PwC / CB Insights MoneyTree Report...PwC | CB Insights MoneyTree Report Q4 and Full-Year 2016 37%...

PwC / CB Insights

MoneyTree™Report Q4 and Full-year 2016

PwC | CB Insights MoneyTree™ Report Q4 and Full-Year 2016

US Trends

Deals continue to fall, hitting five-year quarterly low

• Internet was the top US sector in four of the past five quarters

• Q4’16 was led by Internet, Healthcare, Mobile, Software, and Hardware

• Within Internet, hot spaces were Analytics; Ad, Sales & Marketing; and Marketplaces

• Top five regions in the US for venture capital: Silicon Valley, NY, DC, New England, and LA/Orange County.

• The top 10 US states for venture were led by California, New York, and Virginia.

• The top five deals in the US in the quarter went to companies based in New York, Boston, San Francisco, and Arlington, VA.

• The three most active venture capitalists in the quarter were NEA, 500 Startups, and True Ventures.

1 • Global deals dropped 16% on a full-year basis versus 2015.

• North America saw funding into the region drop below $13B for the first time since Q1’14, but Canada was a bright spot

• Funding jumped 22% in Europe and deals rose

• Asia saw deals and dollars plunge

Broad-based decline in deals across major Tech hubs in CA and NY; DC/Metroplexemerged as one of the brighter spots

2

Internet holds top sector spot, Mobile & Telecom bumps Healthcare for second place

3

Artificial Intelligence companies beat overall slowdown

4

Mega-round activity and unicorn birth rate remain low

5

01

US Sectors

02

US Places

03US Movers and Shakers

04

2

Global

05

3PwC | CB Insights MoneyTree™ Report Q4 and Full-Year 2016

US Trends:Q4 & Full-year 2016

01

PwC | CB Insights MoneyTree™ Report Q4 and Full-Year 2016 4

Financing to US VC-backed companies continues to drop off: • Investor caution prevailed as Q4’16 saw a 14% slowdown in deals and 17% decline in total

funding from the prior quarter. 2016 saw a total of $58.6B invested across 4,520 deals, down 20% and 16%, respectively from 2015.

• Quarterly deals and dollars both reached 8-quarter lows, with total deals dropping below 1,000for the first time since Q4’11.

• Quarterly deal count slipped in every quarter in 2016, while total funding has fallen for 2 consecutive quarters (following Q2’16, which saw $1B+ rounds going to Uber and Snap).

Overall financing trends

$18.3 $20.8 $19.8 $14.4 $15.6 $17.3 $14.0 $11.7

1,362 1,433 1,4071,204 1,247 1,150 1,141

982

0

200

400

600

800

1,000

1,200

1,400

1,600

Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16

# D

eals

Amount Invested ($B) # of Deals


37%Silicon Valley

Percentage change in dollars invested Q4/Q3 2016

5

Broad-based decline across major Tech hubs:• Investment into Silicon Valley-based companies slowed sharply, with 37% less dollars invested

across 22% fewer deals than in Q3’16.

• New England — including Massachusetts — trended similarly, with deals down 6% while total funding fell 41%.

• Deal activity in the New York Metro region fell 17%, although total dollars rose 12%, as companies, including WeWork and Buzzfeed, secured $200M+ financings in the quarter.

Regional trends

41%New England


Midwest

1%


6

Some regions emerged as brighter spots:• Midwest-based companies saw total funding tick up 1%, while deals also rose 4% for the quarter,

a noticeable contrast to the cooling of investment into other regions.

• The DC/Metroplex area saw funding spike 132%, fueled by a $1.2B mega-round to satellite broadband provider OneWeb.

• The Northwest also saw quarterly deal count rising 15% from Q3’16. Financing held relatively steady, falling just 3% from the quarter prior.

Regional trends (cont.)

132%DC/Metroplex


19%

7

Internet holds top spot, Mobile & Telecom bumps Healthcare for second: • Despite total funding dollars to Internet companies diving 26% from Q3’16, the sector retained the

top spot with $4.6B of funding.

• Internet accounted for 39% of US dollars for the quarter, far more than any other sector (yet down from 46% of total dollars in Q3’16).

• Meanwhile, funding to Mobile & Telecom companies rose 19% from Q3’16, bumping out Healthcare (which fell 43%) as the second-place sector by deal value.

