NY VC Almanac Final

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NY VC Almanac Final Orrick is proud to be a part of the New York venture community. And we’re equally proud to co-sponsor CB Insight’s New York Venture Capital Almanac. That’s because we think the NY VC Almanac is, and will be, a useful snapshot of where the New York venture community is right now, as well as a brief summary of where we’ve been. People will surely use the NY VC Almanac in a number of ways. But on a meta level, we think it makes a couple of points worth noting. First, the New York venture community is growing. And, though the NY VC Almanac doesn’t (and shouldn’t) include comparative data to other U.S. venture markets, if it did, it would show that the New York venture market is growing faster than the venture capital markets in other U.S. geographies. Second, and we believe more importantly, the NY VC Almanac shows that the New York venture community is a substantial market in and of itself, with numbers showing real deal volumes, and names showing real tech luminaries, both on the company and investor side. Companies and investors that have made names for themselves not just in New York, but throughout the national and global venture community. This is as it should be. Web and mobile businesses touch broad geographies, but there must be a reason why so many of them are now being formed and funded from New York. As the NY VC Almanac shows, the New York venture community has substantial, and growing, reach in the larger venture community. Sincerely, David L. Concannon Partner, Emerging Companies group, New York 2 We’ve had a front row seat to the exciting pace of growth in the In New York, there will still be challenges, such as finding innovation sector in and around New York City for more than a enough engineers, and there will, of course, be business cycles, dozen years. Working with some of the most exciting sectors, but a solid foundation has been built here and we are confident companies and their investors in business today, we’re thrilled to the momentum will continue. The global technology sector is play a role in strengthening the environment for dynamic, innovative growing and New York continues to prove it is worthy of its fair companies in New York – and we see it paying off. share. The city’s professional and cultural diversity, open community and Sincerely, mentorship mindset, as well as HQ for a significant number of Fortune 500 companies, continue to attract an increasing number of startups. Michael Moretti Silicon Valley Bank, New York The data presented in this report definitely reflects our experience and what we see on a day to day basis. The tech sector locally is having another great year. In fact, based on first half activity, 2013 is on pace to achieve a five year high in deal and funding levels. Yahoo’s $1.1 billion acquisition of Tumblr, New York’s first billion dollar acquisition since Google bought DoubleClick in 2007, was definitely a highlight and Brooklyn’s Makerbot was acquired for $403 million too. Even the suburbs contributed significantly with Priceline’s $1.8 billion acquisition of Norwalk, CT-based Kayak. New York tech employment continues to grow at a strong rate, much faster than overall private sector employment, and the increasing number of startups has contributed significantly to this growth. Google’s expansion in New York, which now accounts for 10% of its employees as well as about 1,500 engineers, also helps. We’re seeing an increase in new company formation nationally and innovation and entrepreneurship are responsible for creating new opportunities, jobs and wealth in every global location where SVB has an office. 3 Banking the world's most innovative companies and exclusive wineries, SVB's diverse financial services, knowledge, global network, and world class service increase our clients' probability of success. With $23 billion in assets and more than 1,600 employees, we provide commercial, international and private banking through 34 locations worldwide. Forbes Magazine ranks us among America's Best Banks and Fortune considered SVB one of the best places to work. (Nasdaq: SIVB) www.svb.com Orrick’s Emerging Companies group represents more than 1,300 emerging companies worldwide. Complimentary to our practice group is the TOTAL ACCESS Event Series which provides entrepreneurs business, tactical, and legal education through complimentary panels and seminars. Presented by experienced industry CEOs, venture capitalists, and Orrick lawyers, TOTAL ACCESS offers insights on cutting-edge issues and an opportunity to network with leading professionals in the startup community www.orrick.com/totalaccess CB Insights analyzes data on disruptive private companies and emerging industries to provide predictive intelligence on startup health, corporate strategy, M&A