crossingover into venture
TRANSCRIPT
Crossing Over Into Venture
Dylan Cox, Head of Private Markets Research, PitchBook Institutional Research Group
Data as of 9/17/2021
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• How prevalent is crossover investing in the venture ecosystem?
• What are the motivations for these crossover rounds?
• How has crossover investor involvement affected VC-backed IPOs?
• Do these investors have staying power within the venture ecosystem?
Key considerations:
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Who are these “crossover investors”?
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Most active crossover investors in VC deals since 2015Investor Deal count
Tiger Global Management 272
OrbiMed 198
Coatue Management 192
RA Capital Management 176
T. Rowe Price (NAS: TROW) 155
Deerfield Management 148
Cormorant Asset Management 137
Cota Capital 130
Casdin Capital 129
Temasek Holdings 129
Perceptive Advisors 127
Rethink Capital Partners 123
Wellington Management 122
Investor Deal count
Fidelity Investments 106
TPG 106
Franklin Templeton (NYS: BEN) 94
Viking Global Investors 92
Baillie Gifford 86
Pantera Capital 81
Redmile Group 81
BlackRock (NYS: BLK) 77
Rock Springs Capital 77
Adams Street Partners 75
Janus Henderson Investors (NYS: JHG) 73
Sands Capital 71
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How prevalent is crossover investing in the venture ecosystem?
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VC deal activity with crossover investor participation
$2 $8 $4 $5
$18
$28
$23
$22
$43
$39
$61
$98
114164 176
241
355
473
359
473
657 637
729
885
0
100
200
300
400
500
600
700
800
900
1,000
$0
$20
$40
$60
$80
$100
$120
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021*
Deal value ($B) Deal count
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Crossover round size
$50.00
$61.75
$88.99
$115.91
$0
$20
$40
$60
$80
$100
$120
$140
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021*
Median ($M) Average ($M)
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VC deal activity (#) with crossover investor participation
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021*
Angel/Seed Early VC Later VC
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What are the motivations for these crossover rounds?
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How has crossover investor involvement affected VC-backed IPOs?
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VC IPO exit size ($) with crossover investor participation
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021*
With pre-IPO crossover investor participation Without pre-IPO crossover investor participation
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VC IPO exits (#) with crossover investor participation
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021*
With pre-IPO crossover investor participation Without pre-IPO crossover investor participation
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Median step-up at IPO by crossover status
0.0x
0.5x
1.0x
1.5x
2.0x
2.5x
3.0x
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021*
Crossover Involved No Crossover Involved
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Do these investors have staying power within venture?
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VC deal size ($) with crossover investor participation
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021*
Crossover investor was lead investor in deal Crossover investor participated but was not lead investor in deal
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VC deal size (#) with crossover investor participation
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021*
Crossover investor was lead investor in deal Crossover investor participated but was not lead investor in deal
