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Page 1: MoneyTree Report Q2 2019 - Amazon Web Services...Source: PwC / CB Insights MoneyTree Report Q2 2019 4 8,314 1,892 3,423 6,268 6,118 2,771 2019 YTD US funding is strong US deals and

MoneyTree™ Report

Q2 2019

Page 2: MoneyTree Report Q2 2019 - Amazon Web Services...Source: PwC / CB Insights MoneyTree Report Q2 2019 4 8,314 1,892 3,423 6,268 6,118 2,771 2019 YTD US funding is strong US deals and

2

Executive summary Q2 2019

$100M+ deals continue to elevate US VC funding levels, with total funding on track to push records again.At the 2019 halfway point, US VC funding shows no signs of slowing: At the end of Q2, US VC funding was at $55B, well above the mid-point for 2018 ($48B), which ultimately saw a near-record $116B raised (compared to the record$120B in 2000). $100M mega-rounds drive funding higher: Driving thetrend toward bigger deals, US companies raised a recordquarterly number of $100M+ VC rounds in Q2, with 64 mega-rounds accounting for nearly half of all funding raised. Seed rounds fluctuate to lowest activity in six years: After rebounding last quarter, Seed activity dropped below levels last seen in Q1’14. US produces 19 new unicorns: 19 US VC-backed companiessaw their valuations rise to $1B+, nearing the record set in Q4’18 of 22 new unicorns.

Q2 2019 funding across North America, Asia, and Europeremains relatively flat.North America, Asia, and Europe combined funding hits $53B: Total annual VC funding decreased by 2% from Q1 2019 totals. Deal activity increased by 2%, to 3,474 transactions.Asia deal activity retreats behind North America: While Asia came close to surpassing North America’s deal activity in Q3 2018, the region’s deal activity has since declined by 24% from Q3’18 to Q2’19.

San Francisco Bay Area deal activity rebounds: After 3 consecutive quarters of decline, deal activity increased 17% to 438 transactions in Q2 2019. After record quarterly funding of $25B in Q3 2018, dollar funding has since stabilized to $13B.New York Metro sees slight decline in deal and dollar funding activity: After deal activity rebounded by 29% in Q1 2019, it declined by 8% in Q2 2019 to 212 transactions. Similarly, dollar funding declined by 9% in Q2 2019.

Geographic InsightsUS Insights

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 3

1,5871,465

1,5731,683

1,4841,378 1,362 1,409

20.7 20.223.1 24.6

29.3

39.0

26.128.7

Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19

Q2 investments rise after fall from funding record set in Q4’18US deals and dollars – Quarterly

Record funding

(all-time)

Investments ($B) # of deals

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 4

8,314

1,8923,423

6,268 6,118

2,771

2019 YTD US funding is strongUS deals and dollars – Annual

201020052000 2015 2019 YTD

$120

$55

Recordfunding

(all-time)

Investments ($B) # of deals

$116Record funding(this century)

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 5

2019 records the largest first half this centuryUS funding – Quarterly seasonality

$8.2 $12.3 $18.9 $16.6 $16.0$23.1 $26.1$9.0

$16.9$20.8 $18.6 $19.7

$24.6 $28.7

$9.1

$14.0

$20.8$15.8 $20.7

$29.3

$10.1

$17.5

$17.6

$12.1$20.2

$39.0

Record annual funding(this century)

Record first half funding(this century)

Q3Q2Q1 Q4 TotalInvestments ($B):

20172016201520142013 2018 2019 YTD

$36.4

$116.0

$76.6

$63.1

$78.1

$60.7$54.8

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 6

Seed deal activity fluctuated down to its lowest level in six yearsDeal activity by round

Note: All deals include additional round types

1,247 All deals

554

105

70

330 SeriesA

113 Series C

60 Series E+

1,183

364 Seed292

Q1 2019

Q1 2014

Q1 2015

Q1 2016

Q1 2017

Q1 2018

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 7

SeriesA$8.0M

$2.0M $2.2M Seed

Overall median deal size jumped 26% to $7.6M from Q1’19Median deal size by round

Overall$7.6M

$26.3M Series C

$0.6M

$3.8M

$9.0M

Note: Overall median includes additional round types

Q1 2019

Q1 2014

Q1 2015

Q1 2016

Q1 2017

Q1 2018

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 8

31 35 33

4855

51 48

64

Q2’19 saw a record number of $100M+ funding roundsMega-rounds – Investments and deal counts

