Venture Capital Report
U.S. | 1Q | 2015
Venture Capital Report The following report presents Dow Jones VentureSource’s quarterly findings for U.S. venture capital fundraising, investment, valuation, and liquidity. The included charts and graphs offer a comprehensive view of the trends currently affecting the venture capital market. Highlights for 1Q 2015 include: U.S. venture capital fundraising decreased both in number of funds and amount invested; Venture capital investment into U.S. companies experienced a minimal increase quarter-over-quarter ;
Median pre-money valuation increased 29% from 4Q 2014; Amounts raised through both Initial public offerings (IPOs) and mergers and acquisitions (M&As) experienced a decrease from the previous quarter.
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Venture Capital Report
U.S. VC Fundraising (2012 – 2015) Based on multiple closings
Venture Fundraising Increases in U.S. during 1Q 2015 56 funds garnered $8.1 billion in 1Q 2015, a 2% decrease in the amount raised, and also a 42% drop in number of funds from the prior quarter. Bessemer Venture Partners IX LP was the largest U.S. venture capital fund of 1Q 2015 raising $1.6 billion and accounting for 20% of the total amount raised during the quarter. Median U.S. fund size was $121 million in the first quarter of 2015.
FUNDRAISING
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1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 Amount Raised ($B) $7.45 $6.60 $5.04 $3.63 $4.60 $6.69 $4.10 $5.04 $10.4 $8.08 $6.49 $8.29 $8.10
Number of Funds 55 48 54 59 60 56 65 82 81 86 84 97 56
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Venture Capital Report Largest VC Funds Raised in 1Q 2015
Firm Name Fund Name Amount ($M) City State Offering Status Fund Type Fund Category Closing Type
Bessemer Venture Partners Bessemer Venture Partners IX LP $1,600.00 Larchmont NY Closed MulA-‐stage
venture capital
Venture Capital Final
Insight Venture Partners Insight Venture Partners IX LP $1,512.04 New York NY Open Late-‐stage venture
capital
Venture Capital First
OrbiMed Advisors LLC OrbiMed Royalty OpportuniAes II LP $924.00 New York NY Closed Late-‐stage venture
capital
Venture Capital Final
Insight Venture Partners Insight Venture Partners (Cayman) IX LP $596.00 New York NY Open Late-‐stage venture
capital
Venture Capital First
Flagship Ventures Flagship Ventures Fund V LP $537.00 Cambridge MA Closed Early-‐stage venture capital
Venture Capital Final
FUNDRAISING
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Venture Capital Report
FINANCING
Equity Financings into U.S. – based, VC-backed Companies (2012 – 2015)
U.S. Venture Investment in 1Q 2015 Registers Slight Improvement from 4Q 2014 U.S.-based companies raised $15.7 billion in 875 venture capital deals in 1Q 2015, a 1% rise in capital raised, however, the number of deals fell slightly (2%) from the previous quarter. Compared to the same period in 2014, amount invested went up 27%, while number of deals registered a 9% decrease. Healthcare and Business and Financial Services are the strongest sectors, respectively with 25% and 24% share of total amount invested.
