2. 2 Venture Capital Activity Report | Q1 2012
Q1 2012 – This Quarter in Venture Capital
VCs aggressively doing deals in Q1 2012, but the absence of mega VC deals put a
damper on funding levels as industry hit funding levels not seen since Q2 2010.
VCs weren’t hesitant to open up their wallets in Q1 2012 making 785 investments in the quarter – the 2nd most in the last
nine quarters. But despite the aggressive number of deals, the checks written were smaller than prior quarters as
institutional investors plowed $5.9 billion into companies – the lowest level of VC funding since Q2 2010.
Although this represents a 22% decline in funding from Q4 2012, we do not think that a single quarter dip in funding is in any
way symptomatic of any sort of correction or any sort of bubble bursting. Deal activity which we view as a better gauge of
investor sentiment remains strong. The funding dip is primarily the result of fewer VC mega deals in the quarter which as the
quarter illustrates can and do move numbers significantly up when present and down wildly when absent.
Note: Only deals in which VCs are participating are included. Companies which raise money from mutual or private equity funds or
corporations (unless it is their corporate venture arms) are not included. We recommend you review our definitions and methodology on
p. 66 to see what is included/excluded as there is a great amount of misinformation out there.
VCs Continue to Plant Their Seeds Internet Deals Climb on Back of Seed Deals
Seed investing hit a historical high with almost 1 of every While internet funding fell 17%, deal volume grew 16%
5 VC deals being an early stage seed VC investment. with a five quarter high for seed VC deals.
These “call options” as we’ve referred to them in the past
allow venture investors to invest minimal amounts in Healthcare’s Flu Like Symptoms Continue
companies (primarily tech) and get first access to invest in
these companies should they show signs of going from After a strong Q4'11, VC funding to healthcare hit a five
seed to something more substantial. quarter low while deals stayed within their recent
range. The sentiment and chatter around healthcare
On the flipside, if the seed investment doesn’t work out, continues to be mixed and so the sector will remain
the firm has put little capital at risk. Increased capital range-bound unless some catalyst, i.e., massive exit,
efficiency in tech has made these types of seed regulatory change, etc. can spur it to move.
investments increasingly popular and Q1 2012 starkly
demonstrated this with 19% of deals being of the seed NY Hits Five Quarter Funding Low. Uh Oh?
variety.
New York funding dipped but the state’s deal activity
The “Instagram Effect” stayed strong so we don’t think the decline is a problem
(yet). NY remains a hub for early stage investment with
For the first time, we’ve broken out mobile & telecom 30% of deals in the seed stage and another 30%+ in the
investment trends in this report – what we’re calling our Series A stage.
own little “Instagram Effect”. While mobile deal volume
remained strong, funding dipped in Q1’12. Like most tech Mass Sees Five Quarter Low on Deals & Dollars
investment sectors, VCs are favoring small seed
investments in the mobile sector. And since the Unlike NY, Mass fell on both deals and dollars. The gap
Instagram acquisition by Facebook was announced when vs. NY on the tech front also seems to worsen for Mass
Q1’12 was already in the books, we expect that the although the state continues to have a more balanced
coming quarters will be interesting for the mobile sector as attack with healthcare and green tech. If, however, there
companies and investors try even more aggressively to is a coming wave of internet & mobile opportunities, is
ride the mobile wave. Mass not positioned to capitalize on these opportunities?
Green Tech Sputters Washington Bucks National Trend – Funding Climbs
With no mega deals and continued uncertain sentiment While national VC funding fell 22%, Washington actually
green tech saw its lowest level of deals and funding in the climbed 41% making it the only major VC recipient to
last five quarters. Will something help Green Tech shake register an increase in funding.
its malaise in the coming quarters?
California Leads but Sees Big Funding Dip.