$8.2 $7.6 $7.9 $8.2

$14.6

$24.7

$11.9 $13.4

Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19

Recordmega-rounds

(all-time)

Recordmega-round investments

(all-time)

Mega-round investments ($B) # of Mega-rounds

Note: Mega-rounds are $100M deals or larger

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 9

40% 38%34% 33%

50%

63%

46% 47%

Mega-rounds maintain a high percentage of all dealsMega-rounds – Funding and share of deals

$8.2 $7.6 $7.9 $8.2 $14.6

$24.7

$11.9 $13.4

$11.5 $12.5$12.3 $12.3

$14.7

$15.8

$13.9 $13.2

Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19

Recordmega-round

share(all-time)

Mega-round investments ($B) Non mega-round investments ($B) Mega-round share

Note: Mega-rounds are $100M deals or larger

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 10

US $100M+ rounds are on track to set records againMega-rounds – Quarterly seasonality

$1.2

$2.9$6.9

$4.3 $4.4$7.9

$11.9$0.9 $4.4

$7.3 $7.4 $7.0

$8.2 $13.4

$0.8 $3.5

$7.8 $4.9

$8.2

$14.6

$1.2 $6.9

$6.2

$2.1

$7.6

$24.7

2013 2014 2015 2016 2017 2018 2019 YTD

Record annualmega-round

funding(all-time)

Record quarterly mega-roundfunding(all-time)

$4.1

$55.4

$27.2

$18.7

$28.2

$17.7

$25.3

Q3Q2Q1 Q4 TotalInvestments ($B):

Note: Mega-rounds are $100M deals or larger

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 11

Sector Deals Funding

1 Internet $12.0B

2 Healthcare $4.6B

3 Mobile & Telecommunications $3.1B

4 Software (non-internet/mobile) $2.7B

5 Consumer Products & Services $.7B52

132

167

221

620

Internet companies raised the most funding rounds of any sectorDeals and dollars – US sectors

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 12

Q2 2019 saw one $1B+ funding round (13th largest of all time)Largest US deals of Q2 2019

Company Investment Round Select investors Vertical

1 Cruise AutomationSan Francisco, CA

$1.15B Corporate Minority

General Motors Automotive & Transportation

2 DoorDashSan Francisco, CA

$600M Series E+ Coatue Management, Darsana Capital Partners, Dragoneer Investment Group

Internet

2 UiPathNew York, NY

$600M Series D+ Accel, capitalG, Coatue Management, Dragoneer Investment Group

Software

3 SpaceXHawthorne, CA

$536M Other Undisclosed Industrial

4 SoFiSan Francisco, CA

$500M Series E+ Marketplace Funds, Qatar Investment Authority, Third Point Ventures

Internet

4 UberSan Francisco, CA

$500M Corporate Minority

PayPal Mobile & Telecommunications

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 13

Company Funding Vertical Emerging areas Select investors

1 Juul LabsSan Francisco, CA

$13.6B Consumer Products & Services Consumer Hardware

Coatue Management, D1 Capital Partners, Tiger Global Management

2 WeWorkNew York, NY

$6.6B Business Product & Services Co-Working & Co-Living Spaces

T. Rowe Price, Benchmark Capital,Softbank Group

3 AirbnbSan Francisco, CA

$3.4B InternetE-Commerce

On-Demand Sequoia Capital, Andreessen Horowitz,Greylock Partners, General Catalyst

4 SpaceXHawthorne, CA

$2.7B IndustrialAerospace & Defense

Space Tech Founders Fund, Threshold Ventures, Fidelity Investments, Google

5 Magic LeapPlantation, FL

$2.6B Software (non-internet/mobile)Scientific, Engineering Software

AR/VR Alibaba Group, Fidelity Investments, Google

Juul moves into the #1 spot following Uber’s IPOTop 5 funded US companies – Q2 2019

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 14

Q2’19 saw new US unicorns at near-record levelsUnicorns – New US VC-backed unicorns by quarter

8 7 7 8

1922

1619

Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19

Record new unicorns(all-time)

Note: Unicorns are startups valued at $1B or more

US VC-backed unicorn births

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 15

Record population(all-time)

Unicorn population remains at record level, despite recent exitsUS unicorn population

108 111 114 114127

143157 167

Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19

Unicorn population count

Note: Unicorns are startups valued at $1B or more

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 16

Record aggregate unicorn valuation

(all-time)

Unicorn valuations ($B)

