2020 VENTURE FLORIDA CAPITAL YEARBOOK DATA PROVIDED BY

JOHN P. LOWTH ENTREPRENEURSHIP CENTER SYKES COLLEGE OF BUSINESS Credits and Contact Florida Venture Forum Tampa, FL. flventure.org Kevin Burgoyne: President and CEO [email protected] A special thanks goes to the Florida Venture Forum, for providing the support of Research Analyst Justin Pate to analyze PitchBook data used to create this report.

PitchBook Data, Inc. Pitchbook.com

Speros Margetis: Professor of Finance/co-author/Research Justin Pate: Research Analyst/co-author

For questions and comments please contact authors at: Speros Margetis, Ph.D. 813-257-3285 [email protected] Justin Pate 229-321-9632 [email protected]

DATA PROVIDED BY 2 Contents Executive Summary

Venture Capital 101

The Florida Venture Industry At-A-Glance

Capital Commitments: Venture Fundraising

Capital Deployed: Investment into Companies/

Exit Landscape: Venture-Backed IPO’s & M&As

DATA PROVIDED BY 3 Executive Summary The 2020 Florida Yearbook provides venture capital data for funds and venture-backed companies headquartered in Florida. The National Venture Capital Association has created a yearbook for the last 22 years highlighting venture capital data trends for the United States which has shown that the Venture Capital (VC) industry in the United States is vibrant and growing. The National Venture Capital Association 2019 Yearbook states that in 2018, 1,047 venture capital firms, managing 1,884 active funds that had $403 billion (AUM), 257 venture capital funds raised $54 billion, and over 8,380 venture-backed companies received $131 billion in funding. In the inaugural Florida Venture Capital Yearbook, metrics for the 2019 Florida VC industry are provided as a benchmark for future comparisons. In 2019 Florida had a total of 27 VC active investors with over $39 billion AUM, 1 venture capital funds across 1 Metropolitan Statistical Area (MSAs) raised $180.00 million, and 340 venture-backed companies headquartered in Florida had 342 deals closed totaling $2.998 Billion. Venture Capital 101 Venture Capital enables the growth and innovation required to support the entrepreneurial ecosystem of the modern world by turning ideas into products and services. Venture Capital firms help take these entrepreneurs’ ideas and build them into long term sustainable businesses that change society through innovations. Risk Capital for High-Growth Businesses Venture capital (VC) firms are investment management firms that inject risk capital into innovative high growth companies. They look at investments that are unable to receive traditional financing with disruptive technologies that require a long-time investment horizon. Venture capital helps fuel the growth of innovative firms into the businesses of the future. These VC firms make equity investments in illiquid companies to capture the several years of “hyper- growth” that happens in a company before a liquidation event (IPO or ). Participating in the growth of these firms allows VC firms to make extraordinary returns for their investors. These companies tend to have several “follow on” rounds of funding, which allows them to continue to raise more as needed as equity is sold at an agreed valuation. Once a company is acquired or goes public, all investors as well as the entrepreneur, receive (hopefully) a significant return on their equity investment. Successful VC firms with proprietary deal flow and effective due diligence are able to invest in companies that will continue to grow and prosper. Partners, Not just Investors VC investing differs from other types of investing in that they provide numerous services along with the capital. VC firms provide guidance and access to their network to help firms execute strategies to accelerate the company’s growth to create a higher probability of success. VC professionals are typically experts or have access to experts in the business ventures in which they invest. VC firms can help the firms fill talent gaps and gain access to strategic partners. VC firms provide smart capital to enhance the firms ability thrive in a rapidly changing and competitive business environment.