Cali funding dips 26% vs. Q4’11, but still leads the pack.
www.cbinsights.com
3. 3 Venture Capital Activity Report | Q1 2012
$5.9B in 785 Deals – Strong Deal Activity; Few Mega Deals
After four straight quarters of $7B+ funding, Q1 2012 saw a steep drop in funding
dollars although deal activity stayed very strong.
www.cbinsights.com
4. 4 Venture Capital Activity Report | Q1 2012
NY Jumps Ahead of Mass On Deal Share
After Q4’10 dip below Mass, NY snaps back to #2 on number of VC deals. Overall,
league tables for top states remain largely in-line with historical levels.
www.cbinsights.com
5. 5 Venture Capital Activity Report | Q1 2012
Cali, Mass, NY Take Lowest Share of Funding in Last 5 Qtrs
NY’s funding fell to a five quarter low while Washington registered it’s highest amount
of funding in the last five quarters.
www.cbinsights.com
6. 6 Venture Capital Activity Report | Q1 2012
What Smart Investors, Bankers and
Wealth Managers Use to Get Ahead…
With CB Insights you can access real-time private company deal feeds – including
financings, M&A and IPOs – that are updated constantly throughout the day.
CB Insights is accessible for free by visiting http://www.cbinsights.com
www.cbinsights.com
7. 7 Venture Capital Activity Report | Q1 2012
New Year Starts with Bang (At Least in Terms of Deals)
January 2012 continued the deal momentum seen in late 2011 with the month
registering the highest deal count in the last 18 months. Funding levels stayed
depressed throughout the quarter with few mega deals to buoy totals.
www.cbinsights.com
8. 8 Venture Capital Activity Report | Q1 2012
VCs Aggressively Plant Their Seeds in Q1 2012
Seed VC deals register five quarter high and help to push deal activity numbers for the
quarter higher. Funding distribution across series stays consistent with historical
patterns. In total, seed and Series A continue to make up almost 50% of deals.
www.cbinsights.com
9. 9 Venture Capital Activity Report | Q1 2012
Healthcare Slips Back on Deals While Internet Grows
After an uptick in Q4’11, healthcare falls back on deals and maintains its historical
funding levels. Internet investments gain increased share of total VC deals.
www.cbinsights.com
10. 10 Venture Capital Activity Report | Q1 2012
Get Started for Free with CB Insights
Basic membership on CB Insights is free. Just visit http://www.cbinsights.com. Or
connect with us via any of the following.
Twitter Newsletter
Follow us @cbinsights Click here to receive our weekly
dealflow newsletter.
Email Telephone
212-292-3148
info@cbinsights.com
www.cbinsights.com
11. 11 Venture Capital Activity Report | Q1 2012
Q1 2012 Venture Capital
INTERNET
www.cbinsights.com
12. 12 Venture Capital Activity Report | Q1 2012
Internet Deals Way Up While Funding Hits Five Qtr Low
Without a massive Facebook, Twitter, etc mega-funding, internet dollars slip
Internet
significantly, but on the back of strong Seed and Series A activity, deals are way up.
Versus Q4’11, deals are up 15%. Relative to Q1’11, deals are up 14%.
www.cbinsights.com
13. 13 Venture Capital Activity Report | Q1 2012
Mass Falls to Distant Third for Internet VC Deals
NY nearly triples Massachusetts on number of internet deals. Cali continues its
Internet
chokehold on the #1 position for both deals and funding.
Quarter Highlights
326 deals | $2,067M
Top Deals
Yammer
Lithium Technologies
Code 42 Software
Apptio
Kinnser Software
Trialpay
Top Cities
San Francisco, CA
47 deals | $447M
Mountain View, CA
14 deals | $173M
New York, DC
47 deals | $153M
Austin, TX
9 deals | $76M
Santa Monica, CA
5 deals | $65M
Bellevue, WA
2 deals | $58M
Palo Alto, CA
14 deals | $56M
Emeryville, CA
1 deals | $53M
Minneapolis, MN
1 deals | $53M
Boulder, CO
5 deals | $52M
www.cbinsights.com
14. 14 Venture Capital Activity Report | Q1 2012
Mass Hits Five Quarter Low on Internet Deals
NY retains to the #2 spot for Internet, although loses significant share of funding to Cali
Internet
and others. Massachusetts falls to 5 quarter low on share of internet deals.
www.cbinsights.com
15. 15 Venture Capital Activity Report | Q1 2012
Seed Internet Deals Soar. Series B Funding Gets Crunched.
