Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals
PwC Presents: VC Investing – Major trends of the first half of 2014 and predictions for the rest of the year
• Articulate key trends in venture capital investing in 2014 by sector and industry
• Observe which of the 17 industry sectors in the report experienced growth in venture capital investments in 2013/4
• Discover investment trends by the stage of company development, and insights into key factors which fueled these trends
Learning Objectives
After attending this event you will be able to:
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Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals
PwC Presents: VC Investing – Major trends of the first half of 2014 and predictions for the rest of the yearSteve Bengston, Director of the Emerging Company Services (ECS) Group, PwCClaire Hayes, Managing Director, PwC
Shaking the MoneyTree™
www.pwc.com
PricewaterhouseCoopers/National Venture Capital Association MoneyTreeTM Report, based on data from Thomson Reuters
PwC 6PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters
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 19th year
• Results online at www.pwcmoneytree.com and www.nvca.org
PwCPricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters
2009 2010 2011 2012 2013 2014$0.0
$2,000,000,000.0
$4,000,000,000.0
$6,000,000,000.0
$8,000,000,000.0
$10,000,000,000.0
$12,000,000,000.0
$14,000,000,000.0
$3,865,575,200.0
$5,113,354,600.0
$6,534,068,100.0 $6,332,025,000.0 $6,064,404,400.0
$9,709,919,500.0
$5,078,415,200.0
$7,112,833,600.0
$8,245,865,200.0
$7,428,081,100.0 $7,170,535,200.0
$12,968,828,000.0
$5,425,464,800.0 $5,512,109,900.0
$7,564,520,900.0
$6,683,316,600.0
$7,961,104,500.0
$5,931,995,200.0 $5,682,584,200.0
$7,490,459,300.0$6,986,885,100.0
$8,497,285,600.0
Q1 Q2 Q3 Q4
MoneyTree total investments: Q1 2009 – Q2 2014
7
($ in billions)
2009 2010 2011 2012 2013 2014
# of Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Deals 680 765 767 944 826 1,023 891 911 907 1,0881,0221,000 886 987 948 1,067 923 1,0001,0571,126 985 1,114
PwC
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014 Q2 YTD
$0
$20,000,000,000
$40,000,000,000
$60,000,000,000
$80,000,000,000
$100,000,000,000
$120,000,000,000
$8,016,523,400.0$11,376,521,000.0$15,083,131,600.0
$21,577,004,300.0
$54,908,284,600.0
$105,096,894,300.0
$40,915,438,200.0
$22,166,048,700.0$19,607,438,700.0$22,813,595,800.0$23,539,087,700.0$27,643,069,900.0
$32,041,056,700.0$30,236,754,500.0
$20,301,450,400.0$23,420,882,300.0$29,834,913,500.0$27,430,307,800.0$29,693,329,700.0
$22,678,747,500.0
($ in billions)
MoneyTree total investmentsAnnual venture capital investments 1995 – Q2 2014 YTD
8
# of deals
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q2
YTD
1,897
2,637
3,232
3,745
5,603
8,040
4,591
3,208
3,027
3,231
3,298
3,884
4,229
4,182
3,156
3,651
4,017
3,888
4,106
2,099
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters
PwC 9PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters
Investments by region – Quarterly percent of total US investments
Top 5 US regions : Q2 2013 – Q2 2014
Silicon Valley New England NY Metro LA/Orange County Midwest0%
10%
20%
30%
40%
50%
60%
41%
12%10%
6%
3%
46%
11%9%
6% 5%
39%
11%13%
5% 4%
51%
10% 10%
5% 4%
55%
10% 9%
4% 4%
(% of total dollars)
Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14
PwC 10
Investments by region: Q2 2014
AK/HI/PR
South Central
Upstate NY
Sacramento/N.Cal
North Central
Philadelphia Metro
Colorado
SouthWest
San Diego
DC/Metroplex
Texas
Southeast
Northwest
Midwest
LA/Orange County
NY Metro
New England
Silicon Valley
$0 $2,000,000,000 $4,000,000,000 $6,000,000,000 $8,000,000,000
$350,000.0
$12,850,100.0
$29,090,000.0
$98,546,900.0
$134,896,800.0
$140,942,000.0
$150,799,000.0
$219,269,900.0
$222,439,600.0
$247,283,500.0
$354,424,200.0
$363,563,800.0
$410,649,100.0
$496,502,200.0
$538,685,300.0
$1,202,681,500.0
$1,251,436,700.0
$7,094,417,400.0
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters
Unknown region totals not included
Region # of Deals
% Change $ from Q1’ 14
Silicon Valley 365 45%
New England 128 26%
NY Metro 122 28%
LA/Orange County 68 5%
Midwest 82 17%
Northwest 40 74%
Southeast 61 39%
Texas 47 2%
DC/Metroplex 58 12%
San Diego 26 -15%
SouthWest 20 -16%
Colorado 20 34%
Philadelphia Metro 28 39%
North Central 21 25%
Sacramento/N.Cal 5 98,447%
Upstate NY 14 1,181%
South Central 8 -28%
AK/HI/PR 1 29%
Grand Total 1,114 34%
Q2 2014 Total Investments - $12,969 million in 1,114 deals
PwC Presents: VC Investing – Major trends of the first half of 2014 and predictions for the rest of the year
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