Shaking the Moneytreetm Q1 2012 Update
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www.pwc.com Shaking the MoneyTreeTM Q1 2012 Update PricewaterhouseCoopers/National Venture Capital Association MoneyTreeTM Report based on data from Thomson Reuters Randy Churchill Director, Emerging Company Services [email protected] (213) 217-3819 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 15th year • Results online at www.pwcmoneytree.com and www.nvca.org Shaking the MoneyTreeTM Q1 2012 2 ($ in billions) in ($ Shaking the MoneyTree the Shaking VentureAnnual InvestmentsCapital 1982 toQ1 2012 investments total MoneyTree $100 $120 $80 $60 $40 $20 $0 1982 $1.5 1983 $2.8 1984 $2.9 1985 $2.8 TM 1986 $3.1 1987 $3.4 1988 $3.4 1989 $3.3 1990 $2.8 1991 $2.2 1992 $3.6 1993 $3.7 1994 $4.1 1995 $8.0 1996 $11.4 1997 $14.9 1998 $21.3 1999 $54.7 2000 $105.2 2001 $41.0 2002 $22.2 2003 $19.7 2004 $23.2 2005 $23.6 2006 $27.5 2007 $31.8 2008 $30.0 2009 $20.1 2010 $23.3 Q1 2012 Q1 2011 $29.1 Q1 2012 $5.8 3 MoneyTree total investments: Q1 2005 – Q1 2012 ($ in billions) $9.0 $8.0 $8.4 $8.2 $8.1 $8.0 $8.0 $7.8 $7.0 $7.6 $7.5 $7.3 $7.3 $7.2 $7.1 $6.9 $6.0 $6.7 $6.7 $6.6 $6.4 $6.2 $6.1 $5.9 $5.8 $5.8 $5.0 $5.6 $5.4 $5.3 $5.2 $5.2 $5.1 $4.0 $3.0 $3.9 $2.0 $1.0 $0.0 2005 2006 2007 2008 2009 2010 2011 2012 Q1 Q2 Q3 Q4 # 2005 2006 2007 2008 2009 2010 2011 2012 of 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 Deals 755 858 808 849 896 1,001 944 996 894 1,091 1,036 1,119 1,049 1,092 1,038 949 670 751 739 920 805 1,014 869 876 861 1,041 961 889 758 Shaking the MoneyTreeTM Q1 2012 4 Investments by region: Q1 2012 Q1 2012 Total Investments - $5,751.8 million in 758 deals New England $677.9 M Upstate NY 97 Deals $12.1 M Northwest 12% of total US $ Northwest 3 Deals $213.5 M $136.6 M <1% of total US $ Sacramento/N. CA 38 Deals 34 Deals North Central $8 M 4%North of total Central US $ NY Metro 2% of total US $ $90.4 M 1 Deal $41.8 M $378.3 M 12 Deals <1% of total US $ 15 Deals 75 Deals 2% of total US $ 7% of total US $ Silicon Valley 1% of total US $ Midwest $2,079.7 M Colorado Midwest Colorado $285.5 M Philadelphia Metro 213 Deals $121.6 M $200.6 M $166.3 M 63 Deals $141.6 M 36% of total US $ 20 Deals 48 Deals 27 Deals 5% of total US $ 22 Deals Los Angeles 2% of total US3% $of total US $ 3% of total US $ South Central 2% of total US $ $317.8M South Central Southwest $18.1 M 45 DealsSouthwest $37.8 M DC/Metroplex $91.3 M 4 Deals 6% of total$63.1 US M $ 22 Deals Southeast $202.5 M 19 Deals <1% of total US $ 19 Deals 1% of total US $ $118.0 M 40 Deals Orange County 2% of total US $ 1% of US total $ Texas 29 Deals 4% of total US $ $249.3M Texas $388.5 M 2% of total US $ 13 Deals $306.2 M 41 Deals 4% of total US $ 31 Deals KAU AI 7% of total US $ San Diego NI I HA U 5% of total US $ O AHU $357.1 M M O L O KAI MAUI L ANAI 22 Deals KAHO O LA WE HA W AII 6% of total US $ AK/HI/PR $0.6 M 1 Deal <1% of total US $ Unknown region totals not included Shaking the MoneyTreeTM Q1 2012 5 Investments by region: Q1 2012 Q1 2012 Total Investments - $5,751.8 million in 758 deals ($ in millions) Silicon Valley $2079.7 Southern California $924.1 % Change $ Region # of Deals from Q4’ 11 New England $677.9 Silicon Valley 213 -37% Texas $388.5 New England 97 -15% NY Metro $378.3 Southern California 80 18% NY Metro 75 -34% Midwest $285.5 Midwest 63 7% Northwest $213.5 Texas 41 19% DC/Metroplex $202.5 DC/Metroplex 40 14% Northwest 38 56% Philadelphia Metro $141.6 Southeast 29 -42% Colorado $121.6 Philadelphia Metro 22 7% Southeast $118.0 Colorado 20 -28% SouthWest 19 13% SouthWest $91.3 North Central 12 74% North Central $90.4 South Central 4 -52% South Central $18.1 Upstate NY 3 -48% Sacramento/N.Cal 1 N/A Upstate NY $12.1 AK/HI/PR 1 N/A Sacramento/N.Cal $8.0 Total 758 -19% AK/HI/PR $0.6 - $500 $1000 $1500 $2000 $2500 $3000 Unknown region totals not included Shaking the MoneyTreeTM Q1 2012 6 Investments by region – Quarterly percent of total U.S. investments Top U.S. regions Q1 2011 – Q1 2012 (% of total dollars) 50% 47% 41% 39% 40% 38% 36% 30% 20% 16% 13% 13% 12% 11% 11% 11% 11% 9% 9% 9% 9% 9% 10% 8% 8% 7% 7% 5% 5% 4% 0% Silicon Valley