Seed deals in web companies breaks out above already-record levels. Series A
Internet
funding sees five quarter high while internet Series B deals see a multi-quarter low.
www.cbinsights.com
16. 16 Venture Capital Activity Report | Q1 2012
Big Data Pushes Business Intelligence into Deal Lead
Social internet companies, usually a big area of investment, fell several spots with
Internet
some atypical areas like Business Intelligence and Monitoring & Security jumping up to
the league tables.
www.cbinsights.com
17. 17 Venture Capital Activity Report | Q1 2012
Early Stage Medians Remain Flat, Later Stage Uptick
Early stage Internet deal sizes remain fairly steady, while Series C and beyond see
Internet
uptick since last quarter.
www.cbinsights.com
18. 18 Venture Capital Activity Report | Q1 2012
Q1 2012 Venture Capital
MOBILE & TELECOM
www.cbinsights.com
19. 19 Venture Capital Activity Report | Q1 2012
Mobile Deal Activity Stays Strong but Funding Dips
Funding falls to a five quarter low dropping 42% vs. Q4’11 and 29% vs. Q1’11 but deal
Mobile
activity stays steady. Q2’12 will be an interesting quarter to watch: will there be an
“Instagram Effect” on mobile funding and deal activity? (We expect there will be)
www.cbinsights.com
20. 20 Venture Capital Activity Report | Q1 2012
Like Internet VC, Cali Dominates with NY 2nd in Mobile VC
NY is a distant 2nd to California in terms of both deals and dollars. Massachusetts and
Mobile
Washington also exhibit mobile VC strength in Q1’12.
Quarter Highlights
93 deals | $453M
Top Deals
BOKU
Ruckus Wireless
Jasper Wireless
Ooma
Verivo Software
Top Cities
San Francisco, CA
8 deals | $62.91M
Palo Alto, CA
9 deals | $49.37M
Mountain View, CA
7 deals | $40.6M
New York, NY
10 deals | $39.37M
Sunnyvale, CA
3 deals | $25.75M
Bellevue, WA
2 deals | $22.8M
Waltham, MA
1 deals | $17M
Boston, MA
3 deals | $15.93M
Denver, CO
2 deals | $14M
Sioux Falls, SD
1 deals | $12M
www.cbinsights.com
21. 21 Venture Capital Activity Report | Q1 2012
Deal/Dollar Share In Line With Historical Levels
Washington and Colorado register healthy quarters for mobile deals and funding.
Mobile
Funding levels by state continue to swing wildly in mobile & telecom as the category is
still in its infancy, where a large deal can seismically shift the quarter’s funding totals.
www.cbinsights.com
22. 22 Venture Capital Activity Report | Q1 2012
Seed VC Deals in Mobile Hit Five Quarter High
Seed and Series A make up two-thirds of deals, highlighting the relative nascence of
Mobile
companies in mobile and the burgeoning interest in the mobile sector. Series B and C
see lowest portion of financing dollars in the last five quarters.
www.cbinsights.com
23. 23 Venture Capital Activity Report | Q1 2012
Mobile Advertising, Gaming and Application Dev Win Deals
Deal and dollar distribution remains diverse with numerous sub-industries within
Mobile
mobile garnering funding. The “land grab” is still on within mobile as category leaders
are still being determined across a wide variety of mobile focus areas.
www.cbinsights.com
24. 24 Venture Capital Activity Report | Q1 2012
Early Stage Median Deal Sizes Stay Flat
No clear trend for mobile investment medians is discernible. While early stage deal
Mobile
medians have stayed mostly range bound, Series B and Series C medians have
dropped while Series D and later-stage Series E+ have ticked up.
www.cbinsights.com
25. 25 Venture Capital Activity Report | Q1 2012
Q1 2012 Venture Capital
HEALTHCARE
www.cbinsights.com
26. 26 Venture Capital Activity Report | Q1 2012
Healthcare Hits 5-Quarter Funding Low, Seeks Lifeline
Healthcare
Healthcare follows up its strongest quarter in funding over the previous five quarters
with its weakest one since 2010. Deal volume reverts to familiar levels.
www.cbinsights.com
27. 27 Venture Capital Activity Report | Q1 2012
Cali and Mass Remain Healthcare Breadwinners
Healthcare
California and Massachusetts combine for 46% of deal share and 61% of funding
dollars. Beyond the top two, the field remains diverse as usual.
