- Venture capital fundraising and investments reached record levels in 2015, with more money coming from non-traditional investors. However, public tech valuations have dropped and private valuations are correcting from unsustainable highs.
- Most venture capitalists expect valuations to decline further in 2016 and are advising portfolio companies to cut costs. Fewer IPO and acquisition exits also have VCs taking a more cautious approach to new investments.
- Limited partner investors in venture funds remain concerned about high investment pacing, valuations, and company burn rates. However, most will maintain rather than decrease their commitments to venture capital over the next three years.
The document summarizes a venture capital fund that invests globally in technology companies. It has offices in major tech hubs around the world like Silicon Valley, Shanghai, Mexico City, and Dubai. The fund has invested in over 55 companies so far with a total valuation of $600 million generated from 8 exits. It provides services to support portfolio companies, including business consulting, sales and marketing support, and access to mentors. The fund aims to generate returns through investing in cutting-edge technology startups focused on growth.
How to define and position your VC brand to attract funding and dealflow.
* note: more recent updated version below:
https://www.slideshare.net/dmc500hats/branding-strategies-for-better-dealflow-and-fundraising-aka-the-helpful-vc
What goes into building an enduring cloud business? Bessemer investors Byron Deeter, Kristina Sheen, and Anna Khan reveal the G.R.I.T. framework and ways for cloud founders to develop new levels of operational rigor. In this presentation, Bessemer unveils insights into the cloud industry, Good, Better, Best frameworks for SaaS startups, and the 2019 technology trends and predictions Bessemer is most excited about.
Follow the Bessemer Cloud Team on Twitter:
@bdeeter
@kshenster
@annarchyy
About Bessemer Venture Partners:
Bessemer Venture Partners was born from innovations in steel that literally forged modern building and manufacturing. Today, we work with people who want to create revolutions of their own. We've been fortunate to be a part of over 120 IPOs in the last 50 years, including Shopify, Yelp, LinkedIn, Skype, LifeLock, Twilio, SendGrid, DocuSign, Wix, Box, and MindBody.
www.bvp.com
@BessemerVP
This document summarizes key metrics and best practices for Software as a Service (SaaS) companies. It discusses important SaaS metrics like monthly recurring revenue (MRR), churn, lifetime value (LTV), and customer acquisition cost (CAC). Best practices include using incentivized referrals, optimizing the onboarding process, and creating valuable content. The document also provides an overview of the global SaaS market and notes that while the US dominates, European companies can also achieve strong growth and success in the SaaS space.
Alternative Sources Of Funding For Creative Technology Businessgcecs2009
The document provides information about alternative sources of funding for creative technology businesses. It summarizes presentations from a panel on the topic, which included representatives from a venture capital firm, an arts organization, and an economic development organization. The panel discussed various sources of early-stage funding like angel investors, venture capital, and government grants. It also reviewed trends in venture capital investments and deals over recent years. The economic development organization representative described their organization's funding programs for seed and early-stage companies in Southeastern Pennsylvania.
How Venture Capitalist (VC) Firms Screen DealsMark J. Feldman
The document provides an overview of the venture capital industry and investment process. It discusses that venture capital firms typically review over 1,000 business plans per year and manage $50-200M in capital. The venture capital process includes entrepreneurs submitting business plans, having initial meetings with VCs, negotiations if the VC is interested, and potential due diligence. VCs focus on the management team, market opportunity, competition, business economics and risks when evaluating investment opportunities.
Kiwi SaaS Metrics That Matter 2023^LLJ r2.2.pdfssuser62db4d1
Slides from a presentation I gave at KiwiSaaS 2023 entitled Metrics That Matter in 2023. This presentation discusses the change in the financing environment, how companies can respond to it, and the key metrics that I think will matter in 2023 and 2024 to securing additional funding rounds.
Venture Capital Unlocked (Stanford) / Venture Capital 2.0Dave McClure
slides for my "Venture Capital 2.0" opening talk at Stanford School Continuing Studies, VC101 class "Venture Capital Unlocked" #VCunlocked #500startups
The document summarizes a venture capital fund that invests globally in technology companies. It has offices in major tech hubs around the world like Silicon Valley, Shanghai, Mexico City, and Dubai. The fund has invested in over 55 companies so far with a total valuation of $600 million generated from 8 exits. It provides services to support portfolio companies, including business consulting, sales and marketing support, and access to mentors. The fund aims to generate returns through investing in cutting-edge technology startups focused on growth.
