march 2008 educational workshop - paulderiddermd · venture capital association moneytree survey 1...

March 2008 EducationalWorkshop

What is HOT in VC Investing

In Lifescience!

Paul DeRidder, MD

Charles Warden

Managing Director

Versant Ventures

PricewaterhouseCoopers/Thomso

n Venture Economics/National

Venture Capital AssociationMoneyTree Survey

1

Biotech and energy have replacedtelecom and media as HOT sectors

for US VC’s




2

TOP THREE TECHNOLOGY AREAS

RECEIVING ANGEL CAPITAL

INVESTMENT 2003-2006! Center for Venture Research, University of New Hampshire

PricewaterhouseCoopersThomson Venture Economics

National Venture Capital Association

MoneyTreeTM

survey

Shaking theMoneyTree

Q42007

Year-End Results

Visit www.pwcmoneytree.com for Industry Definitions

!"#Technology Practice

THOMSON FINANCIAL

VENTURE ECONOMICS



MoneyTreeTM

survey

$12.8

$6.4$6.3

$7.3

$5.0

$6.8

$23.3

$6.0

$7.0

$7.5

$5.1$5.3

$4.3

$6.9

$28.4

$6.6

$7.0$6.3

$5.0$6.0

$11.0 $11.4

$28.2

$7.6

$5.9

$4.9$4.6

$13.1

$8.3

$26.4

$6.3$5.8

$5.6

$4.5

$8.1

$22.1

$0.0

$8.0

$16.0

$24.0

$32.0

1999 2000 2001 2002 2003 2004 2005 2006 2007

MoneyTree Total Investments: Q1 1999 – Q4 2007

$ in billions

918

Q4

900

Q3

944

Q2

868

Q1

2006

1018

Q2

858

Q1

974

Q3

963

Q4

2007# of

Deals809

Q4

785

Q3

820

Q2

724

Q1

2005200420032002200120001999

838

Q4

685

Q3

847

Q2

712

Q1

783

Q4

712

Q3

736

Q2

691

Q1

719

Q4

688

Q3

848

Q2

887

Q1

975

Q4

1000

Q3

1219

Q2

1284

Q1

1742

Q4

1930

Q3

2109

Q2

2130

Q1

1865

Q4

1420

Q3

1304

Q2

918

Q1

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4



THOMSON FINANCIAL

VENTURE ECONOMICS



MoneyTreeTM

survey

Investments by Region: Full Year 2007

Silicon Valley$10,066.5

1,184 Deals

New England$3,695.3

478 Deals

Midwest$1,298.3

236 Deals

Northwest$1,636.4

216 DealsSacramento / N. CA

$99.9 16 Deals

Southwest$540.9

90 Deals

Los Angeles$1,149.7

142 Deals

DC/Metroplex$1,241.8

207 Deals

NY Metro$1,715.5

254 Deals

Philadelphia Metro$861.5

125 Deals

North Central$525.6

80 Deals

2007 Total Investments - $29.4B in 3,813 Deals

Colorado$564.2

86 Deals

AK/HI/PR$20.5

9 Deals

Upstate NY$137.4

32 Deals

South Central$92.5

27 Deals

San Diego$1,988.8

159 Deals

Texas$1,416.5

166 Deals

Southeast$1,856.4

243 Deals

Orange County$498.1

63 Deals

$ in millions



THOMSON FINANCIAL

VENTURE ECONOMICS



MoneyTreeTM

survey

Investments by Region: Full Year 2007

$20.5

$1,856.4

$1,715.5

$1,636.4

$1,416.5

$1,298.3

$1,241.8

$861.5

$564.2