DATA PROVIDED BY 4 Stages of Venture Capital The figure below shows the stages of VC in relation to a company’s development and growth, as well as what happens to a company’s cash flow in each stage. Below is a quick explanation of each stage. • Start up: This is the phase in which a company usually has an idea but doesn’t have a product yet or has a prototype and patents but doesn’t have the ability to mass produce. This is where angel investors, incubators and seed investors come in with startup capital or seed capital, to produce the products and get them on the market to start revenue streams. • Development: This is also called the early stage VC phase. This phase is relatively soon after the product enters the market and firm starts generating revenue. At this point the firm wants to continue their momentum so early stage VC firms help accelerate early hyper-growth in sales. • Growth: This is considered late stage VC. This is where later stage VC firms come into play to help expand the company from their current state. This is usually a large undertaking that may mean starting a second production facility, scaling operations to a larger size in order to establish economies of scale and increase profit margins, or expanding sales to new areas. • Maturity: The Exit, also called the liquidation event. There are only a few ways for this stage to go. The most common would be M&A, for the company to be acquired by a competitor. Another exit possibility would be for a company to liquidate shares on the public market by doing an IPO. The last option is what may happen if there isn’t interest in either of the first two, bankruptcy. Obviously, this is what VC firms and entrepreneurs would like to avoid. Venture Capital Plays a Vital Role in a Startup’s Growth

Company Idea/Start Up Development Growth Maturity Development Investment Seed. Angel Early Stage VC Late Stage VC Exit Stages

Concept, Product Operational, business planning development rollout Growth Expansion

TIME

CASH FLOW

Sources of funding: VCs, angel investors, incubators, accelerators, strategic investors (corporate groups), growth equity investors, firms, debt investors

DATA PROVIDED BY 5 The Florida Venture Industry at a Glance Florida Venture Capital Ecosystem The Florida Venture Capital Ecosystem consists of active investors providing capital to high growth companies to accelerate growth and provide great returns to the investors. Venture capital provided by investors is the fuel that feeds the entrepreneurial ecosystem. Active investors include angel investors, VC firms, private equity (PE) investors, family offices, and foundations that make private equity investments into firms. To be classified as an active investor the firm must be headquartered in Florida and have either raised a fund in the last 10 years or made a private equity investment into a company in the last three years. This resulted in a total of 27 active investors at the end 2019 with a total of $39.168 Billion AUM. The largest Florida active investor is H.I.G. Capital which has $35 Billion AUM. The next five largest are ProQuest Investments, H.I.G. Biohealth Partners, Clearsky Palm Beach, Medina Capital, and Ballast Point Ventures with a collective total of $2.988 Billion in AUM. 10 Largest Active Investors headquartered in Florida measured by assets under management Private equity and venture capital firms are included in the list of active investors. The largest active investor in Florida is H.I.G. Capital with $35 Billion in assets under management. There are eight additional firms with at least $100 Million in assets under management. The 10 largest active investors headquartered in Florida measured by assets under management are provided in the table below.

Active Florida Investor Name AUM ($M) Investor Type Headquarter City

H.I.G. Capital 35,000.00 PE/Buyout Miami, FL

ProQuest Investments 900.00 Venture Capital Naples, FL

ClearSky (North Palm Beach) 840.00 Venture Capital North Palm Beach, FL

Medina Capital 488.00 PE/Buyout Coral Gables, FL

H.I.G. Biohealth Partners 400.00 Venture Capital Miami, FL

Ballast Point Ventures 360.00 Venture Capital Tampa, FL

Rokk3r Fuel ExO 223.00 Venture Capital Miami, FL

Vintage Capital Management 257.85 PE/Buyout Orlando, FL

Halstatt 328.50 PE/Buyout Naples, FL

Arsenal Growth 53.00 Growth/Expansion Winter Park, FL

DATA PROVIDED BY 6 Capital Commitments Florida VC Fundraising by Year In 2019 Clearsky Capital raised the only VC fund in Florida. They raised $180 million. Over $830 million has been raised in 18 funds since 2014 with the largest fund being ClearSky at $300.71 million and Ballast Point Ventures at $164 million. Nine of the seventeen VC funds raised since 2014 were first time funds. These figures demonstrate that Florida VC firms have been active in raising capital over the last five years and provides ample dry powder for future investments. Number of Florida VC Funds Raised by Vintage Year

7 7

6 6

5

4 4 4 4 4 4 4 4

# of Funds 3 3 3 3

2 2 2 2 2

1 4 1 1 1 0 0 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Vintage Year Capital Raised by Florida VC Funds by Vintage Year