and technology adoption trends. www.cbinsights.com 4 Financing Trends 6 Exit Trends 13 VC Investor League Tables 18 Angel Investor League Tables 27 Most Well-Funded NY Tech Startups 35 Investor Syndicate Dashboards 40 Investor Profiles 52 5 6 7 8 9 10 11 12 13 14 New York's Largest Venture-Backed Exits Since 2009 Company Acquirer Notable VC Investors Year Valuation Tumblr Yahoo Sequoia Capital, Spark Capital, Union Square Ventures 2013 $1.1B GGV Capital, Greycroft Partners, Insight Venture Partners, Buddy Media Salesforce Institutional Venture Partners, Softbank Capital 2012 $745M Shutterstock IPO Insight Venture Partners 2012 $570M Universal Ascend Health Health CHL Medical Partners. Three Arch Partners, Polaris Partners 2012 $500M Canaan Partners, Founders Fund, General Catalyst Partners, Tremor Video IPO Meritech Capital Partners, SAP Ventures 2013 $494M MakerBot Founder Collective, Foundry Group, Lerer Ventures, RRE Industries Stratasys Ventures, Thrive Capital, True Ventures 2013 $403M Foundry Group, Norwest Venture Partners, Time Warner Admeld Google Investments, Spark Capital 2011 $400M FX Alliance IPO Technology Crossover Ventures 2012 $339M Huffington Post AOL Greycroft Partners, RRE Ventures, Softbank Capital 2011 $315M Schoolnet Pearson Ascent Venture Group, Partnership Fund for New York City 2011 $230M www.cbinsights.com 15 Top Investors in New York-Based Exited Companies Rank Investor 1 Bessemer Venture Partners 1 Softbank Capital 3 Lerer Ventures 4 Spark Capital 4 Greycroft Partners 4 Village Ventures 4 DFJ Gotham Ventures 8 RRE Ventures 8 Rho Ventures 8 First Round Capital 8 Insight Venture Partners 12 Union Square Ventures 12 Canaan Partners 12 Ascend Venture Group 12 Founder Collective 12 Partnership Fund for New York City 12 Founders Fund 12 General Catalyst Partners 19 Sequoia Capital 19 Polaris Partners 16 Top Acquirers of Companies Based in New York Rank Investor 1 Google 2 Yahoo 2 AOL 4 Groupon 4 Shutterfly 4 Adobe Systems 4 Oracle 4 eBay 4 Facebook 4 IAC 17 18 The Most Active Venture Capital Investors in New York-Based Startups Rank Investor Active New York-based Investments 1 Lerer Ventures Buzzfeed, RebelMouse, Rap Genius, Warby Parker, Sailthru 2 RRE Ventures The Business Insider, SocialFlow, Relationship Science, Quirky 3 First Round Capital Aereo, Birchbox, Flatiron Health, On Deck Capital 4 SV Angel Codecademy, BillGuard, Fab.com, Kitchensurfing 5 Founder Collective Paddle8, Sulia, Skillshare, BaubleBar 6 Softbank Capital Buzzfeed, NowThisNews, Dering Hall, RebelMouse 7 Union Square Ventures Foursquare, Shapeways, Etsy, 10gen, Work Market 8 500 Startups BarkBox, Karma, Fitocracy, CompStak, The Muse 9 Spark Capital Aviary, 1stdibs, Warby Parker, Work Markiet, OnSwipe 10 IA Ventures Digital Ocean, Sulia, NewsCred, PlaceIQ, Updater 11 FirstMark Capital PublicStuff, AHAlife, ChatID, Sulia, Aereo 12 General Catalyst Partners Chloe + Isabel, Fancy, Plyfe, Oscar Health Insurance 12 Contour Venture Partners Movable Ink, Voxy, Estimize, YouBeauty 12 Great Oaks Venture Capital Olapic, Hullabalu, 33Across, Joor, Stray Boots 16 Greycroft Partners Nomi, Sulia, Merchantry, BetterCloud, LongTail Video 17 Bessemer Venture Partners Betterment, Blue Apron, Yodle, Return Path 18 High Peaks Venture Partners Amicus, Bench, FieldLens, Zipmark 18 Thrive Capital Artsy, FiftyThree, Neverware, Tutorspree, Urban Compass 18 ff Venture Capital Centzy, Plated, Movable Ink, Parsely 18 Quotidian Ventures Grand St., Nestio, SmartAsset, Thinkful 19 Top NY Seed Investors Ranked By Follow-On Investment Rate Rank Seed Investor 1 Softbank Capital 2 FirstMark Capital 3 Lerer Ventures 3 First Round Capital 5 Social Leverage 6 Thrive Capital 7 Founder Collective 8 SV Angel 9 RRE Ventures 9 Eniac Ventures 11 IA Ventures 12 High Line Venture Partners 12 General Catalyst Partners 14 Quotidian Ventures 15 500 Startups www.cbinsights.com 20 Most Active VC Investors in NY-Based Internet Companies Rank Investor 1 SV Angel 2 500 Startups 2 First Round Capital 2 RRE Ventures 5 DFJ Gotham Ventures 6 Spark Capital 6 Union Square Ventures 6 Softbank Capital 9 FirstMark Capital 10 Battery Ventures 10 Accel Partners 12 Bessemer Venture Partners 12 Greycroft Partners 14 SoftTech VC 14 Village Ventures 16 Founder Collective 16 Great Oaks Venture Capital 16 Bain Capital Ventures 16 Oak Investment Partners 16 Lerer Ventures 21 Most Active VC Investors in NY-Based Mobile Companies Rank Investor 1 SV Angel 2 RRE Ventures 3 Founders Fund 4 Kleiner Perkins Caufield & Byers 4 Spark Capital 4 Eniac Ventures 4 FirstMark Capital 4 500 Startups 9 New Enterprise Associates 9 Milestone Venture Partners 9 Khosla Ventures 9 Index Ventures 9 Partnership Fund for New York City 9 ff Venture Capital 9 Softbank Capital 9 Contour Venture Partners 9 Union Square Ventures 9 Greycroft
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