SlideShare ist ein Scribd-Unternehmen logo

Upfront vc analysis 2016

Mark Suster
Mark Suster
Mark SusterPartner, Upfront Ventures um Upfront Ventures

A view of the venture capital markets from Upfront Ventures.

Upfront vc analysis 2016

1 von 37
Downloaden Sie, um offline zu lesen
Venture Capital 2016 - Some Upfront Views
1
Mark Suster
@msuster
There is Some Stuff We All Know
We all know the funding markets for venture-backed
startups have been strong for 7 straight years
2
LP contributions to the VC industry are back to pre-recession levels
and anecdotally 2016 seems likely to increase further
3
US VC fundraising activity
0
75
150
225
300
$0
$15
$30
$45
$60
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Capital raised ($B)
# of funds closed
235
271
209
218
192
176
162
214
235236233
$28
$31
$18
$20$19
$13
$16
$25
$30$31$30
233 236 235
214
162
176
192
218
209
271
235
Source: Dow Jones VentureSource; Upfront analysis.
With more money (and new non VC entrants) venture financings have
obviously increased. 2015 was an enormous year (2x pre recession)
4
US VC financing activity
0
2,500
5,000
7,500
10,000
$0
$25
$50
$75
$100
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Capital invested ($B)
# of rounds closed
8,097
9,381
8,563
7,572
6,428
5,193
4,3164,533
4,119
3,145
2,574
$77
$68
$44
$40$42
$30
$26
$36$35
$28
$23
2,574
3,145
4,119
4,533 4,316
5,193
6,428
7,572
8,563
9,381
8,097
Source: PitchBook 2015 Annual U.S. Venture Industry Report; Upfront analysis.
And what's interesting is that if you look at the spread between dollars raised by VCs
and dollars invested, you see the huge shift from a decade ago of non-VC capital
5 Source: Upfront analysis.
US VC fundraising vs financing (2006-07, $B)
0
35
70
105
140
175
Funds raised by VCs Funds invested by VCs
6361
1x
US VC fundraising vs financing (2014-15, $B)
0
35
70
105
140
175
Funds raised by VCs Funds invested by VCs
145
59
2.5x
Angel & Seed deals have grown fastest but dollars have scaled massively into
a smaller number of later-stage deals (doubling in just 2 years)
6 Source: PitchBook 2015 Annual U.S. Venture Industry Report; Upfront analysis.
US VC # of rounds closed by stage US VC capital invested ($B) by stage
0
10
20
30
40
50
2010 2011 2012 2013 2014 2015
0
1,000
2,000
3,000
4,000
5,000
2010 2011 2012 2013 2014 2015
Early
Stage
CAGR
21%
36%
16%
CAGR
1%
22%
3%
Angel/
Seed
Late
Stage
Early
Stage
Late
Stage
Angel/
Seed
Anzeige

Recomendados

Investment Thesis Fundamentals (April 2016)
Investment Thesis Fundamentals (April 2016)Investment Thesis Fundamentals (April 2016)
Investment Thesis Fundamentals (April 2016)Dave McClure
 
Wealth Dynamics E-Guide
Wealth Dynamics E-GuideWealth Dynamics E-Guide
Wealth Dynamics E-GuideContentGU
 
Customer Acquisition & Monetization - Keys to your Business Model
Customer Acquisition & Monetization -  Keys to your Business ModelCustomer Acquisition & Monetization -  Keys to your Business Model
Customer Acquisition & Monetization - Keys to your Business ModelDavid Skok
 
20 Steps To Your Life Passion
20 Steps To Your Life Passion20 Steps To Your Life Passion
20 Steps To Your Life PassionBarrie Davenport
 
25 Virtual Team Building Activities Remote Teams Love in 2021
25 Virtual Team Building Activities Remote Teams Love in 202125 Virtual Team Building Activities Remote Teams Love in 2021
25 Virtual Team Building Activities Remote Teams Love in 2021Time Doctor
 
How to Build the Perfect Team
 How to Build the Perfect Team How to Build the Perfect Team
How to Build the Perfect TeamWrike
 
Vc fund raising & pitch deck outline
Vc fund raising & pitch deck outlineVc fund raising & pitch deck outline
Vc fund raising & pitch deck outlineThe Rudder Group
 

Más contenido relacionado

Was ist angesagt?

People Don't Care About Your Brand
People Don't Care About Your BrandPeople Don't Care About Your Brand
People Don't Care About Your BrandSlides That Rock
 
5-minute primer on VC Term Sheets
5-minute primer on VC Term Sheets5-minute primer on VC Term Sheets
5-minute primer on VC Term SheetsLeo Dirac
 
Dispatches From The New Economy: The Five Faces Of The On-Demand Economy
Dispatches From The New Economy: The Five Faces Of The On-Demand EconomyDispatches From The New Economy: The Five Faces Of The On-Demand Economy
Dispatches From The New Economy: The Five Faces Of The On-Demand EconomyIntuit Inc.
 