Quarter Highlights
153 deals | $1,449M
Top Deals
Warp Drive Bio
Sientra
Ariosa Diagnostics
Apollo Endosurgery
Mevion Medical Systems
Top Cities
Boston, MA
2 deals | $128M
San Diego, CA
6 deals | $90M
Redwood City, CA
4 deals | $86M
Santa Barbara, CA
1 deals | $65M
San Jose, CA
2 deals | $65M
Cambridge, MA
7 deals | $53M
La Jolla, CA
2 deals | $50M
Austin, TX
2 deals | $48M
Littleton, MA
1 deals | $45M
Ann Arbor, MI
3 deals | $37M
www.cbinsights.com
28. 28 Venture Capital Activity Report | Q1 2012
California Loses Deal Share for the 5th Straight Quarter
Healthcare
The field continues to chip away at California’s lead in deal share, as California falls to
27% of Healthcare deal flow – a 10% drop since Q1 2011. Meanwhile, Mass and Cali
both lose a bit of funding share as well.
www.cbinsights.com
29. 29 Venture Capital Activity Report | Q1 2012
Seed Jumps Significantly, but Overall Early Stage Dips
Healthcare
Seed deals double their share since Q4 2011, owning 14% of overall dealflow.
However, Series A takes a step back in terms of both deals and dollars, netting an
overall drop in early stage Healthcare activity.
www.cbinsights.com
30. 30 Venture Capital Activity Report | Q1 2012
Usual Suspects: Medical Devices, Pharma, Biotech Own Q1
Healthcare
Medical devices stays atop the charts in terms of both deals and dollars, followed up
by Biotech and Pharma, respectively.
www.cbinsights.com
31. 31 Venture Capital Activity Report | Q1 2012
Healthcare Medians Continue to Drop in Q1
Healthcare
Following a trend in recent quarters, Healthcare median deal sizes drop almost across
the board, with the sole exception in Series E+ which saw a significant bump.
www.cbinsights.com
32. 32 Venture Capital Activity Report | Q1 2012
Q1 2012 Venture Capital
GREEN & CLEAN TECH
www.cbinsights.com
33. 33 Venture Capital Activity Report | Q1 2012
Double Whammy – Green Tech Deals & Funding Hit Lows
Q1 2012 sees funding and deal levels drop 40% and 18% respectively from Q4’11 with
Green
both measures hitting five quarter lows. The absence of green tech mega deals hurt
funding totals, but it’s the drop in deal activity that is probably most worth tracking.
www.cbinsights.com
34. 34 Venture Capital Activity Report | Q1 2012
Cali, Mass Dominate. Unusual Suspect, Illinois Enters Fray
Cali remains the overwhelming leader in terms of Green Tech deals and dollars. Mass
Green
maintains its #2 spot. Lack of mega deals doesn’t cause any wild gyrations among state
funding shares. Illinois sees a diverse array of renewables and energy efficiency deals
pushing them into green tech limelight.
Quarter Highlights
56 deals | $763M
Top Deals
SolarCity
Joule Unlimited
LanzaTech
MiaSole
Renmatix
Top Cities
San Mateo, CA
1 deals | $81M
Bedford, MA
1 deals | $70M
Roselle, IL
1 deals | $56M
Santa Clara, CA
1 deals | $55M
King of Prussia, PA
1 deals | $50M
San Jose, CA
3 deals | $39M
San Diego, CA
3 deals | $38M
Sunnyvale, CA
2 deals | $34M
Houston, TX
2 deals | $32M
Livermore, CA
1 deals | $25M
www.cbinsights.com
35. 35 Venture Capital Activity Report | Q1 2012
Cali, Mass Take Almost $7 of Every $10 Green Tech Dollars
Besides Illinois’ ascent into deal and funding league tables, the rest of the share
Green
breakdowns by states for deals & funding are in line with historical averages.
