Venture Capital Overview · General Catalyst - Great recent performance. Most upward potential. Y...
Transcript of Venture Capital Overview · General Catalyst - Great recent performance. Most upward potential. Y...
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Venture CapitalOverviewThomas Williford
May 2019
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Key Observations 1. Venture Capital funding is increasing, but concentrating into fewer deals.
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Key Observations 2. Traditional and corporate VC firms are placing more funding into seed and Series A deals.
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Key Observations 3. The top 20 Venture Capital firms produce the highest returns and secure the best deals.
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VC Firm Ranking Criteria
Returns to Investors
- Total Assets Managed
- Number of exits (acquisitions or IPOs)
- Pedigree of partners and investors.
Longevity of Firm
- How many funds has the firm raised?
- Has the firm retained its best investors?
- Pedigree of the firm’s reputation.
Impact on Society
- Have the investments changed the world?
- Has the firm impacted the VC industry?
- Does the firm have a vision beyond generating returns?
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Honorable Mentions - VC Firms
Kleiner Perkins - Dominant in the past, but slipped considerably in recent years.
NEA - The counterculture to most VCs, yet the largest VC firm in America.
General Catalyst - Great recent performance. Most upward potential.
Y Combinator - An excellent hybrid between an accelerator and a VC firm.
Softbank - $100 Billion Vision Fund enables huge investments in emerging tech.
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Founders Fund
Top 5 Venture Capital Firms
5
Greylock
4
Benchmark
3 1
SequoiaAndreessen-Horowitz
2
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5 - Greylock
Notable Partners:Reid Hoffman, Bill Helman
Current Portfolio Highlights: Coinbase, Roblox, Coda
Exits:Instagram, Redhat, Pandora
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Ranking Analysis - Greylock
Total Assets Managed
3.1 Billion
Exits to date:
192
Pedigree of Partners (1-10):
7 - Losing talent recently
How many Funds has the Firm Raised:
14
Has the firm retained its best investors:
Somewhat
Pedigree of the Firm’s Reputation (1-10):
8.5 - Founded 1965
Firm’s Investment Impacts on World (1-10):
8
Firm’s Impact on VC Industry (1-10):
6
Firm’s Vision beyond Returns (1-10):
6
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4 - Benchmark
Notable Partners: Bill Gurley, Peter Fenton
Current Portfolio Highlights:Zillow, Tinder, Nextdoor
Exits from Seed/Series A Investments:Ebay, Uber, Snapchat
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Ranking Analysis - Benchmark
Total Assets Managed
2.9 Billion
Exited Companies:
151
How Many Funds has The Firm Raised:
13
Has the Firm Retained its Best Investors:
Yes
Pedigree of the Firm’s Reputation (1-10):
8 - Founded 1995
Firm’s investment impacts on world (1-10):
7.5 - Ebay
Firm’s Impact on VC Industry (1-10):
6
Vision beyond Generating Returns (1-10):
9 - Open source, no “CEO”
Pedigree of Partners (1-10):
7
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3 - Founders Fund
Notable Partners:Peter Thiel, Brian Singerman
Current Portfolio Highlights:SpaceX, Anduril, Oscar Exits: Facebook, Zynga, Spotify
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Ranking Analysis - Founders Fund
Total Assets Managed
3.4 Billion
Exited Companies:
75
Pedigree of Partners (1-10):
9 - PayPal, Palantir
How many Funds has the Firm Raised:
6
Has the Firm Retained Its Best Investors:
Somewhat
Pedigree of the Firm’s Reputation (1-10):
8 - Founded in 2005
Firm’s Investment Impacts on World (1-10):
7
Firm’s Impact on VC Industry (1-10):
7 - Emphasis on innovation.
Firm’s Vision beyond Returns (1-10):
9.5 - Equip founders for “Zero to One”
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2- Andreessen Horowitz
Notable Partners:Marc Andreessen, Ben Horowitz
Current Portfolio Highlights: Lime, Illumio, Coinbase
Exits:Github, Dollar Shave Club, Pinterest
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Ranking Analysis - Andreessen Horowitz
Total Assets Managed:
9.4 Billion
Exited Companies:
108
How Many Funds has the Firm Raised:
13
Has the Firm Retained its Best Investors:
Yes
Pedigree of the Firm’s Reputation (1-10):
9 - founded 2009
Firm’s Investment Impacts on World (1-10):
7
Firm’s Impact on VC Industry (1-10):
9 - Registering firm as fin. Advisors
Firm’s Vision beyond Returns (1-10):
7 - Software is Eating the World
Pedigree of Partners (1-10):
9 - Founded NetScape, OpsWare
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1 - Sequoia:
Notable Partners: Michael Moritz, Alfred Lin, Neil Shen
Current Portfolio Highlights: DoorDash, Verkada, Bird
Exits:Apple, Oracle, DropBox
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Ranking Analysis - Sequoia Total Assets Managed:
15.3 Billion
Exited Companies:
248
Pedigree of Partners (1-10):
9
How Many Funds has the Firm Raised:
22 different categories
Retention of Best Investors:
Yes
Pedigree of Firm’s Reputation (1-10):
10 - Founded in 1972
Firm’s Investment Impact on World (1-10):
10 - Led Apple, Sequoia China
Firm’s Impact on VC Industry (1-10):
9.5 - Best VC model for decades
Firm’s Vision beyond Returns (1-10):
9 - Empowering Apple, Google
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VC Investor Ranking Criteria
Impact on Startups
- Has this investor’s guidance as a board member helped startups succeed?
- Has this investor founded any successful startups?
History of Investment
- Has the investor backed profitable ventures consistently?