Sector trends

26%Internet

43%HealthcareMobile

& Telecom



Thematic areas of interest

Artificial Intelligence beats broadslowdown

• Artificial intelligence: Investor interest in AI outweighed the overall downturn, as AI companies in the US secured $705M in financing across 71 deals (rising 16% and 22%, respectively, on a quarterly basis).

• Cybersecurity: After rising in Q3’16, US Cybersecurity funding plunged 51% to $370M. Deals also dropped to 32, down from 40 in the previous quarter.

• Auto Tech: This space saw a relatively quiet quarter with $90M in total funding in the US, compared to $290M in Q2’16.



”

Artificial Intelligence is becoming a major disruptor across a number of sectors. This is evidenced by the record level of investments in AI in 2016. This is likely to continue in 2017, as AI moves from the Technology sector to other traditional enterprise sectors like automotive, financial services and healthcare.

“

— Anand Rao, Partner, PwC


$100M+ mega-rounds drop to 5-quarter low• Q4’16 featured 11 financings of $100M

or more to US VC-backed companies, down from 19 in Q1’16 and 15 in Q3’16.

• OneWeb’s $1.2B financing was the sole round larger than $500M, while previous quarters saw multiple such deals (e.g., Uber, Snap, Airbnb, etc.).

• New York City-based WeWork’s$260M Series F tranche ranked second, while OpenDoor Labs’ $210M Series D was the largest round to a California company in the quarter.

US mega-round and unicorn trends

Unicorn birth rate remains low

• 4 new unicorns, or private companies valued at $1B+, were minted in the US, equal to the figure from Q3’16.

• Unicorn creation is a fraction of what was seen in 2015, which peaked at 16 in Q3’15. That said, US still led the world with 101 unicorns in total through 2016.

• California saw a pair of new unicorns in construction tech company ProcoreTechnologies and real estate tech startup OpenDoor Labs.


US Sector Activity:Q4’16

02


Trends:• Total funding to

Mobile & Telecom companies rose 19% from Q3’16, bumping out Healthcare as the second-place sector by deal value.

• Meanwhile, both quarterly deals and funding dollars in Internet and Healthcare fell significantly for the quarter.

12

Top five US sectors in the past five quarters

Q42016

Q32016

Q22016

Q12016

Q42015

$4.6B $2.5B $1.9B$0.4B

462 Deals 155 Deals 119 Deals 76 Deals 29 Deals

$0.7B

$6.2B $3.3B $2.1B $0.4B


$0.6B

$6.2B $5.5B $2.7B$0.4B


$0.8B

$5.7B $3.2B $2.7B$0.6B


$1.5B

$6.6B $2.7B$0.7B


$1.0B$1.5B

Internet

Internet

Internet

Internet

Internet

Mobile & Telecomm.

Mobile & Telecomm.

Mobile & Telecomm.

Mobile & Telecomm.

Mobile & Telecomm.

Healthcare

Healthcare

Healthcare

Healthcare

HealthcareSoftware (non-internet /mobile

Software (non-internet /mobile



Software (non-internet /mobile Computer Hardware

& Services

Computer Hardware & Services

Electronics

Business Products & Services



Top 10 Sectors in the US based on

Internet$187.1B

Healthcare$150.4B

Mobile & Telecomm.

$115.2BSoftware

(non-internet/mobile)$95.7B

Computer Hardware &

Services$55.0B

Electronics$33.7B

Media (Traditional)

$28.5B

Energy & Utilities

$25.0B

Business Products &

Services $21.5B

Industrial $21.0B

dollars invested in the last 20 years


26%Drop in funding

compared to Q3’16

Largest Q4’16 Internet deals: ”Although overall funding is down and valuations seemed to have leveled off, anticipation of the IPO market opening still remains attractive for investors when looking at models that have the potential to be disruptive to their markets."

“— Mark McCaffrey, Partner, PwC

$210M

$200M

$150M

OpenDoor LabsReal estate

BuzzfeedNews & Discussion

StripePayments

Q4’16 Deep Dive: Internet sector


Internet retains top spot among sectors amid broad slowdown in investment

• Total funding to US Internet companies fell 26% to $4.6B on a quarterly basis, with deal activity also tumbling 17% to 462 for the quarter.