www.cbinsights.com
36. 36 Venture Capital Activity Report | Q1 2012
Early Stage Green Tech Deals Hit 5-Quarter Low
After Q4’11’s early stage investment peak, Q1’12 sees early stage clean tech deal
Green
share fall of a cliff. Series C stage investments clean up on the funding front in
Q1’12.
www.cbinsights.com
37. 37 Venture Capital Activity Report | Q1 2012
Energy Efficiency Climbs to Five Quarter High on Deals
Renewables retain top spot on deals and dollars, but energy efficiency technology
Green
continues to see strong deal activity.
www.cbinsights.com
38. 38 Venture Capital Activity Report | Q1 2012
Green Tech Median Generally Declining
With sector sentiment remaining mixed, median values across different stages all
Green
decline as compared to Q1 2011.
www.cbinsights.com
39. 39 Venture Capital Activity Report | Q1 2012
Q1 2012 Venture Capital
CALIFORNIA
www.cbinsights.com
40. 40 Venture Capital Activity Report | Q1 2012
What Smart Investors, Bankers and
Wealth Managers Use to Get Ahead…
With CB Insights you can access deep private company info that was once exclusively
available behind prohibitively expensive paywalls.
CB Insights is accessible for free by visiting http://www.cbinsights.com
82,000+ Private Company Profiles. Coverage Universe
Over 82,000 high value private
company profiles across industries and • Venture Capital – 1999 to present
sectors. Medical devices to • Angel Investment
mobile. Industrial to internet. • Private Equity
• Federal SBIR Grants – 3 years
• State Grant Programs
From Angel to Private Equity. • Incubators – Over 300
Angel investment to venture capital to • Middle Market Private Companies
private equity to government funding to
under the radar mid-market private Sector Coverage
companies.
• Green/clean tech
• Internet
Company & Investor Updates via Email. • Mobile & Telecom
• Software
Add companies and investors of • Energy & Utilities
interest to your CBI Watchlist and get • Computer Hardware & Services
notified of changes and updates • Healthcare
automatically. • Industrial
• Automotive & Transportation
Management & Board Information • Business Products & Services
• Consumer Products & Services
Find out about the people behind the • Electronics
companies including management and • Environmental Services &
board of directors profiles. Equipment
• Financial Services
• Food & Beverages
• Leisure
Analytics & Reporting • Media
• Metals & Mining
Downloadable reports and analytics
• Retail
which allow you to manipulate data
• Risk & Security
when and how you want to.
www.cbinsights.com
41. 41 Venture Capital Activity Report | Q1 2012
What’s Wrong With This Picture? Cali Stumbles
California’s funding level drops 26% versus Q4 2011 and 27% versus a year ago,
California
leading the precipitous drop in overall venture funding experienced in Q1. On the
bright side, deal volume remains strong.
www.cbinsights.com
42. 42 Venture Capital Activity Report | Q1 2012
Lack of Mega-Deals Responsible for Q1 Cali Flop
California
Whereas Q4 2011 saw 4 deals of at least $100M each in California, The Golden
State’s largest deal this quarter is Yammer at $85 million.
Quarter Highlights
309 deals | $2,857M
Top Sector
# of Deals – Internet
$ of Funding – Internet
Top Deals
Yammer
SolarCity
Sientra
Appirio
MiaSole
Top Cities
San Francisco
64 deals | $555M
Mountain View
26 deals | $315M
San Mateo
12 deals | $189M
Redwood City
11 deals | $158M
San Diego
12 deals | $146M
San Jose
15 deals | $143M
Santa Clara
8 deals | $142M
Palo Alto
30 deals | $138M
Santa Monica
8 deals | $110M
Sunnyvale
12 deals | $95M
www.cbinsights.com
43. 43 Venture Capital Activity Report | Q1 2012
Healthcare & Internet Combine for Nearly 60% of Funding
Healthcare loses a bit of share in terms of both deals and dollars, but overall Internet
California
and Healthcare continue to hold the two top spots in California in terms of venture
funding.