450 430 411 400

350 345 349

300 312

268 250 253 249

200

177 180 $ Millions 169 150 164 146

100 94

50 45 51 49 40 35 0 4 0 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Vintage Year

DATA PROVIDED BY 7 Number of First Time Florida VC Funds by Vintage Year

4 4

3 3 3 3

2 2 2 2 # of Funds

1 1 1 1 1 1 1 1

0 0 0 0 0 0 0 0 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Vintage Year 10 Largest Florida VC Funds Raised since 2008

300 301

268 250

200

180 164 150 150 140

100 Size in $ Millions 90

50 53 50 44

0 ClearSky H.I.G. Clearsky Ballast H.I.G. Ballast Vintage Arsenal Naples Florida (North BioHealth Power & Point BioHealth Point Capital Growth Technology Opportunity Palm Partners Technology Ventures Partners Ventures Management Ventures Fund Beach) Fund II

VC Firms

DATA PROVIDED BY 8 Fundraising by MSA by Year Florida consists of twenty metropolitan statistical areas (MSAs) as described in the geographic definition section at the end of the yearbook. The five most active Florida metropolitan statistical areas for raising venture capital funds are Miami-Fort Lauderdale-West Palm Beach, Tampa-St. Petersburg- Clearwater, Orlando-Kissimmee-Sanford, Jacksonville, and North Port- Sarasota-Bradenton. The graph below shows the number of venture capital raised by firms headquartered in in each of those metropolitan statistical areas. 4.0VC Funds Raised By MSA by Year

4 3.5 3.0 3 2.5

2.0 2 1.5

1.0 1 0.5

0 0.0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Miami-Fort Lauderdale-West Palm Beach, FL

Tampa-St. Petersburg-Clearwater, FL

Orlando-Kissimmee-Sanford, FL

Jacksonville, FL

North Port-Sarasota-Bradenton, FL

Palm Bay-Melbourne-Titusville, FL

DATA PROVIDED BY 9 The table below shows the dollar amount of venture capital raised by firms in the top 5 MSAs in Florida between 2008 and 2019. Miami-Fort Lauderdale-Palm Beach is the most active MSA having raised $1.038 Billion of VC capital since 2008. Tampa-St. Petersburg-Clearwater is the second most active MSA having raised $345 since 2008 followed by North Port-Sarasota-Bradenton at $245 million, Orlando-Kissimmee-St. Cloud at $232 million, and Jacksonville at $163 million. VC Capital Raised by MSA since 2008

1,000 1,038

800

600

400 $ Millions

345

200 245 232

163

0 Miami-Fort Tampa-St. North Port- Orlando- Jacksonville, Lauderdale-West Petersburg- Sarasota- Kissimmee- FL Palm Beach, FL Clearwater, FL Bradenton, FL Sanford, FL

DATA PROVIDED BY 10 Capital Deployed: VC Investment into Companies Florida VC deal flow capital invested includes funding from accelerators, grants, angel, seed, early stage VC and later stage VC into companies headquartered in Florida. In 2019 $2.998 Billion was invested into 340 Florida companies over 342 deals. Florida VC Deal Flow Capital Invested ($M)

5,000

4,569

4,000

3,000 2,998

2,000

$ Million 1,714 1,683 1,526

1,000 1,201 1,027 784 699 619 499 477 438 341 372 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

DATA PROVIDED BY 11 Florida VC Deal Flow

5,000 500

4,569

4,000 375

3,000 2,997

250 Deal Flow

Value ($M) Value 2,000

1,714 1,682 1,526 125 1,201 1,000 1,027 784 619 499 699 477 438 341 372 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Capital Invested

Deal Count

Company Count

DATA PROVIDED BY 12 2019 Florida VC Deal Flow by Stage Four stages of venture capital investments are identified. The first stage includes accelerator, incubator, grants, platform creation, and product . The second stage includes seed round and angel investors, the third stage is early stage venture capital, and the fourth stage is late stage venture capital. The table below captures the number of venture capital investments into companies headquartered in Florida during 2019 broken down by stage of investment. 2019 Florida Venture 2019 Florida Venture Deals By Stage # 2500Deals By Stage $

