Download - Venture capital activity report q4 2010
Venture Capital Activity Report | Q4 2010
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QUARTER SUMMARY 2
QUARTERLY TRENDS 3
SECTOR REVIEW 11
1 INTERNET 11
2 HEALTHCARE 18
3 GREEN / CLEAN TECH 25
GEOGRAPHIC REVIEW
1 CALIFORNIA 32
2 MASSACHUSETTS 38
3 NEW YORK 43
4 WASHINGTON 49
5 TEXAS 54
DEFINITIONS & DATA INTEGRITY 59
TABLE OF CONTENTS
© 2011, CB Insights. All rights reserved. For more information about CB Insights, please email [email protected].
Venture Capital Activity Report | Q4 2010
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Q4 2010 – This Quarter in Venture CapitalQuarter sees highest dealflow and funding of last eight quarters. Internet saw Year-
over-Year deal count up 21%, Green Tech up 7% and Healthcare up 2%.
2
At $6.5B of venture capital funding over 735 deals, Q4 2010’s venture capital stats have something for everyone. For
those of you looking for a data point that suggests VC is back and on the road to recovery after 2009’s tough sledding, the
eight quarter high on deals and dollars gives you something to hang your hat on. For those of you who think VC is
overheated and we’re headed for a bubble, the eight quarter high on deals and dollars gives you something to hang your
hat on. Yes – it’s all a matter of perspective.
Overall, 2010 saw $23.7B of funding into 2792 deals which represented 14% growth in funding and 13% growth in deals
over 2009’s VC nadir.
Say Bye Bye Massachusetts – NY is #2 for Tech VC
Over the last five quarters, NY has seen 208 tech deals
vs. 207 for Massachusetts. Funding to NY tech
companies came in at $1.22B vs. $1.21B for
Massachusetts. The margin of victory for NY is ever so
slight, but most striking is the trend for both states which
are going in very different directions. (Trend can be
seen here: http://bit.ly/dLmLYG)
Seed VC Retains Its Share | Early Stage Grows
Q3 2010 saw 11% of deals going to Seed VC deals and
that share stayed consistent in Q4 2010. The share of
Series A deals increased over Q3 2010. Early stage
deal activity was nearly 50% of total deals representing
the highest level seen in five quarters.
VCs Connecting With Internet Deals Often
The growth in the quarter was driven largely by a red-
hot internet sector which hit a five quarter high (by a lot)
on both deals and dollars. Early stage activity remained
strong as did NY on the internet deal and dollar front.
Green Tech / Clean Tech Investments Stay Flat
After two quarters of VC funding to Green Tech/Clean
Tech investments declining, the space saw deals and
dollars hold vs. the prior quarter. On a year-over-year
basis, investment funding was up 40%. Early stage
investment on a deals basis into Green Tech fell to a
five-quarter low. Renewables and Energy Efficiency
maintained their positions as the top 2 areas for Green
Tech investment and in aggregate, they garnered their
largest share of deals of the last five quarters.
Healthcare VC – A Mixed Bag
Deals in the Healthcare space were up modestly YoY but
funding was down almost 16%. The growth in funding
and deals seen over the last 2 quarters ceased as well.
Mass and Cali took over 50% of Healthcare funding but
Mass’ share of Healthcare VC fell to a five-quarter low.
Early stage activity in Healthcare hit a five quarter high.
Cali's Number of VC Deals Grows, Funding Down
California retained its belt as uncontested venture capital
heavyweight champion. Relative to 2009, California saw
3% growth in deals and a 2% drop in VC funding. The
state saw 14% growth in deals on a sequential basis over
Q3 2010. 60% of the state's funding went to Internet and
Healthcare companies. Mobile also took its largest share
of deals in the last five quarters.
Colorado - The New Green Tech Hub?
Three of the top 10 green tech deals in the quarter were
in Colorado. The state which is usually 3-4% of green
tech deals jumped to 10%.
Texas Gets the Early Stage Bug
In aggregate, Texas stayed within its recent historical
range, but it did see growth in early-stage deals with 6 of
10 deals in the quarter being into early stage deals.
Washington At Five Quarter Low in VC Funding
Over 50% of Washington deals were in early-stage
companies and almost 60% of deals were to Internet
firms. The smaller checks to less capital-hungry web
companies helped to drive Washington to a five quarter
low on VC funding.
It is worth noting what we included and what we didn’t as this quarter had some mega-deals which can and did greatly
impact results. For example, Groupon’s funding was included as there was VC participation although we only included the
portion of their funding that closed in 2010, i.e. $500M. We’d recommend you also review our definitions and methodology
on p. 59 for details on our approach to VC data.
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
3
$3.9
$5.3
$6.1
$5.5$5.9 $5.9
$5.4
$6.5
483
613678 687
730
612
715 735
Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Quarterly VC Investment and Deal Volume TrendQ1 '09 to Q4 '10
Funding ($B) # of Deals
www.cbinsights.com
$6.5B over 735 Deals – Highest Totals of Last 8 Quarters Continued strength in seed VC funding led to a two-year high in number of deals.
Total VC funding hit high on back of mega-deals which buoyed funding total.
Venture Capital Activity Report | Q4 2010
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4
Cali Maintains, NY Gains and Mass Wanes in Deal ShareBig Three (NY, Mass, Cali) bounced back from Q3 2010 lows based on strength of
Cali and NY. Mass and Washington share of deals dipped.
