internet Companies, 2009 - Q1 2015

UPFRONT AND SV ANGEL ARE THE MOST

ACTIVE MOBILE INVESTORS Upfront Ventures and SV Angel were the most active investors in mobile companies, making investments in more than 6 companies each. Founder Collective and Double M Partners round out the top 3 ranking.

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Rank Investor Rank Investor1 Upfront Ventures 8 Qualcomm Ventures1 SV Angel 8 Wavemaker Partners3 Double M Partners 8 First Round Capital3 Founder Collective 8 Shasta Ventures5 500 Startups 8 Baroda Ventures5 Google Ventures 8 BoxGroup5 Greycroft Partners 8 Metamorphic Ventures8 CrossCut Ventures

Most Active VC Investors in Los Angeles Mobile Companies, 2009 - Q1 2015

APPENDIX: MOST ACTIVE VENTURE CAPITAL

INVESTORS IN LOS ANGELES TECH COMPANIES

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1 - 21 22 - 42 43 - 63 64 - 84Upfront Ventures Social Starts e.ventures FF Angel500 Startups Anthem Venture Partners Khosla Ventures General Catalyst PartnersWavemaker Partners Qualcomm Ventures Social Leverage Plus CapitalGreycroft Partners BoxGroup Shasta Ventures Lightspeed Venture PartnersMucker Capital US Venture Partners Canaan Partners Mayfield FundSV Angel TenOneTen Ventures MK Capital Metamorphic VenturesRincon Venture Partners Founders Fund Felicis Ventures Kima VenturesDouble M Partners DFJ Frontier ff Venture Capital Matrix PartnersGoogle Ventures Kleiner Perkins Caufield & Byers Bertelsmann Digital Media Inv. DAG VenturesBaroda Ventures Pritzker Group Venture Capital Mission Ventures Slow VenturesCrossCut Ventures Karlin Ventures Bain Capital Ventures LightbankNew Enterprise Associates Bessemer Venture Partners TomorrowVentures Norwest Venture PartnersFirst Round Capital Coffin Capital & Ventures Index Ventures MESA+Founder Collective True Ventures Advancit Capital Bullpen CapitalAccel Partners Insight Venture Partners Spark Capital InterWest PartnersRustic Canyon Partners Polaris Partners Thrive Capital Momentum Venture ManagementRedpoint Ventures Institutional Venture Partners Foundry Group Javelin Venture PartnersBenchmark Capital Trinity Ventures RRE Ventures Resolute.vcIntel Capital CRV Rothenberg Ventures Azure Capital PartnersLerer Hippeau Ventures Clearstone Venture Partners Battery Ventures Lowercase CapitalAndreessen Horowitz Miramar Venture Partners Steamboat Ventures Menlo Ventures

THE MOST WELL FUNDED

LOS ANGELES TECH STARTUPS

THE MOST WELL-FUNDED LA TECH COMPANIES Snapchat topped the list with more than $800M of funding so far. 14 companies in the LA area have raised more than $100M.

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Company Select Investors Description

SnapchatSV Angel, KPCB, Benchmark

CapitalEphemeral Messaging Service

Storm Ventures, Greylock

Partners, Voyager CapitalAdaptive Photonic Switching

Matrix Partners, Passport

Capital, Rho VenturesFasion Subscription Ecommerce

Intel Capital, Sequoia Capital,

Accel PartnersSilicon Vendor

Google Capital, Stone Point

CapitalReal Estate Marketplace

THE MOST WELL-FUNDED LA TECH COMPANIES

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Company Select Investors Description

General Catalyst Partner,

Lightspeed Venture Partners

Ecommerce Subscription Site

for Parents

Shepard Ventures, Kennet

PartnersOnline Advertising Platform

Millenium Technology Value

Partners, Polaris PartnersOnline Legal Documentation

US Venture Partners,

InterWest Partners

High Performance Wireless

Networks

Upfront Ventures, Matrix

PartnersBig Data For Underwriting

MOST WELL FUNDED LOS ANGELES INTERNET

COMPANIES

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Companies Select Investors Description

JustFab Passport Capital, Polaris Partners, Technology Crossover Ventures Fashion retail and styling platform

Auction.com Google Capital, Stone Point Capital Online real estate sales platform

The Honest CompanyGeneral Catalyst Partners, Institutional Venture Partners, Lightspeed Venture Partners

Affordable, eco-friendly, consumer goods for parents

Specific MediaEnterprise Partners Venture Capital, Francisco Partners, Kennet Partners, Shepherd Ventures

Advertising targeting and analytics

LegalZoomInstitutional Venture Partners, Kleiner Perkins Caufield & Byers, Polaris Partners

Online legal document preparation

ZestFinanceFlybridge Capital Partners, Lightspeed Venture Partners, Matrix Partners, Upfront Ventures

Data analysis for credit underwriting

Machinima Coffin Capital & Ventures, Google Ventures, Redpoint Ventures Video entertainment network

KareoEscalate Capital Partners, OpenView Venture Partners, Silicon Valley Bank, Stripes Group

Medical office software

Telogis GM Ventures, Kleiner Perkins Caufield & Byers Logistics and routing SaaS

MarketShare Elevation Partners, FTV Capital Analytics for Business

MOST WELL FUNDED LOS ANGELES MOBILE

COMPANIES

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Companies Select Investors Description

SnapchatBenchmark Capital, Coatue Management, Digital Sky Technologies, General Catalyst Partners, Tencent

Ephemeral messaging

XirrusAlta Partners, August Capital, Canaan Partners, InterWest Partners, US Venture Partners

High-performance wireless network provider

TeleSignAdams Street Partners, March Capital Partners, Summit Partners, Telstra Ventures

Mobile identity platform

WhisperTextLightspeed Venture Partners, Sequoia Capital, Shasta Ventures, Susa Ventures, Tencent, Thrive Capital

Anonymous social network

textPlusKleiner Perkins Caufield & Byers, Matrix Partners, The Raine Group, Upfront Ventures

Mobile communication service

ScopelyBoxGroup, Felicis Ventures, Greycroft Partners, Lerer Hippeau Ventures, New Enterprise Associates, Red Swan Ventures

Mobile gaming network

Knowledge Holdings Azure Capital Partners, Random House Ventures, TeleSoft Partners Educational software

UberMediaAccel Partners, Betaworks, Comcast Ventures, First Round Capital, Index Ventures, Lerer Hippeau Ventures, SV Angel

Mobile advertising platform

TigerText Easton Capital, New Leaf Venture Partners, Shasta Ventures Secure, enterprise messaging

TopLine Game Labs Cantor Ventures Fantasy sports and social gaming

INVESTOR SYNDICATE

DASHBOARDS

UNDERSTANDING THE INVESTOR SYNDICATE

DASHBOARD

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These are VCs who invest prior to this VC investing in the company. These frequently represent sources of dealflow.

These are investors who invest in the same round as the VC.

This graph shows you the rounds that the investors participate in together.

The trend line indicates when deals were done. A trend such as the one above indicates a strengthening relationship between the firms as more activity has occurred recently.

This number indicates the number of financing deals that the two investors have participated in.

These are the investors who tend to invest in this VCs portfolio companies after their investment.

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Upfront Ventures

500 Startups

36

Wavemaker Partners

Greycroft Partners

37

Mucker Capital

SV Angel

38

Rincon Venture Partners

Double M Partners

39

Baroda Ventures

Crosscut Ventures