The Facts Overview of the US Venture Capital Industry alternative assets. intelligent data.
Overview of the US Venture Capital Industry
We provide a detailed look at the venture capital industry in the US, including fundraising, performance, deals and investors.
Fundraising
Fig. 1: Global Quarterly Venture Capital Fundraising, Fig. 2: US-Focused Quarterly Venture Capital Fundraising, Q1 Q1 2010 - Q3 2015 2010 - Q3 2015
140 60
120 50
100 40 80 30 60 20 40
20 10
0 0 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 201020112012201320142015 201020112012201320142015 Date of Final Close Date of Final Close No. of Funds Closed Aggregate Capital Raised ($bn) No. of Funds Closed Aggregate Capital Raised ($bn)
Source: Preqin Funds in Market Source: Preqin Funds in Market
Fig. 3: Average Time Taken for First-Time Venture Capital Fig. 4: Average Time Taken for Established Venture Capital Funds to Reach a Final Close: Global vs. US-Focused Funds, Funds to Reach a Final Close: Global vs. US-Focused Funds, Q1 2010 - Q3 2015 Q1 2010 - Q3 2015
25 25 23 23 22
20 20 19 19 18 18 18 18 17 18 17 17 16 16 16 Global Global 15 15 14 Funds 13 Funds 13 12 12 12 11 10 9 10 US-Focused Close (Months) US-Focused
Close (Months) Funds Funds 5 5 Average Time Taken to Reach a Final Time Taken Average
Average Time Taken to Reach a Final Time Taken Average 0 0 20102011201220132014Q1 - Q3 20102011201220132014Q1 - Q3 2015 2015 Date of Final Close Date of Final Close Source: Preqin Funds in Market Source: Preqin Funds in Market
Data Source:
Preqin’s Funds in Market is the industry’s leading source of intelligence on private equity and venture capital fundraising. This constantly updated resource includes details for all funds of all types being raised worldwide, with key information on target sizes, interim closes, placement agents, lawyers, investors and much more.
For more information, please visit:
www.preqin.com/fim
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The Facts Overview of the US Venture Capital Industry alternative assets. intelligent data.
Fig. 5: 10 Largest Global Venture Capital Funds Closed, 2010 - Q3 2015
Fund Final Size (mn) Firm Year of Final Close Location Focus Insight Venture Partners IX 3,446 USD Insight Venture Partners 2015 US Nanjing Jianning Zijin Equity Investment 3,200 USD Nanjing Zijin Investment 2012 China Fund I New Enterprise Associates 15 2,800 USD New Enterprise Associates 2015 US New Enterprise Associates XIV 2,600 USD New Enterprise Associates 2012 North America, US Insight Venture Partners VIII 2,576 USD Insight Venture Partners 2013 US Tiger Global Private Investment Partners 2,500 USD Tiger Global Management 2014 Global IX DST Global II 2,184 USD DST Global 2011 Global Bessemer Venture Partners IX 1,600 USD Bessemer Venture Partners 2015 Global Bessemer Venture Partners VIII 1,600 USD Bessemer Venture Partners 2011 Global Deerfi eld Private Design Fund III 1,600 USD Deerfi eld Management 2014 Global
Source: Preqin Funds in Market
Fig. 6: 10 Largest US-Focused Venture Capital Funds Closed, 2010 - Q3 2015
Fund Final Size (mn) Manager Year of Final Close Insight Venture Partners IX 3,446 USD Insight Venture Partners 2015 New Enterprise Associates 15 2,800 USD New Enterprise Associates 2015 New Enterprise Associates XIV 2,600 USD New Enterprise Associates 2012 Insight Venture Partners VIII 2,576 USD Insight Venture Partners 2013 Insight Venture Partners VII 1,569 USD Insight Venture Partners 2011 Andreessen Horowitz Fund III 1,500 USD Andreessen Horowitz 2012 Andreessen Horowitz Fund IV 1,500 USD Andreessen Horowitz 2014 Institutional Venture Partners XV 1,400 USD Institutional Venture Partners 2015 Athyrium Opportunities Fund II 1,227 USD Athyrium Capital Management 2015 Khosla Ventures IV 1,050 USD Khosla Ventures 2011
Source: Preqin Funds in Market
Fig. 7: 10 Largest US-Focused Venture Capital Fund Managers by Aggregate Venture Capital Raised ($bn)