How to define and position your VC brand to attract funding and dealflow.
* note: more recent updated version below:
https://www.slideshare.net/dmc500hats/branding-strategies-for-better-dealflow-and-fundraising-aka-the-helpful-vc
What goes into building an enduring cloud business? Bessemer investors Byron Deeter, Kristina Sheen, and Anna Khan reveal the G.R.I.T. framework and ways for cloud founders to develop new levels of operational rigor. In this presentation, Bessemer unveils insights into the cloud industry, Good, Better, Best frameworks for SaaS startups, and the 2019 technology trends and predictions Bessemer is most excited about.
Follow the Bessemer Cloud Team on Twitter:
@bdeeter
@kshenster
@annarchyy
About Bessemer Venture Partners:
Bessemer Venture Partners was born from innovations in steel that literally forged modern building and manufacturing. Today, we work with people who want to create revolutions of their own. We've been fortunate to be a part of over 120 IPOs in the last 50 years, including Shopify, Yelp, LinkedIn, Skype, LifeLock, Twilio, SendGrid, DocuSign, Wix, Box, and MindBody.
www.bvp.com
@BessemerVP
This document summarizes key metrics and best practices for Software as a Service (SaaS) companies. It discusses important SaaS metrics like monthly recurring revenue (MRR), churn, lifetime value (LTV), and customer acquisition cost (CAC). Best practices include using incentivized referrals, optimizing the onboarding process, and creating valuable content. The document also provides an overview of the global SaaS market and notes that while the US dominates, European companies can also achieve strong growth and success in the SaaS space.
Alternative Sources Of Funding For Creative Technology Businessgcecs2009
The document provides information about alternative sources of funding for creative technology businesses. It summarizes presentations from a panel on the topic, which included representatives from a venture capital firm, an arts organization, and an economic development organization. The panel discussed various sources of early-stage funding like angel investors, venture capital, and government grants. It also reviewed trends in venture capital investments and deals over recent years. The economic development organization representative described their organization's funding programs for seed and early-stage companies in Southeastern Pennsylvania.
How Venture Capitalist (VC) Firms Screen DealsMark J. Feldman
The document provides an overview of the venture capital industry and investment process. It discusses that venture capital firms typically review over 1,000 business plans per year and manage $50-200M in capital. The venture capital process includes entrepreneurs submitting business plans, having initial meetings with VCs, negotiations if the VC is interested, and potential due diligence. VCs focus on the management team, market opportunity, competition, business economics and risks when evaluating investment opportunities.
Kiwi SaaS Metrics That Matter 2023^LLJ r2.2.pdfssuser62db4d1
Slides from a presentation I gave at KiwiSaaS 2023 entitled Metrics That Matter in 2023. This presentation discusses the change in the financing environment, how companies can respond to it, and the key metrics that I think will matter in 2023 and 2024 to securing additional funding rounds.
Venture Capital Unlocked (Stanford) / Venture Capital 2.0Dave McClure
slides for my "Venture Capital 2.0" opening talk at Stanford School Continuing Studies, VC101 class "Venture Capital Unlocked" #VCunlocked #500startups
This document discusses Dave McClure's investment thesis and experience in venture capital. It provides an overview of 500 Startups, including its history, strategy of making many small investments, and how it invests through its accelerator program and seed/follow-on funding. Details are given around 500's investment criteria, portfolio diversification approach, and generating deal flow through its brand and network.
Weekend Fund 3.0 - VC Pitch Deck ExamplesPitch Decks
Weekend Fund is a two-person team: Ryan Hoover (founder of Product Hunt) and Vedika Jain writing $100k-300k checks into early-stage startups around the world across consumer and B2B.
After raising an initial $3M angel fund in 2017, then a $10M early-stage fund in 2019, Weekend Fund used this pitch deck to raise a $21M Fund "3.0" in 2022.