$376.9 $378.8 $402.9 $412.3 $473.3

$575.6 $603.3 $552.9

Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19

Total value of US unicorns fell from record highs in Q1’19Unicorns – US aggregate unicorn valuation

Note: Unicorns are startups valued at $1B or more

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 17

Company Valuation Vertical Emerging areas Select investors

1 Juul Labs San Francisco, CA

$50.0B Consumer Products & ServicesConsumer Electronics

Consumer Hardware

Coatue Management, D1 Capital Partners, Tiger Global Management

2 WeWorkNew York, NY

$47.0B Business Product & Services Co-Working & Co-Living Spaces

T. Rowe Price, Benchmark Capital,Softbank Group

3 AirbnbSan Francisco, CA

$29.3B Internet On-Demand General Catalyst Partners,AndreessenHorowitz, ENIAC Ventures

4 StripeSan Francisco, CA

$22.5B Internet Fin Tech Khosla Ventures, Lowercase Capital,capitalG

5 SpaceXHawthorne, CA

$18.5B IndustrialAerospace & Defense

Space Tech Founders Fund, Threshold Ventures, Fidelity Investments, Google

Juul replaces Uber as the most highly valued VC-backed companyTop 5 highest valued US unicorns — Q2 2019

Note: Unicorns are startups valued at $1B or more

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 18

7.9

6.7 6.6 6.86.2

7.16.3

7.5

149 157 165179

162183

162 163

Q3‘17 Q4‘17 Q1‘18 Q2‘18 Q3‘18 Q4‘18 Q1'19 Q2'19

Time-to-liquidation reaches highest level since Q3 2017 US M&A exits — Quarterly

Note: Median years to liquidate from first funding

Record exits

(all-time)

M&A exits Years

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 19

11

24

13

32

25

16 15

33

Q3‘17 Q4‘17 Q1‘18 Q2‘18 Q3‘18 Q4‘18 Q1'19 Q2'19

5.8

8.8

4.5

6.77.1 7.4

5.4

7.39th fastest(this century)

8thhighest(ever)

IPO activity Years to IPO

US IPO exits reach 8-quarter record in Q2’19 US IPOs — Quarterly

Note: Median years to liquidate from first funding

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 20

7.96.7 6.6 6.8

6.27.1

6.37.5

5.8

8.8

4.5

6.7

7.1 7.4

5.4

7.3

Q3 ‘17 Q4 ‘17 Q1 ‘18 Q2 ‘18 Q3 ‘18 Q4 ‘18 Q1'19 Q2'19

Time-to-liquidation converges for M&A and IPO exitsM&A exits and IPOs combined — Time-to-liquidation

Years to M&A Years to IPO

Note: Median years to liquidate from first funding

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 21

149 157 165 179162

183162 163

1124 13

3225

1615 33

Q1’18 Q2’18 Q3’18Q4’17Q3’17 Q1’19Q4’18 Q2’19

Q2’19 M&A exits nearly flat, but IPOs more than double from Q1M&A exits and IPOs combined — Number of exits

IPO exitsM&A exits

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 22

Internet and Healthcare sectors dominate the top dealsTop 5 M&A exits of Q2 2019

Company Last round Valuation Verticals Select prior investors Buyer

1 LookerSanta Cruz, CA

Series E $2.6B Internet Redpoint Ventures, Goldman Sachs, First Round Capital

Google

2 Peloton TherapeuticsDallas, TX

Series E $2.2B Healthcare BVF Partners, Foresite Capital, Nextech Invest

Merck & Co.

3 Harry’s Razor CompanyNew York, NY

Series D $1.4B Internet Tiger Global Management, Thrive Capital, Temasek Holdings

EdgewellPersonal Care Co.

4 KyribaSan Diego, CA

Series E $1.2B Internet Upfront Ventures, Iris Capital, HSBC Venture Capital

Bridgepoint

5 Paragon BioservicesBaltimore, MD

Series B $1.2B Healthcare Camden Partners, NewSpringHoldings

Catalent

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 23

San Francisco Bay Area sees continued surge of top IPOsTop 5 IPOs of Q2 2019

Company Last round Valuation Verticals Select prior investors

1 UberSan Francisco, CA

Corporate Minority

$75.5B Mobile & Telecommunications SoftBank Group, DiDi Chuxing, Barclays Bank, Citigroup, Goldman Sachs

2 Slack TechnologiesSan Francisco, CA

Series H $15.7B Internet Atlassian, Accel, GGV Capital, Comcast Ventures, Index Ventures