$540.9

$525.6

$137.4

$99.9

$92.5

$10,066.5

$3,695.3

$3,636.6

$0 $3,000 $6,000 $9,000 $12,000

AK/HI/PR

South Central

Sacramento/N.Cal

Upstate NY

North Central

SouthWest

Colorado

Philadelphia Metro

DC/Metroplex

Midwest

Texas

Northwest

NY Metro

Southeast

Southern California

New England

Silicon Valley

12%364Southern California

-11.84% 32Upstate NY

31.15% 80North Central

-14.61% 86Colorado

17.15% 27South Central

-56.26% 9AK/HI/PR

254.63% 16Sacramento/N.Cal

10.75% 3,813Total

7.79% 90SouthWest

12.64% 125Philadelphia Metro

52.27% 159San Diego

-2.28% 166Texas

-14.52% 205LA/Orange County

8.43% 207DC/Metroplex

37.04% 216Northwest

32.82% 236Midwest

46.42% 243Southeast

-14.20% 254NY Metro

18.56% 478New England

5.65% 1,184Silicon Valley

% Change $from 2006

# of DealsRegion

NM=Not Meaningful

$ in millions

2007 Total: $29.4B in 3,813 Deals



THOMSON FINANCIAL

VENTURE ECONOMICS



MoneyTreeTM

survey

Investments by Industry: Full Year 2007

$ in millions

$11.8

$2,696.3

$2,143.1

$1,877.4

$1,848.0

$1,297.6

$1,252.1

$840.0

$655.9

$579.6

$566.1

$468.2

$415.3

$368.1

$5,273.0

$5,215.5

$3,897.7

$0 $2,000 $4,000 $6,000

Other

Healthcare Services

Retailing/Distribution

Consumer Products and Services

Financial Services

Computers and Peripherals

Electronics/Instrumentation

Business Products and Services

Networking and Equipment

IT Services

Semiconductors

Media and Entertainment

Telecommunications

Industrial/Energy

Medical Devices and Equipment

Biotechnology

Software

91.38%58Retailing/Distribution

16.62%66Computers and Peripherals

29.38%88Financial Services

-13.48%49Healthcare Services

57.33%11Other

10.75%3813Total

-4.86%91Electronics/Instrumentation

-6.36%102Consumer Products and Services

17.49%124Networking and Equipment

34.19%129Business Products and Services

19.40%202IT Services

-13.77%210Semiconductors

44.15%286Industrial/Energy

-17.37%290Telecommunications

10.31%340Media and Entertainment

39.55%385Medical Devices and Equipment

9.51%477Biotechnology

2.72%905Software

% Change $from 2006

# of DealsIndustry

NM=Not Meaningful

2007 Total: $29.4B in 3,813 Deals



THOMSON FINANCIAL

VENTURE ECONOMICS



MoneyTreeTM

survey

Life Science Investments –Percent of Total U.S. Investments1

% of Total Dollars

Life Science Sectors – Q4 ’06 to Q4 ‘07

19.69%

30.33%

20.37%

14.34%

34.71%

14.48%

31.58%

26.57%

31.19%

10.64%

17.10%

11.38%

15.19%

12.85%

18.35%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Biotechnology Medical Devices and Equipment Life Sciences

Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07



THOMSON FINANCIAL

VENTURE ECONOMICS



MoneyTreeTM

survey

Biotech Investments by Region: Full Year 2007

$272

$857

$972

$1,153

$1

$158

$151

$143

$110

$86

$46

$44

$39

$39

$35

$25

$21

$12

$257

$253

$229

$0 $300 $600 $900 $1,200 $1,500

Twin Cities

Portland

Dallas

Houston

Orange County

Atlanta

Pittsburgh

Austin

South NJ/West PA

Denver

Chicago

Great Lakes

Los Angeles

Washington Metroplex

Research Triangle

Seattle

Philadelphia

New York

Boston

San Diego

Silicon Valley

12Denver

1Twin Cities

80Boston

5Orange County

2Atlanta

5Pittsburgh

6Houston

2Portland

2Dallas

485Total

2Austin

4South NJ/West PA

6Chicago

26Great Lakes

5Los Angeles

27Washington Metroplex

24Research Triangle

25Seattle

22Philadelphia

24New York

56San Diego

96Silicon Valley

# of DealsRegion

$ in millions

2007 Total: $5.2B in 485 Deals



THOMSON FINANCIAL

VENTURE ECONOMICS



MoneyTreeTM

survey

Med Device Investments by Region: Full Year 2007

$192

$233

$244

$299

$1,429

$2

$128

$112

$99

$95

$70

$53

$51

$39

$34

$23

$19

$9

$7

$190

$166

$134

$0 $300 $600 $900 $1,200 $1,500

Chicago

Dallas

San Antonio

Los Angeles

Pittsburgh

Portland

South NJ/West PA

Denver

Nashville

Atlanta

Washington Metroplex

Research Triangle

Great Lakes

Austin

New York

Seattle

San Diego

Philadelphia

Orange County

Twin Cities

Boston

Silicon Valley

3San Antonio

3Dallas

2Chicago

25Twin Cities

3South NJ/West Pa

5Denver

2Nashville

3Portland

5Los Angeles

9Pittsburgh

391Total

9Atlanta

17Washington Metroplex

8Research Triangle

23Great Lakes

7Austin

17New York

16Seattle

20San Diego

11Philadelphia

17Orange County

33Boston

110Silicon Valley

# of DealsRegion

$ in millions

2007 Total: $4B in 391 Deals



THOMSON FINANCIAL

VENTURE ECONOMICS



MoneyTreeTM

survey

Life Science Investments – Full Year 2007Silicon Valley, San Diego, Boston, Los Angeles and Orange County