Firm Aggregate Venture Capital Raised Last 10 Years ($bn) New Enterprise Associates 10.7 Tiger Global Management 9.5 Insight Venture Partners 9.4 Sequoia Capital 9.0 Kleiner Perkins Caufi eld & Byers 6.5 Bessemer Venture Partners 4.2 Accel Partners 4.2 Andreessen Horowitz 4.0 Oak Investment Partners 3.9 Institutional Venture Partners 3.8
Source: Preqin Funds in Market
Fig. 8: 10 Largest US-Focused Venture Capital Fund Managers by Estimated Venture Capital Dry Powder ($bn)
Firm Estimated Dry Powder ($bn) Tiger Global Management 4.6 New Enterprise Associates 3.6 Insight Venture Partners 3.4 Deerfi eld Management 2.5 Sequoia Capital 2.1 Andreessen Horowitz 2.1 Bessemer Venture Partners 2.0 Kleiner Perkins Caufi eld & Byers 1.9 Institutional Venture Partners 1.4 Accel Partners 1.3
Source: Preqin Funds in Market
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The Facts Overview of the US Venture Capital Industry alternative assets. intelligent data.
Performance
Fig. 9: Assets under Management of US-Based Venture Fig. 10: US-Based Venture Capital Funds: Median Net IRRs Capital Firms and Quartile Boundaries
350 100%
300 80% 250 Top Quartile Boundary Net 200 226 60% IRR 201 226 140 154 179 Median Net IRR 150 138 172 89 76 117 129 40% 100 62 59 91 53 Bottom Quartile 20% Boundary Net 50 78 87 76 69 86 69 66 73 IRR 69 81 70 78 84 71 63 72 0
Median Net IRR since Inception 0%
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Mar-15
Dec-00
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13 Dec-14 -20% Dry Powder ($bn) Unrealized Value ($bn) Vintage Year Source: Preqin Performance Analyst Source: Preqin Performance Analyst
Fig. 11: KS PME: North America Focused Venture Capital Funds (as at 31 March 2015)
1.2 Data Source:
1.1 Preqin’s Performance Analyst contains full metrics for over 7,600 named vehicles. 1.0 In terms of capital raised, Performance Analyst contains data
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 0.9 2014 KS PME (X) for around 70% of all capital raised historically. using Russell
(X) 2000 TR 0.8 For more information, please visit:
0.7 www.preqin.com/pa
0.6
0.5
Vintage Year Source: Preqin Performance Analyst
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The Facts Overview of the US Venture Capital Industry alternative assets. intelligent data.
Deals
Fig. 12: Quarterly Number and Aggregate Value of Venture Fig. 13: Annual Number and Aggregate Value of Venture Capital Deals* in the US, Q1 2007 - Q3 2015 Capital Deals in the US, 2007 - Q3 2015
1,600 20 6,000 60
1,400 18 Aggregate Deal Value ($bn) Aggregate Deal Value ($bn) 5,000 50 16 1,200 14 4,000 40 1,000 12 800 10 3,000 30
600 8 No. of Deals No. of Deals 2,000 20 6 400 4 1,000 10 200 2 0 0 0 0
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
2007
2008
2009
2010
2011
2012
2013
2014
20072008200920102011201220132014 2015 2015
Q1- Q1- Q3 No. of Deals Aggregate Deal Value ($bn) No. of Deals Aggregate Deal Value ($bn)
Source: Preqin Venture Deals Analyst Source: Preqin Venture Deals Analyst
Fig. 14: Number and Aggregate Value of Venture Capital Fig. 15: Number and Aggregate Value of Venture Capital Deals* in the US as a Proportion of the Global Total, Q1 2007 Deals* in the US as a Proportion of the Global Total, 2007- - Q3 2015 2015 YTD Proportion of Global Aggregate Deal
70% 80% 70% 80% Proportion of Global Aggregate Deal
60% 70% 60% 70%
60% 60% 50% 50% 50% 50% Value 40% 40% Value 40% 40% 30% 30% 30% 30% 20% 20% 20% 20% 10% 10% 10% 10% Proportion of Global No. Deals Proportion Proportion of Global No. Deals Proportion 0% 0% 0% 0%
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 200720082009201020112012201320142015 20072008200920102011201220132014 2015 YTD Proportion of No. of Deals Proportion of Aggregate Deal Value Proportion of No. of Deals Proportion of Aggregate Deal Value
Source: Preqin Venture Deals Analyst Source: Preqin Venture Deals Analyst *Figures exclude add-ons, grants, mergers, venture debt & secondary stock purchases
Comprehensive Venture Capital Data
Preqin’s online databases offer unparalleled coverage of all aspects of the venture capital industry, including fundraising, fund performance, fund manager profi les, fund terms and conditions, investors in venture capital, and deals.
