Q1 2012 venture capital activity report cb insights final-

Venture Capital Activity Report | Q1 2012

www.cbinsights.com

QUARTER SUMMARY 2

QUARTERLY TRENDS 3

SECTOR REVIEW 11

1 INTERNET 11

2 MOBILE & TELECOM 18

3 HEALTHCARE 25

4 GREEN / CLEAN TECH 32

GEOGRAPHIC REVIEW

1 CALIFORNIA 39

2 MASSACHUSETTS 45

3 NEW YORK 50

4 WASHINGTON 56

5 TEXAS 61

DEFINITIONS & DATA INTEGRITY 66

TABLE OF CONTENTS

© 2010, CB Insights. All rights reserved. For more information about CB Insights, please email [email protected].


www.cbinsights.com

Q1 2012 – This Quarter in Venture Capital VCs aggressively doing deals in Q1 2012, but the absence of mega VC deals put a

damper on funding levels as industry hit funding levels not seen since Q2 2010.

2

VCs weren’t hesitant to open up their wallets in Q1 2012 making 785 investments in the quarter – the 2nd most in the last

nine quarters. But despite the aggressive number of deals, the checks written were smaller than prior quarters as

institutional investors plowed $5.9 billion into companies – the lowest level of VC funding since Q2 2010.

Although this represents a 22% decline in funding from Q4 2012, we do not think that a single quarter dip in funding is in any

way symptomatic of any sort of correction or any sort of bubble bursting. Deal activity which we view as a better gauge of

investor sentiment remains strong. The funding dip is primarily the result of fewer VC mega deals in the quarter which as the

quarter illustrates can and do move numbers significantly up when present and down wildly when absent.

Note: Only deals in which VCs are participating are included. Companies which raise money from mutual or private equity funds or

corporations (unless it is their corporate venture arms) are not included. We recommend you review our definitions and methodology on

p. 66 to see what is included/excluded as there is a great amount of misinformation out there.

VCs Continue to Plant Their Seeds

Seed investing hit a historical high with almost 1 of every

5 VC deals being an early stage seed VC investment.

These “call options” as we’ve referred to them in the past

allow venture investors to invest minimal amounts in

companies (primarily tech) and get first access to invest in

these companies should they show signs of going from

seed to something more substantial.

On the flipside, if the seed investment doesn’t work out,

the firm has put little capital at risk. Increased capital

efficiency in tech has made these types of seed

investments increasingly popular and Q1 2012 starkly

demonstrated this with 19% of deals being of the seed

variety.

The “Instagram Effect”

For the first time, we’ve broken out mobile & telecom

investment trends in this report – what we’re calling our

own little “Instagram Effect”. While mobile deal volume

remained strong, funding dipped in Q1’12. Like most tech

investment sectors, VCs are favoring small seed

investments in the mobile sector. And since the

Instagram acquisition by Facebook was announced when

Q1’12 was already in the books, we expect that the

coming quarters will be interesting for the mobile sector as

companies and investors try even more aggressively to

ride the mobile wave.

Green Tech Sputters

With no mega deals and continued uncertain sentiment

green tech saw its lowest level of deals and funding in the

last five quarters. Will something help Green Tech shake

its malaise in the coming quarters?

Internet Deals Climb on Back of Seed Deals

While internet funding fell 17%, deal volume grew 16%

with a five quarter high for seed VC deals.

Healthcare’s Flu Like Symptoms Continue

After a strong Q4'11, VC funding to healthcare hit a five

quarter low while deals stayed within their recent

range. The sentiment and chatter around healthcare

continues to be mixed and so the sector will remain

range-bound unless some catalyst, i.e., massive exit,

regulatory change, etc. can spur it to move.

NY Hits Five Quarter Funding Low. Uh Oh?

New York funding dipped but the state’s deal activity

stayed strong so we don’t think the decline is a problem

(yet). NY remains a hub for early stage investment with

30% of deals in the seed stage and another 30%+ in the

Series A stage.

