sdvg vc outlook 2014 nvca slides
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Data presented by Bobby Franklin, President of NVCATRANSCRIPT
Venture Capital Outlook 2014San Diego Venture Group
January 23, 2014
Bobby Franklin
NVCA President & CEO
The Number of U.S. Venture Firms: Back to Rational Levels
Year Number of Active Firms
CapitalManaged
1970 28 $1B
1980 87 $4B
1990 96 $28B
2000 1,022 $220B
2010 462 $177B
2013 382 $203B
VC Raised $17B in 2013: Down but hardly out
Year Number of Funds
VC Dollars Raised
2009 159 $16.1B
2010 173 $13.2B
2011 186 $18.9B
2012 208 $19.5B
2013 186 $16.7B
$80
$100
$120
VC Investment by Year
$105B
$0
$20
$40
$60
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
$ Billion Invested
4
Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report,
Data: Thomson Reuters
B
$32B
$29.4B
VC Fundraising vs. Investment in 2013
Six consecutive years with a considerable gap between venture capital fundraising and
dollars invested.dollars invested.
Is it an issue?
IT Software Attracting Most VC Dollars
60%
80%
100%
% of Total VC Investment $
25%
19%
37%
15
0%
20%
40%
60%
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
% of Total VC Investment $
Software Biotech
19%
6
Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report,
Data: Thomson Reuters
%15%
Seed stage slowing, Early stage increasing
7
San Diego Metro VC Investment
2.297
1.579
1.8461.9
2.4
250
300
8Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report,
Data: Thomson Reuters
235
156
114125 132
143130
169
134114
135114 105 97
0.997
0.825
1.197 1.203 1.23 1.209
0.9390.881 0.927
1.156
0.757
-0.1
0.4
0.9
1.4
50
100
150
200
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Bill
ion
s In
ve
ste
d
# o
f D
ea
ls
2013 San Diego Metro VC Investment by Industry
9%
4%7%
$ Funded
Biotech
Medical Devices
9Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report,
Data: Thomson Reuters
51%
17%
12%Software
Industrial/Energy
IT Services
Other
2013: More Life Sciences IPOs than the prior 5 years combined
Source: Thomson Reuters/National Venture Capital Association
10
380384363
323
402443
485488
423
360
543499488
377400
500
600
# D
ea
lsM&A Exits are Down
143
189227
323
0
100
200
300
1997 1999 2001 2003 2005 2007 2009 2011 2013
# D
ea
ls
Source: Thomson Reuters/National Venture Capital Association
11
The future of venture capital
• Today, capital is essential to grow a company,not necessarily to start it
• Tomorrow, better fund performance and returns • Tomorrow, better fund performance and returns to LPs
• Venture Capital continues to fuel innovation in a way unlike any other asset class
The Washington Environment
• Gridlock: Last year, Congress passed only 57 bills that got the President’s signature and became law – lowest in history
• The obvious right thing to do is often widely supported by elected officials, but it gets tangled with other issues• Immigration• Tax Reform
• NVCA can and does make a difference
In Summary...
• Venture capital had a great 2013 and 2014 will likely be even better
• Venture capital continues to play an important role in the entrepreneurial ecosystemrole in the entrepreneurial ecosystem
• Washington is messy but necessary for the innovation economy
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