179 2,346.92

150 20003,000

15002,250

100

10001,500 # of Deals $ Millions 62 60 50 41 500 750 428.42

214.72 7.61 0 0 Accelerator/ Angel/ Early Later Accelerator/ Angel/ Early Later Incubator Seed Stage VC Stage VC Incubator Seed Stage VC Stage VC

DATA PROVIDED BY 13 2019 Florida Deal Flow by Sector The sectors include Business Products and Services, Consumer Products and Services, Energy, Financial Services, Healthcare, Information Technology, and Material and Resources. The tables below break down VC deals completed by sector in 2019 with companies headquartered in Florida. The information technology sector had the most deals completed at 105 but the Consumer Products had the most capital invested at $1.001 Billion. 2019 Florida VC Deal by Sector # of Deals

150 100 105

91 120 80 75

90

55

60

40# of Deals

2030

4 9 0 0 Business Consumer Energy Financial Healthcare Information Materials Products Products Services Technology and and Services and Services Resources (B2B) (B2C)

12002019 Florida VC Deals by Sector $ Value

1,000

1,001

800

600

538 400 $ Millions

330 200 219

9 0 0 0 Business Consumer Energy Financial Healthcare Information Materials Products Products Services Technology and and Services and Services Resources (B2B) (B2C)

DATA PROVIDED BY 14 Share of 2019 Florida VC Activity by MSA Companies headquartered in eighteen separate Florida MSAs received venture funding in 2019.The Miami-Fort Lauderdale-West Palm Beach MSA had 165 deals totaling $1.501 Billion invested in 2019. Tampa-St. Petersburg-Clearwater was the second most active with 66 deals totaling $247 million followed by Orlando-Kissimmee-Sanford with 41 deals totaling $198 million. The table below breaks down the number of VC backed companies receiving capital and capital invested by MSA in Florida for 2019.

% of Total Capital MSA # of Companies % of Total Companies Capital Invested ($M) Invested Miami- Fort Lauderdale- 165 48.5% 1,501.31 71.6% West Palm Beach, FL Tampa- St. Petersburg- 66 19.4% 247.42 11.8% Clearwater, FL Orlando-Kissimmee- 41 12.1% 198.61 9.5% Sanford, FL Jacksonville, FL 8 2.4% 41.16 2.0%

Gainesville, FL 12 3.5% 8.79 0.4% Palm Bay-Melbourne- 6 1.8% 13.58 0.6% Titusville, FL North Port- 8 2.4% 16.32 0.8% Sarasota-Bradenton, FL Port St. Lucie, FL 4 1.2% 17.65 0.8% Lakeland- 2 0.6% 7.5 0.4% Winter Haven, FL Naples-Immokalee- 3 0.9% 15.4 0.7% Marco Island, FL Deltona-Daytona Beach- 6 1.8% 9.04 0.4% Ormond Beach, FL Cape Coral- 6 1.8% 11.41 0.5% Fort Myers, FL Tallahassee, FL 3 0.9% 0.13 0.0% FL NONMETROPOLITAN 4 1.2% 0.3 0.0% AREA Sebastian- 1 0.3% 3 0.1% Vero Beach, FL Pensacola- 1 0.3% 4.32 0.2% Ferry Pass-Brent, FL Crestview-Fort Walton 1 0.3% 0.15 0.0% Beach-Destin, FL Panama City, FL 0 0.0% 0 0.0%

Ocala, FL 3 0.9% 1.08 0.1%

Punta Gorda, FL 0 0.0% 0 0.0%

The Villages, FL 0 0.0% 0 0.0%

Total 340 100.0% 2,097.2 100.0%

DATA PROVIDED BY 15 Top 10 Florida VC Deals in 2019 Below are the 10 largest VC deals in 2019, ranging from $36MM to a whopping $500MM, with all ten deals totaling $1.279B. Broken down by stage, there were 2 early stage VC deals totaling $200MM and 8 Later Stage VC deals adding up to $1.079B. The largest of these, Magic Leap, has raised over $3.13B since 2010 with a current valuation of $6.69B, starting from a $20MM seed round and post money valuation of $50MM, growing a staggering 13,280% over 9 years, or an 84% CAGR.