Mass Sees Five Quarter Low on Deals & Dollars

Unlike NY, Mass fell on both deals and dollars. The gap

vs. NY on the tech front also seems to worsen for Mass

although the state continues to have a more balanced

attack with healthcare and green tech. If, however, there

is a coming wave of internet & mobile opportunities, is

Mass not positioned to capitalize on these opportunities?

Washington Bucks National Trend – Funding Climbs

While national VC funding fell 22%, Washington actually

climbed 41% making it the only major VC recipient to

register an increase in funding.

California Leads but Sees Big Funding Dip.

Cali funding dips 26% vs. Q4’11, but still leads the pack.


www.cbinsights.com

$5.9B in 785 Deals – Strong Deal Activity; Few Mega Deals After four straight quarters of $7B+ funding, Q1 2012 saw a steep drop in funding

dollars although deal activity stayed very strong.

3


www.cbinsights.com

4

NY Jumps Ahead of Mass On Deal Share After Q4’10 dip below Mass, NY snaps back to #2 on number of VC deals. Overall,

league tables for top states remain largely in-line with historical levels.


www.cbinsights.com

5

Cali, Mass, NY Take Lowest Share of Funding in Last 5 Qtrs NY’s funding fell to a five quarter low while Washington registered it’s highest amount

of funding in the last five quarters.


www.cbinsights.com

6

What Smart Investors, Bankers and

Wealth Managers Use to Get Ahead… With CB Insights you can access real-time private company deal feeds – including financings, M&A and IPOs – that are updated constantly throughout the day.

CB Insights is accessible for free by visiting http://www.cbinsights.com

http://www.cbinsights.com/


www.cbinsights.com

New Year Starts with Bang (At Least in Terms of Deals) January 2012 continued the deal momentum seen in late 2011 with the month

registering the highest deal count in the last 18 months. Funding levels stayed

depressed throughout the quarter with few mega deals to buoy totals.

7


www.cbinsights.com

VCs Aggressively Plant Their Seeds in Q1 2012 Seed VC deals register five quarter high and help to push deal activity numbers for the

quarter higher. Funding distribution across series stays consistent with historical

patterns. In total, seed and Series A continue to make up almost 50% of deals.

8


www.cbinsights.com

Healthcare Slips Back on Deals While Internet Grows After an uptick in Q4’11, healthcare falls back on deals and maintains its historical

funding levels. Internet investments gain increased share of total VC deals.

9


www.cbinsights.com

10

Get Started for Free with CB Insights Basic membership on CB Insights is free. Just visit http://www.cbinsights.com. Or connect with us via any of the following.

Twitter

Follow us @cbinsights

Newsletter

Click here to receive our weekly

dealflow newsletter.

Email

[email protected]

Telephone

212-292-3148


www.cbinsights.com

INTERNET

Q1 2012 Venture Capital

11


www.cbinsights.com

Internet Deals Way Up While Funding Hits Five Qtr Low Without a massive Facebook, Twitter, etc mega-funding, internet dollars slip

significantly, but on the back of strong Seed and Series A activity, deals are way up.

Versus Q4’11, deals are up 15%. Relative to Q1’11, deals are up 14%.

12

Inte

rnet


www.cbinsights.com

13

Quarter Highlights

326 deals | $2,067M

Top Deals

Top Cities

Mass Falls to Distant Third for Internet VC Deals NY nearly triples Massachusetts on number of internet deals. Cali continues its

chokehold on the #1 position for both deals and funding.

Inte

rnet

San Francisco, CA

47 deals | $447M

Mountain View, CA

14 deals | $173M

New York, DC

47 deals | $153M

Austin, TX

9 deals | $76M

Santa Monica, CA

5 deals | $65M

Bellevue, WA

2 deals | $58M

Palo Alto, CA

14 deals | $56M

Emeryville, CA

1 deals | $53M

Minneapolis, MN

1 deals | $53M

Boulder, CO

5 deals | $52M

Yammer

Lithium Technologies

Code 42 Software

Apptio

Kinnser Software

Trialpay


www.cbinsights.com

14

Mass Hits Five Quarter Low on Internet Deals NY retains to the #2 spot for Internet, although loses significant share of funding to Cali

and others. Massachusetts falls to 5 quarter low on share of internet deals.

