The International Venture Capital Industry Where are we at? Where are we going?

The International Venture Capital Industry

Where are we at? Where are we going?

Dr. Gordon MurrayLondon Business School

Where are we at. Where are we going?

A short review of both practice and contemporary issues in the International Venture Capital industry

Where are we at. Where are we going?How can one best sum up the way in which governments of all complexions and political stances are seeing the present growth in the importance of the New or Knowledge Economy?

Were ALL Californians now!

DescriptivesA Simple Taxonomy of Venture Capital

Size Growth Trends Stage of Investment Returns to Investors

Global Venture Capital Funds in 1999$557.9 billion

Country

Capital under Management

($ billions)

USA

400.0

UK/Europe

92.0

Asia

38.3

Canada

11.2

Israel

10.4

Latin America

Ex NVCA, 2000

6.0

US Capital Commitments

Chart5

0.6

2

1.2

1.5

4.1

3

2.9

3.6

4.1

3.4

5.4

2.6

1.5

3.6

3.9

7.2

8.2

10.5

15.6

27.7

46.1

$46.1 billion

Funds Conc.

Cumulative Percentage of Total Capital under management 199718396084929899100

121041577590100

Funds Conc.

0

0

0

0

0

0

0

0

0

Disbursements

0

0

0

0

0

0

0

0

0

Percentage of VC Firms

Percentage of Total Capital Pool

Commitments

Dispersements to US Portfolio Companies ($ billions)

1980198119821983198419851986198719881989199019911992199319941995199619971998

0.71.71.93.75.33.84.74.95.65.83.92.95.25.35.569.913.616.7

Distribution of Disbursements between Porfolio Company Stage 1998

Early-stage28%

Expansion56%

Later Stage6%

Buy-Out /Acquisition9%

Other1%

Disbursements by Industry Sector

Computer Software & Services34.40%

Communications17.00%

Medical/health13.70%

Other Products10.70%

Consumer Retailing7.20%

Biotechnology6.30%

Semi-conductors & Other Electronics5.10%

Computer Hardware3.30%

Industry/Energy2.30%

100.00%

Disbursements by Region

California6516.1

Massachusets3542.5

New York1514.4

Texas1001.6

Carolinas618.8

Commitments

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Years

US VC Investment ($ billions)

16.7

Cap under Manag

0

0

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0

0

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0

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US Capital Commitments 1998 ($ billions)

197919801981198219831984198519861987198819891990199119921993199419951996199719981999

0.50.71.41.93.53.63.64.34.45.25.23.52.64.94.94.95.79.91419.248

Commitments by Source(Limited Partner)

Corporations2.97

Endowments & Foundations1.58

Foreign investors0.29

Individuals & Families2.83

Financial & Insurance2.59

Pension Funds15.03

00

00

00

00

00

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00

$48b

0

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0

0

0

Capital Under Management by State

197919801981198219831984198519861987198819891990199119921993199419951996199719981999

0.621.21.54.132.93.64.13.45.42.61.53.63.97.28.210.515.627.746.1

California23.5

New York19.1

Massachessets12.8

Connecticut3.9

Illiniois3.4

0

0

0

0

0

Total $62.77 billion in 1998

Capital Under Management by Region

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

US Disbursements

Chart4

0.70.7

1.41.4

1.91.9

3.53.5

3.63.6

3.63.6

4.34.3

4.44.4

5.25.2

5.25.2

3.53.5

2.62.6

4.94.9

4.94.9

4.94.9

5.75.7

9.99.9

1414

19.219.2

4848

$48 billion

Funds Conc.


121041577590100

Funds Conc.

0

0

0

0

0

0

0

0

0

Disbursements

0

0

0

0

0

0

0

0

0



Commitments


1980198119821983198419851986198719881989199019911992199319941995199619971998

0.71.71.93.75.33.84.74.95.65.83.92.95.25.35.569.913.616.7


Early-stage28%

Expansion56%

Later Stage6%


Other1%







Biotechnology6.30%




100.00%


California6516.1

Massachusets3542.5

New York1514.4

Texas1001.6

Carolinas618.8

Commitments

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

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Years


16.7

Cap under Manag

0

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0

0

0

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0

0

0


197919801981198219831984198519861987198819891990199119921993199419951996199719981999

