EARLY STAGE VENTURE CAPITAL TRENDS IN NORTH AMERICA alternative assets. intelligent data. EARLY STAGE VENTURE CAPITAL TRENDS IN NORTH AMERICA Using the latest data from Preqin’s Venture Capital Online, we take a look at the early stage venture capital trends in North America, examining funds closed, aggregate capital raised and funds in market. Fig. 1: North America-Focused Venture Capital Funds Closed, Fig. 2: Aggregate Capital Raised by North America-Focused 2007 - 2017 YTD (As at July 2017) Venture Capital Funds Closed, 2007 - 2017 YTD (As at July 2017) 300 40 35 1.5 250 22 0.3 1.4 1.2 16 17 1.6 35 30 0.5 0.7 200 37 31 0.7 10.7 8 3.4 7.0 25 1.0 0.7 8.6 10 4 29 79 150 18 13 79 82 5.8 6.2 0.6 0.8 13 25 20 5 12 7 64 0.1 0.4 6.7 0.8 1.2 44 51 14 1.0 100 8 10 11 54 16 15 0.6 0.4 0.3 5.7 0.5 31 40 40 3.3 3.9 5.0 4.2 No. of Funds Closed of Funds No. 23.7 112 128 36 10 21.7 22.5 50 88 89 91 108 19.4 19.4 65 71 15.4 59 59 51 11.2 10.8 10.9 12.3 11.8 Aggregate Capital Raised Capital ($bn) Aggregate 5 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 0 YTD 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD Year of Final Close Year of Final Close Venture Capital (Excl. Early Stage) Early Stage Early Stage: Seed Early Stage: Start-up Venture Capital (Excl. Early Stage) Early Stage Early Stage: Seed Early Stage: Start-up Source: Preqin Venture Capital Online Source: Preqin Venture Capital Online Fig. 3: North America-Focused Venture Capital Funds in Market Fig. 4: North America-Focused First-Time Venture Capital Funds by Type (As at July 2017) in Market by Type (As at July 2017) 450 80 120 12 Aggregate Capital Targeted ($bn) Targeted Capital Aggregate 11.2 ($bn) Targeted Capital Aggregate 391 105 400 70 68.0 100 94 10 350 60 300 80 8 50 250 40 60 6 200 192 30 4.6 150 40 33 4 28 No. of Funds Raising of Funds No. No. of Funds Raising of Funds No. 20 100 69 12.2 61 20 2 10 50 1.1 0.9 3.0 3.1 0 0 0 0 Venture Capital Early Stage Early Stage: Early Stage: Venture Capital Early Stage Early Stage: Early Stage: (Excl. Early Seed Start-up (Excl. Early Seed Start-up Stage) Stage) Fund Type Fund Type No. of Funds Raising Aggregate Capital Targeted ($bn) No. of Funds Raising Aggregate Capital Targeted ($bn) Source: Preqin Venture Capital Online Source: Preqin Venture Capital Online Fig. 5: Five Largest North America-Focused Early Stage Venture Capital Funds Closed in 2017 YTD (As at July 2017) Fund Firm Fund Type Target Size ($mn) Summit Partners Venture Capital Fund IV Summit Partners Early Stage 1,200 Lux Ventures V Lux Capital Management Early Stage 400 Upfront VI Upfront Ventures Early Stage 380 Versant Ventures VI Versant Ventures Early Stage 350 SignalFire Fund II SignalFire Early Stage: Seed 300 Source: Preqin Venture Capital Online 1 © 2017 Preqin Ltd. / www.preqin.com EARLY STAGE VENTURE CAPITAL TRENDS IN NORTH AMERICA alternative assets. intelligent data. Fig. 6: Five Largest North America-Focused First-Time Early Stage Venture Capital Funds Closed in 2017 YTD (As at July 2017) Fund Firm Type Fund Size ($mn) Engine Accelerator Fund I Engine Room Early Stage: Start-up 150 Wildcat Technology Partners 2015 Wildcat Venture Partners Early Stage 100 Next Coast Ventures I Next Coast Ventures Early Stage: Start-up 50 Refactor Capital Refactor Capital Early Stage: Seed 50 Future Ventures I Future Ventures Early Stage 50 Source: Preqin Venture Capital Online Fig. 7: North America-Focused Early Stage Venture Capital Fundraising: First-Time Fundraising as a Proportion of All Fig. 8: North American Venture Capital Deals by Investment Fundraising, 2007 - 2017 YTD (As at July 2017) Stage, 2017 YTD (As at July 2017) 50% 45% Angel/Seed 45% 42% 41% 42% 40% 38% 39% 9% Series A/Round I 35% 33% 34% 34% 31% 7% 24% Series B/Round 2 30% 27% 2% 1% Series C/Round 3 25% 3% 20% 20% 20% 17% 6% Series D/Round 4 & Later 15% 14% 15% Proportion of Total of Proportion 12% 12% 12% 10% Growth Capital/Expansion 10% 8% 8% 8% 5% PIPE 0% 26% Grant 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 15% YTD Venture Debt Year of Final Close No. of Funds Closed Aggregate Capital Raised Add-on & Other Source: Preqin Venture Capital Online Source: Preqin Venture Capital Online Fig. 9: Median Net IRRs of North America-Focused Funds Fig. 10: Investor Fund Searches for North America-Focused (Vintage 2007-2014) Venture Capital Funds in the Next 12 Months by Type 25% 140 120 118 20% 101 100 95 98 85 15% 80 60 10% 40 No. of Fund Searches of Fund No. 5% 20 Median Inception Net IRR since 0 0% Early Stage Early Stage: Early Stage: Expansion/ Venture 2007 2008 2009 2010 2011 2012 2013 2014 Seed Start-up Late Stage Capital Vintage Year (All Stages) Early Stage (All) Venture Capital (Excl. Early Stage) Fund Type Source: Preqin Venture Capital Online Source: Preqin Venture Capital Online Fig. 11: Five Most Active North America-Based Early Stage Venture Capital Investors by Number of Known Fund Commitments, 2007 - 2017 YTD (As at July 2017) No. of Known Assets under Investor Type Commitments Management ($bn) Greenspring Associates Private Equity Fund of Funds Manager 32 5.2 University of Texas Investment Management Endowment Plan 30 40.3 Company Adams Street Partners Private Equity Fund of Funds Manager 26 28.9 University of Michigan Endowment Endowment Plan 26 9.7 California Public Employees' Retirement System Public Pension Fund 22 323.5 (CalPERS) Source: Preqin Venture Capital Online 2 © 2017 Preqin Ltd. / www.preqin.com.