• The sector accounted for 39% of US deal value for the quarter, far more than any other sector (yet down from 46% in Q3’16).

• Internet companies, including OpenDoor Labs, Buzzfeed, and Stripe, secured 8 of the 20largest deals in the quarter.

Q4’16 Deep Dive: Internet sector (cont.)


”19%

Rise in fundingcompared to Q3’16

“ Funding for the Mobile & Telecom sector bucks the downward trend in overall VC funding and was driven by the only billion dollar deal for the quarter (OneWeb). The strong performance of the sector was also driven by large deals in video and advertising network sub-industries.

— Bart Spiegel, US Entertainment, Media and Communications Deals Partner

Largest Q4’16 Mobile & Telecom deals:

$1.2B

$141M

$92M

OneWebCable & satellite

PostmatesSupply chain & logistics

Crossover HealthHealthcare

Q4’16 Deep Dive:Mobile & Telecom sector


”“ Healthcare, which was the second largest sector by dollar amount in the

third quarter, fell to third place in Q4. Despite the drop, the sector still had two of the 10 largest deals for the quarter.

— Thaddeus Kresho, Partner, Health Services Deals Leader

43%Drop in funding

compared to Q3’16

Largest Q4’16 Healthcare deals:

$206M

$116M

$80M

Intarcia TherapeuticsPharmaceuticals / Drugs

Unity BiotechnologyBiotechnology

BiohavenBiotechnology

Q4’16 Deep Dive: Healthcare


Q4’16 number and value of deals by sector

462 DealsAvg. Deal

Size: $9.9M$4.6B

155 DealsAvg. Deal

Size: $16.0M

119 DealsAvg. Deal

Size: $15.8M

76 DealsAvg. Deal

Size: $9.0M

26 DealsAvg. Deal

Size: $14.1M

Software

$2.5B

$1.9B

$0.7B

$0.4B

Internet

Mobile & Telecomm

Healthcare

Software (Non-Internet / Mobile)



US Places:Q4’16

03


310 DealsAvg. Deal

Size: $12.6M

20

Silicon Valley

NY Metro

DC/Metroplex

New England

LA/O.C.

US: Top five regions by deal value

$3.9B

$2.0B

$1.4B

$1.3B

$0.9B

129 DealsAvg. Deal

Size: $15.2M

38 DealsAvg. Deal

Size: $37.9M

104 DealsAvg. Deal

Size: $12.4M

54 DealsAvg. Deal

Size: $16.3M


US: All US regions

Northwest$360M

AK/HI/PRN/A

North Central$140M

Southeast$372M

CO$118M

Texas$181M

New England$1,285M

Midwest$434M

NY Metro$1,961M

Upstate NY$20M

DC/Metroplex$1,441MLA/Orange County

$879M

Philadelphia Metro$68M

Silicon Valley$3,921M

San Diego$179M

Sacramento/N. Cal$80M

Southwest$226M

South Central$9M


$8.8 $10.4 $9.5 $5.7 $6.0 $8.8 $6.2 $3.9

473 492 520

382 395383

396310

0

100

200

300

400

500

600

Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16

# D

eals


Top Tech hub sees significant drop off• Compared to Q3’16, 37% less dollars were invested in Silicon Valley companies across 22% fewer

deals. Full-year funding stood at $24.9B, down 28% from 2015, while cumulative deal count was down 21% at 1,484.

• The absence of $500M+ or $1B+ rounds contributed to the dramatic funding dip; such outsized deals to companies like Uber and Airbnb had lifted investment totals in Q2’16 and Q3’16.

8-quarter financing trend: Silicon Valley


Deal and dollar activity diverges in NY Metro• Investors continued to pull back from NY deals for the third consecutive quarter, while funding rose

for the second straight quarter. Full-year 2016 figures for the region were down in both deal (12%) and dollar (9%) terms.

• Several mega-rounds of $100M or more drove the Q4’16 funding bump, raised by established startups such as WeWork ($260M Series F tranche) and Buzzfeed ($200M Series G).

