Nvca Predictions2009 Charts
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Slides from the National Venture Capital Association (www.nvca.org) with predictions about venture capital in 2009
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Nvca Predictions2009 Charts
- 1. Click Here & Upgrade Expanded Features PDF Unlimited Pages Documents Complete National Venture Capital Association 2009 Venture Capital Predictions Survey Results December 17, 2008
- 2. Click Here & Upgrade Expanded Features PDF Unlimited Pages Documents Complete NVCA 2009 Venture Capital Predictions Survey n Third Annual Predictions Survey n Conducted in Nov. 24 – Dec. 12, 2008 n More than 400 responses n Quotes and press release available: n Contact: Emily Mendell (emendell@nvca.org) n Contact: Laura Cruz (lcruz@weisergroup.com) 2
- 3. Click Here & Upgrade Expanded Features PDF Unlimited Pages Documents Complete Ninety two percent of VCs predict venture investment to slow in 2009 What range will venture capital investment levels be in 2009? Est. 2008 Investment Percent of Respondents 80% 61% 60% 40% 31% 20% 3% 4% 1% 0% <$27 BN $27-29 BN $30 BN $32-35 BN > $35 BN Range of Investment $ 3
- 4. Click Here & Upgrade Expanded Features PDF Unlimited Pages Documents Complete In 2009, 53 percent of VCs predict they will invest in the same or more companies. In 2009, our firm will invest in: 34% 47% 19% Same # of companies More companies Fewer companies 4
- 5. Click Here & Upgrade Expanded Features PDF Unlimited Pages Documents Complete Clean technology and life sciences were predicted as having the highest potential for stability/growth. 48% Clean Tech 20% 32% 25% Biotech 33% 42% Increase Unchanged 24% Decrease Medical Devices 38% 38% 14% Internet 28% 58% 0% 20% 40% 60% 80% 5
- 6. Click Here & Upgrade Expanded Features PDF Unlimited Pages Documents Complete Semiconductors and Media were predicted by most VCs to see a slow down in investment. 11% Software 30% 59% 14% Wireless 26% 60% Increase Unchanged 11% Decrease Media 18% 71% 3% Semiconductors 18% 79% 0% 20% 40% 60% 80% 100% 6
- 7. Click Here & Upgrade Expanded Features PDF Unlimited Pages Documents Complete Most VCs predict a slowdown of international investing in 2009. 28% China 21% 51% 22% India 22% 56% Increase Unchanged 10% Decrease Israel 34% 56% 6% Europe 20% 74% 0% 20% 40% 60% 80% 7
- 8. Click Here & Upgrade Expanded Features PDF Unlimited Pages Documents Complete VCs predict a decrease in seed and early stage investment in 2009. 45% Late 20% 35% 30% Expansion 22% 48% Increase Unchanged 15% Decrease Early 21% 64% 22% Seed 18% 60% 0% 20% 40% 60% 80% 8
- 9. Click Here & Upgrade Expanded Features PDF Unlimited Pages Documents Complete Most venture capitalists do not predict IPO relief until 2010 or beyond. The venture backed IPO market will re-open in: 1% 0% 9% 18% 72% Q1 2009 Q2 2009 Q3 2009 Q4 2009 2010 or beyond 9
- 10. Click Here & Upgrade Expanded Features PDF Unlimited Pages Documents Complete Acquisition volume may increase but values are predicted to decline. In 2009 venture backed In 2009 venture backed acquisition acquisition volume will: values will: 9% 4% 23% 34% 43% 87% Increase Decrease Same Increase Decrease Same 10
- 11. Click Here & Upgrade Expanded Features PDF Unlimited Pages Documents Complete 2009 will be a difficult year for entrepreneurs. It will be harder to sustain exisiting It will be harder for new portfolio companies. companies to get funded. 7% 4% 93% 96% Agree Disagree Agree Disagree 11
- 12. Click Here & Upgrade Expanded Features PDF Unlimited Pages Documents Complete The reallocation of institutional funds will result in fewer venture capital firms going forward. Institutional investors will More VC firms will not be able to reduce commitments to VC. raise money. 15% 4% 85% 96% Agree Disagree Agree Disagree 12
- 13. Click Here & Upgrade Expanded Features PDF Unlimited Pages Documents Complete Venture capitalists expect collective overall returns to decline in the short and long term. VC returns will decline in the VC returns will decline in the long short term (3-5 years) term (5 - 10 years) 8% 17% 92% 83% Agree Disagree Agree Disagree 13
- 14. Click Here & Upgrade Expanded Features PDF Unlimited Pages Documents Complete Most venture capitalists believe the economy will remain the same or worsen in 2009. How will the U.S. economy fare in 2009? 19.0% 25.0% 56.0% Improve Worsen Unchanged 14
- 15. Click Here & Upgrade Expanded Features PDF Unlimited Pages Documents Complete Few VCs predict the Dow Jones to rise above 10,000 in 2009. At what level will the DJIA be on December 31, 2009? 13.6% 14.0% 41.1% 31.3% < 8000 8000-9000 9000-10000 >10,000 15
- 16. Click Here & Upgrade Expanded Features PDF Unlimited Pages Documents Complete Historical Venture Capital Statistics
- 17. Click Here & Upgrade Expanded Features PDF Unlimited Pages Documents Complete Venture Capital Fundraising 1998 – 2008 (thru Q3) 120.0 100.0 80.0 60.0 40.0 20.0 0.0 2008 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Q3 $B Gross 29.7 55.8 104.4 39.0 3.8 10.6 19.1 28.0 31.4 35.5 25.4 Source: NVCA and Thomson Reuters 17
- 18. Click Here & Upgrade Expanded Features PDF Unlimited Pages Documents Complete Venture Capital Investment 1998 – Q3 2008 $120 $105.0 $100 $ Billions Invested $80 $54.0 $60 $40.6 $40 $26.7 $30.8 $21.1 $22.0$19.8 $22.5 $23.1 $22.6 $20 $0 2008 Q3 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Source: The MoneyTree Report by PricewaterhouseCoopers/National Venture Capital Association; Data: Thomson Reuters 18
- 19. Click Here & Upgrade Expanded Features PDF Unlimited Pages Documents Complete Venture Exit Counts- IPOs and M&A by Year 1993 – 2008 (Q3) 700 600 500 Number of Issues 400 300 200 100 0 '08 93 94 95 96 97 98 99 '00 '01 '02 '03 '04 '05 '06 '07 Q3 M&A 74 100 97 116 164 209 240 317 353 316 293 339 351 369 359 199 IPO 220 166 202 270 136 77 260 264 41 24 29 93 57 57 86 6 Year 19 Source: NVCA and Thomson Reuters