For more information, please visit:
www.preqin.com/vc
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The Facts Overview of the US Venture Capital Industry alternative assets. intelligent data.
Fig. 16: Proportion of Number of Venture Capital Deals* in Fig. 17: Proportion of Aggregate Value of Venture Capital the US by State, 2007 - Q3 2015 Deals* in the US by State, Q1 2007 - Q3 2015
100% 100% Other Other 90% 90% North Carolina North Carolina 80% 80% Illinois Colorado 70% 70% Florida Utah 60% 60% Colorado Florida 50% 50% Washington Texas 40% 40% Texas Washington 30% 30% Proportion of Total Proportion Massachusetts of Total Proportion Massachusetts 20% 20% New York New York 10% 10% California California 0% 0%
2007
2008
2009
2010
2011
2012
2013
2014
2007
2008
2009
2010
2011
2012
2013
2014
2015
2015
Q1 -Q3 Q1
Q1 -Q3 Q1
Source: Preqin Venture Deals Analyst Source: Preqin Venture Deals Analyst
Fig. 18: Proportion of Number of Venture Capital Deals* in Fig. 19: Proportion of the Aggregate Value of Venture the US by Industry, 2007 - Q3 2015 Capital Deals* in the US by Industry, 2007 - Q3 2015
100% Other 100% Other 90% Food and Ag. 90% Cleantech 80% Cleantech 80% Consumer Discretionary 70% Consumer 70% Discretionary Industrials 60% 60% Business Services Business Services 50% 50% Other IT Other IT 40% 40% Telecoms Telecoms 30%
Proportion of Total Proportion 30% Healthcare of Total Proportion Internet 20% 20% Internet Software & 10% Software & 10% Related 0% Related 0% Healthcare 2007 2008 2009 2010 2011 2012 2013 2014 2007 2008 2009 2010 2011 2012 2013 2014 2015 2015 Q1 -Q1 Q3 Q1- Q3
Source: Preqin Venture Deals Analyst Source: Preqin Venture Deals Analyst
Fig. 20: Quarterly Number and Aggregate Value of Venture Fig. 21: Annual Number and Aggregate Value of Venture Capital Exits in the US, Q1 2007 - Q3 2015 Capital Exits in the US, 2007 - Q3 2015
250 40 800 80 Aggregate Exit Value ($bn)
35 Aggregate Exit Value ($bn) 700 70 200 30 600 60
500 50 150 25 20 400 40 100 No. of Exits No. of Exits 15 300 30
10 200 20 50 5 100 10
0 0 0 0
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
2007
2008
2009
2010
2011
2012
2013
2014
200720082009201020112012201320142015 2015
Q1- Q1- Q3 No. of Exits Aggregate Exit Value ($bn) No. of Exits Aggregate Exit Value ($bn)
Source: Preqin Venture Deals Analyst Source: Preqin Venture Deals Analyst
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The Facts Overview of the US Venture Capital Industry alternative assets. intelligent data.