When & How to Raise Venture Capital
When & How to Raise Venture CapitalWhen & How to Raise Venture Capital
When & How to Raise Venture CapitalNew York University
 
Top Tips For Working Smarter
Top Tips For Working SmarterTop Tips For Working Smarter
Top Tips For Working SmarterInterQuest Group
 
Investment and fundraising for startups
Investment and fundraising for startupsInvestment and fundraising for startups
Investment and fundraising for startupsBlaz Kos
 
Startups are Hard. Like, Really Hard. @luketucker
Startups are Hard. Like, Really Hard. @luketuckerStartups are Hard. Like, Really Hard. @luketucker
Startups are Hard. Like, Really Hard. @luketuckerEmpowered Presentations
 
influencers influencing youth.pptx
influencers influencing youth.pptxinfluencers influencing youth.pptx
influencers influencing youth.pptxGauri Joshi
 
Start-up of You, Visual Summary
Start-up of You, Visual SummaryStart-up of You, Visual Summary
Start-up of You, Visual SummaryReid Hoffman
 
Zero to One - Book Summary Report
Zero to One - Book Summary ReportZero to One - Book Summary Report
Zero to One - Book Summary ReportCorey O'Neal
 
Good vs. Great Design
Good vs. Great DesignGood vs. Great Design
Good vs. Great DesignCameron Moll
 
How to go from 0 - 15,000 Customers in 12 Months
How to go from 0 - 15,000 Customers in 12 MonthsHow to go from 0 - 15,000 Customers in 12 Months
How to go from 0 - 15,000 Customers in 12 MonthsKissmetrics on SlideShare
 
Productivity Facts Every Employee Should Know
Productivity Facts Every Employee Should KnowProductivity Facts Every Employee Should Know
Productivity Facts Every Employee Should KnowRobert Half
 
The Art of Picking a Co-founder
The Art of Picking a Co-founder The Art of Picking a Co-founder
The Art of Picking a Co-founder Guy Kawasaki
 
10 Steps great leaders take when things go wrong
10 Steps great leaders take when things go wrong10 Steps great leaders take when things go wrong
10 Steps great leaders take when things go wrongGetSmarter
 
2019 Venture Limited Partner survey
2019 Venture Limited Partner survey2019 Venture Limited Partner survey
2019 Venture Limited Partner surveySamir Kaji
 
Startup Valuation for pre-revenue companies
Startup Valuation for pre-revenue companiesStartup Valuation for pre-revenue companies
Startup Valuation for pre-revenue companiesOlivia Passoni, CVA
 

Was ist angesagt? (20)

People Don't Care About Your Brand
People Don't Care About Your BrandPeople Don't Care About Your Brand
People Don't Care About Your Brand
 
5-minute primer on VC Term Sheets
5-minute primer on VC Term Sheets5-minute primer on VC Term Sheets
5-minute primer on VC Term Sheets
 
The 64 Wealth Vectors
The 64 Wealth VectorsThe 64 Wealth Vectors
The 64 Wealth Vectors
 
Successful in life
Successful in lifeSuccessful in life
Successful in life
 
Dispatches From The New Economy: The Five Faces Of The On-Demand Economy
Dispatches From The New Economy: The Five Faces Of The On-Demand EconomyDispatches From The New Economy: The Five Faces Of The On-Demand Economy
Dispatches From The New Economy: The Five Faces Of The On-Demand Economy
 
When & How to Raise Venture Capital
When & How to Raise Venture CapitalWhen & How to Raise Venture Capital
When & How to Raise Venture Capital
 
Top Tips For Working Smarter
Top Tips For Working SmarterTop Tips For Working Smarter
Top Tips For Working Smarter
 
Investment and fundraising for startups
Investment and fundraising for startupsInvestment and fundraising for startups
Investment and fundraising for startups
 
Startups are Hard. Like, Really Hard. @luketucker
Startups are Hard. Like, Really Hard. @luketuckerStartups are Hard. Like, Really Hard. @luketucker
Startups are Hard. Like, Really Hard. @luketucker
 
influencers influencing youth.pptx
influencers influencing youth.pptxinfluencers influencing youth.pptx
influencers influencing youth.pptx
 
The Helpful VC
The Helpful VC The Helpful VC
The Helpful VC
 
Start-up of You, Visual Summary
Start-up of You, Visual SummaryStart-up of You, Visual Summary
Start-up of You, Visual Summary
 
Zero to One - Book Summary Report
Zero to One - Book Summary ReportZero to One - Book Summary Report
Zero to One - Book Summary Report
 
Good vs. Great Design
Good vs. Great DesignGood vs. Great Design
Good vs. Great Design
 
How to go from 0 - 15,000 Customers in 12 Months
How to go from 0 - 15,000 Customers in 12 MonthsHow to go from 0 - 15,000 Customers in 12 Months
How to go from 0 - 15,000 Customers in 12 Months
 
Productivity Facts Every Employee Should Know
Productivity Facts Every Employee Should KnowProductivity Facts Every Employee Should Know
Productivity Facts Every Employee Should Know
 
The Art of Picking a Co-founder
The Art of Picking a Co-founder The Art of Picking a Co-founder
The Art of Picking a Co-founder
 
10 Steps great leaders take when things go wrong
10 Steps great leaders take when things go wrong10 Steps great leaders take when things go wrong
10 Steps great leaders take when things go wrong
 
2019 Venture Limited Partner survey
2019 Venture Limited Partner survey2019 Venture Limited Partner survey
2019 Venture Limited Partner survey
 