Inte

rnet


www.cbinsights.com

15

Seed Internet Deals Soar. Series B Funding Gets Crunched. Seed deals in web companies breaks out above already-record levels. Series A

funding sees five quarter high while internet Series B deals see a multi-quarter low.

Inte

rnet


www.cbinsights.com

16

Big Data Pushes Business Intelligence into Deal Lead Social internet companies, usually a big area of investment, fell several spots with

some atypical areas like Business Intelligence and Monitoring & Security jumping up to

the league tables.

Inte

rnet


www.cbinsights.com

17

Inte

rnet

Early Stage Medians Remain Flat, Later Stage Uptick Early stage Internet deal sizes remain fairly steady, while Series C and beyond see

uptick since last quarter.


www.cbinsights.com

MOBILE & TELECOM


18


www.cbinsights.com

Mobile Deal Activity Stays Strong but Funding Dips Funding falls to a five quarter low dropping 42% vs. Q4’11 and 29% vs. Q1’11 but deal

activity stays steady. Q2’12 will be an interesting quarter to watch: will there be an

“Instagram Effect” on mobile funding and deal activity? (We expect there will be)

19

Mobile


www.cbinsights.com

20

Quarter Highlights

93 deals | $453M

Top Deals

Top Cities

Like Internet VC, Cali Dominates with NY 2nd in Mobile VC NY is a distant 2nd to California in terms of both deals and dollars. Massachusetts and

Washington also exhibit mobile VC strength in Q1’12.

Mobile

San Francisco, CA

8 deals | $62.91M

Palo Alto, CA

9 deals | $49.37M

Mountain View, CA

7 deals | $40.6M

New York, NY

10 deals | $39.37M

Sunnyvale, CA

3 deals | $25.75M

Bellevue, WA

2 deals | $22.8M

Waltham, MA

1 deals | $17M

Boston, MA

3 deals | $15.93M

Denver, CO

2 deals | $14M

Sioux Falls, SD

1 deals | $12M

BOKU

Ruckus Wireless

Jasper Wireless

Ooma

Verivo Software


www.cbinsights.com

21

Deal/Dollar Share In Line With Historical Levels Washington and Colorado register healthy quarters for mobile deals and funding.

Funding levels by state continue to swing wildly in mobile & telecom as the category is

still in its infancy, where a large deal can seismically shift the quarter’s funding totals.

Mobile


www.cbinsights.com

22

Seed VC Deals in Mobile Hit Five Quarter High Seed and Series A make up two-thirds of deals, highlighting the relative nascence of

companies in mobile and the burgeoning interest in the mobile sector. Series B and C

see lowest portion of financing dollars in the last five quarters.

Mobile


www.cbinsights.com

23

Mobile Advertising, Gaming and Application Dev Win Deals Deal and dollar distribution remains diverse with numerous sub-industries within

mobile garnering funding. The “land grab” is still on within mobile as category leaders

are still being determined across a wide variety of mobile focus areas.

Mobile


www.cbinsights.com

24

Early Stage Median Deal Sizes Stay Flat No clear trend for mobile investment medians is discernible. While early stage deal

medians have stayed mostly range bound, Series B and Series C medians have

dropped while Series D and later-stage Series E+ have ticked up.

Mobile


www.cbinsights.com

HEALTHCARE


25


www.cbinsights.com

Healthcare Hits 5-Quarter Funding Low, Seeks Lifeline Healthcare follows up its strongest quarter in funding over the previous five quarters

with its weakest one since 2010. Deal volume reverts to familiar levels.

26

He

alth

care


www.cbinsights.com

27

Cali and Mass Remain Healthcare Breadwinners California and Massachusetts combine for 46% of deal share and 61% of funding

dollars. Beyond the top two, the field remains diverse as usual.