23

$1.7 $2.3 $2.4 $2.2 $2.7 $1.5 $1.7 $2.0

158181

198171 173

167155

129

0

50

100

150

200

250

Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16

# D

eals


8-quarter financing trend: NY Metro


$445 $432 $506 $767 $434 $210 $622 $1,441

5041

55

40

52

43 4338

0

10

20

30

40

50

60

Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16

# D

eals

Amount Invested ($M) # of Deals

DC/Metroplex financing propelled by OneWeb deal• On a full-year basis, dollars invested in DC/Metroplex companies was up 26% from 2015, while total

deal activity ticked down 5%.

• Of course, OneWeb’s deal accounted for the lion’s share of Q4’16 funding with its $1.2B round, the largest to any VC-backed company (US or global) of the quarter.

8-quarter financing trend: DC/Metroplex


$1.5 $2.2 $1.8 $1.6 $1.5 $1.2 $2.2 $1.3

138157

122 123 112 108 111 104

0

20

40

60

80

100

120

140

160

180

Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16

# D

eals


Annual deals and dollars decline in New England• Deal activity in New England has been relatively consistent through 2016, but has declined 19% from

full-year 2015 to 435 deals. Annual funding was also down 12% to $6.2B.

• The funding spike in Q3’16 was a relative outlier for the year, with biotech firms Moderna and Intarcia Therapeutics, as well as daily fantasy site DraftKings, all receiving $150M+ deals.

8-quarter financing trend: New England


$679 $1,621 $1,128 $977 $963 $2,474 $647 $879

70

97 9183

7085

6954

0

20

40

60

80

100

120

Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16

# D

eals

Amount Invested ($M) # of Deals

In LA/Orange County, Snap fuels funding, but deal activity falls• As with other regions, deal activity has generally trended downward for the year, with 2016’s total of

278 deals down 18% from 2015. Total financing was up 13% to $5B, buoyed by Snap (fka Snapchat).

• Q4’16 saw a variety of companies in the region receiving $50M+ rounds, such as transportation developer Hyperloop One, construction software company Procore, and VR gaming startup Survios.

8-quarter financing trend: LA/Orange County


US: Top 10 states by deal value

$5,060M394 Deals, Avg. Deal Size: $12.8M

1. CA

$1,698M124 Deals, Avg. Deal Size:$13.7M

2. NY


3. VA


4. MA

$322M34 Deals, Avg. Deal Size:$9.5M

5. WA


6. IL


7. NJ


8. TX


9. UT


10. NC


dollars invested in the last 20 years

28

US: Top 20 states based on total

Washington$23.8B

Oregon$4.3B

California$367.8B

Utah$6.9B

Arizona$4.7B

Colorado$21.0B

Texas$38.6B

Florida$14.7B

Minnesota$8.2B

Illinois$16.3B

Ohio$5.6B

Pennsylvania$17.7B

New York$58.3B

New Jersey$20.1B

Connecticut$9.7B

Massachusetts$80.0B

Maryland$12.9B

Virginia$17.2B

North Carolina $10.9B

Georgia$14.2B


US Movers and Shakers:

Q4’16

04


Largest Deals

Company Location Sector Industry Stage of Funding

$ Valueof Deal

Select Investors

OneWeb Arlington, VA Mobile & Telecom

Telecom Services $1.2B SoftBank Group

WeWork New York, NYBusiness Products & Services

Facilities $260M Jinjiang International Group

OpenDoor Labs San Francisco, CA InternetInternet Software & Services

$210MNorwest Venture Partners, New Enterprise Associates, Khosla Ventures, Felicis Ventures

IntarciaTherapeutics

Boston, MA Healthcare Pharma. / Drugs $206M Bill & Melinda Gates Foundation

Buzzfeed New York, NY InternetInternet Software & Services

$200M NBCUniversal

Expansion Stage

Early Stage

Later Stage

Seed Stage


Most active venture capital firms

Investor Location No. of Companies Select Q4’16 Investments

1. New Enterprise Associates Mountain View, CA 17 OpenDoor Labs, VidMe, Datrium, TravelBank

2. 500 Startups Mountain View, CA 16 Albert, Fingertips Lab, Prynt, Happy Inspector

3. True Ventures Palo Alto, CA 13 Baffle, Cloverpop, Zymergen, Tend AI

4. General Catalyst Partners Cambridge, MA 13 Lemonade, Elysium Health, Stripe, Sunflower Labs

5. Khosla Ventures San Francisco, CA 13 Genalyte, Ellevest, Message.io, OpenDoor Labs


Global Trends:Q4’16 & Full-year 2016

05


Global: Global regions comparisons

Deals

Deals

$12.2B1065 Deals

$5.5B337 Deals

$3.0B498 Deals


Financing globally to VC-backed companies hits deal and dollar lows: • Deal count dropped below 2000 for the first time since Q4’13. In the whole of 2016,VC-backed

companies received $100.8B across 8,372 deals (down 23% and 10%, respectively).