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1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 Amount Raised ($B) $7.76 $9.65 $8.18 $9.14 $7.67 $8.83 $9.40 $9.72 $12.41 $15.21 $11.45 $15.57 $15.72
Number of Deals 898 1022 942 937 921 960 960 1025 960 1010 944 890 875
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1000
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Venture Capital Report
Equity Financings into U.S.–based, VC–backed Companies, by Round Class (Quarter over Quarter, 2012 – 2015) Number of Deals
FINANCING
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1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 Restart 11 14 11 18 7 7 8 11 8 8 8 6 6
Later 252 308 285 282 264 286 274 279 292 353 288 307 308
Second 143 182 147 161 148 203 199 212 189 218 197 180 219
First 309 357 327 316 345 310 332 379 323 337 339 323 277
Seed 138 121 122 110 123 123 108 93 102 55 76 41 44
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Venture Capital Report
FINANCING
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Equity Financings into U.S.–based, VC–backed Companies, by Round Class (2012 – 2015) Amount Raised ($B)
1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 Restart $0.08 $0.16 $0.24 $0.69 $0.08 $0.18 $0.08 $0.11 $0.29 $0.17 $0.11 $0.10 $0.04
Later $4.16 $5.43 $4.79 $4.34 $4.48 $4.96 $5.14 $5.25 $7.01 $10.10 $6.19 $10.01 $9.58
Second $1.13 $1.66 $1.32 $1.41 $1.34 $1.81 $1.59 $1.91 $1.97 $2.66 $1.94 $2.68 $3.13
First $1.46 $1.97 $1.45 $1.75 $1.50 $1.37 $1.73 $2.04 $1.70 $1.99 $2.02 $2.26 $2.01
Seed $0.10 $0.10 $0.10 $0.09 $0.09 $0.10 $0.10 $0.09 $0.08 $0.07 $0.10 $0.05 $0.05
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Venture Capital Report
FINANCING
Equity Financings into U.S.-based, VC-backed Companies, Median Deal Size ($M) (2012 – 2015) Median Equity Deal Size ($M)
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1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 Median Equity Deal Size ($M) $3.80 $4.51 $3.66 $4.08 $4.00 $4.43 $3.62 $4.23 $4.31 $6.29 $5.00 $6.60 $6.64
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Venture Capital Report
24%
1%
23%
1%
25%
8%
18% Business and Financial Services
Consumer Goods
Consumer Services
Energy & Utilities
Healthcare
Industrial Goods & Materials
Information Technology
230
22
156
16 185
24
240
Business and Financial Services
Consumer Goods
Consumer Services
Energy & Utilities
Healthcare
Industrial Goods & Materials
Information Technology
Equity Financings into U.S.-based, VC-backed Companies, by Industry Group (1Q 2015) Healthcare received the largest investment allocation during 1Q’15 (25%), accumulating $3.9 billion through 185 deals. The figures represent a respective increase of 50% and 19% from 4Q’14. The Business and Financial sector placed second in terms of equity financing, taking a 24% share of all 1Q’15 investment. 230 deals drew $3.7 billion, up 4% in capital raised. Consumer Services ranked third with almost $3.7 billion in 156 deals, dropping 17% from the $4.4 billion accumulated in the previous quarter. The sector’s investment figure represents a 23% share of total equity investment into U.S. VC-backed companies for the quarter. $2.8 billion were raised by Information Technology (IT) in 240 deals, a decrease of 26% in capital invested and 9% in deal flow.
1Q'15 Industry Breakdown By Number of Deals
1Q’15 Industry Breakdown By Amount Raised ($B)
FINANCING
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Venture Capital Report
Co. Name Loca@on Industry Group
Industry Segment Industry Code Brief Descrip@on Close Date Round Type Raised
($M) Round Investors (* denotes lead)
Space ExploraAon Technologies
Corp.
Hawthorne, CA
Industrial Goods and Materials
Aerospace and Defense Satellites/Spacecra_ Provider of space launch services.
1/19/2015 Later $1,000.00
Capricorn Capital Partners, Draper Fisher Jurvetson,
Fidelity Investments, Founders Fund LLC, Google Inc.*, Valor
Equity Partners
Ly_ Inc. San Francisco, CA
Consumer Services Travel and Leisure TransportaAon
Services
Provider of an on-‐demand ridesharing service
placorm. 3/12/2015 6th $530.00
Alibaba Group Holding Ltd., Andreessen Horowitz, Fortress
Investment Group LLC, Rakuten Inc.*, Third Point
Reinsurance Ltd.
Moderna LLC Cambridge, MA Healthcare BiopharmaceuAcals Biotechnology
TherapeuAcs
Developer of injectable messenger RNA (mRNA) molecules that trigger producAon of protein drugs in the body.
1/5/2015 4th $450.00
Alexion PharmaceuAcals, AstraZeneca Plc, Invus Group, RA Capital Management LLC, Viking Global Investors LP, Wellington Management Co.
LLP
Pinterest Inc. San Francisco, CA Consumer Services
Consumer InformaAon Services
Online CommuniAes Provider of a virtual pinboard.
2/27/2015 8th $367.10 Andreessen Horowitz, Bessemer Venture Partners
Dra_Kings Inc. Boston, MA Consumer Services
Consumer InformaAon Services
Entertainment Provider of a daily fantasy sports games placorm.
3/31/2015 Corporate $250.00 Walt Disney Co.*
Top 5 Deals into VC-backed Companies (1Q 2015)
FINANCING
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Venture Capital Report
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New Enterprise Associates Inc.