www.cbinsights.com
44. 44 Venture Capital Activity Report | Q1 2012
Seed Continues to Grow Share of Deal Volume in Cali
Overall early stage sees a bump in share of deal volume as Seed grabs 17% of overall
California
dealflow in California. In terms of funding, however, later stage deals continue to exert
pressure, with Series C and beyond taking two thirds of funding.
www.cbinsights.com
45. 45 Venture Capital Activity Report | Q1 2012
Q1 2012 Venture Capital
MASSACHUSETTS
www.cbinsights.com
46. 46 Venture Capital Activity Report | Q1 2012
Massachusetts
Mass Continues Roller Coaster Ride, This Time Down
Turmoil in Boston isn’t isolated to the Red Sox as Massachusetts experiences a 5-
quarter low in terms of both VC deals and dollars.
www.cbinsights.com
47. 47 Venture Capital Activity Report | Q1 2012
Massachusetts
Healthcare Continues Dominance in Mass, Internet #2
Healthcare and Internet continue their hold on the top two spots in terms of both deals
and dollars. Energy is a convincing #3 in terms of funding.
Quarter Highlights
76 deals | $650M
Top Sector
# of Deals – Healthcare
$ of Funding - Healthcare
Top Deals
Warp Drive Bio
Joule Unlimited
Mevion Medical Systems
Neolane
RaNA Therapeutics
Top Cities
Boston
12 deals | $166M
Waltham
10 deals | $88M
Cambridge
14 deals | $78M
Bedford
3 deals | $77M
Littleton
1 deals | $45M
Newton
2 deals | $28M
Lexington
3 deals | $25M
Medford
1 deals | $20M
Winchester
1 deals | $15M
Woburn
1 deals | $15M
www.cbinsights.com
48. 48 Venture Capital Activity Report | Q1 2012
Overall Dip in Mass Doesn’t Affect the Mix
Massachusetts
Deal and dollar distribution in Massachusetts remains largely unchanged since Q4
2011, with Healthcare and Internet remaining atop the board.
www.cbinsights.com
49. 49 Venture Capital Activity Report | Q1 2012
Massachusetts
Seed Deals Rally, but Overall Early Stage Loses Ground
Seed takes 16% over overall deal flow in Massachusetts, but overall early stage (Seed +
Series A) dips dramatically since Q4 in terms of funding.
www.cbinsights.com
50. 50 Venture Capital Activity Report | Q1 2012
Q1 2012 Venture Capital
NEW YORK
www.cbinsights.com
51. 51 Venture Capital Activity Report | Q1 2012
NY Hits Five Quarter Funding Low; Deals Stay Strong
New York
NY funding falls 41% vs. Q4’11 and 25% vs. Q1’11 while VC deals actually climb 11%
sequentially and 13% quarter-over-quarter.
www.cbinsights.com
52. 52 Venture Capital Activity Report | Q1 2012
Get Started for Free with CB Insights
Basic membership on CB Insights is free. Just visit http://www.cbinsights.com. Or
connect with us via any of the following.
Twitter Newsletter
Follow us @cbinsights Click here to receive our weekly
dealflow newsletter.
Email Telephone
212-292-3148
info@cbinsights.com
www.cbinsights.com
53. 53 Venture Capital Activity Report | Q1 2012
Internet Still Rules, but Mobile and Healthcare Show Life
New York
Internet continues to command the lion’s share of deals and dollars, but Mobile deals
register volume and Financial consumes serious dollars in Q1.
Quarter Highlights
81 deals | $335M
Top Sector
# of Deals – Internet
$ of Funding - Internet
Top Deals
Capital Access Network
Aereo
KEMP Technologies
Buzzfeed
Peek
Top Cities
New York
66 deals | $243M
Scarsdale
1 deals | $30M
Long Island City
2 deals | $22M
Yaphank
1 deals | $16M
Ithaca
1 deals | $6M
www.cbinsights.com
54. 54 Venture Capital Activity Report | Q1 2012
Internet and Mobile are 82% of Deals and 67% of Funding
New York
Internet deals jump back in Q1’12. When aggregated with mobile and other tech
investments, it is clear that NY’s VC ecosystem future is tethered to the fate of tech.