0.50.71.41.93.53.63.64.34.45.25.23.52.64.94.94.95.79.91419.248


Corporations2.97





Pension Funds15.03

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

$48b

0

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0

0


197919801981198219831984198519861987198819891990199119921993199419951996199719981999

0.621.21.54.132.93.64.13.45.42.61.53.63.97.28.210.515.627.746.1

California23.5

New York19.1

Massachessets12.8

Connecticut3.9

Illiniois3.4

0

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0



0

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0

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0

European Capital Commitments ( million)

Chart2

5813

4579

4188

4214

3425

6693

4398

7960

20002

20343

25401

Toral Value Funds Raised

2.54 billion

Sheet1

198419851986198719881989199019911992199319941995199619971998

EUROPE:

Total No. Investmentsn.a.n.a.n.a.n.a.5078543953626907619754365683495556866252

Technology-% No. Total Investmentsn.a.n.a.n.a.n.a.3230.42925.524.326.525.127.93033.7

Total Value Investments (ECU million)n.a.n.a.n.a.n.a.3452427141264632470141155440554667879655

Technology -% Value Total Investmentsn.a.n.a.n.a.n.a.20.720.419.716.11616.815.523.819.923.8

198819891990199119921993199419951996199719981999

Total Value Investments (ECU million)34524271412646324701411554405546678796551446125116

19891990199119921993199419951996199719981999

Toral Value Funds Raised58134579418842143425669343987960200022034325401

Sheet1

0

0

0

0

0

0

0

0

0

0

0

0

Total Value Investments (ECU million)

ECU 25116m

Sheet2

0

0

0

0

0

0

0

0

0

0

0


ECU25401m

Sheet3

European Disbursements ( million)

Chart1

3452

4271

4126

4632

4701

4115

5440

5546

6787

9655

14461

25116


2.5 billion

Sheet1

198419851986198719881989199019911992199319941995199619971998

EUROPE:





198819891990199119921993199419951996199719981999


19891990199119921993199419951996199719981999


Sheet1

0

0

0

0

0

0

0

0

0

0

0

0


ECU 25116m

Sheet2

Sheet3

US Disbursement by Investment Stage1999

Chart1

10777

8764

26391

2115

Value

Funds Conc.


121041577590100

Funds Conc.

Disbursements



Commitments


1980198119821983198419851986198719881989199019911992199319941995199619971998

0.71.71.93.75.33.84.74.95.65.83.92.95.25.35.569.913.616.7


Early-stage28%

Expansion56%

Later Stage6%


Other1%







Biotechnology6.30%




100.00%


California6516.1

Massachusets3542.5

New York1514.4

Texas1001.6

Carolinas618.8

Commitments

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Years


16.7

Cap under Manag

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0


197919801981198219831984198519861987198819891990199119921993199419951996199719981999

0.50.71.41.93.53.63.64.34.45.25.23.52.64.94.94.95.79.91419.248


Corporations2.97





Pension Funds15.03

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

$48b

0

0

0

0

0

0


197919801981198219831984198519861987198819891990199119921993199419951996199719981999

0.621.21.54.132.93.64.13.45.42.61.53.63.97.28.210.515.627.746.1

California23.5

New York19.1

Massachessets12.8

Connecticut3.9

Illiniois3.4

Stage of InvestmentValue

Early Stage10777

Later Stage8764

Expansion26391

MBO/MBI/Acquisition2115



Value

European Allocation by Investment Stage 1999

Chart3

467536

2771872

7432678

1186228

13257380

Value

Inv & Cap raised

198419851986198719881989199019911992199319941995199619971998

EUROPE:





198819891990199119921993199419951996199719981999


19891990199119921993199419951996199719981999


Inv & Cap raised

3452

4271

4126

4632

4701

4115

5440

5546

6787

9655

14461

25116


ECU 25116m

Stage Distribution

5813

4579

4188

4214

3425

6693

4398

7960

20002

20343

25401


ECU25401m

Sheet3


Seed467536

Start-up2771872

Expansion7432678

Replacement Capital1186228

MBO/MBI13257380

Sheet3

Value

US Disbursements by Technology 1999

Chart2

18513

1182

1740

2457

8335

1304

7501

Medical/Health6%

Communic-ations20%

Funds Conc.