Andreessen Horowitz First Round Capital Kleiner Perkins Caufield & Byers
Accel Partners
Most Active Investors for U.S.-based, VC-backed Companies (1Q 2015)
FINANCING
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Venture Capital Report
Amount Raised ($B) in 1Q 2015 by Primary Region
Number of Deals by Primary Region 1Q 2015 0 170 18 46 44 102 297 35 43 50 68
Alaska/ Islands Mid-Atlantic Midwest Central Midwest East Mountain New England Northern California Pacific Northwest South Central South East Southern California
Amount Raised ($B) by Primary Region 1Q 2015 $0.00 $2.15 $0.16 $0.31 $0.80 $1.99 $5.92 $0.69 $0.81 $0.51 $2.37
Alaska/Islands
Mid-Atlantic
Midwest Central
Midwest East
Mountain
New England
Northern California
Pacific Northwest
South Central
South East
Southern California
Number of Deals in 1Q 2015 by Primary Region
FINANCING
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Alaska/Islands
Mid-Atlantic
Midwest Central
Midwest East
Mountain
New England
Northern California
Pacific Northwest
South Central
South East
Southern California
Venture Capital Report
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$0.49
$0.24
$0.63
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$0.27
$1.78
$0.30
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$1.78
$5.69
Chicago Metro
Dallas-Fort Worth
Austin Metro
Seattle Metro
Orange County
San Diego Metro
Los Angeles Metro
Potomac
New York Metro
Boston Metro
San Francisco Bay Area
Amount Raised ($B) by subregion
Subregion Breakout Amount Raised ($B)
Number of Deals by subregion 1Q 2015
Amount Raised ($B) by subregion 1Q 2015
Subregion Breakout Number of Deals
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Chicago Metro
Dallas-Fort Worth
Austin Metro
Seattle Metro
Orange County
San Diego Metro
Los Angeles Metro
Potomac
New York Metro
Boston Metro
San Francisco Bay Area
Number of Deals by Subregion
FINANCING
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San Francisco Bay Area 296 $5.69 Boston Metro 93 $1.78 New York Metro 104 $1.55 Potomac 32 $0.30 Los Angeles Metro 40 $1.78 San Diego Metro 16 $0.27 Orange County 9 $0.10 Seattle Metro 26 $0.63 Austin Metro 25 $0.24 Dallas-Fort Worth 6 $0.49 Chicago Metro 11 $0.10
Venture Capital Report
VALUATIONS
Equity Financings into U.S. – based, VC-backed Companies, Median Pre-money Valuation ($M) (2012 – 2015)
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1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 Median Pre-money Valuation ($M) $20.00 $18.63 $27.05 $38.13 $21.00 $24.80 $16.80 $21.63 $25.00 $50.00 $38.33 $52.00 $67.14
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Venture Capital Report
LIQUIDITY
Exit Opportunities for U.S. VC-backed Companies (2012 – 2015)
Venture M&A and IPO Market Activity in the U.S. during 1Q 2015 Mergers and acquisitions (M&As) of venture-backed companies dropped 71% from 4Q 2014, with 104 deals garnering $9.9 billion. Initial public offering (IPO) activity decreased in 1Q 2015 raising $912 million, down 71% from the previous quarter.
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0 20 40 60 80 100 120 140 160
1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15
1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 IPOs 20 12 10 8 9 20 25 20 38 24 22 23 12
M&As 114 127 110 126 102 94 125 131 128 122 134 109 104
Venture Capital Report
U.S. VC-backed M&A Activity (2012 - 2015)
U.S. VC-backed M&As (2012-2015) 104 M&As of venture-backed companies in the U.S. garnered $9.9 billion during 1Q 2015. In contrast with 4Q 2014, when a total of 109 transactions accumulated almost $34 billion, both number of deals and amount raised decreased by 5% and 71% respectively. The largest M&A of the quarter was Flexus Biosciences Inc., which was acquired by Bristol-Myers Squibb (XNYS:BMY) for $1.25 billion.