Company Name Deal Date Deal Type Deal Size ($M) Industry Sector City

Consumer Products Magic Leap 18-Nov-2019 Later Stage VC 500.00 Plantation and Services (B2C) Consumer Products Magic Leap 26-Apr-2019 Later Stage VC 280.00 Plantation and Services (B2C) Business Products Luminar 24-Jun-2019 Early Stage VC 100.00 Orlando and Services (B2B)

Detraxi 01-Aug-2019 Early Stage VC 100.00 Healthcare Jupiter

TissueTech 26-Jun-2019 Later Stage VC 82.25 Healthcare Doral

Teewinot Life 28-Oct-2019 Later Stage VC 50.00 Healthcare Tampa Sciences Information Technisys 30-Apr-2019 Later Stage VC 50.00 Miami Technology Consumer Products Greenlane 07-Jan-2019 Later Stage VC 48.25 Boca Raton and Services (B2C) Information ComplianceQuest 10-Sep-2019 Later Stage VC 36.00 Tampa Technology

CareCloud 01-May-2019 Later Stage VC 33.16 Healthcare Miami

Florida’s Life Sciences deal flow has been impressive over the last 15 years, rebounding after the recession very well. While 2018 had a slide in company count, # of deals and capital invested, 2019 came back strong with $538MM in capital invested across 74 companies in 91 deals. This makes the largest capital investment over the last 15 years. The second chart below shows the 10 largest VC healthcare deals of 2019 ranging from $13MM to $100MM, totaling $410MM. These deals consist of 1 Early stage VC deal at $100MM, and 9 Later stage VC deals totaling $310MM.

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Capital Invested ($M) 147 154 237 65 105 172 135 229 392 289 405 188 326 239 538 Company Count 19 23 29 19 33 42 46 55 63 86 91 86 90 61 74 # of Deals 24 24 30 21 77 46 51 61 72 100 104 100 104 68 91

DATA PROVIDED BY 16 Healthcare VC Deal Flow by Year

600 110

538

450 83

404

326 391 300 55 289

238 237 228

187 171 150 28 135 104 147 154 64.6

0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Capital Invested

Number of Deals

Capital Invested

DATA PROVIDED BY 17 10 Largest 2019 Florida Life Sciences VC Deals

Primary Company Name Deal Date Deal Type Deal Size ($M) Company City Industry Code

Pharmaceuticals Detraxi 01-Aug-2019 Early Stage VC 100.00 and Jupiter Biotechnology

Pharmaceuticals TissueTech 26-Jun-2019 Later Stage VC 82.25 and Doral Biotechnology

Pharmaceuticals Teewinot Life 28-Oct-2019 Later Stage VC 50.00 and Tampa Sciences Biotechnology

Healthcare CareCloud 01-May-2019 Later Stage VC 33.16 Technology Miami Systems

Healthcare OrthoSensor 08-Oct-2019 Later Stage VC 33.11 Devices and Dania Beach Supplies

Healthcare Neocis 15-Jul-2019 Later Stage VC 30.00 Devices and Miami Supplies

Good Methods Healthcare 02-Oct-2019 Later Stage VC 28.00 Kissimmee Global Services

Healthcare OrthoSensor 13-May-2019 Later Stage VC 23.51 Devices and Dania Beach Supplies

Healthcare Vigilant 25-Nov-2019 Later Stage VC 17.26 Devices and Fort Lauderdale Biosciences Supplies

Healthcare Catalyst 14-May-2019 Later Stage VC 12.90 Devices and Naples OrthoScience Supplies

DATA PROVIDED BY 18 Florida Corporate VC Investment by Year Corporate Venture Capital (CVC) Investments into companies headquartered in Florida with participation from corporate venture groups increased from $64.55 million in 2017 to $1,059.36 million in 2018, but back down to $174.5 million in 2019. The reason for this large jump in 2018 was Magic Leap, which skewed the results. Magic Leap received the three largest investments in the space with $963 million raised in 2018 and $793.5 million raised in 2016 and $542 million in 2014 which distort the numbers. Taking Magic Leap out of 2018 numbers leaves $96 million, which means excluding the outlier, CVC capital invested almost doubled from 2018 to 2019.