121041577590100

Funds Conc.

Disbursements



Commitments


1980198119821983198419851986198719881989199019911992199319941995199619971998

0.71.71.93.75.33.84.74.95.65.83.92.95.25.35.569.913.616.7


Early-stage28%

Expansion56%

Later Stage6%


Other1%







Biotechnology6.30%




100.00%


California6516.1

Massachusets3542.5

New York1514.4

Texas1001.6

Carolinas618.8

Commitments

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Years


16.7

Cap under Manag

0

0

0

0

0

by Technology

0

0

0

0

0

0

0

0

0

0

0

0

0

0


197919801981198219831984198519861987198819891990199119921993199419951996199719981999

0.50.71.41.93.53.63.64.34.45.25.23.52.64.94.94.95.79.91419.248


Corporations2.97





Pension Funds15.03

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

$48b

0

0

0

0

0

0


197919801981198219831984198519861987198819891990199119921993199419951996199719981999

0.621.21.54.132.93.64.13.45.42.61.53.63.97.28.210.515.627.746.1

California23.5

New York19.1

Massachessets12.8

Connecticut3.9

Illiniois3.4


Early Stage10777

Later Stage8764

Expansion26391

MBO/MBI/Acquisition2115



Value

TechnologyShare

On-line Specific18513

Bio-technology1182

Semi-conductors1740

Medical/Health2457

Communications8335

Computer H/ware1304

Computer S/ware & Services7501

Communic-ations20%

Medical/Health6%

The Attraction of Technology -e.g. UK Venture Capital Investment in millions inc. MBOs

Chart2

47

73

68

147

116

177

158

130

114

281

241

253

312

595

707

1093

UK VC Investment in Technology

Tech-mbo

FIGURES EXCLUDE MBOs/MBIs & LBOs

Year1984198519861987198819891990199119921993199419951996

US Technology- % Value Total Investments8779.585.585.285.1928586.187.683.481.7

EUR Technology- % Value Total Investments37.73633.73731.224.626.628.327.844.535.5

UK Technology- % Value of Total Investments4241.532.534.920.53230.229.225.760.843.385.362.5

UK:

Technology- % No. Total Investments42.337.633.931.424.431.832.727.425.829.4

Technology- % Value Total Investment4241.532.534.920.53230.229.225.732.9

EUROPE**:

Technology- % No. Total Investments38.938.136.631.430.332.5

Technology- % Value Total Investments37.735.933.73731.224.626.628.3

USA:


Technology- % Value Total Investment8779.585.585.285.182.982.9

BVCA Tech Figures 1996

include MBOs/MBIs:

Year1984198519861987198819891990199119921993199419951996

Technology Investment million46.573.468.3147.1116177158130114281241494.7453

Technology as % Total UK Investment33.527.217.815.78.912.514.313.19.122.814.423.116

Year198419851986198719881989199019911992199319941995


Technology as % Total US Investment7880716967697381.777.875.375.669.9

&A

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Tech-mbo

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Technology as % Total UK Investment

#REF!

Year

Percentage

Technology Investments by UK Venture Capital Industry

Tech-untreated

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Technology Investment million

Year

Percentage

million

Technology Investment ( million) and as a Percentage of Total Annual Investment in the UK

Start+ E.Stage

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US Technology- % Value Total Investments

EUR Technology- % Value Total Investments

Year

Percentage

EVCA tech95-99

000

000

000

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Page &P



UK Technology- % Value of Total Investments

Year

Technology as % 'Adjusted' Total

Sheet5

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Technology as % Total US Investment

Year

Percentage

Sheet6

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Sheet7

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Time

Technology as % of 'Adjusted' Total

Sheet8

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Year

Annual Investment in UK Venture Capital m

Technology as a % of Annual Investment

Sheet9

TECHNOLOGY AS % TOTAL INVESTMENT - UNTREATED

1984198519861987198819891990199119921993199419951996199719981999

Total No. UK Companies Financed3505176001174132613021221119611471066110110301060

Technology-% No. Total Investments36.330.926.525.621.423.723.620.818.223202320

Total Value Investments ( million)13927038493412981420110698912511231166821402860

Technology -% Value Total UK Investments33.326.417.815.78.912.412.913.19.122.814.423.116