Quarter Highlights

153 deals | $1,449M

Top Deals

Top Cities

He

alth

care

Boston, MA

2 deals | $128M

San Diego, CA

6 deals | $90M

Redwood City, CA

4 deals | $86M

Santa Barbara, CA

1 deals | $65M

San Jose, CA

2 deals | $65M

Cambridge, MA

7 deals | $53M

La Jolla, CA

2 deals | $50M

Austin, TX

2 deals | $48M

Littleton, MA

1 deals | $45M

Ann Arbor, MI

3 deals | $37M

Warp Drive Bio

Sientra

Ariosa Diagnostics

Apollo Endosurgery

Mevion Medical Systems


www.cbinsights.com

28

California Loses Deal Share for the 5th Straight Quarter The field continues to chip away at California’s lead in deal share, as California falls to

27% of Healthcare deal flow – a 10% drop since Q1 2011. Meanwhile, Mass and Cali

both lose a bit of funding share as well.

He

alth

care


www.cbinsights.com

29

Seed Jumps Significantly, but Overall Early Stage Dips Seed deals double their share since Q4 2011, owning 14% of overall dealflow.

However, Series A takes a step back in terms of both deals and dollars, netting an

overall drop in early stage Healthcare activity.

He

alth

care


www.cbinsights.com

30

Usual Suspects: Medical Devices, Pharma, Biotech Own Q1 Medical devices stays atop the charts in terms of both deals and dollars, followed up

by Biotech and Pharma, respectively.

He

alth

care


www.cbinsights.com

31

Healthcare Medians Continue to Drop in Q1 Following a trend in recent quarters, Healthcare median deal sizes drop almost across

the board, with the sole exception in Series E+ which saw a significant bump.

He

alth

care


www.cbinsights.com

GREEN & CLEAN TECH


32


www.cbinsights.com

Double Whammy – Green Tech Deals & Funding Hit Lows Q1 2012 sees funding and deal levels drop 40% and 18% respectively from Q4’11 with

both measures hitting five quarter lows. The absence of green tech mega deals hurt

funding totals, but it’s the drop in deal activity that is probably most worth tracking.

33

Gre

en


www.cbinsights.com

34

Cali, Mass Dominate. Unusual Suspect, Illinois Enters Fray Cali remains the overwhelming leader in terms of Green Tech deals and dollars. Mass

maintains its #2 spot. Lack of mega deals doesn’t cause any wild gyrations among state

funding shares. Illinois sees a diverse array of renewables and energy efficiency deals

pushing them into green tech limelight.

Quarter Highlights

56 deals | $763M

Top Deals

Top Cities

Gre

en

San Mateo, CA

1 deals | $81M

Bedford, MA

1 deals | $70M

Roselle, IL

1 deals | $56M

Santa Clara, CA

1 deals | $55M

King of Prussia, PA

1 deals | $50M

San Jose, CA

3 deals | $39M

San Diego, CA

3 deals | $38M

Sunnyvale, CA

2 deals | $34M

Houston, TX

2 deals | $32M

Livermore, CA

1 deals | $25M

SolarCity

Joule Unlimited

LanzaTech

MiaSole

Renmatix


www.cbinsights.com

35

Cali, Mass Take Almost $7 of Every $10 Green Tech Dollars Besides Illinois’ ascent into deal and funding league tables, the rest of the share

breakdowns by states for deals & funding are in line with historical averages.

Gre

en


www.cbinsights.com

36

Early Stage Green Tech Deals Hit 5-Quarter Low After Q4’11’s early stage investment peak, Q1’12 sees early stage clean tech deal

share fall of a cliff. Series C stage investments clean up on the funding front in

Q1’12.

Gre

en


www.cbinsights.com

37

Energy Efficiency Climbs to Five Quarter High on Deals Renewables retain top spot on deals and dollars, but energy efficiency technology

continues to see strong deal activity.

Gre

en


www.cbinsights.com

38

Green Tech Median Generally Declining With sector sentiment remaining mixed, median values across different stages all

decline as compared to Q1 2011.