Startup Valuation for pre-revenue companies
Startup Valuation for pre-revenue companiesStartup Valuation for pre-revenue companies
Startup Valuation for pre-revenue companies
 

Ähnlich wie Upfront vc analysis 2016

"What is Different This Time Around" at SaaStr Annual 2016
"What is Different This Time Around" at SaaStr Annual 2016"What is Different This Time Around" at SaaStr Annual 2016
"What is Different This Time Around" at SaaStr Annual 2016saastr
 
VC survey data 2016
VC survey data 2016VC survey data 2016
VC survey data 2016Mark Suster
 
Final upfront lp survey data 2016
Final upfront lp survey data 2016Final upfront lp survey data 2016
Final upfront lp survey data 2016Mark Suster
 
Final venture outlook 2016
Final venture outlook 2016Final venture outlook 2016
Final venture outlook 2016Mark Suster
 
SVB State of the Markets Report
SVB State of the Markets Report SVB State of the Markets Report
SVB State of the Markets Report Silicon Valley Bank
 
Healthcare Investments and Exits Mid-Year 2016 Report
Healthcare Investments and Exits Mid-Year 2016 Report Healthcare Investments and Exits Mid-Year 2016 Report
Healthcare Investments and Exits Mid-Year 2016 Report Silicon Valley Bank
 
Upfront Ventures VC Survey 2017
Upfront Ventures VC Survey 2017Upfront Ventures VC Survey 2017
Upfront Ventures VC Survey 2017Mark Suster
 
Trends in Healthcare Investments and Exits 2016
Trends in Healthcare Investments and Exits 2016Trends in Healthcare Investments and Exits 2016
Trends in Healthcare Investments and Exits 2016Silicon Valley Bank
 
2017 BCVP Entrepreneur Survey
2017 BCVP Entrepreneur Survey2017 BCVP Entrepreneur Survey
2017 BCVP Entrepreneur SurveyJason Caplain
 
TRENDS IN PRIVATE COMPANY FINANCING & EXITS IN OPHTHALMOLOGY
TRENDS IN PRIVATE COMPANY FINANCING & EXITS IN OPHTHALMOLOGYTRENDS IN PRIVATE COMPANY FINANCING & EXITS IN OPHTHALMOLOGY
TRENDS IN PRIVATE COMPANY FINANCING & EXITS IN OPHTHALMOLOGYHealthegy
 
Upfront State of the VC & Tech Industry 2017
Upfront State of the VC & Tech Industry 2017Upfront State of the VC & Tech Industry 2017
Upfront State of the VC & Tech Industry 2017Mark Suster
 
_ C@p_T3st
_ C@p_T3st_ C@p_T3st
_ C@p_T3stflipdemo
 
ClearPath Investment Perspectives - Nov 17 2014
ClearPath Investment Perspectives - Nov  17 2014ClearPath Investment Perspectives - Nov  17 2014
ClearPath Investment Perspectives - Nov 17 2014bcdconna
 
Stocks from the Gurus, Goldman Sachs and Hedge Funds Now
Stocks from the Gurus, Goldman Sachs and Hedge Funds NowStocks from the Gurus, Goldman Sachs and Hedge Funds Now
Stocks from the Gurus, Goldman Sachs and Hedge Funds NowAlpesh Patel
 
CB Insights - Corporate VC 2016
CB Insights - Corporate VC 2016CB Insights - Corporate VC 2016
CB Insights - Corporate VC 2016Roger Atkins
 

Ähnlich wie Upfront vc analysis 2016 (20)

"What is Different This Time Around" at SaaStr Annual 2016
"What is Different This Time Around" at SaaStr Annual 2016"What is Different This Time Around" at SaaStr Annual 2016
"What is Different This Time Around" at SaaStr Annual 2016
 
VC survey data 2016
VC survey data 2016VC survey data 2016
VC survey data 2016
 
Final upfront lp survey data 2016
Final upfront lp survey data 2016Final upfront lp survey data 2016
Final upfront lp survey data 2016
 
Final venture outlook 2016
Final venture outlook 2016Final venture outlook 2016
Final venture outlook 2016
 
SVB State of the Markets Report
SVB State of the Markets Report SVB State of the Markets Report
SVB State of the Markets Report
 
Healthcare Investments and Exits Mid-Year 2016 Report
Healthcare Investments and Exits Mid-Year 2016 Report Healthcare Investments and Exits Mid-Year 2016 Report
Healthcare Investments and Exits Mid-Year 2016 Report
 
SVB China Startup Outlook 2016
SVB China Startup Outlook 2016SVB China Startup Outlook 2016
SVB China Startup Outlook 2016
 
Upfront Ventures VC Survey 2017
Upfront Ventures VC Survey 2017Upfront Ventures VC Survey 2017
Upfront Ventures VC Survey 2017
 
Trends in Healthcare Investments and Exits 2016
Trends in Healthcare Investments and Exits 2016Trends in Healthcare Investments and Exits 2016
Trends in Healthcare Investments and Exits 2016
 