44% 41% 43% 38% 42%
13%12%
14%12%
11%
6%8%
8%
7%9%
6%5%
5%
5%5%
4%4%
4%
5%4%
28% 31% 26%33% 29%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of Venture Capital by State - Number of DealsFive Quarter Trend
California Massachusetts New York Texas Washington Other
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Venture Capital Activity Report | Q4 2010
www.cbinsights.com
5
49% 49% 52% 49%40%
12% 15% 12%9%
10%
5%5% 6%
5%
7%
4%4% 4%
7%5%
3%2% 4%
4%
2%
26% 23% 23% 27%36%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of Venture Capital by State - Dollars of FundingFive Quarter Trend
California Massachusetts New York Texas Washington Other
www.cbinsights.com
The Big Three’s Share of VC Funding Falls to 5 Quarter LowNY gained in terms of dollars as did Mass. Cali, Texas and Washington all fell. Impact
of a mega-deal (Groupon) is clearly evident given the large Other category.
Venture Capital Activity Report | Q4 2010
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6
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Venture Capital Activity Report | Q4 2010
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7
$1.6
$1.9 $1.9
$2.3
$1.7
$2.0
$1.7 $1.6
$2.5
$2.1
$1.5
$1.8$1.7 $1.7
$3.2220
230 237223
275
232
178190
244
298
205 212193
259
283
Monthly VC Investment and Deal Volume TrendOctober 2009 to December 2010
Funding ($B) # of Deals
www.cbinsights.com
2010 Ends with a Bang – VCs Scurry to Get Deals DoneQ4 2010 started flat but ended with a flurry of activity. December 2010 saw the 2nd
highest deal flow and the highest venture funding of the last 15 months.
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
8
6% 6% 9% 11% 11%
31% 28%33% 33% 36%
28%27%
24% 24% 22%
14% 19%18% 15% 18%
10% 9%12%
8%7%
11% 10%4%
10% 7%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of Venture Capital by Series - Number of DealsFive Quarter Trend
Seed Series A Series B Series C Series D Series E +
www.cbinsights.com
0% 0% 1% 1% 1%
20%14% 17% 20%
15%
26%34%
22%
30%
20%
21% 19% 32%
20%
28%
16% 15%
23%12%
20%
16% 19%
6%16% 16%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of Venture Capital by Series - Dollars of FundingFive Quarter Trend
Seed Series A Series B Series C Series D Series E +
www.cbinsights.com
Seed VC Stays Strong. Early Stage Continues ClimbQ4 saw seed deals retain share of deals and also saw Series A deals climb. Later
stage deals garnered an increased share of venture funding.
Venture Capital Activity Report | Q4 2010
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9
25% 24% 23% 26% 24%
33% 30%38% 33% 37%
4% 7%
7%6% 6%
10% 8%7% 8% 8%
4%3%
4% 4% 3%9%
8%8% 7%
10%
16% 20%14% 17% 13%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of Venture Capital by Sector - Number of DealsFive Quarter Trend
Healthcare Internet
Energy & Utilities Software (non-internet/mobile)
Computer Hardware & Services Mobile & Telecommunications
Other
www.cbinsights.com
33%24% 28% 33%
24%
27%
21%
28% 23% 39%
5%
15%
17%9%
8%9%
7%
6%
8%7%4%
4%
4%8%
3%7%
8%
6%5% 6%
14%22%
12% 15% 14%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of Venture Capital by Sector - Dollars of FundingFive Quarter Trend
Healthcare Internet
Energy & Utilities Software (non-internet/mobile)
Computer Hardware & Services Mobile & Telecommunications
Other
www.cbinsights.com
Internet Climbs & Healthcare Dips; Energy VC Stays Flat Perennial top 2 sectors retain their positions with internet gaining. Mobile also sees
highest share of deals of last 5 quarters. Energy & utilities stagnant.
Venture Capital Activity Report | Q4 2010
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Venture Capital Activity Report | Q4 2010
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INTERNET
Q4 2010 Venture Capital
11
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
12
Inte
rnet
$1,483$1,265
$1,618
$1,253
$2,543224 221
233 233
272
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Internet VC Investment and Deal Volume Trend
$ Funding # of Deals
www.cbinsights.com
Last Five Quarters
Internet VC Hits 5 Quarter HighOptimism around internet deals didn’t abate with both deals and dollars way up. VC
deals and funding even after excluding Groupon stands at 5 quarter high.
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
13
Quarter Highlights
272 deals | $2,543M
Top Five Deals
Top Cities
Inte
rnet
Chicago, IL
7 deals | $540M
San Francisco, CA
36 deals | $398M
New York, NY
38 deals | $244M
Washington, DC
3 deals | $204M
Austin, TX
8 deals | $102M
Mountain View, CA
9 deals | $98M
Arlington Heights, IL
1 deals | $68M
Los Angeles, CA
8 deals | $66M
Redwood City, CA
5 deals | $62M
Seattle, WA
9 deals | $49M
Groupon
LivingSocial
Whale Shark Media
FleetMatics
47%
3%
14%1%
8%
3%
6%
1%
2%
2%
13%
VC Deal Volume (#) in Internet by State, Q410
California
Illinois
New York
DC
Massachusetts
Texas
Washington
North Carolina
Georgia
Maryland
All Other
www.cbinsights.com
39%
24%
10%
8%
5%
4% 2%
2% 1% 1%
4%
VC Investment ($) in Internet by State, Q410
California
Illinois
New York
DC
Massachusetts
Texas
Washington
North Carolina
Georgia
Maryland
All Other
www.cbinsights.com
NY Takes Hold of #2 Spot for Internet VC Deals and DollarsCalifornia continued to dominate internet VC followed by New York on deals.
Excluding Groupon, NY would be #2 on funding as well.
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
14
Inte
rnet
46% 43% 47% 44% 47%
12% 13%15% 15% 14%
1% 1%2%
1%3%10% 9%
10%11%
8%5%
5%
3% 6% 6%
26% 29% 24% 23% 21%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of Internet VC by State - Number of Deals
California New York Illinois Massachusetts Washington Other
www.cbinsights.com
Last Five Quarters
56% 52% 56%50%
39%
9% 16%15%
12%
10%
2% 1%
9%
0% 24%
7% 7%
7%
8%
5%4% 7%
1%
5%
21% 17%12%
25% 21%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of Internet VC by State - Dollars of Funding
California New York Illinois Massachusetts Washington Other
www.cbinsights.com
Last Five Quarters
~70% of Internet Deals Go To Big Three StatesInternet VC deals maintained similar geographic pattern as prior quarters. Mass
internet share dropped to five quarter low.