3 Pinterest San Francisco, CA

Series H $12.7B Internet Andreessen Horowitz, Bessemer Venture Partners, FirstMark Capital

4 Zoom Video CommunicationsSan Jose, CA

Series D $9.2B Internet Sequoia Capital, Emergence Capital, Qualcomm Ventures

5 Adaptive BiotechnologiesSeattle, WA

Corporate Minority

$2.4B Healthcare Labcorp, Viking Global Investors, Tiger Management Corp

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24Source: PwC / CB Insights MoneyTree™ Report Q2 2019

Three top metros raise notably more rounds in Q2’19Top 10 Metros by deal activity

#1 San Jose-San Francisco-Oakland, CA#2 New York-Newark, NY-NJ-CT-PA#3 Boston-Worcester-Providence, MA-RI-NH-CT#4 Los-Angeles-Long Beach, CA#5 Seattle-Tacoma, WA#6 Denver-Aurora, CO#7 Austin-Round Rock, TX#8 Washington-Baltimore-Arlington, DC-MD-VA-WV-PA#9 San Diego-Carlsbad, CA#10 Chicago-Naperville, IL-IN-WI

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25Source: PwC / CB Insights MoneyTree™ Report Q2 2019

Eight top metros raise more capital in Q2’19Top 10 Metros by investments

#1 San Jose-San Francisco-Oakland, CA#2 New York-Newark, NY-NJ-CT-PA#3 Boston-Worcester-Providence, MA-RI-NH-CT#4 Los-Angeles-Long Beach, CA#5 San Diego-Carlsbad, CA#6 Seattle-Tacoma, WA#7 Chicago-Naperville, IL-IN-WI#8 Salt Lake City-Provo-Orem, UT#9 Denver-Aurora, CO#10 Raleigh-Durham-Chapel Hill, NC

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 26

120

103

119115

102 105

74

87

$1.3$0.9

$1.8 $1.7

$0.6

$2.0$1.6 $1.6

Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19

Investments ($B) # of Deals

Quarterly deals rebound after sharp declineLA Metro deals and dollars – Quarterly

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 27

One mega-round eclipses other top LA dealsTop 5 LA Metro dealsCompany Investment Round Select investors Vertical

1 SpaceXHawthorne, CA

$536M N/A N/A Industrial

2 Virgin Hyperloop OneLos Angeles, CA

$172M Series C DP World Automotive & Transportation

3 Restaurant365Irvine, CA

$88M Series C Bessemer VenturePartners, Tiger Global Management

Internet

4 VideoAmpLos Angeles, CA

$70M Series C Ankona Capital, The Raine Group Internet

5 Criteria CorpWest Hollywood, CA

$56M Private Equity Sumeru Equity Partners Internet

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 28

483449

528 514

441419

374

438

$6.6 $8.8 $10.9 $10.2

$14.0

$25.3

$12.2 $13.7

Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19

Investments ($B) # of Deals

Deals rebound after three consecutive quarters of declineSan Francisco Bay Area deals and dollars – Quarterly

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 29

Rounds over $500M dominate top dealsTop 5 San Francisco Bay Area dealsCompany Investment Round Select investors Vertical

1 Cruise AutomationSan Francisco, CA

$1.2B Corporate Minority

General Motors, SoftBank Group, T.Rowe Price

Automotive & Transportation

2 DoorDashSan Francisco, CA

$600M Series G SoftBank Group, Sequoia Capital, Temasek Holdings

Internet

3 SoFiSan Francisco, CA

$500M Series G Third Point Ventures, Qatar Investment Authority

Internet

4 UberSan Francisco, CA

$500M Corporate Minority

PayPal Mobile & Telecommunications

5 PAXSan Francisco, CA

$420M Series E Tiger Global Management, Tao Capital Partners, Redmile Group

Consumer Products & Services

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 30

239 233 229241

203

178

230212

$4.7

$3.1 $2.7 $3.0

$5.9

$2.2

$4.5 $4.1

Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19

Investments ($B) # of Deals

Q2’19 deals and dollars decline slightly compared to Q1New York Metro deals and dollars – Quarterly

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 31

Internet, software, and mobile continue to outpace other sectorsTop New York Metro dealsCompany Investment Round Select investors Vertical

1 UiPathNew York, NY

$568M Series D Accel, capitalG, Sequoia Capital

Software (non-internet / mobile)

