Pwc Moneytree q4 and Full Year 2013 Summary Report

8/11/2019 Pwc Moneytree q4 and Full Year 2013 Summary Report

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PricewaterhouseCoopers

National Venture Capital Association

MoneyTree™ Report

Q4 2013/ Full-year 2013

Data provided by Thomson Reuters

The Q4 2013 MoneyTree™

results are in! This special report provides summaryresults of Q4 2013, as well as

findings for full-years 2013and 2012. More detailed results can be found on the

MoneyTree™ website at www.pwcmoneytree.com



Total equity investments into venture-backed companies

2 PwC

Venture capitalists invested $29.4 billion in 3,995 dealsin 2013, an increase of 7 percent in dollars and a 4percent increase in deals over the prior year, according tothe MoneyTree Report™ by PricewaterhouseCoopersLLP and the National Venture Capital Association(NVCA), based on data from Thomson Reuters. In Q42013, $8.4 billion went into 1,077 deals.

Internet-specific companies captured $7.1 billion in2013, marking the highest level of Internet investment

since 2001. Additionally, annual investments into theSoftware industry also reached the highest level since2000 with $11.0 billion flowing into 1,523 deals in 2013.Dollars going into Software companies accounted for37 percent of total venture capital invested in 2013, thehighest percentage since the inception of the MoneyTreeReport in 1995.

8,109 8,032

7,616

6,191

3,848

5,094

5,425

5,898

5,089

7,125

5,4525,694

6,510

8,196

7,557 7,447

6,304

7,396

6,6786,945

6,000

7,074

7,922

8,369

1,060 1,107 1,047 964680 761 766

939823

1,025888 910 905

1,084 1,018 994880 982 946 1,050

909 977 1,032 1,077

0

5,000

10,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Amount Invested # of Deals

($ in millions) All results rounded

‘08 ‘10 ‘11 ‘12 ‘13‘09



Investments by industry2012 to 2013

3 PwC

The Software industry maintained its status as the singlelargest investment sector for the year, with dollars rising27 percent over 2012 to $11.0 billion, which was investedinto 1,523 deals, a 10 percent rise in volume over theprior year. This represented the highest level of investment and the largest number of deals in theSoftware sector since 2000.

Biotechnology investment dollars rose 8 percent while volume decreased 2 percent in 2013 to $4.5 billion goinginto 470 deals, placing it as the second largestinvestment sector for the year in terms of deals anddollars invested. The Medical Device industry fell17 percent in dollars and 4 percent in deals in 2013,

finishing the year with $2.1 billion going into 308 deals.In the fourth quarter of 2013, $1.3 billion went into134 Biotechnology companies while $460 million wentinto 94 Medical Device deals. The Life Sciences sector(Biotech and Medical Devices combined) accounted for23 percent of all venture capital dollars invested in 2013compared to 25 percent in 2012.

Internet-specific companies experienced a 7 percentincrease in dollars and a 6 percent increase in deals forthe full year 2013 with $7.1 billion going into1,059 rounds compared to 2012 when $6.7 billion wentinto 995 deals. This marked the highest level of Internetinvestment since 2001.

99

209

257

286

324

512

551

570

643

670

1,245

1,483

1,980

2,109

2,928

4,536

10,964

48

130

370

333

250

403

276

894

718

317

1,335

2,904

1,880

2,549

2,125

4,191

8,600

- 5,000 10,000 15,000

2012

2013

Other

Business Products and Services

Retailing/Distribution

Healthcare Services

Electronics/Instrumentation

Computers and Peripherals

Financial Services

Semiconductors

Telecommunications

Networking and Equipment

Consumer Products and Services

Industrial/Energy

IT Services

Medical Devices and Equipment

Media and Entertainment

Biotechnology

Software15231384

470478

452410

308322

354300

234257

169170

2532

6496

91113

6451

33

42

4251

4243

5749

6339

1213

Grand Total



# of Deals

# of Deals

29,36527,323

- 10,000 20,000 30,000 40,000

3858

3995



Investments by industryQ4 2012, Q3 2013, and Q4 2013

MoneyTree™ Report 4

Software remained the number one sector in Q4 for bothdollars invested and number of deals with $2.9 billiongoing into 397 companies, nearly three times the numberof deals than the second highest volume sector, Media &Entertainment.