Gre

en


www.cbinsights.com

CALIFORNIA


39


www.cbinsights.com

40


Wealth Managers Use to Get Ahead… With CB Insights you can access deep private company info that was once exclusively available behind prohibitively expensive paywalls.

Coverage Universe

• Venture Capital – 1999 to present

• Angel Investment

• Private Equity

• Federal SBIR Grants – 3 years

• State Grant Programs

• Incubators – Over 300

• Middle Market Private Companies

Sector Coverage

• Green/clean tech

• Internet

• Mobile & Telecom

• Software

• Energy & Utilities

• Computer Hardware & Services

• Healthcare

• Industrial

• Automotive & Transportation

• Business Products & Services

• Consumer Products & Services

• Electronics

• Environmental Services &

Equipment

• Financial Services

• Food & Beverages

• Leisure

• Media

• Metals & Mining

• Retail

• Risk & Security


82,000+ Private Company Profiles.

Company & Investor Updates via Email.

Add companies and investors of

interest to your CBI Watchlist and get

notified of changes and updates

automatically.

Over 82,000 high value private

company profiles across industries and

sectors. Medical devices to

mobile. Industrial to internet.

From Angel to Private Equity.

Angel investment to venture capital to

private equity to government funding to

under the radar mid-market private

companies.

Management & Board Information

Find out about the people behind the

companies including management and

board of directors profiles.

Analytics & Reporting

Downloadable reports and analytics

which allow you to manipulate data

when and how you want to.



www.cbinsights.com

What’s Wrong With This Picture? Cali Stumbles California’s funding level drops 26% versus Q4 2011 and 27% versus a year ago,

leading the precipitous drop in overall venture funding experienced in Q1. On the

bright side, deal volume remains strong.

41

Calif

orn

ia


www.cbinsights.com

Lack of Mega-Deals Responsible for Q1 Cali Flop Whereas Q4 2011 saw 4 deals of at least $100M each in California, The Golden

State’s largest deal this quarter is Yammer at $85 million.

42

Quarter Highlights

309 deals | $2,857M

Top Sector

# of Deals – Internet

$ of Funding – Internet

Top Deals

Top Cities

San Francisco

64 deals | $555M

Mountain View

26 deals | $315M

San Mateo

12 deals | $189M

Redwood City

11 deals | $158M

San Diego

12 deals | $146M

San Jose

15 deals | $143M

Santa Clara

8 deals | $142M

Palo Alto

30 deals | $138M

Santa Monica

8 deals | $110M

Sunnyvale

12 deals | $95M

Calif

orn

ia

Yammer

SolarCity

Sientra

Appirio

MiaSole


www.cbinsights.com

Healthcare & Internet Combine for Nearly 60% of Funding Healthcare loses a bit of share in terms of both deals and dollars, but overall Internet

and Healthcare continue to hold the two top spots in California in terms of venture

funding.

43

Calif

orn

ia


www.cbinsights.com

Seed Continues to Grow Share of Deal Volume in Cali Overall early stage sees a bump in share of deal volume as Seed grabs 17% of overall

dealflow in California. In terms of funding, however, later stage deals continue to exert

pressure, with Series C and beyond taking two thirds of funding.

44

Calif

orn

ia


www.cbinsights.com

MASSACHUSETTS


45


www.cbinsights.com

Mass Continues Roller Coaster Ride, This Time Down Turmoil in Boston isn’t isolated to the Red Sox as Massachusetts experiences a 5-

quarter low in terms of both VC deals and dollars.

46

Massachusetts


www.cbinsights.com

Healthcare Continues Dominance in Mass, Internet #2 Healthcare and Internet continue their hold on the top two spots in terms of both deals

and dollars. Energy is a convincing #3 in terms of funding.

