November 2014 Early Stage Tech Activity Report

Financing & Performance Trends – November 2014

Early-Stage funding in tech companies fell versus the previous month to $1.05B. Deals were almost even while dollars were up 18% versus the same month a year prior.

3

$609 $530

$618

$751

$613 $651 $623

$772 $825

$683 $748

$798 $889

$622

$931

$730

$1,014

$829

$1,182 $1,152

$881 $978

$1,023

$1,247

$1,045

331 306

394

343

382 363

394 392

478

412

449 454

383

345

438

410

366

398 385

363 375

407 [VALUE]

437 [VALUE]

Early-Stage Tech Investment Deals and Dollars Nov 2012 - Nov 2014

Investment Dollars ($M) Deals

Silicon Valley continues to account for just under 1/3 of all early-stage tech deals in the US, as most regions remained range-bound.

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US Early-Stage Tech Investment by Region As % of Deals

39%

10% 23%

28%

November 2012

35%

14% 19%

32%

November 2013

37%

14% 20%

29%

November 2014

Early-stage tech funding share to Silicon Valley startups fell from 52% in October 2014 to 38% in November 2014. This past month was also down versus the same month a year prior, despite 2 of the 3 largest deals taking place in Silicon Valley.

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US Early-Stage Tech Investment by Region As % of Funding

29%

6%

33%

32%

November 2012

30%

16%

12%

42%

November 2013

28%

9%

25%

38%

November 2014

November was slightly off the previous month’s median deal size high across all early-stage tech, falling to $1.7M. Average deal size fell for the first time in three months to $3.16M.

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1 1

0.78

1

0.75

1 1 1 1 1 1

1.36 1.35 1.3

1 1.1

1.5 1.39 1.4

1.5 1.36 1.37

2 2

1.70

2.22 2.14

1.89

2.60

1.89

2.22 2.09

2.35

2.06 2.14

1.95

2.33

2.81

2.35

2.71

2.29

3.25

2.61

3.57 3.65

2.75 2.89

3.38 3.42

3.16

Early Stage Tech Deal Size Trend $M, November 2012 - November 2014

Median of Deal Size Mean of Deal Size

Among angel investments into tech, median deal size bounced back to $1M in November. The

average deal size fell for the second straight month to $1.47M as overall funding dropped.

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0.75 0.65

0.53 0.51 0.53 0.52

0.91

0.65 0.75

0.54

0.67 0.70

0.58

0.70

1.00

0.82

1.13 1.09

0.73 0.84

1.00 1.00 1.00

0.70

1.00

1.47

0.95

0.95

0.77

1.60

1.11 1.22

1.09 1.15 1.16

1.40

0.98

2.30

1.21

1.97

1.55 1.54

1.92

1.01

1.33

1.19 1.47

2.25

1.71 1.47

Angel Tech Deal Size Trend $M, November 2012 - November 2014


Despite the modest slip in mean and median tech seed deal sizes in November, both are still up 28% and 25% respectively versus the same month a year prior.

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0.48

0.67

0.70

0.23

0.56

0.48

0.65

0.50

0.38

0.70

0.60 0.56

1.00

0.80 0.82

0.50

0.73

0.65

0.75

0.97

0.83 0.83

0.70

1.25

1.02 1.00

0.73

0.84

1.03

0.59

0.91

0.68

0.84

0.71 0.76

1.02

0.81 0.78

1.17

1.02

1.10

0.85 0.89

0.86

1.01 1.04

1.21

1.01 0.94

1.34 1.39

1.31

Seed Tech Deal Size Trend $M, November 2012 - November 2014


Series A median deal size stayed at $5M once again in November. $20M+ Series A deals to companies including Scopely and Shift Technologies kept mean Series A round sizes above $6M for the seventh straight quarter.

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3.3 3

3.37 3

3.2 3.4

3.2

4

3.4

4.2

3

4 4 4

3.35

3.8

5 5

4

5.6

4.72

4

5 5 5

5.14 4.89 4.91

6.91

4.72

4.85 4.69

5.99

4.10

5.91

4.34

4.77

5.35 4.94

6.96

5.11

6.43

5.29

8.21 7.91

6.52 6.50 6.22

6.76 6.36

Series A Tech Deal Size Trend $M, November 2012 - November 2014


Internet startups made up 59% of all early-stage tech deals in November 2014, their lowest share since November 2013. Mobile accounted for 29% of all early-stage tech deals in November, its highest figure since July while other sectors (computer hardware, chips & semis (electronics) and software) made up less than 15% of deals.

