1. Venture Capital Update
Andy White Analysis Manager
PitchBook Data, Inc.
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2. Performance Data Lines
THE PITCHBOOK PLATFORM The financial information technology trusted by leading investors, companies and advisors
21,860
LPs
94,438
Commitments
150,137
GPs/Investors
33,460
Funds
514,170
Performance Data Lines
696,194
Portfolio Companies
491,333
Transactions
124,748
Valuations
25,463
Advisory Firms
1,097,011
People

3. National VC Trends

4. Stages of funding overview
Accelerators/incubators

5. Later stage valuations drive piles of capital despite fewer deals U. S
Later stage valuations drive piles of capital despite fewer deals U.S. VC deal flow
60% of $ in LVC Deals
54% of $ in LVC Deals
Includes angel, seed, evc, lvc.
Drastic increase in $$$ going into LVC => fewer deals in 2015, but larger deals
Angel/Seed rounds now account for 53% of deals, up from 20% in ‘07-’08 => easier to start companies, more seeking funding
*Through 12/31/2015

6. 2015: 100 deals of $100M+ U.S. VC deal flow by quarter
Despite obvious downturn in deal making in 2015, capital invested is still huge => bigger deals
With vals so high, investors have to shell out more cash for deals
*Through 12/31/2015

7. “Unicorn” rounds have skyrocketed U. S
“Unicorn” rounds have skyrocketed U.S. VC rounds valued over $1 billion
$43.3B invested across only 131 companies since 2006.
“age of the unicorn” – a few highly valued companies, raising ridiculous sums
Is this sustainable?
What we are all reading about
Includes companies such as:
Uber
Lyft
DraftKings
Zulily
Facebook
Twitter
*Through 12/31/2015

8. Median late stage valuations more than double from 2010 levels Median pre-money valuation ($M) by series
Late stage vals hitting ridiculous levels
*Through 12/31/2015

9. “Tourists” filling VC funding gap U. S. VC fund contributions vs. U. S
“Tourists” filling VC funding gap U.S. VC fund contributions vs. U.S. VC capital invested
Non-traditional VC investors account for an increasing share of VC $ spend.
VC funds are deploying a pretty steady amount of capital
The massive increases are coming from outside traditional VC funds
Mutual funds and PE such as:
T.Rowe
Goldman
Tiger global
Fidelity
KKR
*Through 12/31/2015

10. A glut of heavily funded companies will be seeking public market exits % of VC Backed Cos to IPO by VC Capital Raised ( )
Over 500 companies having raised $100M+ yet to be exited.
Lots of companies sitting in a position to be taken public
Distinct lack of IPOs last year, and this year. Markets are getting crushed in 2016 so far
What next?
Can the market support it?
*Through 12/31/2015

11. Seed round valuations reach levels previously seen at series A Median pre-money valuation ($M) by series
Seed vals are becoming what A vals used to be.
Raising an A round is more of a hurdle now
VCs expect more from companies looking to raise A round than in the past.
*Through 12/31/2015

12. Massive increase in angel & seed rounds U.S. VC deal count by stage
Angels, micro-VC, pre-seed funds starting to pick up the slack
Easier to start a company these days, so more people are
Series A crunch in the making?
*Through 12/31/2015

13. Accelerators & incubators are springing up everywhere U. S
Accelerators & incubators are springing up everywhere U.S. accelerator deal round count
Accelerators popping up all over
Can create good companies:
Reddit
Airbnb
DigitalOcean
ClassPass
Plated
Remitly
*Through 12/31/2015

14. 63% of funds under $100M in 2015 U.S. VC fundraising
Avg. size:
$149M
2014 & 2015 fundraising levels are great.
Many smaller funds being raised => over 60% of funds raised are under $100m --- up from 40% in 2007
*Through 12/31/2015

15. Washington VC Trends

16. WA accounts for nearly 70% of capital invested in the PNW since 2013 PNW VC capital invested ($M) by state
WA dominates the PNW
*Through 12/31/2015

17. More WA-based companies are raising capital WA VC deal flow
Cheaper alternative to Bay area
Good talent base (microsoft, amazon)
*Through 12/31/2015

18. Angel & seed deals have increased rapidly over the past decade Washington VC deal count by stage
Lots of early stage funding happening
Angels are filling funding gap
Could lead to crunch down the road
*Through 12/31/2015

19. 1.8x more unique investors involved in WA deals than in 2010 Active investors in WA VC deals by year
# of distinct investors having participated in a WA deal by year => 1 deal or 10 deals counts for 1
Increasing amount of unique investors attracted to the area
*Through 12/31/2015

20. CA investors continue to be the most active investors in WA companies Active investors in WA VC deals by year
CA & WA investors the most active in the area
*Through 12/31/2015

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