O V E R V I E W

U S V C D E A L A C T I V I T Y

U S V C M E G A - D E A L A C T I V I T Y

U S V C D E A L A C T I V I T Y F O R F E M A L E - F O U N D E D C O M P A N I E S

U S V C E X I T A C T I V I T Y

Q U A R T I L E D I S T R I B U T I O N O F A G E ( Y E A R S ) O F C O M P A N I E S R E C E I V I N G A N G E L & S E E D F U N D I N G

69.2%Percentage ofVC-backed IPOs in Q4 2019

that were healthcare companies

77.5% IPO's proportion of 2019 exit value

50.1% CVC activity reached over

half of completed VC financings for fifth consecutive year

$42.3BEarly-stage deal value surpassed $40 billion

for the second time

Value of deals with nontraditional investor

participation in 2019

$97B

2,5972019 late-stage deal count was highest of the decade

237Number of mega-deals

completed during the year

$135BSecond consecutive year

total deal value tops this figure

3Number of times this decade

fundraising has topped $40B, including 2019

$256BNew record annual

VC exit value

10,777Number of deals in 2019

2.9 yearsMedian age of companies raising

angel/seed rounds; this has risen each of the past seven years

$88MMedian late-stage pre-money

valuation grew 15.8% YoY

$136.6BTotal US VC deal value

during 2019, a 5x growth over the past decade

$2

7.4

$3

1.4

$4

5.7

$4

1.3

$4

7.7

$7

2.2

$8

3.8

$7

7.6

$8

6.8

$1

40

.2

$1

36

.5

4,535

5,444

6,806

7,937

9,387

10,68411,014

9,61210,326 10,542 10,777

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Deal value ($B) Deal count

$1

1.3

$1

8.6

$2

5.1

$2

3.4

$2

5.6

$6

4.1

$5

9.514

25

47

2635

84

108

75

113

212

237

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Deal value ($B) Deal count

0

1

2

3

4

5

6

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

75th percentile Median 25th percentile

$25M+

$10M-$25M

$5M-$10M

$1M-$5M

$500K-$1M

Under$500K

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

$0

$5

$10

$15

$20

$25

$30

$35

$40

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

75th percentile Median 25th percentile

$2

.0

$2

.3

$3

.4

$4

.7

$6

.3

$8

.7

$1

0.9

$8

.9

$1

3.7

$1

6.9

$1

8.3

429541

825

1,183

1,492

1,861 1,902

1,750

2,0052,057

2,184

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Deal value ($B) Deal count

55.7%

50.1%

33.9%

28.1%

15.5%

6.1%

34.1%

27.0%

20.3%

7.1%

0%

10%

20%

30%

40%

50%

60%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

CVC investor PE investor Asset manager Government/SWF Other tourist investor

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Buyout

IPO

Acquisition

2.0%0.0%

8.1%

27.1%

12.3%

18.7%

47.5%

25.2%

40.2%

50.0%

55.5%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Q 4 2 0 1 9 | D a t a g r a p h i c

In partnership with

US VC deal count and value havecontinued their charge into recordterritory.The vast amount of available capital resourcescontinues to drive growth in deal sizes andvaluations across nearly all stages. 2019recorded 237 mega-deals, an 11.8% increase over 2018. Nontraditional investors participated in more than 85% of those outsized deals.

VC-backed IPOs had a tepid end toan otherwise record year.Given the aftermarket price performance strugglesfrom 2019’s tech listings, healthcare IPOsdominated the Q4 roster instead; of the 13companies that managed to list in Q4 2019,nine were in the healthcare sector, representingan impressive 69.2% of the total IPO count.

Capital raised by US venture fundsreached $46.3 billion in 2019.Positive net cash flows and increased fund sizes havecontributed to the second-highest annualtotal in the past decade.

D E A L M A K I N G

US VC activity has continued to charge into record territory. A strong pipeline of target companies moving through their lifecycle, coupled with some of the highest capital availability we have seen has produced a strong market for dealmaking at every stage. At the same time, the median deal sizes and valuations have continued to grow,with the latter seeing an increase over 2018 figures at every stage.

U S E A R L Y - S T A G E V C D E A L S ( # ) B Y S I Z E

Q U A R T I L E D I S T R I B U T I O N O F U S L A T E - S T A G E V C D E A L S I Z E S ( $ M )

P R O P O R T I O N O F U S V C D E A L S ( $ ) W I T H N O N T R A D I T I O N A L I N V E S T O R P A R T I C I P A T I O N

U S V C E X I T S ( $ ) B Y T Y P E

E X I T S

Outlier IPOs dominated the exit landscape in 2019, driving the record $256.4 billion in capital exited.However, public listings of VC-backed companies had an especially tepid Q4 assisted by an uncertain outlook toward many potential IPOs given poor post-IPO performance from many newly listed companies. Most of this focus was directed at large money-losing technology companies, which allowed healthcare IPOs to dominate the Q4 activity, accounting for 69.2% of the quarterly total.

$2

1.7

$4

1.2

$6

7.2

$1

24

.5

$7

2.5

$1

11

.3

$7

6.5

$7

2.8

$9

7.5

$1

30

.2

$2

56

.4

479

707740

871905

10811030

906 928

1015

882

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Exit value ($B) Exit count

US VC firms raised $46.3 billion in 2019, a solid follow-up to 2018’s $58 billion record.The median fund size continued to grow, moving to $78.5 million—the highest in the past decade. Though top-end funds make up a large proportion of the total capital raised (21 funds of at least $500 million were raised during 2019), it's notable that firms raising follow-on funds closed vehicles that were 55% larger at the median than their previous fund, noting LPs' continued appetite for venture.

F U N D R A I S I N G

U S V C F U N D R A I S I N G A C T I V I T Y

M E D I A N F U N D S I Z E S T E P - U P S F O R U S V C F U N D S

$1

3.1

$1

9.0

$2

3.3

$2

4.7

$2

0.4

$3

4.9

$3

6.9

$4

1.9

$3

3.9

$5

8.0

$4

6.3

121

150 151

204

216

294308

321

276299

259

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Capital raised ($B) Fund count

21Funds of $500M+ closed during 2019

$78.5MMedian fund size of 2019,

highest in decadeMedian fund size step-up for US VC funds in 2019

55.5%

$46.3BTotal fundraising surpassed

$40B for just the third year in the past decade