1984198519861987198819891990199119921993199419951996199719981999

EUROPE:




Technology -% Value Total Investmentsn.a.n.a.n.a.n.a.20.720.419.716.11616.815.523.819.7

1984198519861987198819891990199119921993199419951996199719981999

USA:Venture One info from 1992

Total Value Investments ($ million)276026703242397738473395192213584058.14871.95286.47964.910023.4

Technology -% Value Total Investments827770.963.560.567.472.88078.274.577.969.181.7

Total No. Deals952986103611671502

No. Tech Deals7928008629531258

Combined: Technology as % Total Annual Investment

1984198519861987198819891990199119921993199419951996

UK33.326.417.815.78.912.412.913.19.122.814.423.116

Europe20.720.419.716.11616.815.523.819.7

USA827770.963.560.567.472.88078.274.577.969.181.7

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Sheet9

000

000

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UK

Europe

USA

Year

Technology: % of Total Annual Investment

Sheet10

START UP AND EARLY STAGE (pre-profit)

198719881989199019911992199319941995199619971998

198419851986198719881989199019911992199319941995199619971998

UK

UK13101512666545310

% Total Investment13101512666545310Europe8.46.95.94.95.75.86.57.411.4

USA7981.983.779.382.986.283.368.384.7

EUROPE

%Total Investment8.46.95.94.95.75.86.57.411.4

USA

inc start-up, Dev Beta + Shipping Product (ie not profitable)7981.983.779.382.986.283.368.384.7

% Total Investment

Technology as a proportion of total investment

199019911992199319941995199619971998

UK1266654558

Europe8.46.95.94.95.75.86.5

USA7981.983.779.382.986.283.378.676.9

FIGURES EXCLUDE MBOs/MBIs & LBOsTech as % 'adjusted' total annual investment

Year848586878889909192939495969798


EUR Technology- % Value Total Investments37.73633.73731.224.626.628.327.844.535.547.9

UK Technology- % Value of Total Investments4241.532.534.920.53230.229.225.760.843.385.362.564.730.2

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UK

Europe

USA

Year

% Value of Total Annual Investment

Sheet11

000

000

000

000

000

000

000

000

000

UK

Europe

USA

Year

% Total Investment in Technology

Sheet12

848442

858541.5

8737.732.5

79.53634.9

85.533.720.5

85.23732

85.131.230.2

9224.629.2

8526.625.7

86.128.360.8

87.627.843.3

83.444.585.3

81.735.562.5

8547.964.7

889830.2




Year

Technology as % of Adjusted Total

Sheet13

000

000

000

000

000

000

000

000

000

000

000

000

UK

Europe

USA

Time

% Total Investment

Sheet14

EVCA High Tech as % Total Investment 1995-99

19951996199719981999

Annual Investments million1324.2931347.9262306.824026.9176418.215

Technology as a % Total Investment2420242827

1984198519861987198819891990199119921993199419951996199719981999

UK VC Investment in Technology4773681471161771581301142812412533125957071093

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Sheet14

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Annual Investments million

Technology as a % Total Investment

Annual Investment

% Technology

Sheet15

0

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UK VC Investment in Technology

Sheet16

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MBD002D491A.xls

Chart2

33.3

26.4

17.8

15.7

8.9

12.4

12.9

13.1

9.1

Technology -% Value Total UK Investments

Year

Technology -% Value of Total UK Venture Capital Investments

Tech-mbo


Year1984198519861987198819891990199119921993199419951996




UK:



EUROPE**:



USA:




include MBOs/MBIs:

Year1984198519861987198819891990199119921993199419951996



Year198419851986198719881989199019911992199319941995



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Tech-mbo

01

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#REF!