2017 BCVP Entrepreneur Survey
2017 BCVP Entrepreneur Survey2017 BCVP Entrepreneur Survey
2017 BCVP Entrepreneur Survey
 
TRENDS IN PRIVATE COMPANY FINANCING & EXITS IN OPHTHALMOLOGY
TRENDS IN PRIVATE COMPANY FINANCING & EXITS IN OPHTHALMOLOGYTRENDS IN PRIVATE COMPANY FINANCING & EXITS IN OPHTHALMOLOGY
TRENDS IN PRIVATE COMPANY FINANCING & EXITS IN OPHTHALMOLOGY
 
2016 State of the Venture Capital Industry
2016 State of the Venture Capital Industry2016 State of the Venture Capital Industry
2016 State of the Venture Capital Industry
 
Upfront State of the VC & Tech Industry 2017
Upfront State of the VC & Tech Industry 2017Upfront State of the VC & Tech Industry 2017
Upfront State of the VC & Tech Industry 2017
 
State of Private Capital Markets 2011: Update
State of Private Capital Markets 2011: UpdateState of Private Capital Markets 2011: Update
State of Private Capital Markets 2011: Update
 
SVB US Startup Outlook 2016
SVB US Startup Outlook 2016SVB US Startup Outlook 2016
SVB US Startup Outlook 2016
 
_ C@p_T3st
_ C@p_T3st_ C@p_T3st
_ C@p_T3st
 
ClearPath Investment Perspectives - Nov 17 2014
ClearPath Investment Perspectives - Nov  17 2014ClearPath Investment Perspectives - Nov  17 2014
ClearPath Investment Perspectives - Nov 17 2014
 
Stocks from the Gurus, Goldman Sachs and Hedge Funds Now
Stocks from the Gurus, Goldman Sachs and Hedge Funds NowStocks from the Gurus, Goldman Sachs and Hedge Funds Now
Stocks from the Gurus, Goldman Sachs and Hedge Funds Now
 
2019 CEOs Speak Presentation
2019 CEOs Speak Presentation2019 CEOs Speak Presentation
2019 CEOs Speak Presentation
 
CB Insights - Corporate VC 2016
CB Insights - Corporate VC 2016CB Insights - Corporate VC 2016
CB Insights - Corporate VC 2016
 

Mehr von Mark Suster

Funding in the time of Corona Virus
Funding in the time of Corona VirusFunding in the time of Corona Virus
Funding in the time of Corona VirusMark Suster
 
Managing Your Startup Board
Managing Your Startup BoardManaging Your Startup Board
Managing Your Startup BoardMark Suster
 
Seed stage 2019 final
Seed stage 2019   finalSeed stage 2019   final
Seed stage 2019 finalMark Suster
 
Is vc still a thing final
Is vc still a thing   finalIs vc still a thing   final
Is vc still a thing finalMark Suster
 
Staff at vc firms
Staff at vc firmsStaff at vc firms
Staff at vc firmsMark Suster
 
ICO 2.0 Summit - Keynote Presetnation
ICO 2.0 Summit - Keynote PresetnationICO 2.0 Summit - Keynote Presetnation
ICO 2.0 Summit - Keynote PresetnationMark Suster
 
Upfront Ventures Bitcoin & Blockchain VC Survey
Upfront Ventures Bitcoin & Blockchain VC SurveyUpfront Ventures Bitcoin & Blockchain VC Survey
Upfront Ventures Bitcoin & Blockchain VC SurveyMark Suster
 
Upfront Ventures blockchain and crypto deck
Upfront Ventures blockchain and crypto deckUpfront Ventures blockchain and crypto deck
Upfront Ventures blockchain and crypto deckMark Suster
 
Fundstrat Bitcoin & Blockchain presentation for Upfront Summit
Fundstrat Bitcoin & Blockchain presentation for Upfront SummitFundstrat Bitcoin & Blockchain presentation for Upfront Summit
Fundstrat Bitcoin & Blockchain presentation for Upfront SummitMark Suster
 
Upfront LP Survey of the Venture Capital & Startup Industry
Upfront LP Survey of the Venture Capital & Startup IndustryUpfront LP Survey of the Venture Capital & Startup Industry
Upfront LP Survey of the Venture Capital & Startup IndustryMark Suster
 
Final LA tech and venture landscape
Final LA tech and venture landscapeFinal LA tech and venture landscape
Final LA tech and venture landscapeMark Suster
 
Final san diego venture group keynote 2016
Final san diego venture group keynote   2016Final san diego venture group keynote   2016
Final san diego venture group keynote 2016Mark Suster
 
There is Something Going on in the LA Tech Market by Upfront Ventures
There is Something Going on in the LA Tech Market by Upfront VenturesThere is Something Going on in the LA Tech Market by Upfront Ventures
There is Something Going on in the LA Tech Market by Upfront VenturesMark Suster
 
The Changing Structure of the Venture Capital Industry
The Changing Structure of the Venture Capital IndustryThe Changing Structure of the Venture Capital Industry
The Changing Structure of the Venture Capital IndustryMark Suster
 
Why It's Morning in Venture Capital
Why It's Morning in Venture CapitalWhy It's Morning in Venture Capital
Why It's Morning in Venture CapitalMark Suster
 
Final web summit (dublin oct 2013)
Final web summit (dublin oct 2013)Final web summit (dublin oct 2013)
Final web summit (dublin oct 2013)Mark Suster
 