For the fourth quarter, $2.4 billion went into273 Internet-specific deals. ‘Internet-specific’ is adiscrete classification assigned to a company whose business model is fundamentally dependent on the

Internet, regardless of the company’s primary industry category. These companies accounted for 24 percent of all venture capital dollars in 2013.

Ten of the 17 industry categories experienced increases indollars invested for the year. Industry sectorsexperiencing some of the biggest dollar increases for2013 included: Networking & Equipment (111 percent);Financial Services (100 percent); and Business Productsand Services (61 percent).

Definitions of the Industry ca tegories can be found on the MoneyTree™ website at www.pwcmoneytree.com

9

36

76

88

102

114

127

174

178

199

327

460

532

580

1,165

1,323

2,881

136

72

57

304

39

273

55

130

264

102

564

362

469

619

928

3,548

20

52

54

67

27

43

57

185

186

139

477

631

581

406

399

1,343

2,278

- 500 1,000 1,500 2,000 2,500 3,000 3,500

Q4 2012

Q3 2013

Q4 2013

Other

Networking and Equipment

Business Products and Services

Electronics/Instrumentation

Financial Services

Retailing/Distribution

Computers and Peripherals

Healthcare Services

Semiconductors

Telecommunications

Consumer Products and Services

Medical Devices and Equipment

Industrial/Energy

IT Services

Media and Entertainment

Biotechnology

Software397431414

134122140

136108104

89104

70

655569

946682

383150

161619

252024

149

12

1067

121017

13

217

91217

1518

9

564

2

5

Grand Total


10501032

1077


# of Deals

# of Deals

8,3697,922

6,945

- 2,000 4,000 6,000 8,000 10,000



Investments by stage of development 2012 to 2013


Investments into Seed Stage companies increased14 percent in terms of dollars but fell 26 percent in deals with $943 million going into 218 companies in 2013, thelowest number of seed deals since 2003. Seed Stagecompanies attracted 3 percent of dollars and 5 percent of deals in 2013 compared to 3 percent of dollars and8 percent of deals in 2012. The average Seed stage roundin 2013 was $4.3 million, up from $2.8 million in 2012.

Early Stage investments experienced a 17 percentincrease in dollars and a 15 percent increase in deal

volume in 2013 with $9.8 billion going into 2,003 deals.Early Stage companies attracted 33 percent of dollars

and 50 percent of deals in 2013 compared to 30 percentof dollars and 45 percent of deals in 2012. The averageEarly Stage deal in 2013 was $4.9 million, up from$4.8 million in 2012.

Expansion Stage investments increased in 2013 by 4 percent in dollars and were flat in terms of deals with$9.8 billion going into 984 deals. Expansion Stagecompanies attracted 34 percent of dollars and 25 percentof deals in 2013 compared to 35 percent of dollars and26 percent of deals in 2012. The average ExpansionStage deal size in 2013 was $10.0 million compared to$9.6 million in 2012.

In 2013, $8.8 billion was invested into 790 Later Stagedeals, a 1 percent increase in dollars and a 6 percent

decrease in deals for the year. Later Stage companiesattracted 30 percent of dollars and 20 percent of deals in

2013 compared to 32 percent of dollars and 22 percent of deals in 2012. The average size of a Later Stage deal rosefrom $10.4 million in 2012 to $11.2 million in 2013.