Year

Percentage


Tech-untreated

00

00

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Year

Percentage

million


Start+ E.Stage

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Year

Percentage

Sheet4

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Sheet5

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Sheet6

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Sheet9


1984198519861987198819891990199119921993199419951996




1984198519861987198819891990199119921993199419951996


1984198519861987198819891990199119921993199419951996

EUROPE:





1984198519861987198819891990199119921993199419951996




Total No. Deals952986103611671502

No. Tech Deals7928008629531258


1984198519861987198819891990199119921993199419951996

UK33.326.417.815.78.912.412.913.19.122.814.423.116

Europe20.720.419.716.11616.815.523.819.7

USA827770.963.560.567.472.88078.274.577.969.181.7

&A

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Sheet9

000

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UK

Europe

USA

Year


Sheet10

0

0

0

0

0

0

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1984198519861987198819891990199119921993199419951996

UK

% Total Investment13101512666545

EUROPE

%Total Investment8.46.95.94.95.75.86.5

USA

inc start-up, Dev Beta + Shipping Product (ie not profitable)

% Total Investment7981.983.779.382.986.283.3


199019911992199319941995199619971998

UK1266654558

Europe8.46.95.94.95.75.86.5

USA7981.983.779.382.986.283.378.676.9


Year848586878889909192939495969798




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Technology Growth in European VC Investments

Chart1

1324.29324

1347.92620

2306.8224

4026.91728

6418.21527



Annual Investment

% Technology

Tech-mbo


Year1984198519861987198819891990199119921993199419951996




UK:



EUROPE**:



USA:




include MBOs/MBIs:

Year1984198519861987198819891990199119921993199419951996



Year198419851986198719881989199019911992199319941995



&A

Page &P

Tech-mbo

01

00

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#REF!

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Percentage


Tech-untreated

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Year

Percentage

million


Start+ E.Stage

00

00

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Year

Percentage

EVCA tech95-99

000

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Sheet9


1984198519861987198819891990199119921993199419951996199719981999





1984198519861987198819891990199119921993199419951996199719981999

EUROPE:





1984198519861987198819891990199119921993199419951996199719981999




Total No. Deals952986103611671502

No. Tech Deals7928008629531258


1984198519861987198819891990199119921993199419951996

UK33.326.417.815.78.912.412.913.19.122.814.423.116

Europe20.720.419.716.11616.815.523.819.7

USA827770.963.560.567.472.88078.274.577.969.181.7

&A

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Europe

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Year


Sheet10


198719881989199019911992199319941995199619971998

198419851986198719881989199019911992199319941995199619971998

UK

UK13101512666545310

% Total Investment13101512666545310Europe8.46.95.94.95.75.86.57.411.4

USA7981.983.779.382.986.283.368.384.7

EUROPE

%Total Investment8.46.95.94.95.75.86.57.411.4

USA

inc start-up, Dev Beta + Shipping Product (ie not profitable)7981.983.779.382.986.283.368.384.7

% Total Investment


199019911992199319941995199619971998

UK1266654558

Europe8.46.95.94.95.75.86.5

USA7981.983.779.382.986.283.378.676.9


Year848586878889909192939495969798




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848442

858541.5

8737.732.5

79.53634.9

85.533.720.5

85.23732

85.131.230.2

9224.629.2

8526.625.7

86.128.360.8

87.627.843.3

83.444.585.3

81.735.562.5

8547.964.7

889830.2




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Time

% Total Investment

Sheet14

EVCA High Tech as % Total Investment 1995-99

19951996199719981999

Annual Investments million1324.2931347.9262306.824026.9176418.215

Technology as a % Total Investment2420242827

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d



Annual Investment

% Technology

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MBD002D491A.xls

Chart2

33.3

26.4

17.8

15.7

8.9

12.4

12.9

13.1

9.1


Year


Tech-mbo


Year1984198519861987198819891990199119921993199419951996




UK:



EUROPE**:



USA:




include MBOs/MBIs:

Year1984198519861987198819891990199119921993199419951996



Year198419851986198719881989199019911992199319941995



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Tech-mbo

01

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Percentage


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1984198519861987198819891990199119921993199419951996




1984198519861987198819891990199119921993199419951996


1984198519861987198819891990199119921993199419951996

EUROPE:





1984198519861987198819891990199119921993199419951996




Total No. Deals952986103611671502

No. Tech Deals7928008629531258


1984198519861987198819891990199119921993199419951996

UK33.326.417.815.78.912.412.913.19.122.814.423.116

Europe20.720.419.716.11616.815.523.819.7

USA827770.963.560.567.472.88078.274.577.969.181.7

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1984198519861987198819891990199119921993199419951996

UK

% Total Investment13101512666545

EUROPE

%Total Investment8.46.95.94.95.75.86.5

USA

inc start-up, Dev Beta + Shipping Product (ie not profitable)