47

Quarter Highlights

76 deals | $650M

Top Sector

# of Deals – Healthcare

$ of Funding - Healthcare

Top Deals

Top Cities

Boston

12 deals | $166M

Waltham

10 deals | $88M

Cambridge

14 deals | $78M

Bedford

3 deals | $77M

Littleton

1 deals | $45M

Newton

2 deals | $28M

Lexington

3 deals | $25M

Medford

1 deals | $20M

Winchester

1 deals | $15M

Woburn

1 deals | $15M

Massachusetts

Warp Drive Bio

Joule Unlimited

Mevion Medical Systems

Neolane

RaNA Therapeutics


www.cbinsights.com

Overall Dip in Mass Doesn’t Affect the Mix Deal and dollar distribution in Massachusetts remains largely unchanged since Q4

2011, with Healthcare and Internet remaining atop the board.

48

Massachusetts


www.cbinsights.com

49

Massachusetts

Seed Deals Rally, but Overall Early Stage Loses Ground Seed takes 16% over overall deal flow in Massachusetts, but overall early stage (Seed +

Series A) dips dramatically since Q4 in terms of funding.


www.cbinsights.com

NEW YORK


50


www.cbinsights.com

NY Hits Five Quarter Funding Low; Deals Stay Strong NY funding falls 41% vs. Q4’11 and 25% vs. Q1’11 while VC deals actually climb 11%

sequentially and 13% quarter-over-quarter.

51

New

York


www.cbinsights.com

52


Twitter


Newsletter



Email

[email protected]

Telephone

212-292-3148


www.cbinsights.com

Internet Still Rules, but Mobile and Healthcare Show Life Internet continues to command the lion’s share of deals and dollars, but Mobile deals

register volume and Financial consumes serious dollars in Q1.

53

Quarter Highlights

81 deals | $335M

Top Sector


$ of Funding - Internet

Top Deals

Top Cities

New York

66 deals | $243M

Scarsdale

1 deals | $30M

Long Island City

2 deals | $22M

Yaphank

1 deals | $16M

Ithaca

1 deals | $6M

New

York

Capital Access Network

Aereo

KEMP Technologies

Buzzfeed

Peek


www.cbinsights.com

Internet and Mobile are 82% of Deals and 67% of Funding Internet deals jump back in Q1’12. When aggregated with mobile and other tech

investments, it is clear that NY’s VC ecosystem future is tethered to the fate of tech.

54

New

York


www.cbinsights.com

NY Early Stage Investments Jump Even More Following Q4’11’s strong early stage performance, Q1’12 sees 63% of deals going to

Seed and Series A transactions. NY’s presence as an early stage investment hub

continues to grow.

55

New

York


www.cbinsights.com

WASHINGTON


56


www.cbinsights.com

Washington Bucks the Trend, Sees 5-Quarter Funding High Washington fights off the national swoon, and instead experiences a five-quarter high

with $206 million in VC funding. Deal volume also sees an uptick since Q4.

57

Washin

gto

n


www.cbinsights.com

Mobile & Telecom Jumps to #2 Spot in Washington Internet and Healthcare, which traditionally occupy the top two spots are joined by Mobile

& Telecom which sees a strong quarter.

58

Quarter Highlights

28 deals | $206M

Top Sector


$ of Funding - Internet

Top Deals

Top Cities

Bellevue

6 deals | $89M

Seattle

16 deals | $78M

Kirkland

1 deals | $26M

Liberty Lake

1 deals | $5M

Issaquah

1 deals | $3M

Olympia

1 deals | $3M

Washin

gto

n

CrowdStrike

Opscode

Spoken Communications

FinSphere

Meteor Entertainment


www.cbinsights.com

Healthcare Loses Ground to Internet and Mobile & Telecom Healthcare, which experienced an incredibly strong Q4 2011 in Washington, comes

back to earth as Mobile & Telecom grabs the #2 spot in terms of deals and dollars.

59

Washin

gto

n


www.cbinsights.com

Early Stage Investing Inches Backward, but Remains Strong Seed and Series A lose a bit of ground, but still combine for over 50% of overall deal

volume and 33% of funding in Washington.

60

Washin

gto

n


www.cbinsights.com

TEXAS


61


www.cbinsights.com

Funding Falls, but Overall Texas See a Strong Quarter Deal volume in Texas experiences a five-quarter high, while funding dips, but remains

strong.