Venture Capital Activity Report | Q4 2010
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15
Inte
rnet
11% 11% 12% 13% 13%
38% 33%40%
42% 38%
27%28%
23%20%
18%
13% 17%18% 15%
19%
8% 6%6% 5%
5%
4% 6% 1% 4% 7%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of Internet VC by Series - Number of Deals
Seed Series A Series B Series C Series D Series E +
www.cbinsights.com
Last Five Quarters
1% 1% 2% 1% 1%
22% 19% 20%31%
12%
28% 33%19%
27%
16%
28% 24%40%
23%
19%
16%10%
19%7%
27%
5%13%
1%10%
25%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of Internet VC by Series - Dollars of Funding
Seed Series A Series B Series C Series D Series E +
www.cbinsights.com
Last Five Quarters
Early Stage Internet Investing Represented 50+% of DealsEarly stage (Seed / Series A) dealflow dipped slightly from last quarter but still over
50%. Series C, D and E+ deals increased share of funding.
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
16
Inte
rnet
2%
11%
12%
4%
4%
8%
3%
2%
1%1%
3%
2%
2%1%
44%
VC Deal Volume (#) in Internet by Sub-Industry, Q410
Discount
Social
Advertising, Sales & Marketing
Bus. Intelligence, Analytics & Performance Mgmt
Video
Gaming
Data Storage
Data & Document Management
Health & Wellness
Conferencing & Communication
Information Providers & Portals
eCommerce enablement
Travel (internet)
Content Management
All Other
www.cbinsights.com
26%
24%
6%5%
3%
3%
3%2%
2%
2%2%
1%
2%
1%18%
VC Investment ($) in Internet by Sub-Industry, Q410
Discount
Social
Advertising, Sales & Marketing
Bus. Intelligence, Analytics & Performance Mgmt
Video
Gaming
Data Storage
Data & Document Management
Health & Wellness
Conferencing & Communication
Information Providers & Portals
eCommerce enablement
Travel (internet)
Content Management
All Other
www.cbinsights.com
VC Internet Investment Remains Diverse Across IndustriesSocial and Advertising remained strong. Gaming made a come back from Q3 2010.
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
17
Inte
rnet
$0.6
$2.4
$7.0
$9.0
$19.0$20.0
Seed Series A Series B Series C Series D Series E +
Internet Median Deal Size by Quarter($ Million)
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
www.cbinsights.com
Early Stage Medians Fall. Late Stage Medians Up Big. Seed, Series A and Series C median deal sizes all were smaller. Series B up with
Series D and Series E+ were up big on back of many larger late stage web deals.
Venture Capital Activity Report | Q4 2010
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HEALTHCARE
Q4 2010 Venture Capital
18
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
19
Healthcare
$1,830
$1,405
$1,639$1,753
$1,541
169 173
138
184173
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Healthcare VC Investment and Deal Volume Trend
$ Funding # of Deals
www.cbinsights.com
Last Five Quarters
Healthcare Investment Dips After 2 Qtrs of Funding GrowthHealthcare deals were up modestly YoY but funding levels down almost 16% vs. year
ago. Deals down vs. prior quarter and funding down over 12% qoq.
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
20
Quarter Highlights
173 deals | $1,541M
Top Five Deals
Top Cities
Healthcare
33%
13%
6%7%
4%4%
3%
3%
3%
1%
23%
VC Deal Volume (#) in Healthcare by State, Q410
California
Massachusetts
Pennsylvania
Texas
New Jersey
New York
North Carolina
Colorado
Minnesota
Michigan
All Other
www.cbinsights.com
39%
16%9%
6%
5%
4%
3%
3%2%
2%
11%
VC Investment ($) in Healthcare by State, Q410
California
Massachusetts
Pennsylvania
Texas
New Jersey
New York
North Carolina
Colorado
Minnesota
Michigan
All Other
www.cbinsights.com
Cambridge, MA
9 deals | $143M
Redwood City, CA
4 deals | $135M
San Diego, CA
11 deals | $104M
Palo Alto, CA
3 deals | $70M
South San Francisco, CA
2 deals | $67M
Wayne, PA
1 deals | $61M
New York, NY
5 deals | $59M
Malvern, PA
2 deals | $48M
Webster, TX
1 deals | $46M
Pleasanton, CA
2 deals | $34M
Pearl Therapeutics
Moksha8
IDev Technologies
Sutro Biopharma
Genocea Biosciences
Mass and Cali Attract Over 50% of Healthcare VC FundingCali increased over Q3 2010 while Mass declined on # of deals basis. Pennsylvania
and Texas continue to hold strong.
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
21
Healthcare
32% 34% 33%28% 33%
18% 17% 23%
17%13%
4% 6%5%
8% 6%4%
3%3%
4% 3%4% 3%
6%
5%2%
38% 36% 30%37% 42%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of Healthcare VC by State - Number of Deals
California Massachusetts Pennsylvania New Jersey Washington Other
www.cbinsights.com
Last Five Quarters
35% 31%40% 42% 39%
18% 27%
23%13% 17%
4%4%
4%
6%10%8%
5%4%
4%5%4% 0%
7%
7%1%
31% 33%22%
29% 29%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of Healthcare VC by State - Dollars of Funding
California Massachusetts Pennsylvania New Jersey Washington Other
www.cbinsights.com
Last Five Quarters
Cali Stays on Top. Mass Share of Deals Falls to 5 Qtr Low.Massachusetts share of deals continued downward trend. Healthcare sector is most
geographically diverse with 4 of 10 deals occurring outside of top states.