• Funding also fell for the second-straight quarter, seeing just $21B invested in Q4’16. This represents an 89% drop since the 8-quarter peak in Q3’15, which saw nearly $40B in funding.

• Q4’16 only saw a single deal above $1B, and 32 rounds above $100M. There were 38 $100M+ rounds the same quarter a year earlier.

Overall Financing Trends

$28.4 $35.2 $39.7 $28.2 $27.1 $28.3 $24.4 $21.0

2,318 2,3712,428

2,138 2,186 2,082 2,133 1,971

0

500

1,000

1,500

2,000

2,500

3,000

Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16

# D

eals




”

Global venture capital (VC) financings ended 2016 on a cautionary note. The soft IPO market and rationalization of market valuations toned down investor enthusiasm with both valuations and number of new financings experiencing sequential and year-over-year declines. The decline was not unusual, given the spike in investor interest in 2015, which led to minting of a record number of Unicorns. Absence of major Unicorn IPOs in 2016 also influenced investor enthusiasm toward new investments. VC investment trends in 2017 will be impacted by the reaction of capital markets to upcoming Unicorn IPOs, as strong investor receptiveness to IPOs generally boosts VC investments.

“

— Raman Chitkara, Partner, PwC



36

Europe beats the global slowdown• In Q4’16, both deals and dollars went up in Europe. Funding jumped by 22%, hitting $3B of

investment in the quarter. Deals increased for a third-consecutive quarter, hitting 498 deals.

• Healthcare saw the biggest jump in funding (113%), breaking $700M in Q4’16. Mobile deals jumped, 27% from 71 deals in Q3’16 to 90 this past quarter.

• Corporate participation reached a 5-quarter high, with a quarter of all deals into VC-backed companies including a corporation or its venture arm.

• Europe saw zero new VC-backed unicorns in the quarter.

22%Rise in Europe

funding compared to Q3’16

113%Healthcare

Trends:Europe


43%

37

Asia continues to stall: • Asia decreased in both deals and dollars in Q4’16, dropping to $5.5B in funding for the quarter,

down 25% from $7.3B the quarter before. There were 337 deals into VC-backed Asian companies, the third quarter in a row below 400.

• Every major sector in Asia saw a slowdown in Q4’16, with internet companies dropping the most by 43% in funding. Conversely, non-internet/mobile software jumped by 178%, fueled by a $120M Series B to computer vision developer SenseTime.

• While Q3’16 saw corporates participate in 43% of all deals in Asia, we saw a pullback and reversion to the norm with corporate participation reaching 34%.

• Early-stage deal size jumped from $2M in every other quarter in 2016, to $3M in Q4’16.

25%InternetDrop in Asia

funding compared to Q3’16

Trends:Asia



North America sees funding low: • North America saw $12.2B invested across 1,065 deals. This is the first time funding into the area

has dropped below $13B since Q1’14.

• While the US dropped in funding, Canada saw a jump of 49% between Q3’16 and Q4’16.

• Internet and Healthcare saw a significant slowdown, dropping by 16% and 17%, respectively since the last quarter. Mobile had a stronger quarter, seeing a slight uptick in Q4’16 with 163 deals, a jump of 10% from Q3’16.

• Early-stage median deal size increased for the third-straight quarter, hitting a high of $3M.