Value of VC Deals # of VC Deals with with CVC CVC Involvement Involvement ($M)

2008 1 8.00

2009 2 38.41

2010 1 0.10

2011 5 40.86

2012 2 17.33

2013 6 34.92

2014 6 574.90

2015 8 130.66

2016 7 840.60

2017 3 64.55

2018 10 1,059.36

DATA PROVIDED BY 19 CVC Deal Flow by Year

1,200 10

1,059

900 8 840

600 5 574

300 3

174 130 38 40 17 34 8 0.1 64 0 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Value of VC Deals with CVC Involvement ($M)

# of VC Deals with CVC Involvement

DATA PROVIDED BY 20 This chart represents the corporate venture capital deal flow since the Great Recession. An important trend to note is that while there are down once every few years, there is a clear uptrend. Another important note is that since 2014, every other year has had heavy investments by corporations. Therefore, it could be reasonable to expect next year will be another heavy investment year. 10 Largest VC Deals for Companies Headquartered in Florida with Corporate Venture Capital participation since 2008

Company Name Year Deal Type Deal Size ($M) Sector City

Consumer Products Magic Leap 2018 Later Stage VC 963.00 Plantation and Services (B2C) Consumer Products Magic Leap 2016 Later Stage VC 793.50 Plantation and Services (B2C) Consumer Products Magic Leap 2014 Early Stage VC 542.00 Plantation and Services (B2C) Business Products Luminar 2019 Early Stage VC 100.00 Orlando and Services (B2B)

MDLIVE 2018 Later Stage VC 50.00 Healthcare Sunrise

MDLIVE 2015 Later Stage VC 50.00 Healthcare Sunrise

CareCloud 2016 Later Stage VC 31.50 Healthcare Miami

CareCloud 2013 Early Stage VC 30.00 Healthcare Miami

Information Finxact 2019 Early Stage VC 30.00 Jacksonville Technology Consumer Products CarSaver 2017 Early Stage VC 29.56 Miami and Services (B2C)

In this graph we can see how much capital has been raised by the largest Corporate backed company, Magic Leap. The rest that follow are what make up the 10 largest Corporate backed capital raises since the Great Recession.

DATA PROVIDED BY 21 In this graph we can see how much capital has been raised by the largest Corporate backed company, Magic Leap. The rest that follow are what make up the 10 largest Corporate backed capital raises since the Great Recession. Top 10 CVC Deal Size ($M)

1,000 963

800 793.5

600

542

400

200

100 50 50 31.5 30 30 29.56 25.99 23.06 0 Magic Magic Magic Luminar MDLIVE MDLIVE CareCloud CareCloud Finxact CarSaver Vestagen SkyCross Leap Leap Leap

DATA PROVIDED BY 22 Growth Equity Growth Equity is an important component of the entrepreneurial ecosystem. Growth equity fits between later stage VC and buyout private equity investments, filling a gap for mature companies where private equity buyout isn’t ideal for their continued growth. Growth equity deal value decreased in 2018 to $632M from $2.49 billion but up from $547.8 million in 2016. With the exception of 2015, 2016, and 2018 the value of growth equity deals for companies headquartered in Florida exceeded one billion dollars every year since 2008. If the trend continues 2019 should be a good year for growth equity. Most of the growth equity investments went to the information technology and business products and services sectors in 2019. Florida Growth Equity Deal Flow by Year

Year # of Deals # of Companies Value of Deals ($)