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
22
Healthcare
3% 3% 6% 9% 6%
30% 29%
36% 27%39%
30% 30%
24%26%
23%
13% 21%21%
16%
16%
12%9%
7%
10%
10%11% 8% 6%
13%6%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of Healthcare VC by Series - Number of Deals
Seed Series A Series B Series C Series D Series E +
www.cbinsights.com
Last Five Quarters
0% 0% 0% 1% 1%
24% 22% 25%17%
24%
31% 36%23%
30% 19%
15%19% 36%
22% 35%
19%11%
7%
14%
16%
10% 11% 9%16%
6%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of Healthcare VC by Series - Dollars of Funding
Seed Series A Series B Series C Series D Series E +
www.cbinsights.com
Last Five Quarters
Early Stage Healthcare Hits Five-Quarter HighSeed and Series A healthcare grew to 45% of total healthcare funding. Later stage
healthcare companies took 57% of total funding.
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
23
Healthcare
37%
17%
14%
8%
11%
1%
2%2%
1%
7%
VC Deal Volume (#) in Healthcare by Industry, Q410
Medical Devices & Equipment
Pharmaceuticals / Drugs
Biotechnology
Drug Development
Medical Facilities & Services
Drug Manufacturing
Disease Diagnosis
Drug Discovery
NULL
All Other
www.cbinsights.com
37%
20%
14%
12%
5%
4%
2% 2% 2%2%
VC Investment ($) in Healthcare by Industry, Q410
Medical Devices & Equipment
Pharmaceuticals / Drugs
Biotechnology
Drug Development
Medical Facilities & Services
Drug Manufacturing
Disease Diagnosis
Drug Discovery
NULL
All Other
www.cbinsights.com
Medical Device Investment Remains StrongMedical Devices continued their dominance of the Healthcare sector followed by
Pharmaceuticals, Biotech, Medical Facilities & Services and Drug Development.
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
24
Healthcare
$1.3$2.6
$7.3
$24.0
$16.0
$13.0
Seed Series A Series B Series C Series D Series E +
Healthcare Median Deal Size by Quarter($ Million)
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
www.cbinsights.com
More Small Series A Healthcare DealsThe increased # of Series A deals (p. 22) also saw smaller amounts of funding. Seed
VC, Series C and D medians all climbed.
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
GREEN & CLEAN TECH
Q4 2010 Venture Capital
25
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
26
Gre
en
$565
$1,322
$1,046
$790 $790
55
85
5561 59
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Green VC Investment and Deal Volume Trend
$ Funding # of Deals
www.cbinsights.com
Last Five Quarters
Green Tech Performance In-Line with Last QuarterGreen Tech figures consistent with Q3 – Funding steadied at $790M, while deal count
fell slightly. Investment dollars were up 40% year-over-year.
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
27
Quarter Highlights
59 deals | $790M
Top Five Deals
Top Cities
Gre
en
41%
10%
2%
13%
5%2%
5%
2%
2%3%
15%
VC Deal Volume (#) in Green by State, Q410
California
Colorado
Illinois
Massachusetts
Michigan
Arizona
New York
Oregon
Ohio
Texas
All Other
www.cbinsights.com
39%
24%
13%
11%
5%
2%1%
1%1% 1%
2%
VC Investment ($) in Green by State, Q410
California
Colorado
Illinois
Massachusetts
Michigan
Arizona
New York
Oregon
Ohio
Texas
All Other
www.cbinsights.com
Loveland, CO
1 deals | $110M
Bolingbrook, IL
1 deals | $100M
San Jose, CA
2 deals | $57M
Milpitas, CA
2 deals | $43M
Cambridge, MA
3 deals | $38M
Fremont, CA
2 deals | $37M
Lansing, MI
2 deals | $37M
South San Francisco, CA
1 deals | $30M
North Lexington, MA
2 deals | $26M
Windsor, CO
1 deals | $24M
Abound Solar
Elevance Renewable Sciences
Solopower
Soladigm
LS9
Colorado Shows Its Greener SideColorado emerged as a serious destination for Green Tech investment, taking 3 of the
top 10 Green deals in Q4. As usual, California was the overall leader.
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
28
Gre
en
53% 55%47% 46%
41%
9% 8%13%
8%14%
7% 5% 7% 15%3%
4% 4% 2% 3%
10%
2%4% 2%
25% 28% 27% 28% 31%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of Green VC by State - Number of Deals
California Massachusetts Texas Colorado Illinois Other
www.cbinsights.com
Last Five Quarters
64%
79%
62% 59%
39%
4%
6%
10%4%
11%
5%
1%
9% 21%
1%
2%
1%1%
3%
24%
1%
4% 13%
25%13% 15% 12% 12%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of Green VC by State - Dollars of Funding
California Massachusetts Texas Colorado Illinois Other
www.cbinsights.com
Last Five Quarters
www.cbinsights.com
Last Five Quarters
California Loses Green Share for Fourth Straight QuarterThe downward trend for California continued, as Texas, Colorado, Massachusetts and
Illinois ate into The Golden State’s Green Tech dominance.
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
29
Gre
en
8%2% 3%
10%
32%33% 31%
27%
31%
32%
25% 29%
39%38%
18%
19%23%
10% 19%
3%12%
11% 7%10%
8% 9%3% 7% 2%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of Green VC by Series - Number of Deals
Seed Series A Series B Series C Series D Series E +
www.cbinsights.com
Last Five Quarters
19%8% 10%
16%8%
27%44%
27%
44%
29%
25% 14%
27%
12%
41%
3% 18%28%
22%19%26%
16%7% 6% 4%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of Green VC by Series - Dollars of Funding
Seed Series A Series B Series C Series D Series E +
www.cbinsights.com
Last Five Quarters
Green Tech Seed Investment Disappears in Q4 2010Early stage Green Tech investment share crept back to Q2 2010 levels. Investors
favored Series C and later in Q4.