8,742

9,445

8,312

825

8,825

9,838

9,759

943

- 2,000 4,000 6,000 8,000 10,000

2012

2013

Seed Stage

Early Stage

ExpansionStage

Later Stage

# of Deals

843

790



27,323

29,365

- 10,000 20,000 30,000

3858

3995

984

984

1738

2003

293

218

Grand Total

# of Deals



Investments by stage of development Q4 2012, Q3 2013, and Q4 2013


Seed Stage investments rose 69 percent in dollars androse 29 percent in deals with $320 million invested into67 deals in the fourth quarter. The average Seed Stagedeal in the fourth quarter was $4.8 million, up from $3.6million in the third quarter. This represents the highestquarter over quarter increase.

Early Stage dollar investments rose again to their highestlevel in 12 years, rising 3 percent in dollars and 8 percentin deals from the prior quarter to $2.9 billion going into530 deals. The average Early Stage deal was $5.5 millionin Q4, up from $5.1 million in the prior quarter. SeedStage and Early stage deals accounted for 55 percent of total deal volume in Q4, down slightly from the thirdquarter of 2013.

Expansion Stage dollars increased 16 percent in thefourth quarter, with $3.0 billion going into 275 deals.

Overall, Expansion Stage deals accounted for 26 percentof venture deals in the fourth quarter, a 3 percent riseover the third quarter of 2013. The average Expansionstage deal was $10.9 million, slightly increasing from$10.7 million in Q3 2013.

In the fourth quarter, $2.2 billion went into 205 deals.Investments in Later Stage deals decreased 8 percent indollars but increased 9 percent in deals to $2.2 billiongoing into 205 rounds in the fourth quarter. Later Stagedeals accounted for 19 percent of total deal volume in Q4,compared to 18 percent in Q3 when $2.3 billion wentinto 188 deals. The average Later Stage deal in the thirdquarter was $10.5 million, down from $12.4 million inQ3 2013.

Definitions of the Stage of Development categories can be found on the MoneyTree™ website at www.pwcmoneytree.com

2,229

2,292

2,242

183

2,339

2,587

2,806

190

2,157

2,997

2,895

320

- 500 1,000 1,500 2,000 2,500 3,000

Q4 2012

Q3 2013

Q4 2013

Seed Stage

Early Stage

ExpansionStage

Later Stage

# of Deals

221

188

205



254

241

275

505

551

530

70

52

67

6,945

7,922

8,369

- 2,000 4,000 6,000 8,000 10,000

Grand Total1050

1032

1077

# of Deals



Investments by sequence of financing2012 to 2013


First-time financings (companies receiving venturecapital for the first time) in 2013 rose 14 percent indollars while the number of deals increased 3 percentcompared to 2012, with $5.0 billion going into 1,314companies. First-time financings accounted for 17percent of dollars and 33 percent of deals in 2013compared to 16 percent of dollars and 33 percent of dealsin 2012.

Industries receiving the most dollars in first-timefinancings in 2013 were Software, Biotechnology and

Media & Entertainment. Industries with the most first-time deals in 2013 were Software, Media &Entertainment, and IT Services. Fifty-seven percent of dollars invested in first-time deals in 2013 were in theEarly Stage of development, followed by the ExpansionStage of development at 16 percent, Seed Stagecompanies at 14 percent and Later Stage companies at13 percent.

4,429

22,894

5,041

24,324

- 10,000 20,000 30,000

2012

2013

First

# of Deals

1270

1314



2588

2681

27,323

29,365

- 10,000 20,000 30,000 40,000

Grand Total3858

3995

# of Deals

Follow-on



Investments by sequence of financingQ4 2012, Q3 2013, and Q4 2013

8 PwC

First-time financing dollars increased 22 percent to$1.6 billion going into 345 companies in Q4, a 4 percentdecrease in the number of deals from the prior quarter.First-time financings accounted for 19 percent of alldollars and 32 percent of all deals in the fourth quarter.The average first-time deal in the fourth quarter was$4.7 million, up from $3.7 million in the prior quarter.

Companies in the Software industry captured 40 percentof first-time investment dollars in the fourth quarter, and43 percent of the companies receiving funding in Q4 with

$652 million going into 150 companies. The LifeSciences sector saw a rise of 161 percent in dollars fromthe prior quarter to $408 million, while the number of companies receiving funding for the first time increasedslightly by 7 percent to 48.