2 GympassNew York, NY

$300M Series D Atomico, General Atlantic, SoftBank Group

Internet

3 LemonadeNew York, NY

$300M Series D Allianz X, General Catalyst, Google Ventures

Internet

4 FoursquareNew York, NY

$150M Series G The Raine Group Mobile & Telecommunications

5 SpringWorks TherapeuticsStamford, CT

$125M Series B Bain Capital, GlaxoSmithKline, OrbiMed Advisors

Healthcare

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 32

3538

27

40

27

34

23

39

$574.6

$296.5 $392.5

$589.6

$924.8

$741.6

$296.3

$805.8

Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19

Investments ($M) # of Deals

San Diego metro deals and dollars jump in Q2’19San Diego Metro deals and dollars – Quarterly

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 33

Healthcare startups dominate San Diego top dealsTop San Diego Metro dealsCompany Investment Round Select investors Vertical

1 Poseida TherapeuticsSan Diego, CA

$142M Series C Novartis, Aisling Capital, Vivo Capital

Healthcare

2 TuSimpleSan Diego, CA

$105M Series D CDH Investments, Sina Weibo Fund

Software

3 Acutus MedicalCarlsbad, CA

$100M Series D 8VC, Advent Venture Partners, GE Ventures

Healthcare

4 Vividion TherapeuticsSan Diego, CA

$82M Series B ARCH Venture Partners, Versant Ventures, BVF Partners

Healthcare

5 LocanaSan Diego, CA

$55M Series A ARCH Venture Partners, Google Ventures, Temasek Holdings

Healthcare

5 TealiumSan Diego, CA

$55M Series F Presidio Ventures, Bain Capital Ventures, Silver Lake Partners

Internet

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 34

53

40 39

61

45

37

46 45

$691.0

$326.5 $351.0

$811.7 $656.6

$227.1

$473.7

$668.1

Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19

Investments ($M) # of Deals

Seattle funding jumps, deals down slightly in Q2’19Seattle Metro deals and dollars – Quarterly

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 35

Seattle-based startups raise two $100M+ deals in Q2’19Top Seattle Metro dealsCompany Investment Round Select investors Vertical

1 OutreachSeattle, WA

$114M Series E DFJ Growth Fund, Sapphire Ventures, Spark Capital

Internet

2 Auth0Bellevue, WA

$103M Series E Bessemer Venture Partners, K9 Ventures, Trinity Ventures

Internet

3 HighspotSeattle, WA

$60M Series D ICONIQ Capital, Sapphire Ventures, Shasta Ventures

Internet

4 ZenotiBellevue, WA

$50M Series C Accel, Norwest Venture Partners, Tiger Global Management

Internet

5 FlexeSeattle, WA

$43M Series B Madrona Venture Group, Redpoint Ventures, Tiger Global Management

Internet

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36Source: PwC / CB Insights MoneyTree™ Report Q2 2019

California and Washington materially increased deals in Q2’19Top 10 States by deal activity

#1 California

#5 Washington

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37Source: PwC / CB Insights MoneyTree™ Report Q2 2019

Seven top states raise more capital in Q2’19Top 10 States by investments

#1 California

#5 Washington#4 Florida

#7 Illinois#8 Colorado#9 Utah#10 North Carolina

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 38

650595

681 688

583 565

485

576

$8.5 $10.1 $13.1 $12.8

$15.8

$28.1

$14.3 $16.2

Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19

Investments ($B) # of Deals

California deal activity and funding jump in Q2’19California deals and dollars – Quarterly

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 39

15

29

21

24

28

24

2122

$1,054.0

$601.4 $510.3

$119.0 $230.5 $214.0 $161.1

$742.6

Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19

Investments ($M) # of Deals

Florida funding rises sharply in Q2’19Florida deals and dollars – Quarterly

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 40

53

40 39

62

45

40

47

52

$691.0

$326.5 $351.0

$823.7

$656.6

$280.4

$473.7

$733.1

Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19

Investments ($M) # of Deals

WA deal activity and funding rise for the second-straight quarterWashington deals and dollars – Quarterly

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41Source: PwC / CB Insights MoneyTree™ Report Q2 2019

Startups selling Internet SaaS solutions dominate deal activityTop 10 Verticals by deal activity

#1 Healthcare > Biotechnology#2 Internet > SaaS > Monitoring & Security#3 Internet > SaaS > BI, Analytics & Performance Mgmt#3 Internet > eCommerce > Marketplace#5 Internet > SaaS > Advertising, Sales & Marketing#5 Internet > SaaS > Customer Relationship#7 Internet > SaaS > HR & Workforce Management#8 Internet > SaaS > Accounting & Finance#9 Internet > SaaS > Healthcare#10 Healthcare > Drug Development