Online video market sept 2013
Online video market sept 2013Online video market sept 2013
Online video market sept 2013Mark Suster
 
Final le web london (june 2013)
Final le web   london (june 2013)Final le web   london (june 2013)
Final le web london (june 2013)Mark Suster
 
Final startup grind
Final startup grindFinal startup grind
Final startup grindMark Suster
 

Mehr von Mark Suster (20)

Funding in the time of Corona Virus
Funding in the time of Corona VirusFunding in the time of Corona Virus
Funding in the time of Corona Virus
 
Managing Your Startup Board
Managing Your Startup BoardManaging Your Startup Board
Managing Your Startup Board
 
Seed stage 2019 final
Seed stage 2019   finalSeed stage 2019   final
Seed stage 2019 final
 
Is vc still a thing final
Is vc still a thing   finalIs vc still a thing   final
Is vc still a thing final
 
Staff at vc firms
Staff at vc firmsStaff at vc firms
Staff at vc firms
 
ICO 2.0 Summit - Keynote Presetnation
ICO 2.0 Summit - Keynote PresetnationICO 2.0 Summit - Keynote Presetnation
ICO 2.0 Summit - Keynote Presetnation
 
Upfront Ventures Bitcoin & Blockchain VC Survey
Upfront Ventures Bitcoin & Blockchain VC SurveyUpfront Ventures Bitcoin & Blockchain VC Survey
Upfront Ventures Bitcoin & Blockchain VC Survey
 
Upfront Ventures blockchain and crypto deck
Upfront Ventures blockchain and crypto deckUpfront Ventures blockchain and crypto deck
Upfront Ventures blockchain and crypto deck
 
Fundstrat Bitcoin & Blockchain presentation for Upfront Summit
Fundstrat Bitcoin & Blockchain presentation for Upfront SummitFundstrat Bitcoin & Blockchain presentation for Upfront Summit
Fundstrat Bitcoin & Blockchain presentation for Upfront Summit
 
Upfront LP Survey of the Venture Capital & Startup Industry
Upfront LP Survey of the Venture Capital & Startup IndustryUpfront LP Survey of the Venture Capital & Startup Industry
Upfront LP Survey of the Venture Capital & Startup Industry
 
Final LA tech and venture landscape
Final LA tech and venture landscapeFinal LA tech and venture landscape
Final LA tech and venture landscape
 
Final san diego venture group keynote 2016
Final san diego venture group keynote   2016Final san diego venture group keynote   2016
Final san diego venture group keynote 2016
 
There is Something Going on in the LA Tech Market by Upfront Ventures
There is Something Going on in the LA Tech Market by Upfront VenturesThere is Something Going on in the LA Tech Market by Upfront Ventures
There is Something Going on in the LA Tech Market by Upfront Ventures
 
The Changing Structure of the Venture Capital Industry
The Changing Structure of the Venture Capital IndustryThe Changing Structure of the Venture Capital Industry
The Changing Structure of the Venture Capital Industry
 
Why It's Morning in Venture Capital
Why It's Morning in Venture CapitalWhy It's Morning in Venture Capital
Why It's Morning in Venture Capital
 
Final web summit (dublin oct 2013)
Final web summit (dublin oct 2013)Final web summit (dublin oct 2013)
Final web summit (dublin oct 2013)
 
Online video market sept 2013
Online video market sept 2013Online video market sept 2013
Online video market sept 2013
 
Future of TV
Future of TVFuture of TV
Future of TV
 
Final le web london (june 2013)
Final le web   london (june 2013)Final le web   london (june 2013)
Final le web london (june 2013)
 
Final startup grind
Final startup grindFinal startup grind
Final startup grind
 

Último

self introduction ad21045 sahana ....
self introduction    ad21045 sahana ....self introduction    ad21045 sahana ....
self introduction ad21045 sahana ....addhivya3014
 
SE India Presentation 2016_Corpotate .pdf
SE India Presentation 2016_Corpotate .pdfSE India Presentation 2016_Corpotate .pdf
SE India Presentation 2016_Corpotate .pdfKumarPiyush50
 
Thermal Energy - Small Cap Growth Conference - February 2024
Thermal Energy - Small Cap Growth Conference - February 2024Thermal Energy - Small Cap Growth Conference - February 2024
Thermal Energy - Small Cap Growth Conference - February 2024Marketing847413
 
Solaris Resources - February 2024-Investor Presentation
Solaris Resources - February 2024-Investor PresentationSolaris Resources - February 2024-Investor Presentation
Solaris Resources - February 2024-Investor PresentationJacquelineWagenaar1
 
Companies (Listing of Equity Shares in permissible Jurisdictions) Rules, 2024
Companies (Listing of Equity Shares in permissible Jurisdictions) Rules, 2024Companies (Listing of Equity Shares in permissible Jurisdictions) Rules, 2024
Companies (Listing of Equity Shares in permissible Jurisdictions) Rules, 2024HetalMaheshwari4
 
Collective Mining Limited - Corporate Presentation | February 2024
Collective Mining Limited - Corporate Presentation | February 2024Collective Mining Limited - Corporate Presentation | February 2024
Collective Mining Limited - Corporate Presentation | February 2024CollectiveMining1
 