% Total Investment7981.983.779.382.986.283.3


199019911992199319941995199619971998

UK1266654558

Europe8.46.95.94.95.75.86.5

USA7981.983.779.382.986.283.378.676.9


Year848586878889909192939495969798




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The Attractions of High Tech Firms

(Quality) Employment Growth

Efficiency of Innovation

Export Intensity

Regional Development

Reciprocal Relationship with Large Firms

Increase Industry Competitiveness

FACT: for most UK venture capitalists, technology historically* has not been a successRange of Returns of Mature Funds *1980-95 by Investment Stage in %

Investment Stage

Number of funds

Pooled IRR

Mean IRR

Median IRR

Min

Max

Range

Standard Deviation

Early Stage

17

8.2

6.9

8.1

-9.6

18.9

28.5

8.7

Development

34

9.1

4.6

4.8

-17.7

32.9

50.6

11.6

Mid MBO

27

16.4

15.7

14.9

-6.6

40.6

47.2

9.8

Large MBO

26

17.8

22.3

20.5

-3.0

67.3

70.3

15.3

Generalist

30

12.0

8.1

7.9

-9.9

32.0

41.9

9.8

All Funds

134

14.3

11.3

10.8

-17.7

67.3

85.0

13.1

Technology Funds only

26

9.8

10.2

9.1

-0.2

20.2

20.4

6.2

Source: LBS calculations

Exceptions - not the rule ...

US Venture Capital Returns to 1998Source; Burgel 2000

Investment Focus

One year

Three Year

Five Year

Ten Year

Twenty Year

1998

1996-98

1994-98

1989-98

1979-98

Early / Seed Stage

25.7

37.7

33.7

19.7

16.8

Later Stage Venture

26.5

27.3

29.8

23.9

18.2

Balanced Venture

10.8

23.6

24.2

16.1

14.0

Total Venture Capital

17.2

27.9

27.4

17.7

15.1

Buy-outs

10.9

19.2

17.2

16.4

19.6

Mezzanine

11.7

10.4

10.4

10.2

10.8

Total

12.8

22.0

20.5

16.9

17.1

Contemporary IssuesRelationship Government and VCHow to manage early-stage investmentsHow to understand technology investmentsHow to manage a European contextThe academic/investment inter-faceThe Corporate Venturing phenomenaWhat happens when the bubble bursts?

Everyone wants their own Silicon ValleyIndustry policy is backCreating enabling environmentsIdentification of market barriersinformationtaxationincentivesFinance a key issue

Early-stage investment is really importantSO LONG AS SOMEONE ELSE DOES IT

ergo: several schemes to attract venture capital activityGovernment as backerGovernment as underwriterGovernment as syndicate partnerGovernment as provider

Technology Investment ChallengesUntil very recently, European VCs have not had the skill sets to be sufficiently technologically informed. Issues of:

information asymmetriesagency costsappraisal and monitoring technology networks

European ContextVenture capital has been/is about networksergo, it has been highly parochialThe geographical scope is changing:internationalisation of technologyweight of moneyintegration of economiesthe half-life of technologies

Academic-Industry- Investor InterfaceHistorically separate livesUS model becoming dominantUniversity finances becoming conditional on external support esp.. expensive scienceOften fraught relationshipGovernment encouraging greater awareness and contact. IN UKUniversity Challenge FundScience Enterprise Challenge

The Corporates ComethIn 1999, US based corporations invested $9.5 billion in 1021 investee companies. i.e. 20% by value and 28% by volume of total US venture capital activity. In 6mnths of 2000, corporations placed a further $7.4 billion into 901 companies.

This is in excess of a ten fold increase in investment activity in three years.

CVC Activity is growing very, very fast

Challenges to the VC boundaries?Traditional VC FundsCorporate Venture CapitalistsIncubator Funds

and finally ... the VC industry is heavily dependent on stock market performance, particularly (volatile) high tech stock performancewe have seen an exception period of bullish markets in the 1990s, and in the 2000s?VC is investment this year estimated to be $70 million - a 12 fold increase in 5 yearsInvestors are coming to expect 1 year net IRRs of 62.5%Is the current rate of growth sustainable?

The International Venture Capital Industry Where are we at? Where are we going?

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