Fig. 23: Proportion of US-Based Venture Capital Firms Fig. 22: Proportion of US-Based Venture Capital Firms Investing in Foreign Markets by Target Country, 2007- Q3 Investing in Foreign Markets, 2007 - Q3 2015 2015
35% 12% 33% 33%
30% 29% 29% 28% 10% 26% 25% 23% 8% 22% 22% 20% 6%
15% 4%
10% 2% Proportion of US-Based VC Firms Proportion
Proportion of US-Based VC Firms Proportion 5% 0% 20072008200920102011201220132014 Q1- Q3 0% 2015 20072008200920102011201220132014 Q1- Q3 2015 Canada China India Israel UK
Source: Preqin Venture Deals Analyst Source: Preqin Venture Deals Analyst
Fig. 24: Top 10 Venture Capital Deals in the US, Q1 - Q3 2015
Portfolio Deal Deal Size Stage Investors Primary Industry Company Name Date ($mn) Baillie Gifford, CBC Capital, Fidelity Investment Managers, General Atlantic, GGV Capital, Hillhouse Capital Management, Airbnb Unspecifi ed Round Jun-15 1,500 Horizon Ventures, Kleiner Perkins Caufi eld & Byers, T Rowe Internet Price, Temasek Holdings, Tiger Global Management, Wellington Management Baseline Ventures, DCM, Institutional Venture Partners, Renren Social Finance Series E/Round 5 Sep-15 1,000 Financial Services Inc., Softbank, Third Point Ventures, Wellington Management Draper Fisher Jurvetson, Fidelity Equity Partners, Founders SpaceX Unspecifi ed Round Jan-15 1,000 Aerospace Fund, Google, Valor Equity Partners Uber Series E/Round 5 Feb-15 1,000 Telecoms Technologies, Inc. Uber Series F/Round 6 Jul-15 1,000 Microsoft, Times Internet Telecoms Technologies, Inc. Aduro BioTech Unspecifi ed Round Mar-15 750 Novartis Venture Funds Pharmaceuticals Didi Kuaidi, Fontinalis Partners, Fortress Investment Group, Lyft, Inc. Series E/Round 5 Mar-15 530 Telecoms Rakuten Group Wish Unspecifi ed Round Jun-15 500 DST Global Telecoms Andreessen Horowitz, Fidelity Management & Research Company, Founders Fund, Insight Venture Partners, Zenefi ts Series C/Round 3 May-15 500 Software Institutional Venture Partners, Khosla Ventures, Sound Ventures, TPG Moderna Alexion Pharmaceuticals, Inc., AstraZeneca, Invus Group, RA Unspecifi ed Round Jan-15 450 Pharmaceuticals Therapeutics Capital, Viking Global Investors, Wellington Management
Source: Preqin Venture Deals Analyst
Data Source:
Preqin’s Venture Deals Analyst is the most extensive and detailed source of information on venture capital deals in the world. This comprehensive product contains in-depth data for over 90,000 venture capital deals across the globe, including information on deal value, new/returning/lead/co-lead investors, total known company funding, fi nancial and legal advisors, exit details and more.
Constantly updated by our team of dedicated researchers, Venture Deals Analyst represents the most comprehensive source of venture capital deals data available today, with global coverage and all key fi nancial metrics included.
For more information, please visit:
www.preqin.com/vcdeals
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The Facts Overview of the US Venture Capital Industry alternative assets. intelligent data.