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42Source: PwC / CB Insights MoneyTree™ Report Q2 2019

Biotechnology, Drug Development and BI persist as top verticalsTop 10 Verticals by investments

#1 Healthcare > Biotechnology#2 On Premise Software > Scientific, Engineering Software#3 Automotive & Transportation > Automobile Parts#4 Internet > SaaS > Monitoring & Security#5 Internet > SaaS > Accounting & Finance#6 Internet > eCommerce > Marketplace#7 Healthcare > Drug Development#8 Internet > eCommerce > Food & Grocery#9 Internet > SaaS > BI, Analytics & Performance Mgmt#10 Industrial > Aerospace & Defense

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 43

72

55

68

7771

5451

70

$1.2 $1.6

$2.1 $2.1 $2.2

$1.1 $1.3

$1.9

Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19

Investments ($B) # of Deals

Biotech deal activity rises sharply in Q2’19Healthcare Biotechnology deals and dollars – Quarterly

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 44

23

35

23

39

32

27

31 30

$629

$1,412

$1,098 $1,312

$903 $1,056 $953 $948

Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19

Investments ($M) # of Deals

Drug Development financing declines slightly in Q2’19Healthcare Drug Development deals and dollars – Quarterly

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 45

53 5257 57

66

54

41 40

$563 $517 $516

$1,461

$857 $875

$444 $665

Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19

Investments ($M) # of Deals

Cloud BI funding rebounds after declining three straight quarters Internet Business Intelligence Software deals and dollars – Quarterly

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46Source: PwC / CB Insights MoneyTree™ Report Q2 2019

Fin Tech and AI tie for the most deals this quarterTop 10 Emerging Areas by deal activity

#1 Fin Tech#1 AI

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47Source: PwC / CB Insights MoneyTree™ Report Q2 2019

Fin Tech continues to raise the most money with AI close behindTop 10 Emerging Areas by investments

#1 Fin Tech#2 AI

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 48

158

131

156 153

119111

128139

$1.5 $1.8 $2.1 $2.6 $2.8 $2.6 $2.7

$4.9

Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19

Investments ($B) # of Deals

AI-related financing increases for the second-straight quarterArtificial Intelligence deals and dollars – Quarterly

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 49

The AI sector saw one $1B+ deal in Q2’19Top Artificial Intelligence dealsCompany Investment Round Select investors Vertical

1 Cruise AutomationSan Francisco, CA

$1.15B Corporate Minority

General Motors, Honda, SoftBank Group

Automotive & Transportation

2 UiPathNew York, NY

$568M Series D Accel, capital, CoatueManagement, DragoneerInvestment Group

Software

3 LemonadeNew York, NY

$300M Series D Allianz X, General Catalyst, Google Ventures

Internet

4 AfirmSan Francisco, CA

$300M Series E+ Baillie Gifford & Co. Fidelity Investments, Founders Fund

Mobile & Telecommunications

5 TempusChicago, IL

$200M Series E+ Baillie Gifford & Co., Franklin Templeton Investments, New Enterprise Associates

Healthcare

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 50

164 161

217

180 174158

177

139

$2.3 $2.5 $2.5 $3.4 $3.0

$3.5 $3.6

$5.1

Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19

Investments ($B) # of Deals

Fin Tech-related deals fall amid rise in fundingFin Tech deals and dollars – Quarterly

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 51

Top 5 Fin Tech deals all $300M and higherTop Fin Tech dealsCompany Investment Round Select investors Vertical

1 UiPathNew York, NY

$568M Series D Accel, capital, CoatueManagement, DragoneerInvestment Group

Software

2 SoFiSan Francisco, CA

$500M Series E+ Marketplace Funds, Qatar Investment Authority, Third Point Ventures

Internet

3 CartaPalo Alto, CA

$300M Series E+ Andreessen Horowitz, Goldman Sachs, Principal Strategic Investments

Internet

4 LemonadeNew York, NY

$300M Series D Allianz X, General Catalyst, Google Ventures

Internet

5 AffirmSan Francisco, CA

$300M Series E+ Baillie Gifford & Co. Fidelity Investments, Founders Fund

Mobile & Telecommunications

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 52

71

60

71 73

5652

68

56

$1.1 $0.8

$0.6

$1.7

$1.1 $1.1

$1.8 $2.1

Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19

Investments ($B) # of Deals

Cybersecurity deals fall amid slight rise in funding in Q2’19Cybersecurity deals and dollars – Quarterly