2008 29 27 2.53B

2009 31 30 3.55B

2010 39 38 1.55B

2011 37 37 1.06B

2012 44 43 1.06B

2013 54 49 1.17B

2014 66 59 5.23B

2015 61 57 788.5M

2016 61 59 547.8M

2017 59 58 2.49B

2018 40 40 632.21M

2019 64 60 927.93M

DATA PROVIDED BY 23 80Growth Equity by Year

705,000 5,230 80

70 4,000

60 60 3,550 3,000 50 50 2,530 2,490 40 2,000 Value ($M) Value Deal Count

40 30

1,000 1,170 1,060 1,060 1,550 927.93 20 30 788.51 547.83 632.21 0 0 20 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Value of Deals ($M)

# of Deals

# of Companies

DATA PROVIDED BY 24 Florida Growth Equity Investment in 2019 by Sector (#)

Primary Industry Sector # of Deals Value of Deals ($M)

Business Products and Services (B2B) 16 305.77

Energy 0 0

Financial Services 8 11.24

Healthcare 6 108.73

Information Technology 14 417.39

Consumer Products and Services (B2C) 12 31.00

DATA PROVIDED BY 25 Exit Landscape: IPOs & M&As IPO’s Venture funds look to exit their investments by taking them public, selling them to a strategic investor via , or sale to a financial buyer. The exit proceeds are then distributed to the limited partners which starts the cycle over. Successful VC firms will raise new funds and happy limited partners will commit capital to those funds. Out of the seventeen Florida based companies that IPO’d in 2019 three were VC backed. The largest of these 3 VC backed IPO’s was a company named Greenlane, a vapor and tobacco products company that raised $102MM in IPO proceeds. Below is shown all of the IPO’s by year since 2005, and the top 10 largest IPO’s of 2019. While 3 VC backed out of 17 sounds low, it is an improvement over the last two years, and shows an opportunity for VC firms to gain market share in IPO’s. Florida IPO’s by Year

# of VC/PE Year #of All IPOs Backed IPOs

2005 16 2

2006 9 1

2007 26 3

2008 16 2

2009 14 0

2010 12 2

2011 16 2

2012 20 0

2013 32 3

2014 28 3

2015 16 1

2016 18 5

2017 15 1

2018 16 1

2019 17 3

DATA PROVIDED BY 26 Total IPO’s/VC Backed

35 32

30 28 26 25

20 20 18 17

15 16 16 16 16 16 15 14 12 10 9

5 5 3 3 1 1 1 1 3 3 2 2 2 2 0 0 0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

# of All IPOs

# of VC/PE Backed IPOs

Looking at the graph above, we see the total IPO market of Florida for the last 10 years, along with those IPO’s that are VC Backed. As you can see, VC backed firms only make up a very small percentage of the Florida IPO market. This shows that there is a large addressable market that isn’t being fully captured, which can be seen as an opportunity for VC firms to gain a larger percentage to the IPO market for exits.

DATA PROVIDED BY 27 These were 10 biggest companies headquartered in Florida that completed an IPO during 2019

Company Name Deal Size ($M) Primary Industry Sector

Chewy 1,023.00 Consumer Products and Services (B2C)

Vrio 608.52 Consumer Products and Services (B2C)

Baldwin Risk Partners 229.60 Financial Services

Sanlorenzo 213.78 Consumer Products and Services (B2C)

Alpine Income Property Trust 142.50 Financial Services

Greenlane 102.00 Consumer Products and Services (B2C)

Cansortium 52.00 Financial Services

LMP Subscriptions 17.75 Consumer Products and Services (B2C)

LMP Subscriptions 11.50 Consumer Products and Services (B2C)

VoiceInterop 3.67 Information Technology

DATA PROVIDED BY 28 Top 10 IPO’s

2% 1% 4% 6%

9%

43% 10%

43% Chewy

25% Viro

10% Baldwin Risk Partners 25% 9% Sanlorenzo

6% Alpine Income Property Trust

4% Greenlane

2% Cansortium

1% LMP Subscriptions

0% LMP Subscriptions

0% VoiceInterop

The chart above shows the top 10 IPO’s and the share each one makes up of the total top 10. The largest of which was a very well-known pet supplies company, Chewy, that raised a little over $1 Billion in IPO. This one IPO accounted for almost half of the total IPO value from the top 10.