LIQUIDITY
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1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 Amount Paid ($B) $10.35 $11.83 $11.85 $8.92 $5.67 $9.19 $12.44 $14.09 $15.83 $11.19 $20.27 $33.84 $9.90
Number of M&As 114 127 110 126 102 94 125 131 128 122 134 109 104
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Venture Capital Report Top 3 U.S. M&As (1Q 2015)
Company Name Loca@on Brief Descrip@on Industry Code Industry
Segment Industry Group Close Date Round Type Amount
Paid ($M) Acquirer
Flexus Biosciences Inc. San Carlos, CA Developer of anA-‐cancer
therapeuAcs. Biotechnology TherapeuAcs BiopharmaceuAcals Healthcare 3/23/2015 AcquisiAon $1,250.00 Bristol-‐Myers
Squibb Company
MyFitnessPal Inc. San Francisco, CA
Provider of a nutriAon and fitness tracking applicaAon.
RecreaAonal/Home So_ware So_ware InformaAon
Technology 04/02/2015 AcquisiAon $475.00 Under Armour
Freightquote.com Inc. Lenexa, KS
Provider of Web-‐based freight transportaAon
management services for small businesses.
Procurement/Supply Chain
Business Support Services
Business and Financial Services 3/23/2015 AcquisiAon $365.00 C.H Robinson
Worldwide Inc.
LIQUIDITY
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Venture Capital Report
U.S. VC-backed IPO Activity (2012 - 2015)
U.S. VC-backed IPOs (2012-2015) 12 venture-backed companies raised $912 million through public offerings in 1Q 2015. Number of deals decreased by 48% and capital raised registered a 71% drop from the previous quarter. The largest IPO of the quarter was Box Inc. (NYSE: BOX), which completed a $175 million IPO.
LIQUIDITY
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1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 Raised ($B) through IPO $1.42 $7.75 $0.81 $1.22 $0.64 $1.80 $2.22 $3.55 $2.94 $1.96 $1.30 $3.15 $0.91
Number of IPOs 20 12 10 8 9 20 25 20 38 24 22 23 12
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Venture Capital Report
Company Name Loca@on Brief Descrip@on Industry Code Industry
Segment Industry Group Close Date Round
Type
Raised through IPO
($M) Exchange
Box Inc. Los Altos, CA
Provider of a cloud-‐based, mobile-‐opAmized placorm that gives organizaAons of
all sizes the ability to manage their content and collaborate internally and
externally.
Data Management Services
Business Support Services
Business and Financial Services 1/23/2015 IPO $175.00 NYSE: BOX
Spark TherapeuAcs Inc.
Philadelphia, PA
Developer of therapeuAcs for paAents suffering from
debilitaAng geneAc diseases.
Biotechnology TherapeuAcs BiopharmaceuAcals Healthcare 1/30/2015 IPO $161.00 NASDAQ: ONCE
Invitae Corp. San Francisco, CA
Provider of geneAc informaAon services. Medical/Lab Services Healthcare Services Healthcare 2/12/2015 IPO $101.60 NYSE: NVTA
Top 3 U.S. IPOs (1Q 2015)
LIQUIDITY
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Venture Capital Report
ABOUT US
Dow Jones VentureSource helps venture capitalists, corporate development execu@ves, investment bankers and service providers find deal and partnership opportuni@es, perform comprehensive due diligence and examine trends in venture capital investment, fund-‐raising and liquidity. It provides accurate, comprehensive data on venture-‐backed companies – including their investors and execu@ves – in every region, industry and stage of development throughout the world. The investment figures included in this release are based on aggregate findings of Dow Jones' proprietary research and are contained in VentureSource. This data was collected through surveys of professional firms, interviews with company execu@ves, and from secondary sources. These venture capital sta@s@cs cover equity investments into early stage, innova@ve companies and do not include companies receiving funding solely from corporate, individual, and/or government investors. Figures contained throughout the report current at @me of editorial but are subject to change without no@ce. No statement herein is to be construed as a recommenda@on to buy or sell securi@es or to provide investment advice. About Dow Jones Dow Jones is a global provider of news and business informaAon, delivering content to consumers and organizaAons around the world across mulAple formats, including print, digital, mobile and live events. Dow Jones has produced unrivaled quality content for more than 125 years and today has one of the world’s largest newsgathering operaAons with nearly 2,000 journalists in more than 75 bureaus globally. It produces leading publicaAons and products including the flagship Wall Street Journal, America’s largest newspaper by paid circulaAon; FacAva, Barron’s, MarketWatch, Financial News, DJX, Dow Jones Risk & Compliance, Dow Jones Newswires, and Dow Jones VentureSource. MEDIA CONTACT: Rachel Manfredo 212.416.3834 [email protected]
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