$ Millions

$1,153

$2,582

$972

$415

$1,387

$299

$1,156

$170$268

$1,429

$857

$19$151 $233

$35

$0

$250

$500

$750

$1,000

$1,250

$1,500

$1,750

$2,000

$2,250

$2,500

$2,750

$3,000

Biotechnology Medical Devices and Equipment Life Sciences

SV SD Bos LA OC



THOMSON FINANCIAL

VENTURE ECONOMICS



MoneyTreeTM

survey

SoCal MoneyTree Total Investments: Q1 1998–Q4 2007

$ in millions

68

Q1

2006

84

Q2

94

Q3

103

Q4

85

Q1

2007

103

Q2

98

Q3

78

Q4# of

Deals75

Q4

91

Q3

92

Q2

56

Q1

20052004200320022001200019991998

82

Q4

53

Q3

73

Q2

63

Q1

73

Q4

72

Q3

67

Q2

52

Q1

57

Q4

57

Q3

70

Q2

72

Q1

87

Q4

92

Q3

106

Q2

109

Q1

168

Q4

183

Q3

199

Q2

195

Q1

168

Q4

113

Q3

128

Q2

7986758980

Q1Q4Q3Q2Q1

$719

$408

$481

$304

$1,210

$2,386

$546

$390

$1,150

$719

$739$937

$574

$610

$626

$858

$2,593

$889

$482

$975

$963

$731

$497

$462

$430

$741

$2,007

$1,146

$526

$834

$812

$593

$611

$525

$435

$751

$1,965$2,235

$443

$678

0

500

1,000

1,500

2,000

2,500

3,000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4



THOMSON FINANCIAL

VENTURE ECONOMICS



MoneyTreeTM

survey

$18.7

$383.2

$342.9

$216.8

$176.9

$136.4

$128.6

$126.3

$121.8

$116.7

$115.7

$82.6

$47.8

$28.1

$1,158.2

$436.2

$0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 $1,100 $1,200 $1,300

Financial Services







IT Services

Healthcare Services

Semiconductors

Industrial/Energy


Telecommunications

Software


Biotechnology

Southern California Investments by Industry: Full-Year 2007

$ in millions

Full-Year 2007 Totals: $3,636.6

-69%5Electronics/Instrumentation

91%8Networking and Equipment

-57%5Financial Services

54%10Consumer Products and Services

12%364Total

123%10Computers and Peripherals

488%12Retailing/Distribution

44%10Business Products and Services

118%14IT Services

983%6Healthcare Services

-56%19Semiconductors

-53%22Industrial/Energy

-13%36Media and Entertainment

-2%34Telecommunications

-9%66Software

28%41Medical Devices and Equipment

55%66Biotechnology

% $ Changefrom 2006

# of DealsIndustry

NM=Not Meaningful



THOMSON FINANCIAL

VENTURE ECONOMICS



MoneyTreeTM

survey

Los Angeles Investments by Industry: Full-Year 2007

$188.7

$18.7

$23.7

$25.1

$32.3

$37.6

$55.1

$81.4

$94.8

$95.8

$104.4

$110.9

$121.9

$151.3

$8.1

$0 $50 $100 $150 $200 $250 $300


Financial Services




Semiconductors


IT Services


Software

Industrial/Energy



Biotechnology

Telecommunications

$ in millions

Full-Year 2007 Totals: $1,149.7

-88%2Electronics/Instrumentation

-12%5Medical Devices and Equipment

-34%5Financial Services

-14%142Total



-52%7Semiconductors


235%10IT Services


-36%22Software


600%11Retailing/Distribution

-36%25Media and Entertainment

53%5Biotechnology


% $ Changefrom 2006

# of DealsIndustry

NM=Not Meaningful



THOMSON FINANCIAL

VENTURE ECONOMICS



MoneyTreeTM

survey

Orange County Investments by Industry: Full-Year 2007

$ in millions

Q4 2007 Total: $498.1

$233.3

$68.0

$34.5

$32.9

$32.4

$28.8

$20.0

$19.4

$12.2

$8.8

$5.8

$2.1

$0 $50 $100 $150 $200 $250 $300


Healthcare Services


Telecommunications




Semiconductors


Software

Biotechnology

Industrial/Energy


-100%2Consumer Products and Services

-15%63Total

N/A2Healthcare Services

N/A1Retailing/Distribution



323%3Media and Entertainment


-73%7Semiconductors


-82%12Software

-23%5Biotechnology


172%17Medical Devices and Equipment

% $ Changefrom 2006

# of DealsIndustry

NM=Not Meaningful



THOMSON FINANCIAL

VENTURE ECONOMICS



MoneyTreeTM

survey

San Diego Investments by Industry: Full-Year 2007

Q4 2007 Total: $1,988.8

$4.5

$972.4

$254.4

$179.2

$145.4

$126.5

$75.5

$67.0

$48.4

$44.9

$25.1

$20.0

$15.5

$7.0

$0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 $1,100

Industrial/Energy





IT Services


Semiconductors


Healthcare Services

Telecommunications


Software

Biotechnology

N/A1Business Products and Services


52%159Total


25%3Electronics/Instrumentation


170%4IT Services


-45%5Semiconductors

45%8Media and Entertainment

981%4Healthcare Services

140%15Telecommunications

-22%19Medical Devices and Equipment

182%32Software

61%56Biotechnology

% $ Changefrom 2006

# of DealsIndustry

NM=Not Meaningful

$ in millions

© 2008 PricewaterhouseCoopers LLP. All rights reserved. "PricewaterhouseCoopers" refersto PricewaterhouseCoopers LLP a Delaware limited liability partnership or, as the contextrequires, other member firms of PricewaterhouseCoopers International Ltd., each of which isa separate and independent legal entity.

Randy ChurchillDirector of Business Development

[email protected]

213 217-3819

www.pwcmoneytree.com




18

Medical Devices M&A 2007




19

Bio-Tech M&A2007




20

Medical Device andService IPO 2007




21

BioTech IPO2007

march 2008 educational workshop - paulderiddermd · venture capital association moneytree survey 1...

Documents