- Does the investor back profitable ventures early?
Impact on VC
- Has the investor had a significant impact at a firm?
- Has the investor changed the thought framework for how VC investments are conducted?
-
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Honorable Mentions - VC Investors Reid Hoffman - Greylock
Bill Gurley - Benchmark
Neil Shen - Sequoia China
Fred Wilson - AVC
Ron Conway - SV Angel
Elad Gil - Angel Investor
Alfred Lin - Sequoia
Peter Levine - Andreessen Horowitz
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Mary Meeker
Top 5 Venture Capital Investors
5
Peter Fenton
4
Michael Moritz
3 1
Marc Andreessen Peter Thiel
2
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5 - Peter Fenton Benchmark
Current Portfolio Companies - Docker, Buoyant, TimescaleDB
Exits - Twitter, Yelp, Elastic
Quote - “The best time to invest is right before the company’s rising ‘adoption curve’ meets the declining risk curve.”
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Ranking Analysis - Peter Fenton Has this investor’s guidance as a board member helped startups succeed? (1-10):
7 - Twitter @ 25 employees, Yelp
Has this investor founded any successful startups? (1-10):
1 - None founded himself.
Has the investor backed profitable ventures consistently? (1-10):
9.5 - on Midas List of Top 100 investors since 2007
Does the investor back profitable ventures early? (1-10):
8 - Well known for backing companies early
Has the investor had a significant impact at a firm?
9 - Seven years at Accel, best current Benchmark investor
Has the investor changed the thought framework for how VC investments are conducted?
Yes - Back companies early to achieve large gains
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4 -Michael MoritzSequoia Capital
Current Portfolio Companies - Stripe, Instacart, Klarna
Exits - Google, Yahoo, LinkedIn
Quote - “There's nothing more invigorating than being deeply involved with a young team of founders out to do something incredibly special.”
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Ranking Analysis - Michael Moritz Has this investor’s guidance as a board member helped startups succeed?
8 - Helped Google succeed
Has this investor founded any successful startups?
1- None founded himself
Has the investor backed profitable ventures consistently? 9
Does the investor back profitable ventures early?
8.5
Has the investor had a significant impact at a firm?
9 - Leader at Sequoia for a decade
Has the investor changed the thought framework for how VC investments are conducted?
9.5 - In tune with to Steve Jobs’ mindset and excellence
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3 - Mary Meeker Kleiner Perkins ->Buoy
Current Portfolio Companies - Peloton, Houzz, LegalZoom
Exits - Square, Waze, Docusign
Quote - “I love data. I think it's very important to get it right, and I think it's good to question it.”
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Ranking Analysis - Mary Meeker Has this investor’s guidance as a board member helped startups succeed?
9 - Balances involvement and freedom with the startup
Has this investor founded any successful startups?
1 - No startups founded
Has the investor backed profitable ventures consistently?
9.5 - Multiple decades backing great startups
Does the investor back profitable ventures early?
9 - Good record of entering startups ahead of Silicon Valley
Has the investor had a significant impact at a firm?
10 - Headlined Kleiner Perkins and founded Buoy
Has the investor changed the thought framework for how VC investments are conducted?
9.5 - One of the most respected investors in Silicon Valley
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2 - Peter Thiel Founders Fund
Current Portfolio Companies - Palantir, SpaceX, AirBnB
Exits - PayPal, Facebook, Joyent
Quote - “We wanted flying cars, instead we got 140 characters.”
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Ranking Analysis - Peter Thiel Has this investor’s guidance as a board member helped startups succeed?
Great Facebook and Palantir guidance
Has this investor founded any successful startups?
10 - PayPal, Palantir
Has the investor backed profitable ventures consistently?
9 - Maintained top investments since early 2000s
Does the investor back profitable ventures early?
10 -First outside investor in Facebook, early SpaceX investor
Has the investor had a significant impact at a firm?
9.5 - Co-founded Founders Fund, led it to a top 5 fund
Has the investor changed the thought framework for how VC investments are conducted?
9.5 - Use investing to drive change from Zero to One
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1 - Marc Andreessen Andreessen Horowitz
Current Portfolio Companies - Lime, Slack, Soylent
Exits - Mosaic, Netscape, Lyft, Zynga
Quote - “You are cruising along, and technology changes. You have to adapt.”
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Ranking Analysis - Marc Andreessen Has this investor’s guidance as a board member helped startups succeed?
9 - Very involved in leading startups to succeed
Has this investor founded any successful startups?
10 - Netscape, Opsware
Has the investor backed profitable ventures consistently?
9.5
Does the investor back profitable ventures early?
9.5
Has the investor had a significant impact at a firm?
10 - Founded a top 3 VC firm in Andreessen Horowitz
Has the investor changed the thought framework for how VC investments are conducted?
Yes - emphasis on identifying software startups early
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Sources http://www.hbs.edu/newventurecompetition/business-track/Documents/FH%20Boston%20Financing%20HBS%20NVC.pdf
https://www.angelkings.com/top-venture-capital-firms
https://www.techinasia.com/sequoia-accel-andreessen-horowitz-smartest-vcs-west
https://medium.com/startup-grind/all-the-venture-capital-fundraising-bloggers-you-should-be-following-6ea9817039c4
https://www.cbinsights.com/research/top-venture-capital-partners/
https://pitchbook.com/news/articles/the-state-of-us-venture-capital-activity-in-15-charts
https://angel.co/benchmark-capital
https://www.cbinsights.com
https://www.linkedin.com/
https://foundersfund.com
https://www.sequoiacap.com
https://a16z.com
https://pitchbook.com/profiles/investor/11295-73