62

Texas


www.cbinsights.com

Healthcare Grabs Texas’ Top Spot The merry-go-round continues in Texas with Healthcare owning the top spot this

quarter in terms of both deals and dollars.

63

Quarter Highlights

39 deals | $336M

Top Sector


$ of Funding – Healthcare

Top Deals

Top Cities

Austin

21 deals | $201M

Houston

8 deals | $88M

San Antonio

3 deals | $22M

Fort Worth

1 deals | $10M

Richardson

1 deals | $6M

Anna

1 deals | $4M

Dallas

1 deals | $3M

McKinney

1 deals | $1M

Plano

1 deals | $1M

El Paso

1 deals | $1M

Texas

Apollo Endosurgery

Kinnser Software

Pivot 3

Bellicum Pharmaceuticals

Glori Energy


www.cbinsights.com

Energy Registers Another Relatively Week Quarter Texas, a state traditionally known as a hotbed for Energy investment, sees an

incredibly diverse quarter with Healthcare and Internet leading the way.

64

Texas


www.cbinsights.com

Seed Continues to Gain Ground in Texas Seed VC deal volume sees five-quarter high with 11% of overall deal volume.

However, Series A share of volume dips, netting overall drop in early stage deal share.

65

Texas


www.cbinsights.com

Definitions – Ensuring Data Integrity What’s Included in our Quarterly Venture Capital Numbers? What is not?

66

Given the importance of venture capital in spurring innovation and entrepreneurship, measuring venture capital activity

accurately is important. 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.

• Equity financings into emerging companies.

Funding must come from venture capital firms including

corporate venture groups.

• 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)

• Companies must be headquartered in the USA. Our

geographic data is based on the city and state where the

company receiving investment is headquartered. If a

company has a satellite office/presence in multiple cities

or was founded in a particular city but has moved its HQ,

our results reflect only this HQ address.

• Only include the investment made in the quarter for

tranched investments. 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 #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.

• Angel investment. These are not included in

numbers unless an investment round included Angels

investing alongside a venture capital firm or corporate

venture group.

• 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 to emerging, startup

companies are not included. Strictly venture or

corporate venture outfits.

• Incubator investments. Investments of money as

equity or debt and/or services by incubators are not

included.

• Strategic corporate investments. Corporations

making strategic investments in companies but not as

part of a specific organized venture group are not

included.

What is included? What is excluded?


www.cbinsights.com

67


Wealth Managers Use to Get Ahead… With CB Insights you can access deep private company info that was once exclusively available behind prohibitively expensive paywalls.

Coverage Universe

• Venture Capital – 1999 to present

• Angel Investment

• Private Equity

• Federal SBIR Grants – 3 years

• State Grant Programs

• Incubators – Over 300

• Middle Market Private Companies

Sector Coverage

• Green/clean tech

• Internet

• Mobile & Telecom

• Software

• Energy & Utilities

• Computer Hardware & Services

• Healthcare

• Industrial

• Automotive & Transportation

• Business Products & Services

• Consumer Products & Services

• Electronics

• Environmental Services &

Equipment

• Financial Services

• Food & Beverages

• Leisure

• Media

• Metals & Mining

• Retail

• Risk & Security


82,000+ Private Company Profiles.

Company & Investor Updates via Email.

Add companies and investors of

interest to your CBI Watchlist and get

notified of changes and updates

automatically.

Over 82,000 high value private

company profiles across industries and

sectors. Medical devices to

mobile. Industrial to internet.

From Angel to Private Equity.

Angel investment to venture capital to

private equity to government funding to

under the radar mid-market private

companies.

Management & Board Information

Find out about the people behind the

companies including management and

board of directors profiles.

Analytics & Reporting

Downloadable reports and analytics

which allow you to manipulate data

when and how you want to.



www.cbinsights.com

68


Twitter


Newsletter



Email

[email protected]

Telephone

212-292-3148

Q1 2012 venture capital activity report cb insights final-

Economy & Finance

Transcript of Q1 2012 venture capital activity report cb insights final-