Heesen san diego venture group - 2012-01-24
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San Diego Venture GroupVC Outlook 2012January 24, 2012
Mark G. HeesenNVCA President
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The Number of US VC Firms Has Peaked ... Thankfully
At Year End
# Active Firms
Capital Managed
1970 28 $1B 1980 87 $4B 1990 96 $28B
2000 1,022 $220B 2010
462 $177B
Source: 2011 NVCA Yearbook, prepared by Thomson Reuters, figure 1.04
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VC Fundraising Has Slowed Down – New commitments continue below company investment
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
$B 10 12 18 31 58 107 38 4 11 19 31 32 31 26 16 14 18
0
20
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120
Source: Thomson Reuters/NVCA
Does not include Corporate Venture groups.
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The Vast Bulk of the Capital Goes to Existing Managers Raising a Follow-On Fund
2005 2006 2007 2008 2009 2010 2011$B First 2.4 1.4 2.9 2.2 0.9 1.6 1.9$B Follow On 27.9 30.5 27.7 23.2 15.5 12.2 16.9
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$B
Ra
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Source: Thomson Reuters/National Venture Capital Association
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Investment Marches On -The industry is in a new size band but it is very much
open for business!
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$0
$10
$20
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$10019
88
1989
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$ B
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Inve
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VC Investment Peaked in 2000; Industry is Smaller Now
Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report,Data: Thomson Reuters
$99b
$31b
$28b
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Despite economic turbulence and uncertainty, VCs funded Over 1100 in 2011; 1000-1300 is typical
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500
1,000
1,500
2,000
2,500
3,000
3,500
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011# Cos 1,428 2,459 3,388 1,236 840 768 950 1,067 1,259 1,361 1,281 795 1,047 1,159
Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report,Data: Thomson Reuters
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First Fundings of Life Sciences Companies is Way Down…
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
# LS FF 153 192 202 166 192 167 173 165 185 206 268 259 242 157 188 153
0
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Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report,Data: Thomson Reuters
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SoCal under a Microscope…
Note that data “cuts” can be done from the historical trend data section of www.pwcmoneytree.com or from the
National Aggregate Spreadsheet which can be downloaded from that site.
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10
So. California Investing Generally Tracked National Trends …
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
$M Inv 1,171 1,081 1,298 1,707 4,539 8,591 3,583 2,158 1,783 2,441 2,588 3,112 3,704 3,136 1,921 2,493 2,805
# Deals 165 240 264 333 505 751 402 275 268 274 313 354 394 375 277 341 315
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$0
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$ M
illion
s I
nveste
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pan
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Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report,Data: Thomson Reuters
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… and first time funding are rebounding nicely
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1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011# 1st Fundings 102 127 228 323 110 63 65 82 119 122 131 126 61 84 95
Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report,Data: Thomson Reuters
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SoCal’s 37% focus on life sciences is higher than national; clean tech makes up the bulk of Ind/Energy
Bio22%
Ind/Energy22%
Med Dev15%
SW12%
Media/Ent5%
Consumer5%
IT Services5% Semi
2% Other12%
$ Invested 2009 through 2011
Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report,Data: Thomson Reuters
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The Exit Scene - the importance of acquisitions has become clear
over the past several years
but the IPO market remains the key!
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IPO Levels Far Below What is Needed
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
$Offer B 12.01 5.00 3.54 18.75 22.96 3.41 2.07 2.01 10.48 4.48 4.48 10.33 0.47 1.64 7.02 9.88
Count 281 142 78 271 263 41 22 29 94 57 57 86 6 12 75 52
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$B
Source: Thomson Reuters/National Venture Capital Association
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Median Age at IPO is Off Its Peak – but Still Historically High
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Med Age - Yrs 5.78 6.54 4.74 4.29 5.26 7.15 7.93 7.70 6.86 6.20 8.02 8.78 9.59 10.30 9.18 8.30
0.00
2.00
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$B
Med Age - Yrs
Source: Thomson Reuters/National Venture Capital Association, As of 5/27/2011
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What’s in the Venture-Backed IPO Pipeline?IPOs During Period and Registration Counts at
Period End; Are we seeing a comeback?
2003 2004 2005 2006 2007 2008 2009 2010 2011
IPOs Done 29 94 57 57 86 6 12 75 52
In Reg on last day 31 57 16 36 60 28 29 42 60
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Source: Thomson Reuters/National Venture Capital Association
As of 11/4/2011, there were 65 port cos in registration with 3 IPOs QTD including Groupon.
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Volume of M&A Exits has Increased to Record Levels
Source: Thomson Reuters/National Venture Capital Association
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Venture Exit Counts- IPOs and M&A by Year
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
#M&A 100 97 116 164 209 240 317 353 319 284 349 350 378 382 348 273 436 429
#IPO 166 202 270 136 77 260 264 41 24 29 94 57 57 86 6 12 75 52
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Source: Thomson Reuters/National Venture Capital Association