Seed Stage and Early Stage companies received the bulk of first-time investments, capturing 69 percent of thedollars and 83 percent of the deals in the fourth quarterof 2013.

Definitions of the Financin g Sequence categories can be found on the Mon eyTree™ website at www.pwcmoneytree.com

1,235

5,710

1,321

6,601

1,616

6,754

- 2,000 4,000 6,000 8,000

Q4 2012

Q3 2012

Q4 2013

# of Deals

360

345



690

732

6,945

7,922

8,369

- 2,000 4,000 6,000 8,000 10,000

1032

1077

# of Deals

359

673

1050

First

Grand Total

Follow-on



Investments by regionQ4 2012, Q3 2013, and Q4 2013


Silicon Valley received the highest level of funding for allregions in fourth quarter 2013 although there was adecrease of 12 percent in dollars and 4 percent in dealsfrom the prior quarter with $3.2 billion going into306 deals. New York Metro received the second highestlevel of funding and deals completed with $1.2 billiongoing into 123 rounds, rising 74 percent in dollars and5 percent in deals from last quarter. New Englandinvestments came in third and experienced an increase,

rising by 7 percent in terms of dollars, but dropping5 percent in deals with $917 million going into106 companies.

Ten of the 18 MoneyTree™ regions experiencedincreases in dollars invested in the fourth quarter,including AK/HI/PR (508 percent increase), Northwest(227 percent increase), NY Metro (74 percent increase),and Southeast (69 percent increase). Fifteen of the18 regions experienced increases in the number of deals.

Definitions of the Region categories ca n be found on the MoneyTree™ website at www.pwcmoneytree.com

7

11

12

46

84

90

131

141

145

313

316

379

383

453

503

917

1,220

3,220

23

2

13

33

49

142

97

157

230

445

244

225

370

509

154

859

701

3,671

14

0

1

13

57

97

74

291

178

117

205

226

291

534

333

910

816

2,790

- 1,000 2,000 3,000 4,000

Q4 2012

Q3 2013

Q4 2013

# of Deals

Sacramento/N.Cal

Upstate NY

SouthWest

North Central

South Central

Colorado

Philadelphia Metro

San Diego

Texas

Midwest

Northwest

Southeast

DC/Metroplex

LA/Orange County

NY Metro

New England

Silicon Valley

AK/HI/PR


320306

349

117123

111

111106

121

4045

41

6061

70

104124

86

5862

39

3747

38

5254

37

2826

23

1823

19

2016

23

2023

21

29

46

40

911

10

23

3

313

767

# of Deals

Grand Total 1050

10321077 8,369

7,9226,945

- 5,000 10,000($ in millions) All results rounded



Most active venture investorsFull-year 2013


Kleiner Perkins Caufield & Byers LLC closed the mostdeals in 2013, with a total of 103 deals. First RoundCapital was second with 94 deals and New Enterprise Associates was third with 83 deals. The top 25 most

active investors accounted for 35 percent of the dealsin 2013. Most active are those investors whoparticipated in 39 or more deals in 2013.