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
30
Gre
en
44% 40%49%
39%46%
4%6%
2%
3%
2% 2%4%
7% 3%5% 7%
11%11% 15%4% 5%
5%8%
7%
42% 40%29% 31% 29%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of Green VC by Industry - Number of Deals
Renewables Automobile Manufacturing
Green/Environmental Software Energy Efficiency
Energy Storage Other
www.cbinsights.com
Last Five Quarters
38%
55%68%
42%49%
1%
19%3%
1%18%
15%
3%
2% 6%
7%
7%
3%
4% 7%
6%
5%
37%
19%13%
28%38%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of Green VC by Industry - Dollars of Funding
Renewables Automobile Manufacturing
Green/Environmental Software Energy Efficiency
Energy Storage Other
www.cbinsights.com
Last Five Quarters
Renewables and Energy Efficiency See an Uptick in ShareGreen Tech Software yielded to Renewable and Energy Efficiency investments.
Energy Storage investments held steady.
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
31
Gre
en
$0.0$2.8
$7.4
$24.0$26.0
$21.5
$6.2
Seed Series A Series B Series C Series D Series E + Overall
Green Median Deal Size by Quarter($ Million)
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
www.cbinsights.com
Late Stage Green Tech Deals See Uptick in SizeWith investment share shifting from Green Tech Software to Renewables, late stage
median deal values climbed higher. Overall median stayed flat at $6.2 million.
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
CALIFORNIA
Q4 2010 Venture Capital
32
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
33
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Venture Capital Activity Report | Q4 2010
www.cbinsights.com
34
Ca
lifo
rnia
$2,685$2,929
$3,062
$2,607 $2,630
300 297
264 271
310
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
California VC Investment and Deal Volume Trend
$ Funding # of Deals
www.cbinsights.com
Last Five Quarters
California Deal Volume Experiences Five Quarter HighFunding levels in California remained relatively flat from last quarter, but deal count
saw a 14% uptick from Q3, and 3% year-over-year growth.
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
35
Quarter Highlights
310 deals | $2,630M
Top Sector # of Deals – Internet
$ of Funding – Internet
Top Five Deals
Top Cities
San Francisco
64 deals | $517M
Redwood City
13 deals | $237M
Mountain View
19 deals | $216M
San Diego
20 deals | $185M
San Jose
13 deals | $152M
Palo Alto
21 deals | $141M
Sunnyvale
11 deals | $106M
Los Angeles
14 deals | $97M
South San Francisco
3 deals | $97M
San Mateo
9 deals | $67M
Calif
orn
ia
Pearl Therapeutics
Solopower
Space Exploration Technologies
Fallbrook Technologies
18%
41%5%
8%
3%
12%
3%
4% 0% 2%
4%
VC Deal Volume (#) in California by Sector, Q410
Healthcare
Internet
Energy & Utilities
Software (non-internet/mobile)
Computer Hardware & Services
Mobile & Telecommunications
Industrial
Electronics
Business Products & Services
Consumer Products & Services
All Other
www.cbinsights.com
23%
38%9%
7%
2%
9%
3%
2%0% 1%
6%
VC Investment ($) in California by Sector, Q410
Healthcare
Internet
Energy & Utilities
Software (non-internet/mobile)
Computer Hardware & Services
Mobile & Telecommunications
Industrial
Electronics
Business Products & Services
Consumer Products & Services
All Other
www.cbinsights.com
Internet & Healthcare Continue Dominance in CaliInternet and Healthcare combined for more than 60% of overall VC investment in
California; Mobile continued its growth.
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
36
Ca
lifo
rnia
18% 20% 17% 19% 18%
34% 32% 41% 38% 41%
5% 8%7% 7% 5%9% 4%
6% 7% 8%6%5%
5% 5% 3%
27% 30%23% 24% 24%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of VC in California by Sector - Number of Deals
Healthcare Internet
Energy & Utilities Software (non-internet/mobile)
Computer Hardware & Services Other
www.cbinsights.com
Last Five Quarters
24%15%
21%28% 23%
31%
23%
30%24% 38%
6%
20%
19%11%
9%10%
3%
6%9%
7%7%
6%
5%8% 2%
22%34%
19% 21% 21%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of VC in California by Sector - Dollars of Funding
Healthcare Internet
Energy & Utilities Software (non-internet/mobile)
Computer Hardware & Services Other
www.cbinsights.com
Last Five Quarters
Internet Investment Expands in CaliforniaInternet saw its most dominant position of the last 5 quarters and grew its share of
investment by 14% versus Q3. Healthcare and Energy lost ground.
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
37
Ca
lifo
rnia
7% 4% 8% 11% 12%
25%22%
28% 27%31%
25%28%
23% 24%23%
16% 23%23% 18%
21%15% 13%
14%10%
8%11% 9%
4%11% 6%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of VC in California by Series - Number of Deals
Seed Series A Series B Series C Series D Series E +
www.cbinsights.com
Last Five Quarters
0% 0% 1% 1% 1%
13% 11% 13% 16% 15%
20%33%
21%
31%
21%
28%
22%32%
21%35%
24%20%
29%16% 12%
14% 13%4%
14% 17%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of VC in California by Series - Dollars of Funding
Seed Series A Series B Series C Series D Series E +
www.cbinsights.com
Last Five Quarters
Early Stage Deal Volume Remains Strong in CaliforniaEarly stage deal volume increased share by 5% as Seed and Series A both continued
their upward trend in California. Series C took larger portion of investment dollars.
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
MASSACHUSETTS
Q4 2010 Venture Capital
38
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
39
Massachusetts
$653
$898
$689
$466
$630
88 8784
87
78
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Massachusetts VC Investment and Deal Volume Trend
$ Funding # of Deals
www.cbinsights.com
Last Five Quarters
Massachusetts Recovers, but Levels Still Down Versus Q2VC funding in Massachusetts jumped 35% versus Q3, but still was down 4% year-
over-year. Mass’ deal count hit its lowest point in five quarters.