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65% 59%

65% 67% 70% 71% 71% 68% 64% 64% 65% 65% 59%

65% 67% 70% 63% 67% 64% 62% 61% 62% 65% 66%

59%

25% 29%

25% 21% 21% 22% 22% 23% 25% 26% 27% 25%

32% 26% 24% 23%

28% 24% 28% 25% 30% 26%

25% 25% 29%

4% 6% 4% 6% 5% 2% 4% 5% 5% 5% 5% 5% 3% 5% 4% 4% 5% 4% 5% 6%

6% 5%

7% 5% 6% 4% 4% 3% 3% 2% 2% 2% 2% 3% 3% 3% 2% 3% 3% 2% 2% 3% 3% 2%

4% 2%

4% 1% 2% 3% 2% 3% 2% 2% 3% 3% 1% 2% 2% 2% 1% 2% 3% 2% 4% 1% 1% 2% 1% 3% 1% 3% 1% 2% 2%

Early Stage Tech Investments by Sector As % of Deals, November 2012 - November 2014

Internet Mobile & Telecommunications Software (non-internet/mobile) Computer Hardware & Services Electronics

Three of the top five deals in November, totaling over $115M, went to internet companies, driving the 60% dollar share. Mobile & telecom startups accounted for over ¼ of all dollars invested in early-stage tech in November, behind Scopely’s $35M Series A.

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57% 57% 61% 51%

72% 70% 68%

50% 60%

71% 63%

56% 54%

68% 74%

64% 63% 64% 60% 54%

62% 63% 66% 69% 60%

22% 26% 23% 38%

18% 20% 24%

36% 26%

14% 29%

29% 32%

24% 14% 24% 27% 22% 29%

23%

28% 24% 23% 22%

29% 4%

7% 8% 5% 6% 2% 2%

6% 4% 6%

5%

7% 7% 3%

4% 9% 4% 7% 5%

6%

7% 5%

8% 4% 6% 14%

7% 5% 4% 0% 5% 5% 6% 6% 9% 3%

6% 4% 4%

4% 2% 6% 6% 5%

7%

2% 5%

2% 2% 3% 4% 3% 3% 2% 4% 3% 2% 1% 4% 1% 1% 3% 3% 0% 4% 1% 0% 1% 1% 10%

0% 2% 1% 3% 1%

Early Stage Tech Investments by Sector As % of Dollars, November 2012 - November 2014

Internet Mobile & Telecommunications Software (non-internet/mobile) Computer Hardware & Services Electronics

Seed stage companies tied a two-year low in November with just a 48% deal share. Conversely, Angel deals tied for their highest share since December 2012 at 18%.

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17% 19% 15% 12%

18% 16% 13% 11% 15% 15%

7% 12% 11%

15% 12% 13% 13% 14% 14% 18%

12% 12% 10% 12% 18%

56% 53% 58% 63%

58% 54% 59% 61% 54%

61%

63% 59%

53%

56% 61% 60%

51% 54% 53%

48% 57% 57% 53% 52%

48%

27% 27% 27% 25% 25% 30% 28% 27%

31% 24%

30% 30% 36%

29% 27% 27%

36% 32% 33% 34% 31% 32% 37% 36% 34%

Early Stage Tech Investments by Stage As % of Deals, November 2012 - November 2014

Angel Seed Series A

Three US-based early-stage tech companies raised $20M+ rounds in November 2014, including mobile gaming company Scopely, Shift Technologies, and MX.

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Rank Company Sub-Industry Amount ($M)

1 Scopely Gaming 35.0

2 Shift Technologies Auto 23.8

3 MX Accounting & Finance 20.0

4 Kensho Technologies Business Intelligence, Analytics & Performance Mgmt 15.0

4 Course Hero Education & Training 15.0

6 Mist Systems Stealth Mobile 14.4

7 Veradocs Data Storage 14.0

8 Everything But The House Auction & Classifieds 13.0

8 Pluto TV Video 13.0

10 Sentrian Healthcare 12.0

Largest US Angel - Series A Tech Deals, November 2014

Intel Capital was the most active VC in early-stage tech in November, investing in 10 companies, largely at the Seed stage. 500 Startups and SV Angel rounded out the top 3 with 5+ investments each in the month.

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Rank Investor

1 Intel Capital

2 500 Startups

3 SV Angel

4 Lerer Hippeau Ventures

5 Thrive Capital

5 CrunchFund

5 East Ventures

5 Blume Ventures

Most Active Early-Stage Tech VCs, November 2014

www.cbinsights.com

News & Discussion and Video startups both saw 200% deal growth in November 2014 versus the same month a year prior, while BI companies saw a 50% drop-off from over 25 deals to less than 15 in November 2014.