www.cbinsights.com
55. 55 Venture Capital Activity Report | Q1 2012
NY Early Stage Investments Jump Even More
New York
Following Q4’11’s strong early stage performance, Q1’12 sees 63% of deals going to
Seed and Series A transactions. NY’s presence as an early stage investment hub
continues to grow.
www.cbinsights.com
56. 56 Venture Capital Activity Report | Q1 2012
Q1 2012 Venture Capital
WASHINGTON
www.cbinsights.com
57. 57 Venture Capital Activity Report | Q1 2012
Washington Bucks the Trend, Sees 5-Quarter Funding High
Washington
Washington fights off the national swoon, and instead experiences a five-quarter high
with $206 million in VC funding. Deal volume also sees an uptick since Q4.
www.cbinsights.com
58. 58 Venture Capital Activity Report | Q1 2012
Mobile & Telecom Jumps to #2 Spot in Washington
Washington
Internet and Healthcare, which traditionally occupy the top two spots are joined by Mobile
& Telecom which sees a strong quarter.
Quarter Highlights
28 deals | $206M
Top Sector
# of Deals – Internet
$ of Funding - Internet
Top Deals
CrowdStrike
Opscode
Spoken Communications
FinSphere
Meteor Entertainment
Top Cities
Bellevue
6 deals | $89M
Seattle
16 deals | $78M
Kirkland
1 deals | $26M
Liberty Lake
1 deals | $5M
Issaquah
1 deals | $3M
Olympia
1 deals | $3M
www.cbinsights.com
59. 59 Venture Capital Activity Report | Q1 2012
Healthcare Loses Ground to Internet and Mobile & Telecom
Washington
Healthcare, which experienced an incredibly strong Q4 2011 in Washington, comes
back to earth as Mobile & Telecom grabs the #2 spot in terms of deals and dollars.
www.cbinsights.com
60. 60 Venture Capital Activity Report | Q1 2012
Early Stage Investing Inches Backward, but Remains Strong
Washington
Seed and Series A lose a bit of ground, but still combine for over 50% of overall deal
volume and 33% of funding in Washington.
www.cbinsights.com
61. 61 Venture Capital Activity Report | Q1 2012
Q1 2012 Venture Capital
TEXAS
www.cbinsights.com
62. 62 Venture Capital Activity Report | Q1 2012
Funding Falls, but Overall Texas See a Strong Quarter
Texas
Deal volume in Texas experiences a five-quarter high, while funding dips, but remains
strong.
www.cbinsights.com
63. 63 Venture Capital Activity Report | Q1 2012
Healthcare Grabs Texas’ Top Spot
Texas
The merry-go-round continues in Texas with Healthcare owning the top spot this
quarter in terms of both deals and dollars.
Quarter Highlights
39 deals | $336M
Top Sector
# of Deals – Internet
$ of Funding – Healthcare
Top Deals
Apollo Endosurgery
Kinnser Software
Pivot 3
Bellicum Pharmaceuticals
Glori Energy
Top Cities
Austin
21 deals | $201M
Houston
8 deals | $88M
San Antonio
3 deals | $22M
Fort Worth
1 deals | $10M
Richardson
1 deals | $6M
Anna
1 deals | $4M
Dallas
1 deals | $3M
McKinney
1 deals | $1M
Plano
1 deals | $1M
El Paso
1 deals | $1M
www.cbinsights.com
64. 64 Venture Capital Activity Report | Q1 2012
Energy Registers Another Relatively Week Quarter
Texas
Texas, a state traditionally known as a hotbed for Energy investment, sees an
incredibly diverse quarter with Healthcare and Internet leading the way.
www.cbinsights.com
65. 65 Venture Capital Activity Report | Q1 2012
Seed Continues to Gain Ground in Texas
Texas
Seed VC deal volume sees five-quarter high with 11% of overall deal volume.
However, Series A share of volume dips, netting overall drop in early stage deal share.
www.cbinsights.com
66. 66 Venture Capital Activity Report | Q1 2012
Definitions – Ensuring Data Integrity
What’s Included in our Quarterly Venture Capital Numbers? What is not?