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
40
Quarter Highlights
78 deals | $630M
Top Sector # of Deals – Healthcare /
Internet (tie)
$ of Funding - Healthcare
Top Five Deals
Top Cities
Cambridge
18 deals | $258M
Waltham
8 deals | $45M
Newton
3 deals | $44M
Boston
11 deals | $41M
North Lexington
2 deals | $26M
Burlington
2 deals | $22M
Northborough
1 deals | $22M
Woburn
4 deals | $19M
Beverly
3 deals | $17M
Boxborough
1 deals | $16M
Massachusetts
Genocea Biosciences
NinePoint Medical
Rive Technology
Cerulean Pharma
Aspen Aerogels
29%
29%
9%
6%
10%
0%6%
4% 1%
4%
VC Deal Volume (#) in Massachusetts by Sector, Q410
Healthcare
Internet
Software (non-internet/mobile)
Energy & Utilities
Mobile & Telecommunications
Computer Hardware & Services
Industrial
Business Products & Services
Electronics
All Other
www.cbinsights.com
41%
20%
8%
6%
6%
0%
12%
4%
2% 2%
VC Investment ($) in Massachusetts by Sector, Q410
Healthcare
Internet
Software (non-internet/mobile)
Energy & Utilities
Mobile & Telecommunications
Computer Hardware & Services
Industrial
Business Products & Services
Electronics
All Other
www.cbinsights.com
Healthcare & Internet Remain Atop the Rest in MassHealthcare and Internet combined for 68% of investment dollars and 61% of deal
volume. Mobile doubled its share in terms of deals and investment dollars versus Q3.
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
Healthcare Investment Share Down SharplyShare of investment in Internet held steady in terms of both deals and dollars.
Healthcare retained top spot, but lost share to Industrial and Mobile investments.
41
Massachusetts
34% 33% 38% 37%29%
26%22%
27% 29%
29%
10%11%
10% 10%
9%
5% 10%5% 3%
6%3%
6% 4% 8%6%
22% 17% 17% 13%19%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of VC in Massachusetts by Sector - Number of Deals
Healthcare Internet
Software (non-internet/mobile) Energy & Utilities
Industrial Other
www.cbinsights.com
Last Five Quarters
51%42%
56%49%
41%
16%
10%
16%21%
20%
11%
22%
5% 9%
8%
2% 12% 14% 4%
6%
2%1%
2%3%
12%
17%12% 8% 13% 14%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of VC in Massachusetts by Sector - Dollars of Funding
Healthcare Internet
Software (non-internet/mobile) Energy & Utilities
Industrial Other
www.cbinsights.com
Last Five Quarters
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
Seed Share Balloons in Mass, but Early Stage Down OverallSeed deal volume grew its share in Mass threefold versus last quarter, but early stage
investing (Seed + Series A) lost significant ground overall.
42
Massachusetts
7% 4% 7% 3%9%
33%27%
36% 38% 25%
28%
28%
28% 36%
33%
15%
19%
16%
16%
15%
6%9%
11%5%
7%
11% 13%2% 2%
11%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of VC in Massachusetts by Series - Number of Deals
Seed Series A Series B Series C Series D Series E +
www.cbinsights.com
Last Five Quarters
1% 0% 0% 0% 1%
31%
18%24%
33%23%
29%
31%24%
46%
35%
12%
9%
30%
15%
19%
5%
9%
11%
4%
10%23%
33%
10%2%
13%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of VC in Massachusetts by Series - Dollars of Funding
Seed Series A Series B Series C Series D Series E +
www.cbinsights.com
Last Five Quarters
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
NEW YORK
Q4 2010 Venture Capital
43
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
New York VC Activity Explodes – Deals and Dollars Way Up New York saw a 5-quarter high in terms of both investment and deal volume – up 90%
and 29%, respectively, since last quarter; funding was up 63% year-over-year.
44
New
York
$286$319
$355
$245
$466
41
5548
51
66
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
New York VC Investment and Deal Volume Trend
$ Funding # of Deals
www.cbinsights.com
Last Five Quarters
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
45
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Venture Capital Activity Report | Q4 2010
www.cbinsights.com
Internet Still Dominates the Empire StateInternet’s dominance of NY continued as 60% of VC funding went to web companies.
Healthcare and Mobile combined for over 20% of deal volume.
46
Quarter Highlights
66 deals | $466M
Top Sector # of Deals – Internet
$ of Funding - Internet
Top Five Deals
Top Cities
New York
63 deals | $457M
Brooklyn
1 deal | $7M
Long Island City
1 deal | $2M
Sea Cliff
1 deal | <$1M
New
York
AppNexus
Vostu
Tumblr
TxVia
Touchstone Health
59%
9%
11%
5%
3% 0% 2%
VC Deal Volume (#) in New York by Sector, Q410
Internet
Healthcare
Mobile & Telecommunications
Computer Hardware & Services
Business Products & Services
Electronics
Software (non-internet/mobile)
www.cbinsights.com
60%14%
4%
13%
5%
0%
4%
VC Investment ($) in New York by Sector, Q410
Internet
Healthcare
Mobile & Telecommunications
Computer Hardware & Services
Business Products & Services
Electronics
Software (non-internet/mobile)
www.cbinsights.com
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
Internet and Mobile Capture 70% of NY Deal VolumeInternet share dropped while Mobile and Healthcare held their ground. For the second
quarter in a row, Computer Hardware & Services took a double digit share of dollars.