Corporate Presentation Probe Gold PEA Feb 2024 Final.pdf
Corporate Presentation Probe Gold PEA Feb 2024 Final.pdfCorporate Presentation Probe Gold PEA Feb 2024 Final.pdf
Corporate Presentation Probe Gold PEA Feb 2024 Final.pdfProbe Gold
 

Último (8)

self introduction ad21045 sahana ....
self introduction    ad21045 sahana ....self introduction    ad21045 sahana ....
self introduction ad21045 sahana ....
 
exicon 092870 Algorithm Investment Report
exicon 092870 Algorithm Investment Reportexicon 092870 Algorithm Investment Report
exicon 092870 Algorithm Investment Report
 
SE India Presentation 2016_Corpotate .pdf
SE India Presentation 2016_Corpotate .pdfSE India Presentation 2016_Corpotate .pdf
SE India Presentation 2016_Corpotate .pdf
 
Thermal Energy - Small Cap Growth Conference - February 2024
Thermal Energy - Small Cap Growth Conference - February 2024Thermal Energy - Small Cap Growth Conference - February 2024
Thermal Energy - Small Cap Growth Conference - February 2024
 
Solaris Resources - February 2024-Investor Presentation
Solaris Resources - February 2024-Investor PresentationSolaris Resources - February 2024-Investor Presentation
Solaris Resources - February 2024-Investor Presentation
 
Companies (Listing of Equity Shares in permissible Jurisdictions) Rules, 2024
Companies (Listing of Equity Shares in permissible Jurisdictions) Rules, 2024Companies (Listing of Equity Shares in permissible Jurisdictions) Rules, 2024
Companies (Listing of Equity Shares in permissible Jurisdictions) Rules, 2024
 
Collective Mining Limited - Corporate Presentation | February 2024
Collective Mining Limited - Corporate Presentation | February 2024Collective Mining Limited - Corporate Presentation | February 2024
Collective Mining Limited - Corporate Presentation | February 2024
 
Corporate Presentation Probe Gold PEA Feb 2024 Final.pdf
Corporate Presentation Probe Gold PEA Feb 2024 Final.pdfCorporate Presentation Probe Gold PEA Feb 2024 Final.pdf
Corporate Presentation Probe Gold PEA Feb 2024 Final.pdf
 