Southern California New England Texas NY Metro Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Shaking the MoneyTreeTM Q1 2012 7 Investments by industry: Q1 2012 Q1 2012 Total Investments - $5,751.8 million in 758 deals ($ in millions) Software $1,646.9 % Change Biotechnology $780.0 # 0f Industry in $ from Deals Industrial/Energy $778.1 Q4' 11 Software 231 -18% Medical Devices and Equipment $686.6 Biotechnology 99 -43% Consumer Products and Services $417.9 Media and Entertainment 76 2% Medical Devices and Media and Entertainment $399.4 72 33% Equipment IT Services $347.1 IT Services 69 -26% Industrial/Energy 58 -14% Semiconductors $199.3 Consumer Products and 32 78% Telecommunications $172.2 Services Semiconductors 26 -43% Networking and Equipment $66.9 Telecommunications 21 31% Financial Services $55.3 Business Products and Services 15 143% Electronics/Instrumentation 12 -60% Computers and Peripherals $48.0 Networking and Equipment 11 -2% Retailing/Distribution $47.6 Financial Services 10 -58% Computers and Peripherals 9 -71% Business Products and Services $47.5 Retailing/Distribution 7 -65% Electronics/Instrumentation $36.4 Healthcare Services 6 -69% Healthcare Services $18.3 Other 4 48% Total 758 -19% Other $4.4 - $500 $1000 $1500 $2000 Visit www.pwcmoneytree.com for Industry definitions Shaking the MoneyTreeTM Q1 2012 8 Investments by industry – Quarterly percent of total U.S. investments Top 5 Industries – Q1 2011 to Q1 2012 (% of Total Dollars) 30% 29% 28% 28% 25% 20% 20% 19% 18% 17% 17% 16% 15% 14% 14% 14% 13% 12% 11% 10% 10% 10% 10% 10% 7% 7% 5% 5% 4% 4% 3% 0% Software Biotechnology Industrial/Energy Medical Devices and Consumer Products and Equipment Services Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Shaking the MoneyTreeTM Q1 2012 9 Life science investments – Percent of total U.S. investments Life science sectors – Q1 2011 to Q1 2012 (% of total dollars) 30% 29% 27% 26% 26% 25% 24% 20% 19% 17% 16% 15% 14% 14% 12% 11% 10% 10% 10% 7% 5% 0% Biotechnology Medical Devices and Equipment Life Sciences Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Shaking the MoneyTreeTM Q1 2012 10 US Cleantech Investments by Sub-sector Cleantech sub-sectors – Q1 2011 – Q1 2012 ($ in millions) $600 $513.0 $500.0 $500 $453.6 $400 $318.9 $306.5 $305.8 $289.0 $286.1 $276.2 $300 $209.6 $202.8 $185.3 $184.7 $160.4 $155.5 $200 $132.7 $115.4 $112.9 $106.4 $105.2 $100.4 $79.7 $79.3 $70.1 $65.2 $54.6 $54.2 $100 $53.2 $37.1 $31.9 $19.3 $16.4 $9.3 $3.9 $1.7 $0 Solar Energy Transportation Alternative Fuels Pollution and Smart Grid Wind Energy Other (includes electric (includes biofuels) Recycling (includes energy (Includes business vehicles) storage) serv, computer hardware / software, industrial equipment & products, oil & gas exploration, and utilities) Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Shaking the MoneyTree™ Q1 2012 11 Investments by stage of development: Q1 2012 Q1 2012 Total Investments - $5,751.8 million in 758 deals ($ in millions) Later Stage $2,283.4 Stage of # of % Change in $ Development Deals from Q4 2011 Expansion $1,714.4 Early Stage 290 -31% Later Stage 208 11% Expansion 207 -32% Seed 53 -9% Early Stage $1,612.6 Total 758 -19% Seed Stage $141.4 - $500 $1000 $1500 $2000 $2500 Shaking the MoneyTreeTM Q1 2012 12 Investments by sequence of financing: Q1 2012 ($ in millions) Q1 2012 Total Investments - $5,751.8 million in 758 deals Fifth and $2,625.3 beyond % Change in $ Fourth $979.2 Financing # of Deals from Q4 2011 Fifth and beyond 246 6% First 195 -22% Second $811.2 Second 140 -30% Third 103 -59% Fourth 74 -10% First $783.2 Total 758 -19% Third $552.9 - $500 $1000 $1500 $2000 $2500 $3000 Shaking the MoneyTreeTM Q1 2012 13 ($ in billions) in ($ $2 $2 $2 $3 $1 $1 Shaking the MoneyTree the Shaking sequence investments First financing sequence First - $1.1 2004 $1.3 $1.3 $1.7 TM $1.5 2005 $1.6 $1.5 $1.4 $1.5 2006 $1.6 $1.7 $1.6 $1.6 2007 $1.9 – $2.0 Q1 $2.2 Investment amount amount Investment Q2 $1.9 2008 $1.8 Q3 $1.7 $1.3 Q4 $0.7 2009 $0.9 $0.8 $1.1 $1.1 2010 $1.2 $1.3 $0.9 $1.2 2011 $1.6 $1.3 $1.0 $0.8 2012 Q1 2012 Q1 14 First sequence financing – Percent of total U.S.