Fig. 25: Top 10 Venture Capital Exits in the US, Q1 - Q3 2015
Initial Total Known Exit Portfolio Exit Exit Investment Funding Investors Value Acquiror (Exit) Primary Industry Company Name Date Type Date ($mn) ($mn) BioMed Ventures, Costa Verde Capital, Auspex Deerfi eld Management, Oxford Finance Trade TEVA Pharmaceuticals, May-08 87 Corporation, Panorama Capital, Presidio Mar-15 3,200 Pharmaceuticals Sale Pharmaceuticals Inc. Partners, Sloan Biotech Fund, Square 1 Bank, Thomas, McNerney & Partners Accel Partners, Bain Capital, Bessemer Venture Partners, Goldman Sachs, Greylock Partners, LinkedIn, McGraw-Hill Education, Trade Lynda.com, Inc. Jan-13 289 Apr-15 1,500 LinkedIn Internet Meritech Capital Partners, Rocket Internet, Sale Sapphire Ventures, Sequoia Capital, Spectrum Equity, TPG Flexus Celgene, Kleiner Perkins Caufi eld & Byers, Trade Bristol-Myers Dec-14 38 Feb-15 1,250 Pharmaceuticals Biosciences The Column Group Sale Squibb Blue Lagoon Capital, Columbia Capital, Intel Capital, Noro-Moseley Partners, Orix Venture Trade Virtustream Inc. Sep-09 130 May-15 1,200 EMC IT Finance, QuestMark Partners, SAP, TDF Sale Ventures Bay City Capital, Comerica Bank, Deerfi eld Management, Essex Woodlands, FirstMark Capital, Highland Capital Partners, Horizon Pharma, Kreos Capital, Life Sciences Partners, Hyperion Trade Sep-07 153 New Enterprise Associates, Oxford Finance Mar-15 1,100 Horizon Pharma Pharmaceuticals Therapeutics Sale Corporation, Panorama Capital, Scale Venture Partners, Silicon Valley Bank, Sofi nnova Ventures, Sutter Hill Ventures, TVM Capital, WRF Capital Clarium Capital, DAG Ventures, Eight Roads Ventures Europe, Glynn Capital Management, Trade Xoom Oct-03 94 Jul-15 890 Paypal Internet New Enterprise Associates, Sequoia Capital, Sale SVB Capital Trade Trustwave May-04 10 FTV Capital, Updata Venture Partners Apr-15 810 SingTel IT Security Sale Symphony Trade Harman Teleca Sep-03 20 TH Lee Putnam Ventures Jan-15 780 Software Sale International Corporation Felicis Ventures, Foundry Group, Qualcomm FitBit** Oct-08 85 Ventures, Sapphire Ventures, Softbank Capital, Jun-15 IPO 732 Technology SoftTech VC, True Ventures Accel Partners, Bank of America, Institutional Trade Yodlee Sep-02 183 Aug-15 660 Envestnet Internet Venture Partners, Warburg Pincus Sale
Source: Preqin Venture Deals Analyst **Denotes partial exit.
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The Facts Overview of the US Venture Capital Industry alternative assets. intelligent data.
Investors
Key Facts
$59bn 10.1% 11.1%
Aggregate assets under management Average current allocation to private Average target allocation to private of investors with an appetite for North equity of investors with an appetite for equity of investors with an appetite for America-focused venture capital North America-focused venture capital North America-focused venture capital funds. funds funds.
Fig. 26: Breakdown of Investors with an Appetite for North Fig. 27: Breakdown of Investors with an Appetite for North America-Based Venture Capital Funds by Type America-Based Venture Capital Funds by Location
Foundation
Endowment Plan 2% 15% 8% 20% Private Sector Pension Fund North America
Public Pension Fund 17% Europe 5% 14% Fund of Funds Manager Asia Pacific 6% Family Office Rest of World
7% 13% Insurance Company 72%
8% Wealth Manager 12% Other
Source: Preqin Investor Intelligence Source: Preqin Investor Intelligence
Fig. 28: 10 Notable Investors in US-Focused Venture Capital Funds
Assets under Current Allocation Target Allocation Count of Known Commitments Investor Type Country Management to Private Equity to Private Equity to US-Focused Venture Capital ($bn) (% of AUM) (% of AUM) Funds California Public Employees' Public Pension Fund US 286.4 10.3 10.0 244 Retirement System (CalPERS) Private Equity Fund of HarbourVest Partners US 37.1 100.0 171 Funds Manager Private Sector Pension AT&T Pension Fund US 48.5 12.1 13.0 162 Fund Private Sector Pension Hewlett Packard Pension Fund US 30.0 5.4 149 Fund Private Equity Fund of Adams Street Partners US 27.1 100.0 100.0 148 Funds Manager Private Sector Pension Alcatel-Lucent Pension Fund US 35.4 5.6 138 Fund Illinois Municipal Retirement Fund Public Pension Fund US 35.9 4.0 9.0 128 Regents of the University of California Public Pension Fund US 98.0 5.0 123 Private Equity Fund of Pantheon UK 29.7 100.0 121 Funds Manager Pennsylvania State Employees' Public Pension Fund US 27.5 18.5 15.0 117 Retirement System
Source: Preqin Investor Intelligence
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