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In partnership with:
The latest in VC: Ripple effects of record capital availability
W E B I N A R
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Cameron Stanfill
Analyst
2Q 2018 Venture Monitor Report
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U S F U N D R A I S I N GP O L L
In your opinion, what is the most important driver of increased allocation to Venture?
aA
B
C
D
Return characteristics
Diversification benefit
Increased maturity of VC market
Access to companies earlier in the lifecycle
E Other
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Half-decade landmark in sightUS fundraising activity by year 8
Funds of $500M+ raised
through first 6 months
$85BDry Powder in the US
(as of 9/30/17)
*Data as of 6-30-2018
$32
$12
$20
$26$24
$21
$36 $37$41
$35
$20
193
124
156
155
208
227
297 295
322
283
157
-
50
100
150
200
250
300
350
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018*
Capital Raised ($B) # of Funds Closed
6
$57.5BInvested in first half, on
pace to top $100B.
227%Increase in early-stage
median deal size over
the past decade
$37.1
$27.0$31.3
$44.4$41.7
$47.4
$71.9
$82.2
$75.6
$81.9
$57.5
4,716
4,470
5,388
6,738
7,865
9,244
10,50910,606
8,9398,815
3,997
0
2,000
4,000
6,000
8,000
10,000
12,000
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deal Value ($B) # of Deals Closed
Capital invested paces for decade-highUS deal activity by year
Late stage valuations continue to soarMedian pre-money valuation by series
24%YoY growth of valuation
at Series D+
*Data as of 6-30-2018
7
20
55
115
278
$0
$50
$100
$150
$200
$250
$300
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018*
Angel/Seed Series A Series B Series C Series D+
225
80
40
15.9
6
8
Defined: Non-traditional investor
• PE/Buyout
• Corporation
• Sovereign Wealth Fund
• Family Office
• Hedge Fund
• Mutual Fund
• Limited Partner
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$17.4
$11.1 $11.8
$19.8
$16.0$18.7
$36.5
$46.1
$42.5 $43.6
$35.8
1,192
840 875
1,015
1,205
1,410
1,690
1,839
1,634 1,560
886
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deal Value ($B) # of Deals Closed
22%Non-traditional Investor
deal participation
Non-traditional investors increase participationDeal activity by non-traditional investors
62%recorded deal value
*Data as of 6-30-2018
$16.2 $16.3
$30.6$33.8
$46.0
$36.8
$79.8
$50.4
$59.2$54.0
$28.7
484 482
697738
869 893
1,0731,012
879 853
419
0
200
400
600
800
1,000
1,200
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018*
Exit Value ($B) # of Exits Closed
Outsized exits drive healthy first halfUS exit activity by year
43completed IPOs in
first half
$28.7Bcapital exited
through 6/30
*Data as of 6-30-2018
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IPO window begins to open
5.9 5.6
6.96.3
7.77.4
3.0
4.0
5.0
6.0
7.0
8.0
9.0
2010 2011 2012 2013 2014 2015 2016 2017 2018*
Acquisition IPO Buyout
*Data as of 6-30-2018
Median time to exit
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Header 4 18pt bold
Main text 18pt Lorem ipsum dolor sit amet, consectetur adipiscing elit. Cras ut pharetra nisi, at convallis tellus.
Integer pulvinar consectetur ex eu sollicitudin.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Cras ut pharetra nisi, at convallis tellus. Integer pulvinar
consectetur ex eu sollicitudin.
Small data text 14pt
Text styles header 55pt bold
U S F U N D R A I S I N GP O L L
Over the rest of 2018, what will have the largest effect on VC deal activity & capital investment?
aA
B
C
D
VC fundraising and dry powder
Increased participation from non-traditional investors
Deal/check sizes
Valuations
E Other
Panel discussion• Activity of Non-Traditional Investors
• Evolution of Exits Throughout Venture
Kevin Swan VP, Corporate Development, Solium
At Solium, Kevin is responsible for driving growth via
acquisitions, new business creation and strategic initiatives.
Before Solium, he was a partner at a $500M VC firm and then
transitioned to lead corporate development for one of his
portfolio companies in San Francisco, helping the company
grow to a billion-dollar valuation.
Buddy Arnheim Co-chair, Emerging Companies & Venture
Capital Practice, Perkins Coie
Buddy represents emerging growth companies, venture
capital funds, other early stage participants and more. He is
widely referenced for his experience in the areas of corporate
and securities law, governance matters and industries such as
robotics, autonomous machines, AI and machine learning.
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Jim Marshall Head of Emerging Manager Practice,
Silicon Valley Bank
Jim has been working in the startup ecosystem in Silicon
Valley for over 20 years and has been with Silicon Valley Bank
since 2012. As Head of the Emerging Manager Practice at
SVB, Jim leads a team that provides general partners with
tailored services and strategic guidance—from fundraising
and fund operations to portfolio company support and
creative liquidity solutions.
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The latest in VC: Ripple effects of record capital availability
Kevin Swan
VP, Corporate Development
Buddy Arnheim
Co-chair, Emerging Companies
& Venture Capital Practice
Jim Marshall
Head of Emerging Manager Practice
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2Q 2018Venture Monitor Report
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