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 53

Cybersecurity companies saw multiple $100M+ deals in Q2’19Top Cybersecurity dealsCompany Investment Round Select investors Vertical

1 KnowBe4Clearwater, FL

$300M Series D Elephant Venture Capital, KKR, Ten Eleven Ventures

Internet

2 Digital GuardianWaltham, MA

$154M Series E+ Fairhaven Capital, LLR Partners, Neocarta Ventures

Software (non-internet/mobile)

3 DruvaSunnyvale, CA

$130M Series E+ Atreides Management, Neuberger Berman, Nexus Venture Partners

Internet

4 SentinelOneMountain View, CA

$120M Series D Data Collective, Granite Hill Capital Partners, Insight Partners

Computer Hardware & Services

5 DashlaneNew York, NY

$110M Series D Balderton Capital, Bessemer Venture Partners, FirstMarkCapital

Internet

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 54

129

99

117

164

127

93105

130

$1.2 $1.3

$1.9 $1.9

$2.7

$1.9 $1.4

$2.3

Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19

Investments ($B) # of Deals

Digital Health sector deals and dollars jumped in Q2’19Digital Health deals and dollars – Quarterly

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 55

Digital health startups raised multiple $100M+ rounds in Q2Top Digital Health dealsCompany Investment Round Select investors Vertical

1 Collective HealthSan Francisco, CA

$205M Series E+ DFJ Growth Fund, Founders Fund, Google Ventures

Financial

2 TempusChicago, IL

$200M Series E+ Baillie Gifford & Co., Franklin Templeton Investments, New Enterprise Associates

Healthcare

3 Encoded TherapeuticsSan Francisco, CA

$104M Series C Alexandria Venture Investments, Altitude Life Science Ventures, ARCH Venture Partners

Healthcare

4 BHEBoston, MA

$78M Growth Equity

Leerink Transformation Partners, Silversmith Capital Partners

Software (non-internet/mobile)

5 Omada HealthSan Francisco, CA

$73M Series E+ Andreessen Horowitz, Cigna Ventures, Civilization Ventures

Internet

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 56

Investor Funds raised (2015–Q2’19)

Year founded

Select investments Location

1 Sequoia Capital* $17.5B 1972 DoorDash, Noom, Klarna Menlo Park, CA

2 Insight Partners $12.5B 1995 SalesLoft, ezCater, Checkout.com New York, NY

3 Andreessen Horowitz $9.7B 2009 TripActions, ADDI, People.ai Menlo Park, CA

4 Summit Partners $9.1B 1984 Red Canary, Klaviyo Boston, MA

5 New Enterprise Associates $6.5B 1977 Collective Health, Tempus Menlo Park, CA

The top 5 VCs have raised over $55B since 2015 Top VCs by amount raised

Note: includes all funds under the Sequoia Capital umbrella

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 57

Only one top 5 VC is focused on seed-stage dealsMost active VCs in Q2 2019

Investor Deals Select investments Location

1 New Enterprise Associates 28 Coursera, Collective Health, Expel Menlo Park, CA

2 Plug and Play Ventures 24 Zippia, Datch, Back Office Sunnyvale, CA

3 Lightspeed Venture Partners 19 People.ai, BetterUp, Affirm Menlo Park, CA

4 Google Ventures 19 Harness, Lemonade, Hover Mountain View, CA

5 Kleiner Perkins 17 Nextdoor, Feather, Labelbox Menlo Park, CA

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 58

1,6911,552

1,698 1,8101,596

1,475 1,468 1,519

1,032 1,139 1,166 1,540 1,5371,259 1,181 1,169

750 747 758 784 718 779 759 786

Q3‘17 Q4‘17 Q1‘18 Q2‘18 Q3‘18 Q4‘18 Q1‘19 Q2‘19

North American deal activity pulls firmly ahead of AsiaGlobal deal activity: North America, Asia, and Europe

# of deals: North America Asia Europe

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 59

$22 $21 $24 $26

$30

$40

$27 $30

$20 $23

$20 $22 $20 $22 $19

$15

$6 $5 $5 $6 $5 $5 $8 $8

Q3‘17 Q4‘17 Q1‘18 Q2‘18 Q3‘18 Q4‘18 Q1'19 Q2'19

North America maintains dollar funding lead over AsiaGlobal dollar funding: North America, Asia, and Europe