47
New
York
63%53%
73% 71%59%
10%
11%
8% 8%
9%
2%
5%5%
5% 2%5%9%
13% 14%11%
20% 22%
6% 6%12%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of VC in New York by Sector - Number of Deals
Internet Healthcare
Financial Computer Hardware & Services
Mobile & Telecommunications Other
www.cbinsights.com
Last Five Quarters
48%
63%70%
63%53%
7%
19%15%
8%
13%18%
8%
6%4%
16% 12%
2% 9% 9%3%
24%
9% 6% 5%13%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of VC in New York by Sector - Dollars of Funding
Internet Healthcare
Financial Computer Hardware & Services
Mobile & Telecommunications Other
www.cbinsights.com
Last Five Quarters
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
It’s Not All About Early Stage in New YorkShare of early stage investing dropped in terms of deals and dollars on back of sizable
Series C and Series D deals. Seed VC retained strong presence overall.
48
New
York
6% 7%16% 17% 13%
30%39%
45% 46%
39%
30%
30%
20%24%
13%
15%
14%11%
5%
25%
6%5%
5% 5%4%
12%7% 2% 2% 7%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of VC in New York by Series - Number of Deals
Seed Series A Series B Series C Series D Series E +
www.cbinsights.com
Last Five Quarters
0% 0% 1% 2% 2%
15% 15%
30%
41%
13%
31%
51% 23%
34%
12%
24%
12%25%
10%
44%
2%
6%
17% 3%
13%
28%16%
4%9%
16%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of VC in New York by Series - Dollars of Funding
Seed Series A Series B Series C Series D Series E +
www.cbinsights.com
Last Five Quarters
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
WASHINGTON
Q4 2010 Venture Capital
49
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
Washington Venture Funding Sees Five-Quarter LowWashington’s venture resurgence stalled with investment dollars falling 46% from last
quarter and down 28% year-over-year. Deal volume also saw weakness.
50
Washin
gto
n
$165$138
$211$222
$119
2629
25
34
28
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Washington VC Investment and Deal Volume Trend
$ Funding # of Deals
www.cbinsights.com
Last Five Quarters
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
Internet Swallows Over 50% of Washington Deal Volume Internet owned the Washington investment scene commanding 57% and 46% of deals
and dollars, respectively. Healthcare and Software rounded out the top 3.
51
Quarter Highlights
28 deals | $119M
Top Sector # of Deals – Internet
$ of Funding - Internet
Top Five Deals
Top Cities
Seattle
12 deals | $69M
Redmond
3 deals | $16M
Bellevue
4 deals | $10M
Kirkland
2 deals | $7M
Tukwila
1 deals | $5M
Gig Harbor
1 deals | $4M
Washin
gto
n
14%
57%
0%
7%
11%
3%4%
4%
0%
VC Deal Volume (#) in Washington by Sector, Q410
Healthcare
Internet
Energy & Utilities
Mobile & Telecommunications
Software (non-internet/mobile)
Computer Hardware & Services
Environmental Services & Equipment
Business Products & Services
All Other
www.cbinsights.com
18%
46%
0%
1%
20%
8%
2%
4%
0%
VC Investment ($) in Washington by Sector, Q410
Healthcare
Internet
Energy & Utilities
Mobile & Telecommunications
Software (non-internet/mobile)
Computer Hardware & Services
Environmental Services & Equipment
Business Products & Services
All Other
www.cbinsights.com
Docusign
Xenon Arc
Coronado Biosciences
Skytap
Cardiac Dimensions
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
Internet Eclipses Healthcare in VC ShareHealthcare lost share to both Web and Software in Q4..
52
Washin
gto
n
27%21%
32% 29%
14%
42%
41%28% 38%
57%
8%
7% 12%6%
15%
3%8% 6% 7%
8%
14%6% 11%
14%20% 15% 11%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of VC in Washington by Sector - Number of Deals
Healthcare Internet
Energy & Utilities Mobile & Telecommunications
Software (non-internet/mobile) Other
www.cbinsights.com
Last Five Quarters
41%
4%
51% 56%
18%
36%
66%
9%
26%
46%
4%10%
18%
5%16%
1% 9%
1%
3%
7%6%
20%
12% 13%7%
15%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of VC in Washington by Sector - Dollars of Funding
Healthcare Internet
Energy & Utilities Mobile & Telecommunications
Software (non-internet/mobile) Other
www.cbinsights.com
Last Five Quarters
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
Trend of Early Stage Investment Emerges in WashingtonOverall investment was down in Wash, but absolute figures don’t tell the whole story –
For the third straight quarter, share of early stage (Seed + A) volume was up.
53
Washin
gto
n
0% 0% 4% 8% 11%
50%
25%
35%36%
42%
20%
40%
43%24%
21%
10% 20%
9%
16%16%5%
10%9%
4%5%15%
5%12%
5%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of VC in Washington by Series - Number of Deals
Seed Series A Series B Series C Series D Series E +
www.cbinsights.com
Last Five Quarters
0% 0% 0% 0% 1%
60%
13%
30%
17%27%
12%
22%
40%
32%18%
1%
48%
22%
23%
47%
7%
13%
7%
1%
6%
20%
4%
27%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of VC in Washington by Series - Dollars of Funding
Seed Series A Series B Series C Series D Series E +
www.cbinsights.com
Last Five Quarters
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
TEXAS
Q4 2010 Venture Capital
54
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
VC Funding in Texas Falls, but Remains Strong OverallTexas funding fell 16% versus last quarter while deal volume was up. Funding was
still up 27% year-over-year.
55
Texas
$238$264
$212
$357
$300
39 38
33 3336
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Texas VC Investment and Deal Volume Trend
$ Funding # of Deals
www.cbinsights.com
Last Five Quarters
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
Internet and Healthcare Win Top Honors in TexasWeb took over one-third of overall investment in the Lone Star State, with Healthcare
not far behind. Mobile & Telecom also were strong in Q4.
