David Titus, President

SDVG

Venture Status Update

SDVG

Managing Director

Windward Ventures

250

300

25

30

35

$ Raised # of Funds

Venture Fundraising 2005-13

0

50

100

150

200

0

5

10

15

20

2005 2006 2007 2008 2009 2010 2011 2012 2013

# o

f F

un

ds

$ B

illio

ns

• Top 20 raise 55% of all Dollars– Average Fund Size of $400M

– Everyone else averages $41M

Consolidation of the VC Industry

– Everyone else averages $41M

• Active funds down 20% in 5 years– 1H 2013 data shows same trend

• Secondary Markets hardest hit

25

30

35

$B Raised $B Invested

Venture Investing 2005-13

0

5

10

15

20

25

2005 2006 2007 2008 2009 2010 2011 2012 2013

• Imprecise Data

• Non-traditional “funds”– Family Offices

VC Deficit Spending

– Family Offices

– Foreign Investors

– Hedge Funds

• Corporate Venture Capital– Leading growth segment – Up 50% in 3 years

– But leveling off

• Financings will be harder– Plan for that reality

– Practice Your Pitch (Repeat 3 times!)

Implications - Entrepreneurs

– Practice Your Pitch (Repeat 3 times!)

– Be ready to travel

• Go Big or Go Small

• You must be exceptional– Add management talent that has done it

• Exits are up!

– 21 venture IPOS in Q2 2013

– 11 Biotech IPOs

The Good News

– 11 Biotech IPOs

• M&A is the key to F500 growth

• Hard things are popular again

4.50%

5.00%

1100

1200

1300

$ Raised % of Total

San Diego Investing

2.50%

3.00%

3.50%

4.00%

500

600

700

800

900

1000

2008 2009 2010 2011 2012 2013

• Acutus $21M

• Colorscience $10M

• eFFECTOR $45M

• EcoATM $40M

• Tealium $15.6M

• Sotera Wireless $15M

Notable Deals 2013

• eFFECTOR $45M

• Lumena $23M

• Topera $25M

• Viacyte $10.6M

• Sotera Wireless $15M

• Takelessons.com $4M

• DB Networks $4.5

• One Roof Energy $30M

Exits & IPOs

www.sdvg.org

900 @SDVG

1,400SDVG

300

Predictions