Investments ($B): EuropeAsiaNorth America

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 60

SoftBank Group leads the world’s largest deals Largest global deals of Q2 2019Company Investment Round Select investors Vertical

1 Cruise AutomationSan Francisco, USA

$1.15B Corporate Minority

General Motors, Honda, SoftBank Group

Automotive & Transportation

2 RappiBogota, Colombia

$1.00B Corporate Minority

SoftBank Group Mobile & Telecommunications

3 GreensillLondon, UK

$800M Corporate Minority

SoftBank Group Financial

4 Face++Beijing, China

$750M Series D Alibaba Group, Macquarie Group Software (non-internet/mobile)

5 DoorDashSan Francisco, USA

$600M Series G Coatue Management, SoftBankGroup, DST Global

Internet

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AppendixPwC / CB InsightsMoneyTree™ ReportQ2 2019

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Source: PwC / CB Insights MoneyTree™ Report Q2 2019 62

US States: Full listing of Q2 2019 deals and investments

State $M Deals State $M Deals State $M Deals State $M Deals

Alabama 8 2 Illinois 490 36 Missouri 42 11 Pennsylvania 204 25

Arizona 177 15 Indiana 37 13 Nebraska 2 1 South Carolina 24 5

California 16,227 576 Kansas 25 1 Nevada 4 2 Tennessee 86 10

Colorado 402 45 Kentucky 107 5 New Jersey 86 11 Texas 687 72

Connecticut 154 10 Louisiana 8 1 New Mexico 185 6 Utah 402 20

DC 57 6 Maine 102 2 New York 3,883 203 Virginia 131 23

Delaware 93 3 Maryland 224 21 North Carolina 381 19 Washington 733 52

Florida 743 22 Massachusetts 2,207 112 Ohio 131 11 Wisconsin 69 12

Georgia 208 20 Michigan 268 9 Oklahoma 4 1

Hawaii NA 1 Minnesota 47 12 Oregon 50 7

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63

What is included:• Equity financings into emerging companies. Fundings must be to VC-backed

companies, which are defined as companies that have received funding atany point from either: venture capital firms, corporate venture arms, or superangel investors.

• Fundings of private companies only. Funding rounds raised by public companies ofany 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 tranched investments. If acompany does a second closing of its Series B round for $5M and previously hadclosed $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 companyindicates the closing of $5M out of a desired raise of $15M, our numbers reflectonly the amount which has closed.

• Only verifiable fundings are included. Fundings are verified via (1) various federaland state regulatory filings; (2) direct confirmation with firm or investor; (3) pressrelease; or (4) credible media sources.

• Equity fundings to joint ventures and spinoffs/spinouts are included, given that theymeet the VC-backed criteria.

• Geography note: Israel funding figures are classified inAsia.

What is excluded:• 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 largercorporation, this is not equity financing nor is it from venture capital firms. As aresult, it is not included.

• No buyouts, consolidations or recapitalizations. All three of these transaction typesare 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 (PrivateInvestment in Public Equities), are not included even if made by a venturecapital firm(s).

• No debt/loans of any kind (except convertible notes). Venture debt or any kind ofdebt/loan issued to emerging, startup companies, even if included as an additionalpart of an equity financing, is not included. If a company receives $3M with $2Mfrom venture investors and $1M in debt, only the $2M is included in these statistics.

• No non-equity government funding. Grants or loans by the federal government,state agencies, or public-private partnerships to emerging, startup companiesare not included.

• No fundings to subsidiaries of a larger parent corporation.

PwC (pwc.com/moneytree) and CB Insights (cbinsights.com) encourage you to review the methodology and definitions employed to better understandthe 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 email to [email protected] and we can work together toensure your firm’s investment data is up-to-date.

Rankings, e.g., top states and top sectors, are done by quarterly deal activity (that is, deal count for the given quarter).

Methodology MoneyTree definitions

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64

Disclaimer

This content is for general information purposes only, and should not be used as a substitute for consultation withprofessional advisors. Data is current as of July 11, 2019. PricewaterhouseCoopers and CB Insights have takenresponsible steps to ensure that the information contained in the MoneyTree™ Report has been obtained from reliablesources. 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.© 2019 PwC. All rights reserved. PwC refers to the US member firm or one of its subsidiaries or affiliates, and maysometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structurefor further details.