Upfront vc analysis 2016

  • 1. Venture Capital 2016 - Some Upfront Views 1 Mark Suster @msuster
  • 2. There is Some Stuff We All Know We all know the funding markets for venture-backed startups have been strong for 7 straight years 2
  • 3. LP contributions to the VC industry are back to pre-recession levels and anecdotally 2016 seems likely to increase further 3 US VC fundraising activity 0 75 150 225 300 $0 $15 $30 $45 $60 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Capital raised ($B) # of funds closed 235 271 209 218 192 176 162 214 235236233 $28 $31 $18 $20$19 $13 $16 $25 $30$31$30 233 236 235 214 162 176 192 218 209 271 235 Source: Dow Jones VentureSource; Upfront analysis.
  • 4. With more money (and new non VC entrants) venture financings have obviously increased. 2015 was an enormous year (2x pre recession) 4 US VC financing activity 0 2,500 5,000 7,500 10,000 $0 $25 $50 $75 $100 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Capital invested ($B) # of rounds closed 8,097 9,381 8,563 7,572 6,428 5,193 4,3164,533 4,119 3,145 2,574 $77 $68 $44 $40$42 $30 $26 $36$35 $28 $23 2,574 3,145 4,119 4,533 4,316 5,193 6,428 7,572 8,563 9,381 8,097 Source: PitchBook 2015 Annual U.S. Venture Industry Report; Upfront analysis.
  • 5. And what's interesting is that if you look at the spread between dollars raised by VCs and dollars invested, you see the huge shift from a decade ago of non-VC capital 5 Source: Upfront analysis. US VC fundraising vs financing (2006-07, $B) 0 35 70 105 140 175 Funds raised by VCs Funds invested by VCs 6361 1x US VC fundraising vs financing (2014-15, $B) 0 35 70 105 140 175 Funds raised by VCs Funds invested by VCs 145 59 2.5x
  • 6. Angel & Seed deals have grown fastest but dollars have scaled massively into a smaller number of later-stage deals (doubling in just 2 years) 6 Source: PitchBook 2015 Annual U.S. Venture Industry Report; Upfront analysis. US VC # of rounds closed by stage US VC capital invested ($B) by stage 0 10 20 30 40 50 2010 2011 2012 2013 2014 2015 0 1,000 2,000 3,000 4,000 5,000 2010 2011 2012 2013 2014 2015 Early Stage CAGR 21% 36% 16% CAGR 1% 22% 3% Angel/ Seed Late Stage Early Stage Late Stage Angel/ Seed
  • 7. And the dollars into late-stage deals has largely been driven by non- traditional VCs entering the market (up 50% in the last 3 years) 7 Source: CBInsights, VC-backed $20M+ rounds; non-VC defined as Asset Mgmt, Corporate/Corporate VC, Family Office, Hedge & Mutual Funds; Upfront analysis. Non-VC participation in US $20 million-plus rounds 0% 15% 30% 45% 60% 2012 2013 2014 2015 55% 47%47% 37% CAGR ’12-’15 15%
  • 8. M&A pace hasn’t matched the increases in funding pace so VC mark-ups have been good but cash distributions less so 8 US VC-backed M&A activity 300 375 450 525 600 $0 $38 $75 $113 $150 2011 2012 2013 2014 2015 Amount Paid ($B) Number of M&As 473 510 470 462 542 $54 $81 $42$43$47 542 462 470 510 473 Source: Dow Jones VentureSource Venture Capital Report 4Q’15; Upfront analysis.
  • 9. IPO exits are down 32% in volume and 38% in value 9 US VC-backed IPO activity 0 30 60 90 120 $0 $4 $8 $11 $15 2011 2012 2013 2014 2015 Raised ($B) through IPO Number of IPOs 66 107 73 50 46 $6 $9 $8 $11 $5 46 50 73 107 66 Source: Dow Jones VentureSource Venture Capital Report 4Q’15; Upfront analysis. 50
  • 10. But there are other truths that people have only recently begun to speak about 10
  • 11. 11 Public Tech Markets are obviously off dramatically in the past three months beginning the question of what this means for private valuations NASDAQ LinkedIn Apple Twitter (9%) (18%) (19%) (41%) Source: 3-month valuations November 02, 2015 to January 29, 2016; Upfront analysis.
  • 12. Private market valuations had risen beyond what some believe are sustainable (up 3x in 2 years). Q4 saw massive correction (we asked VCs if they thought it was an anomaly or a trend). 12 US VC-backed financing median pre-money valuation ($M) $0 $20 $40 $60 $80 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 $28 $68 $53 $60 $58 $37 $51 $22$21 $19 $24 $17 Source: Dow Jones VentureSource Venture Capital Report 4Q’15; Upfront analysis.
  • 13. More than 90% of respondents in the Upfront VC Survey expected valuations to go down in 2016 with a full 1/3rd of investors expecting significant price corrections 13 Do you expect valuations to go up, down or remain about the same as previous quarters? 0% 25% 50% 75% 100% Q4'15 1H'16 Proj 30% 5% 61% 61% 8% 28% 6% Increase About the same Marginally down Significantly down Source: Upfront Survey Jan 2016, 156 VCs for Q4’15, 158 VCs for 1H’16; Upfront analysis.
  • 14. This is coupled with a very visible recalibration of valuations of the pre-IPO mutual fund cohort at places like Fidelity 14 Fidelity’s holdings: % valuation change since purchase Blue Bottle MongoDB Series F Taboola.com Series E Turn Inc. Zenefits Series C Dataminr Series D Dropbox Series C Snapchat Series F 0% 25% 50% 75% 100% Source: Fortune; Blue Bottle, Dropbox, Snapchat and Benefits data as 11/30/2015, rest as of 9/30/2015; Upfront analysis. 0% -25% -50% -75% -100% -61% -54% -45% -44% -35% -29% -15% -47%
  • 15. 15 This has swung sentiment for many experienced VC firms firmly toward controlling burn over rapid growth
  • 16. This was clearly borne out in the Upfront VC Survey where 62% of firms are advising companies to cut costs / burn as markets tighten 16 4% 35% 62% Source: Upfront Survey Jan 2016, 156 VCs. Which statement best describes the spending behavior at most of the companies in which you are on the board or observe? Generally cutting costs expecting markets to tighten Don’t see much change from a year ago Generally not too worried about burn rates 100%
  • 19. And with fewer VC exits many partners are more overloaded with boards and financings and feel less pressure to do new deals quickly. FOMO is on the decline. 19 Average number of board / observer seats 0 2 4 6 8 10 Years of investment experience 0-3 years 3-6 years 6-10 years 10-15 years 15+ years 8 7 5 4 3 Source: Upfront Investor Survey, sample size of 76 early to late stage VCs, excluding angel/seed and corporate VCs; Upfront analysis.