15%Drop in North

America funding compared to Q3’16

49%Canada

Trends:North America



Largest Deals

Company Location Sector Industry Stage of Funding

$ Valueof Deal

Select Investors

OneWeb Virginia, US Mobile & Telecom

Telecom Services $1.2B SoftBank Group

Yixia Beijing, China Mobile & Telecom

Mobile Software & Services

$500M Shanghai Media Group, SinaWeibo

CareemNetworks

Dubai, United Arab Emirates

Mobile & Telecom

Mobile Commerce $350M The Abraaj Group, Rakuten,

BECO Capital

InnoventBiologics

Suzhou, China Healthcare Drug Mfr. $385M Ping An Insurance, Legend Capital, Temasek Holdings

WeWork New York, NYBusiness Products & Services

Facilities $260M Jinjiang International Group

Expansion Stage

Early Stage

Later Stage

Seed Stage


Most active venture capital firms

Investor Location No. of Companies Select Q4’16 Investments

1. 500 Startups California, US 45 Talent Garden, Pomelo, Happy Inspector, Prynt

2. New Enterprise Associates California, US 20 Opendoor Labs, GoEuro, Databricks, Datrium

3. Intel Capital California, US 16 SigFox, Cloudian, Paxata, Carecloud

4. Index Ventures London, UK 14 Hollar, Glossier, Iterable, SafetyCulture

5. General Catalyst Partners Massachusetts, US 14 Stripe, Lemonade, Elysium Health, Singular

6. Accel Partners California, US 14 Freshdesk, Paxata, Osmo, JobToday

7. Bessemer Venture Partners New York, US 14 WellTok, SendGrid, Quantopian, Periscope Data

Appendix


US States: Full listing

State $M No. of Deals

Alabama $5 1

Arizona $44 10

California $5,060 394

Colorado $118 24

Connecticut $84 4

DC $50 6

Delaware $1 1

Florida $99 10

Georgia $34 7

Idaho $2 1

No disclosed quarterly activity: AK, AR, HI, MS, NH, NM, ND, SD, WY


Illinois $226 39

Indiana $14 8

Iowa $15 2

Kansas $9 3

Kentucky <$1 2

Louisiana N/A 1

Maine $3 1

Maryland $38 12

Massachusetts $1,270 97

Michigan $15 10


Minnesota $56 3

Missouri $4 6

Montana $5 3

Nebraska N/A 1

Nevada $12 4

New Jersey $209 9

New York $1,698 124

North Carolina $167 15

Ohio $142 16

Oklahoma N/A 1


Oregon $31 8

Pennsylvania $92 18

Rhode Island $12 5

South Carolina $2 2

Tennessee $67 8

Texas $181 44

Utah $170 19

Vermont <$1 1

Virginia $1,346 19

Washington $322 34


West Virginia $7 1

Wisconsin $69 6


Notes on methodologyCB Insights and PwC encourage you to review the methodology and definitions employed to better understand the numbers presented in this report. If you have any questions about the definitions or methodological principles used, we encourage you to reach out to CB Insights directly. Additionally, if you feel your firm has been underrepresented, please send an emailto [email protected] and we can work together to ensure your firm’s investment data is up-to-date.

Unless otherwise noted, percent changes reflect deal value changes from the preceding quarter (e.g., from Q3’16 to Q4’16). Rankings are done by quarterly deal value (that is, total funding dollars for Q4’16).

What is included: What is excluded:

– Equity financings into emerging companies. Fundings must come from VC-backed companies, which are defined as companies who have received funding at any point from either: venture capital firms, corporate venture group or super angel investors.

– Fundings of only private companies. Funding rounds raised by 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 includes the investment made in the quarter for tranchedinvestments. If a company does a second closing of its Series B round for $5M and previously had closed $2M in a prior quarter, only the $5M is reflected in our results.

– Round numbers 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 and state regulatory filings; (2) direct confirmation with firm or investor; (3) press release; or (4) credible media sources.

– Geography note: Israel funding figures are classified in Asia.

– 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.

– No buyouts, consolidations or recapitalizations. All three of these 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.

– No private placements. These investments, also known as PIPEs (Private Investment in Public Equities), even if made by a venture capital firm(s).

– No debt / loans of any kind (except convertible notes). 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.

– No government funding. Grants, loans or equity financings by the federal government, state agencies, or public-private partnerships to emerging, startup companies are not included.


Data is current as of January 9, 2017. PricewaterhouseCoopers and CB Insights have taken responsible steps to ensure that the information contained in the MoneyTree™ Report has been obtained from reliable sources. However, neither PwC nor CB Insights can warrant the ultimate validity of the data obtained in this manner. Results are updated periodically. Therefore, all data is subject to change at any time.

© 2017 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved. PwC refers to the US member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.

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