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-100% -50% 0% 50% 100% 150% 200% 250%

Business Intelligence, Analytics & Performance Mgmt

Payments

HR & Workforce Management

Real Estate

Monitoring & Security

Collaboration & Project Management

Social

Gaming

Education & Training

Application & Data Integration

Application Development

Travel

Search

Discount

eCommerce enablement

Food & Grocery

Apparel & Accessories

Advertising, Sales & Marketing

Accounting & Finance

Customer Relationship Management

Healthcare

Marketplace

Information Providers & Portals

Health & Wellness

Video

News & Discussion

Top Early-Stage Tech Sub-Industries by Deal Growth Rate November 2013 vs. November 2014

We used performance metrics to create momentum scores for both Facebook (Likes growth) and Twitter (Follower growth) for the companies funded in November 2014. To be included in each list, the company had to have over 100 likes in the previous month and 25 or more twitter mentions. Below are the 6-20 ranked companies. The full top 20 is available to CB Insights customers on the Research tab.

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Early-Stage Tech Companies by Twitter

Follower Growth – Nov 2014

Rank Company

1 Login to CB Insights





6 Creditera

7 Chronogolf

8 ShareRails

9 emaze

10 Fitmob

11 Body Labs

12 Pingboard

13 eBrevia

14 Thanx

15 Highspot

16 helpling

17 Gemr

18 Open Utility

19 Quandl

20 Omvana

Early-Stage Tech Companies by Facebook

Likes Growth - Nov 2014

Rank Company






6 Thanx

7 YourMechanic

7 Inzen Studio

9 Pingboard

9 Creditera

9 Wanderu

12 Squareknot

13 Carousell

14 Crunchfish

14 Memoir

14 Fitmob

17 HashCube Technologies

17 Kaufmann Mercantile

19 ShiftGig

19 Appear Here

We also tracked overall news mentions as well as web traffic metrics (pageviews, reach, rank) for early-stage tech companies that received financing in November 2014. Below are the 6-20 ranked companies in each metric. The full top 20 is available to CB Insights customers on the Research tab.

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Early-Stage Tech Companies by Web Traffic -

Nov 2014

Rank Company






6 Zapier

7 Cryptopy Technologies

8 Qikwell Technologies

9 Quandl

10 Kaufmann Mercantile

11 Disruptor Beam

12 emaze

13 Bloc

14 Yichuang Information Technology

15 21 Trends

16 Instamojo

17 Into The Gloss

18 Rival IQ

19 Wanderu

20 Tripoto

Early-Stage Tech Companies by News Mentions -

Nov 2014

Rank Company






5 PocketMath

5 Braigo Labs

5 Wanderu

5 Fyndiq

10 SysCloud

10 BlockStream Corp

10 Veradocs

10 CashCashPinoy

10 IroFit

15 Apio Systems

15 Zendrive

15 Carousell

15 Tiger Pistol

15 Avegant

15 Full Circle CRM

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We encourage you to review the methodology and definitions employed by us to better understand the numbers presented in this report. If you have any questions about our definitions or methodological principles, we encourage you to reach out to us directly.

What is included? • Early-Stage (Angel – Series A) Equity financings into emerging

companies. • Fundings of only private companies. Public companies of any kind

on any exchange (including Pink Sheets) are excluded from our numbers even if they received investment by a venture firm(s)

• Only include the investment made in the month for tranched investments. If a company does a second closing of its Series A round for $5M and previously had closed $2M in a prior quarter, only the $5M is reflected in our results.

• Round #s reflect what has closed –not what is intended. If a company indicates the closing of $5M out of a desired raise of $15M, our numbers reflect only the amount which has closed.

• Only verifiable fundings are included. Fundings are verified via (1) various federal & state regulatory filings (2) direct confirmation with firm or investor or (3) press release.

• Funding close date matters. Fundings are provided based on funding close date and not on announcement date.

What is not? • No contingent funding. If a company receives a commitment for $20M subject to

hitting certain milestones but first gets $8M, only the $8M is included in our data. • No business development/R&D arrangements whether transferable into equity

now, later or never. If a company signs a $300M R&D partnership with a larger corporation, this is not equity financing nor is it from venture capital firms. As a result, it is not included.

• Buyouts, Consolidations and Recapitalizations. All three of these of transaction types are commonly employed by private equity firms and are tracked by CB Insights. However, they are excluded for the purposes of this report. Private equity investments into companies which may have received venture capital investment prior are also not included.

• Private placements. These investments also known as PIPEs (Private Investment in Public Equities) even if made by a venture capital firm(s) are not included.

• Debt/loans of any kind. Venture debt or any kind of debt/loan issued to emerging, startup companies even if included as an additional part of an equity financing is not included. If a company receives $3M with $2M from venture investors and $1M in debt, only the $2M is included in these statistics.

• Government funding. Grants, loans, equity financings by the federal government, state agencies or public -private partnerships.

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November 2014 Early Stage Tech Activity Report

Technology

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