DATA PROVIDED BY 29 M&A Activity M&A activity in 2019, while total deal value was lower than the last three years was still a strong year in Florida. This year came in with 361 acquisitions totaling $30.342B, down from a deal value of $52.107B in 2018. However, while 2018 had a higher total deal value, 2019 had a higher percentage of deals that were backed by VC/PE firms. However, this increase in VC/PE backed deals (19%) is still shy of 33%, the average percentage of VC backed M&A deals over the last 15 years. This would indicate that there is a lot of opportunity that VC firms may be able to capture in the overall M&A market. M&A Activity by Year

Backed Deal VC/PE Backed # % Backed # of % Backed Deal Year Deal Value ($M) # of Acquisitions Value ($M) of Acquisitions Acquisitions Value ($M)

2005 4,182.91 1,618.68 50 24 48% 39%

2006 27,110.11 8,393.92 54 33 61% 31%

2007 30,668.52 10,834.81 115 36 31% 35%

2008 5,821.45 1,445.40 79 33 42% 25%

2009 5,869.38 397.09 74 21 28% 7%

2010 11,272.14 1,539.20 85 34 40% 14%

2011 12,053.00 7,975.55 113 39 35% 66%

2012 15,967.30 9,208.24 98 44 45% 58%

2013 27,804.06 10,834.82 127 50 39% 39%

2014 29,955.71 19,080.97 141 50 35% 64%

2015 13,290.61 8,340.13 139 67 48% 63%

2016 41,081.90 8,250.29 106 57 54% 20%

2017 46,573.56 9,266.07 118 48 41% 20%

2018 52,107.00 1,032.9 350 40 11% 2%

2019 3,0342.46 5,674.25 361 36 10% 19%

DATA PROVIDED BY 30 M&A

60,000 400

45,000 300

30,000 200

15,000 100

0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Deal Value ($M)

VC Backed Deal Value ($M)

# of Acquisitions

# of VC Backed Acquisitions

Shown in the chart above is total M&A activity for the last 15 years, and how many of those were VC Backed. Just as the IPO market, the M&A market has a small percentage of total deals that are VC Backed. This again may present an opportunity for VC firms to capture market share in M&A.

DATA PROVIDED BY 31 Geographic Definitions As of July 1, 2018, Florida had an estimated population of 20,304,237 and consists of twenty Metropolitan Statistical Areas (MSA). (2019 data not available by MSA yet). Florida’s four largest MSAs by population are Miami-Ft. Lauderdale-West Palm Beach (6,198,782), Tampa-St. Petersburg- Clearwater (3,142,663), Orlando-Kissimmee-Sanford (2,572,962) and Jacksonville (1,534,701). The population estimates were collected for the U S Census Bureau web site. The table below provides the population estimates as of July 1, 2018 for the twenty MSAs identified in Florida. 2019 Population by MSA

7,000,000

6,000,000 6,198,782

5,000,000

4,000,000

3,000,000 3,142,663 2,000,000 2,572,962 821,573

1,000,000 739,224 708,009 659,605 596,849 494,883 482,040 1,534,701 378,488 385,145 359,977 285,374 271,346 201,451 184,998 157,413 128,754 0 Ocala Gainesville Tallahassee The Villages Jacksonville Panama City Punta Gorda Port St. Lucie Sebastian-Vero Beach Sebastian-Vero Cape Coral-Fort Myers Lakeland-Winter Haven Pensacola-Ferry Pass-Brent Orlando-Kissimmee-Sanford Palm Bay-Melbourne-Titusville North Port-Sarasota-Bradenton Naples-Immokalee-Marco Island Tampa-St. Petersburg-Clearwater Tampa-St. Crestview-Fort Walton Beach-Destin Crestview-Fort Walton Deltona-Daytona Beach-Ormond Beach Miami-Fort Lauderdale-West Palm Beach Miami-Fort Lauderdale-West

Data was collected from a variety of sources and cross validated using the Mass Investor Database, PrivCo, VentureSource, Bloomberg, Crunch Base and PitchBook.

DATA PROVIDED BY 32