Venture Capital Report

[Pages:21]Venture Capital Report

U.S. | 1Q | 2018

VENTURE CAPITAL REPORT

VENTURE CAPITAL REPORT

The following report presents Dow Jones VentureSource's quarterly findings for U.S. venture capital fundraising, investment, valuation, and liquidity. The included charts and graphs offer a comprehensive view of the trends currently affecting the venture capital market. Highlights for 1Q 2018 include: ? U.S. venture capital fundraising increased in amount invested and in number of funds ? Venture capital investment into U.S. companies reached the highest level of the last three years ? Amount raised through initial public offerings (IPOs) decreased in the first quarter of 2018, mergers and acquisitions (M&As) also fell compared to the

previous quarter

VENTURE CAPITAL REPORT 2

GROWTH EQUITY

Starting this quarter, we are reporting on Growth Equity. VentureSource has always tracked this space, but until now they were excluded from the quarterly statistics. Please note that Growth deals will be included in the Later Stage category, a subsection of Venture Capital Investment. We define Growth Equity as a minority stake investment in privately owned, mature companies that meet the following criteria:

? No prior equity investment within the first 3 years of business operations; and ? A proven business model -- generating revenue or profitable; and ? No VC-type round series is used by the company to label the transaction; and ? At least one institutional investor participated in the deal.

We recently reviewed our entire database to ensure that all companies and transactions are classified consistent with the above criteria. As a result of this review, we re-characterized thousands of historical deals from VC to Growth, or from Growth to VC. As with our Venture Capital statistics, we exclude companies formed for the sole purpose of acquiring other companies, properties, natural resources, or interests. We also exclude companies formed or owned by private equity firms.

VENTURE CAPITAL REPORT 3

VENTURE FUNDRAISING INCREASES IN U.S. DURING 1Q 2018

FUNDRAISING

140 venture capital funds collected $8.78 billion in 1Q 2018, a 180

68% increase in the amount raised, along with a 2% growth in 160

the number of funds from the prior quarter.

140

Norwest Venture Partners XIV LP was the largest

120

U.S. venture capital fund of 1Q 2018, raising $1.5 billion and 100 accounting for 17% of the total venture capital financing

80

raised during the quarter.

60

U.S. VC Fundraising (2014?2018) Based on multiple closings

40

20

0 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18

Amount Raised ($B) $9.03 $13.75 $5.76 $9.14 $14.35 $11.91 $8.78 $9.43 $8.19 $14.37 $9.85 $5.21 $8.78 Number of Funds 82 115 77 103 131 119 116 144 171 158 121 137 140

$16.00 $14.00 $12.00 $10.00 $8.00 $6.00 $4.00 $2.00 $-

VENTURE CAPITAL REPORT 4

LARGEST VC FUNDS RAISED IN 1Q 2018

FUNDRAISING

Firm Name

Fund Name

Amount ($M)

City

Norwest Venture Partners

Norwest Venture Partners XIV LP

$1,500.00

Palo Alto

General Catalyst Partners

General Catalyst Group IX LP

$1,375.00

Cambridge

Battery Ventures

Battery Ventures XII LP

$800.00

Boston

Ampersand Capital Partners Ampersand 2018 LP

$450.00

Wellesley

Samsara BioCapital

Samsara BioCapital LP

$260.59

Palo Alto

State CA MA MA MA CA

Offering Status

Fund Type

Fund Category

Closed

Multi-stage venture capital

Venture Capital

Closed

Multi-stage venture capital

Venture Capital

Closed

Multi-stage venture capital

Venture Capital

Closed

Multi-stage venture capital

Venture Capital

Open

Multi-stage venture capital

Venture Capital

Closing Type Final Final Final Final First

VENTURE CAPITAL REPORT 5

U.S. EQUITY INVESTMENT IN 1Q 2018 INCREASES

FINANCING

Equity Financings into U.S.- Based, VC-backed Companies (2015?2018)

U.S.-based companies raised $25.72 billion in 1303 equity $30.00

1600

deals in 1Q 2018, which translates to an increase of 17% in

1400

capital raised from the fourth quarter of 2017, with a 9% $25.00

increase in number of deals during the same period.

1200

Healthcare received the highest amount of investment, $20.00

1000

accounting for 26.62% and growing 21% from the last

$15.00

800

quarter. Compared to the same period last year, there was

a slight increase of 4%.

$10.00

600

Equity financing this quarter was the highest in the last

400

three years. When measured against the same period last year, total capital invested rose by 30%.

$5.00 200

$0.00

0

1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18

Amount Raised ($B) $19.80 $23.15 $23.50 $23.53 $16.24 $20.36 $18.80 $13.62 $19.76 $20.93 $23.32 $21.66 $25.72

Number of Deals 1268 1383 1258 1329 1229 1225 1272 1124 1306 1341 1299 1211 1303

VENTURE CAPITAL REPORT 6

EQUITY FINANCINGS INTO U.S.?BASED, VC?BACKED COMPANIES, BY ROUND CLASS (QUARTER OVER QUARTER, 2015?2018)

FINANCING

Number of Deals

600

500

400

300

200

100

0 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18

Restart 5

5

3

2

4

4

3

1

6

1

4

0

2

Later 428 481 431 440 420 425 454 378 441 397 418 397 439

Second 238 260 212 225 222 230 201 186 211 195 206 171 195

First

347 382 376 375 342 343 338 320 318 312 260 237 273

Seed

90 115 99 120 99 73 103 89 124 155 143 135 118

VENTURE CAPITAL REPORT 7

EQUITY FINANCINGS INTO U.S.-BASED, VC-BACKED COMPANIES, BY ROUND CLASS (QUARTER OVER QUARTER, 2015?2018)

FINANCING

Amount Raised ($B)

$18.00

$16.00

$14.00

$12.00

$10.00

$8.00

$6.00

$4.00

$2.00

$0.00 Restart

1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 $0.03 $0.09 $0.06 $0.02 $0.06 $0.04

3Q'16 $0.54

4Q'16 1Q'17 $0.01 $0.08

2Q'17 3Q'17 $0.01 $0.05

4Q'17 $0.00

1Q'18 $0.03

Later $13.20 $15.52 $15.35 $16.60 $10.31 $10.63 $12.01 $7.66

Second $3.12 $3.66 $3.70 $3.01 $2.25 $2.72 $2.37 $2.19

First

$2.12 $2.42 $2.57 $2.78 $2.09 $2.26 $2.93 $1.95

Seed $0.08 $0.11 $0.09 $0.12 $0.13 $0.10 $0.10 $0.13

$10.71 $12.86 $14.69 $13.52 $14.30 $3.90 $3.07 $3.50 $3.07 $4.23 $3.64 $2.90 $2.13 $2.77 $4.25 $0.16 $0.34 $0.32 $0.33 $0.32

VENTURE CAPITAL REPORT 8

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download