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.
What is included? What is excluded?
• Equity financings into emerging companies. • Angel investment. These are not included in
Funding must come from venture capital firms including numbers unless an investment round included Angels
corporate venture groups. investing alongside a venture capital firm or corporate
• Fundings of only private companies. Public venture group.
companies of any kind on any exchange (including Pink • No contingent funding. If a company receives a
Sheets) are excluded from our numbers even if they commitment for $20M subject to hitting certain
received investment by a venture firm(s) milestones but first gets $8M, only the $8M is included
• Companies must be headquartered in the USA. Our in our data.
geographic data is based on the city and state where the • No business development/R&D arrangements
company receiving investment is headquartered. If a whether transferable into equity now, later or
company has a satellite office/presence in multiple cities never. If a company signs a $300M R&D partnership
or was founded in a particular city but has moved its HQ, with a larger corporation, this is not equity financing
our results reflect only this HQ address. nor is it from venture capital firms. As a result, it is not
• Only include the investment made in the quarter for included.
tranched investments. If a company does a second • Buyouts, Consolidations and Recapitalizations.
closing of its Series B round for $5M and previously had All three of these of transaction types are commonly
closed $2M in a prior quarter, only the $5M is reflected employed by private equity firms and are tracked by
in our results. CB Insights. However, they are excluded for the
• Round #s reflect what has closed – not what is purposes of this report. Private equity investments into
intended. If a company indicates the closing of $5M out companies which may have received venture capital
of a desired raise of $15M, our numbers reflect only the investment prior are also not included.
amount which has closed. • Private placements. These investments also known
• Only verifiable fundings are included. Fundings are as PIPEs (Private Investment in Public Equities) even
verified via (1) various federal & state regulatory filings if made by a venture capital firm(s) are not included.
(2) direct confirmation with firm or investor or (3) press • Debt/loans of any kind. Venture debt or any kind of
release. debt/loan issued to emerging, startup companies even
• Funding close date matters. Fundings are provided if included as an additional part of an equity financing
based on funding close date and not on announcement is not included. If a company receives $3M with $2M
date. 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.
www.cbinsights.com
67. 67 Venture Capital Activity Report | Q1 2012
What Smart Investors, Bankers and
Wealth Managers Use to Get Ahead…
With CB Insights you can access deep private company info that was once exclusively
available behind prohibitively expensive paywalls.
CB Insights is accessible for free by visiting http://www.cbinsights.com
82,000+ Private Company Profiles. Coverage Universe
Over 82,000 high value private
company profiles across industries and • Venture Capital – 1999 to present
sectors. Medical devices to • Angel Investment
mobile. Industrial to internet. • Private Equity
• Federal SBIR Grants – 3 years
• State Grant Programs
From Angel to Private Equity. • Incubators – Over 300
Angel investment to venture capital to • Middle Market Private Companies
private equity to government funding to
under the radar mid-market private Sector Coverage
companies.
• Green/clean tech
• Internet
Company & Investor Updates via Email. • Mobile & Telecom
• Software
Add companies and investors of • Energy & Utilities
interest to your CBI Watchlist and get • Computer Hardware & Services
notified of changes and updates • Healthcare
automatically. • Industrial
• Automotive & Transportation
Management & Board Information • Business Products & Services
• Consumer Products & Services
Find out about the people behind the • Electronics
companies including management and • Environmental Services &
board of directors profiles. Equipment
• Financial Services
• Food & Beverages
• Leisure
Analytics & Reporting • Media
• Metals & Mining
Downloadable reports and analytics
• Retail
which allow you to manipulate data
• Risk & Security
when and how you want to.
www.cbinsights.com
68. 68 Venture Capital Activity Report | Q1 2012
Get Started for Free with CB Insights
Basic membership on CB Insights is free. Just visit http://www.cbinsights.com. Or
connect with us via any of the following.
Twitter Newsletter
Follow us @cbinsights Click here to receive our weekly
dealflow newsletter.
Email Telephone
212-292-3148
info@cbinsights.com
www.cbinsights.com
