pwc presents: vc investing – major trends from q3 2014
TRANSCRIPT
Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals
PwC Presents: VC Investing –
Major Trends From Q3 2014
• Learn key trends in venture capital investing during Q3
2014 by sector and industry
• Understand which of the 17 industry sectors in the report
experienced growth in venture capital investments in
during the quarter
• Discover investment trends by the stage of company
development, and insights into key factors which fueled
these trends
After attending this event you will be able to:
Learning Objectives
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Welcome to Proformative
Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals
PwC Presents: VC Investing – Major Trends
From Q3 2014Brad Phillips, Director of the Emerging Company
Services (ECS) Group, PwC
Claire Hayes, Managing Director, PwC
Shaking the MoneyTree™Q3 2014 Update
www.pwc.com
PricewaterhouseCoopers/National Venture Capital Association MoneyTreeTM Report, based on data from Thomson Reuters
PwC
About the report
• PricewaterhouseCoopers and the National Venture Capital Association produce the MoneyTree Report™, based on data from Thomson Reuters
• ‘Core’ measure of equity investments in venture-backed companies in the United States
• Companies have received at least one round of financing, involving a professional VC firm or equivalent
• Captures: tranches, not term sheets, foreign VCs, qualified private placement
• Excludes: debt, bridge loans, recaps, roll-ups, IPOs, PIPEs, leasing, etc.
• MoneyTree™ Report in its 20th year
• Results online at www.pwcmoneytree.com and www.nvca.org
6
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters
PwC
$5.1
$6.5 $6.3 $6.1
$9.8
$7.1
$8.2
$7.5 $7.2
$13.5
$5.5
$7.5
$6.7
$8.0
$9.9
$5.7
$7.5$7.0
$8.5
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
2010 2011 2012 2013 2014Q1 Q2 Q3 Q4
MoneyTree total investments: Q1 2010 – Q3 2014
7
($ in billions)
2010 2011 2012 2013 2014
# of Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Deals 827 1,023 889 912 908 1,092 1,020 1,000 889 989 954 1,072 924 1,005 1,065 1,140 1,002 1,129 1,023
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters
PwC
$8.0$11.3
$15.1$21.5
$54.9
$105.1
$40.9
$22.2 $19.7$22.8 $23.6
$27.6$32.1 $30.4
$20.3$23.4
$29.8 $27.5 $29.8$33.2
$0
$20
$40
$60
$80
$100
$120
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014Q3
YTD
($ in billions)
MoneyTree total investmentsAnnual venture capital investments 1995 – Q3 2014 YTD
8
# of deals
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q3
YTD
1,897 2,636 3,232 3,743 5,606 8,044 4,595 3,218 3,035 3,236 3,304 3,890 4,234 4,189 3,162 3,651 4,020 3,904 4,134 3,154
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters
PwC
$5.1
$7.1
$5.5 $5.7$6.5
$8.2$7.5 $7.5
$6.3$7.5
$6.7 $7.0$6.1
$7.2$8.0 $8.5
$9.8
$13.5
$9.9
0
200
400
600
800
1000
1200
Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14
# D
eals
Total amount invested ($B)
9
Average deal size ($M)
$6.2$7.0
$6.2 $6.2$7.2 $7.6 $7.4 $7.5 $7.1 $7.5
$7.0 $6.6 $6.6$7.2 $7.5 $7.5
$9.7
$12.0
$9.7
Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters
MoneyTree total investmentsQuarterly venture capital investments Q1 2010 – Q3 2014
PwC
Investments by region –Quarterly percent of total US investments
Top 5 US regions : Q3 2013 – Q3 2014
10
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters
46%
9%11%
6%
2%
40%
13%11%
5%
2%
50%
10% 10%
6%
3%
57%
9% 9%
4%2%
44%
17%
7% 6% 5%
0%
10%
20%
30%
40%
50%
60%
Silicon Valley NY Metro New England LA/Orange County SouthWest
(% of total dollars)
Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14
PwC
Investments by industry –Quarterly percent of total US investments
11
46%
7%
12%
5% 6%
35%
13%
16%
7%5%
42%
10%11%
8%6%
45%
11%14%
5% 5%
37%
19%
11%
7% 6%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Software Media andEntertainment
Biotechnology IT Services Medical Devices andEquipment
Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14
(% of Total Dollars)
Top 5 Industries : Q3 2013 – Q3 2014
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters
Thank you for your interest in this presentation. View the on-demand webinar or download the full presentation at:www.Proformative.com
PwC Presents: VC Investing – Major Trends
From Q3 2014