Firm City # of Deals

Kleiner Perkins Caufield & Byers LLC Menlo Park, California 103

First Round Capital Philadelphia, Pennsylvania 94

New Enterprise Associates, Inc. Menlo Park, California 83

Andreessen Horowitz LLC Menlo Park, California 73

Draper Fisher Jurvetson International. Inc. Menlo Park, California 68

True Ventures Palo Alto, California 62

Innovation Works, Inc. Pittsburgh, Pennsylvania 61

Google Ventures Mountain View, California 61

500 Startups, LP Mountain View, California 55

Battery Ventures LP Waltham, Massachusetts 54

U.S. Venture Partners Menlo Park, California 51

Intel Capital Corp. Santa Clara, California 50

Bessemer Venture Partners LP Larchmont, New York 49

Polaris Partners Waltham, Massachusetts 47

Greylock Partners Menlo Park, California 47

Sequoia Capital Menlo Park, California 47

Atlas Venture Advisors Inc Cambridge, Massachusetts 44

Ben Franklin Technology Partners Southeastern PA Philadelphia, Pennsylvania 44

General Catalyst Partners LLC Cambridge, Massachusetts 43

Canaan Partners Menlo Park, California 43

Domain Associates LLC Princeton, New Jersey 43

Khosla Ventures LLC Menlo Park, California 41

SV Angel II Q LP San Francisco, California 41

Norwest Venture Partners Palo Alto, California 40Lightspeed Venture Partners Menlo Park, California 39



Most active venture investorsQ4 2013

12 PwC

Kleiner Perkins Caufield & Byers LLC closed the mostdeals in the fourth quarter 2013, with a total of 27 deals.First Round Capital was second with 24 deals and DraperFisher Jurvetson International, Inc. was third with23 deals.

The top 30 most active venture investors accounted for40 percent of total venture-backed deals for the quarter.Most active are those investors who participated in ten ormore deals in the fourth quarter of 2013.

Firm City # of Deals

Kleiner Perkins Caufield & Byers LLC Menlo Park, California 27

First Round Capital Philadelphia, Pennsylvania 24

Draper Fisher Jurvetson International, Inc. Menlo Park, California 23

Battery Ventures LP Waltham, Massachusetts 22Ben Franklin Technology Partners Southeastern PA Philadelphia, Pennsylvania 20

Andreessen Horowitz LLC Menlo Park, California 19

New Enterprise Associates, Inc. Menlo Park, California 18

Khosla Ventures LLC Menlo Park, California 15

Greylock Partners Menlo Park, California 15

Bessemer Venture Partners LP Larchmont, New York 15

Google Ventures Mountain View, California 15

Innovation Works, Inc. Pittsburgh, Pennsylvania 14

True Ventures Palo Alto, California 13

Norwest Venture Partners Palo Alto, California 13

Benchmark Capital Management Menlo Park, California 13

Ben Franklin Technology Partners Of Central And Northern PA University Park, Pennsylvania 12

General Catalyst Partners LLC Cambridge, Massachusetts 12

Accel Partners & Co., Inc. Palo Alto, California 12

Polaris Partners Waltham, Massachusetts 12

Domain Associates LLC Princeton, New Jersey 12

Intel Capital Corp Santa Clara, California 12

Scout Ventures LLC New York, New York 11

Foundry Group LLC Boulder, Colorado 11Lightspeed Venture Partners Menlo Park, California 11

Morgenthaler Ventures Menlo Park, California 11

U.S. Venture Partners Menlo Park, California 11

Highland Capital Partners LLC Cambridge, Massachusetts 11

Lerer Ventures New York, New York 10

Mercury Fund Houston, Texas 10

Social+Capital Partnership Palo Alto, California 10



pwcmoneytree.com

PricewaterhouseCoopers and the National Venture Capital Association have taken responsible steps to ensure thatthe information contained in the MoneyTree™ Report has been obtained from reliable sources. However, neither of the parties nor Thomson Reuters can warrant the ultimate validity of the data obtained in this manner. Results areupdated periodically. Therefore, all data is subject to change at any time. Before making any decision or taking any action, you should consult a competent professional adviser. Th is content is for general information purposes only,and should not be used as a substitute for consultation with professional advisors.

pwc.com

© 2014 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved. PwC refers to theUS member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity.Please see www.pwc.com/structure (http://www.pwc.com/structure) for further details.

Contacts

David SilvermanEmerging Company Services Practice [email protected]

Danny WallaceEmerging Company Services Practice [email protected]

Mark McCaffrey Global Technology Partner & Global Software [email protected]

Greg VlahosLife Sciences [email protected]

Pwc Moneytree q4 and Full Year 2013 Summary Report

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