  • 20. There is a clear feeling that fund raising cycles are taking longer and 77% felt this pace is likely to slow down even further in 2016 20 Do you expect deals to take longer in the process than previous funding quarters, the same or shorter? 0% 25% 50% 75% 100% Q4'15 1H'16 Proj 77%45% 22% 51% 1%4% Shorter than normal About the same as normal Getting longer Source: Upfront Survey Jan 2016, 159 VCs for Q4’15 and 158 VCs for 1H’16.
  • 21. 50% of respondents indicate they may slow down their pace, 35% thought it would be the same pace as 2015 and only 16% expect 2016 to be robust 21 1%4% 43% 35% 16% Source: Upfront Survey Jan 2016, 158 VCs. How would you generally describe your investment mindset heading into 2016? “Seeing tons of great deal flow and expect this to be a solid year” “Unless a deal is amazing I’m likely to slow my pace a bit” “I don’t feel compelled to do deals” “2016 about the same pace as my last several years” “I’d rather fund when the dust settles
  • 22. With the sentiment of the markets it’s no surprise that a full 82% of VCs expressed caution or concern going into 2016 22 2% 30% 50% 9% 9% Source: Upfront Survey Jan 2016, 155 VCs. Hugely bullish I’m very concerned Things are bad & getting worse Generally cautious Generally optimistic Which of the following statements best describes your mood heading into 2016 100%
  • 23. And how does the growth in funding, valuations and anxiety play in the minds of LPs who fund the VC industry ultimately? 23
  • 24. The good news is that only 7% of LPs believe they will cut back on venture programs with 26% of funds looking to increase exposure 24 4% 22% 67% 7% Source: Upfront Survey Jan 2016, 73 LPs. How would you describe your fund’s current allocation to VC? About the right allocation Aggressively growing venture Too much allocated to venture Trying to grow our venture program
  • 25. But LPs expressed caution, too. Nearly 75% of LPs have concerns about investment pace, valuation levels and burn rates of underlying companies. 25 6% 68% 26% Source: Upfront Survey Jan 2016, 72 LPs. How would you describe your fund’s outlook on your existing (VC) managers activities? Very happy with investment activities of our existing managers Deeply concerned about the market behavior A bit concerned by pace, valuation creep and burn rates 100%
  • 26. 61% of LPs believe that VCs are coming back to market to raise money at too quick of a pace - a reflection of anxieties of the over-funding of portfolios 26 61% 15% 24% Source: Upfront Survey Jan 2016, 72 LPs. How would you describe your fund’s outlook in your existing (VC) managers funding (and fund raising) pace? Managers come back at a normal cadence and it hasn’t changed much Managers have been coming back more quickly than in the past and we’re fine with this Managers have been coming back more quickly than in the past and it concerns us 100%
  • 27. But a full 82% of LPs are likely to maintain their existing investment pace 27 10% 82% 8% Source: Upfront Survey Jan 2016, 73 LPs. How would you describe your likely investment pace in venture over the next 3 years? We’re likely to increase our investment pace We’re likely to keep the same investment pace We’re likely to slow down our investment pace 100%
  • 28. While the market for Seed Funds grew enormously in the past 7 years, many LPs still express some concerns about capacity and market crowding 28 23% 66% 11% Source: Upfront Survey Jan 2016, 70 LPs. What is your fund’s outlook on the seed market? Seed delivers the highest potential returns and we’ll continue to invest heavilyThere are too many seed funds and we’re worried they won’t have enough capacity We fund seed VCs but we’re very discerning on which ones we’ll fund
  • 29. Also it’s not too surprising that LPs are most cautious about growth stage funds - in particular concerns about late-stage valuations 29 68% 32% Source: Upfront Survey Jan 2016, 71 LPs. What is your fund’s outlook on later stage venture capital / growth equity? We like growth stage but want a healthy balance of seed, A/B and growth We’re worried that the growth stage is the most over-valued part of the market 100%
  • 30. What to make of all of the uncertainty and potential change in the VC markets? 30
  • 31. 31 Expect loss ratios to go up. But ultimately the creative destruction of these storms can be good. New startup cohorts will sprout where others get cleared out.
  • 32. 32 A slowing pace should be healthy for startups and for VC returns. We believe the next 3 years will value patience over speed at all costs.
  • 33. 33 And despite market concerns in the short-term, as an asset class we see so many industries ripe for innovation and disruption Aerial & Space-techVR & ARTransportation Computational Biology Food & Agriculture
  • 34. Venture Capital 2016 Thank You. 34 Mark Suster @msuster
  • 35. 159 VCs surveyed 35 Fund type 0 20 40 60 Angel Seed VC (Early) VC (Mid) VC (Late) PE Corp (blank) 11 96 19 47 60 7 Source: Upfront Survey Jan 2016. Fund size ($ million) 0 20 40 60 $1-20 $20-100 $300-999 $100-300 $1000+ Evergreen Personal 779 2833 47 19 Survey respondent geography 0 40 80 Norcal SoCal NE US Other US ROW (blank) 178 24 31 79 Position 0 47 93 140 Partner / MD Analyst to Principal Sole proprietor/personal investor 79 134 How long has your firm existed (years) 0 35 70 0-3 3-10 10-20 20+ 22 36 61 31 Personal investment experience (years) 0 40 80 0-3 3-6 6-10 10-15 15+ 41 23 43 30 13
  • 36. 73 LPs surveyed, part 1 36 Fund type 0 10 20 30 9 445 23 28 Fund size 0 10 20 $0-250M $250-750M $750M-1.5B $1.5-5B $5-10B $10B+ Blank 4 16 7 18 3 11 14 Which of the following best describes your focus on VC? 0 25 50 Only VC Mostly VC Very diverse Not much VC 2 42 10 19 Foundation or Endowment Fund of Funds Family Office Discretionary Advisor Insurance Company Other Survey respondent geography 0 15 30 NorCal SoCal NE US Other US ROW Blank 2 4 28 11 6 22 Source: Upfront Survey Jan 2016.
  • 37. 73 LPs surveyed, part 2 37 Position 0 20 40 60 Partner / MD Analyst to Principal Blank 1 18 54 How long has your firm been investing in VC (years) 0 20 40 0-3 3-10 10-20 20+ 1 23 30 16 3 How long has your firm existed (years) 0 20 40 0-3 3-10 10-20 20+ 38 1614 5 Personal investment experience (years) 0 20 40 0-3 3-6 6-10 10-15 15+ 27 23 15 44 Haven’t invested much in VC Source: Upfront Survey Jan 2016.