56
Quarter Highlights
36 deals | $300M
Top Sector # of Deals – Healthcare
$ of Funding - Internet
Top Five Deals
Top Cities
Austin
20 deals | $186M
Webster
1 deals | $46M
Dallas
3 deals | $27M
Houston
4 deals | $12M
San Antonio
3 deals | $10M
Richardson
1 deals | $10M
Addison
2 deals | $6M
Allen
1 deals | $3M
Texas
33%
8%
25%
14%
0% 6%
6%
0%8%
VC Deal Volume (#) in Texas by Sector, Q410
Healthcare
Energy & Utilities
Internet
Mobile & Telecommunications
Computer Hardware & Services
Software (non-internet/mobile)
Business Products & Services
Automotive & Transportation
All Other
www.cbinsights.com
30%
4%36%
5%0%
3%
16%
0%
6%
VC Investment ($) in Texas by Sector, Q410
Healthcare
Energy & Utilities
Internet
Mobile & Telecommunications
Computer Hardware & Services
Software (non-internet/mobile)
Business Products & Services
Automotive & Transportation
All Other
www.cbinsights.com
Whale Shark Media
IDev Technologies
Dachis Group
New Century Hospice
Silverback Acquisitions
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
Energy Loses Ground to Healthcare and InternetEnergy, which is a mainstay of the Texas venture scene, fell on both deals and dollars.
Energy’s lost share was reaped by Web and Healthcare companies.
57
Texas
31%
11% 12%21%
33%
15%
16%
33% 12%
25%3%
8%
12%24%
8%
5%
16%
18%9%
14%
13%
5%
9%
6%
33%45%
15%27%
19%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of VC in Texas by Sector - Number of Deals
Healthcare Internet
Energy & Utilities Mobile & Telecommunications
Computer Hardware & Services Other
www.cbinsights.com
Last Five Quarters
36%
6%14%
32% 30%
10%
10%
16%
2%
36%1%
10%
48%32%
4%
6%
13%
14%
11% 5%
16%
11%
4%
13%32%
50%
4% 10%
25%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of VC in Texas by Sector - Dollars of Funding
Healthcare Internet
Energy & Utilities Mobile & Telecommunications
Computer Hardware & Services Other
www.cbinsights.com
Last Five Quarters
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
Texas Continues to be a Destination for Early Stage DealsSeed fell off the map, but early stage deals still commanded over 60% of overall deal
volume in Texas. Early stage investment dollars also held their ground.
58
Texas
0% 0%6%
18%
0%
20%
33%
39%
47%
63%35%
33% 11%
12%7%20%
10%
17%
12%
4%5%
10% 22%
6%
11%
20%14%
6% 6%15%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of VC in Texas by Series - Number of Deals
Seed Series A Series B Series C Series D Series E +
www.cbinsights.com
Last Five Quarters
0% 0% 1% 1% 1%
13% 11% 13% 16% 15%
20%33%
21%
31%
21%
28%
22%32%
21%35%
24%20%
29%16% 12%
14% 13%4%
14% 17%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Share of VC in Texas by Series - Dollars of Funding
Seed Series A Series B Series C Series D Series E +
www.cbinsights.com
Last Five Quarters
Venture Capital Activity Report | Q4 2010
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Definitions – Ensuring Data IntegrityWhat’s Included in our Quarterly Venture Capital Numbers? What is not?
59
Given the importance of venture capital in spurring innovation and entrepreneurship, measuring venture capital activity
accurately is important. We encourage you to review the methodology and definitions employed by us to better
understand the numbers presented in this report. If you have any questions about our definitions or methodological
principles, we encourage you to reach out to us directly.
• Equity financings into emerging companies.
Funding must come from venture capital firms including
corporate venture groups.
• Fundings of only private companies. Public
companies of any kind on any exchange (including Pink
Sheets) are excluded from our numbers even if they
received investment by a venture firm(s)
• Companies must be headquartered in the USA. Our
geographic data is based on the city and state where the
company receiving investment is headquartered. If a
company has a satellite office/presence in multiple cities
or was founded in a particular city but has moved its HQ,
our results reflect only this HQ address.
• Only include the investment made in the quarter for
tranched investments. If a company does a second
closing of its Series B round for $5M and previously had
closed $2M in a prior quarter, only the $5M is reflected
in our results.
• Round #s reflect what has closed – not what is
intended. If a company indicates the closing of $5M out
of a desired raise of $15M, our numbers reflect only the
amount which has closed.
• Only verifiable fundings are included. Fundings are
verified via (1) various federal & state regulatory filings
(2) direct confirmation with firm or investor or (3) press
release.
• Funding close date matters. Fundings are provided
based on funding close date and not on announcement
date.
• Angel investment. These are not included in
numbers unless an investment round included Angels
investing alongside a venture capital firm or corporate
venture group.
• 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 larger corporation, this is not equity financing
nor is it from venture capital firms. As a result, it is not
included.
• Buyouts, Consolidations and Recapitalizations.
All three of these of transaction types are commonly
employed by private equity firms and are tracked by
CB Insights. However, they are excluded for the
purposes of this report. Private equity investments into
companies which may have received venture capital
investment prior are also not included.
• Private placements. These investments also known
as PIPEs (Private Investment in Public Equities) even
if made by a venture capital firm(s) are not included.
• Debt/loans of any kind. Venture debt or any kind of
debt/loan issued to emerging, startup companies even
if included as an additional part of an equity financing
is not included. If a company receives $3M with $2M
from venture investors and $1M in debt, only the $2M
is included in these statistics.
• Government funding. Grants, loans, equity
financings by the federal government, state agencies
or public-private partnerships to emerging, startup
companies are not included. Strictly venture or
corporate venture outfits.
• Incubator investments. Investments of money as
equity or debt and/or services by incubators are not
included.
• Strategic corporate investments. Corporations
making strategic investments in companies but not as
part of a specific organized venture group are not
included.
What is included? What is excluded?
Venture Capital Activity Report | Q4 2010
www.cbinsights.com
60
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Venture Capital Activity Report | Q4 2010
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