Weekend Fund is backed by notable LPs like Naval Ravikant, Troy Carter, Marc Andreessen, Chris Dixon, Suzy Ryoo, Miyuki Matsumoto, Kevin Rose, Chris & Crystal Sacca. They have funded startups like Intercom, Faze Clan, Deel, VoiceFlow & more.
Is your company growing fast enough to IPO?
Rory O'Driscoll, Partner at Scale Venture Partner, presents data defining a minimum level of growth a SaaS business needs to remain on track for venture funding and an eventual IPO.
Read more at: https://www.scalevp.com/blog/understanding-the-mendoza-line-for-saas-growth
The document provides tips for pitching venture capitalists (VCs) to obtain funding. It outlines 10 essential elements to include in a pitch, such as an elevator pitch, problem description, solution, market size, business model, proprietary technology, competition, marketing plan, team, and funding needs/milestones. It emphasizes making the pitch memorable, obvious, and fun while demonstrating an unfair advantage, large market opportunity, and achievable milestones that will increase company value. Graphics, customer testimonials, and working demos or screenshots are highly recommended to capture attention and showcase the product or solution.
This document discusses the potential value that venture capital firms (VCs) can provide to entrepreneurs beyond just funding. It argues that while VCs are primarily financial investors, the best ones can significantly help startups through advice, connections, experience and other support. However, the level and type of support varies greatly between VCs and depends on factors like the individual VC's skills and the firm's resources and approach. The document also notes some potential misalignments between VCs and entrepreneurs.
Transparency is one of our core values at Seedcamp and we are no strangers to how tough the fundraising process can be. In a continued spirit of openness and to show how - like with startups - our own story and proposition moves on, we're sharing the deck we used to raise our heavily-oversubscribed Seedcamp Fund V.
Read more about our plans to invest in and support the next generation of exceptional European talent on our blog: https://seedcamp.com/news/
A look at the Venture Capital industry heading into 2020. Some have questioned whether the industry has a future. This deck does a detailed look at where the industry is and why the future of VC still looks bright.
The seed stage of the venture capital industry went through a boom cycle from 2006-2014 but has lately seen a sharp decline. What's happening? Is it temporary or are their structural problems? This deck answers that question.
At the Notation annual LP meeting this past fall, we gave a short talk on how we think about pre-seed investing & risk, and why we think there's a particularly interesting risk versus reward tradeoff at this stage.
This document provides an overview of Notation, a venture capital firm focused on pre-seed investments in technical founding teams building internet companies in NYC. Notation raised an $8M Fund I and had successful outcomes, proving their model of partnering with exceptional early-stage founders. For Fund II, Notation is raising a $25M first-check fund to continue dedicating to technical founders primarily in NYC, with the goal of building a long-term institutional firm and vibrant founder community.
Qualcomm Ventures is Qualcomm's strategic investment arm that has been operating since 2000. It has 31 team members spread across 7 global regions and has made investments in software, consumer applications, healthcare devices, and other sectors related to wireless technology. Some of Qualcomm Ventures' objectives include generating financial returns while also providing insight into emerging technologies. It also hosts events like the CEO Summit and QPrize competition to support its portfolio companies.
Tech and Venture Capital in the Time of Corona Dave McClure
Isomer Capital is a private investment firm based in London that focuses exclusively on venture capital investments in European companies. It makes primary investments in VC funds as well as direct co-investments in companies. It has notable portfolio unicorns, investments in over 30 funds across 6 countries, and underlying portfolio companies. Venture capital has delivered strong returns over the past 25 years, outperforming other major asset classes like stocks and bonds. The European VC market has also outperformed the US market over the past 20 years based on Cambridge Associates indices.
AlphaTech Ventures is seeking to raise $75 million for its seed stage venture capital fund. The seed funding landscape has expanded significantly in recent years with the rise of accelerators and incubators. AlphaTech differentiates itself through its connections to O'Reilly Network, focus on specific investment themes, disciplined investment process, and ability to work with highly referenceable founders. It plans to address the ongoing funding gap between seed and growth stages. The fund has significantly outperformed projections with strong returns for its first fund and high multiples for its second.
We’re thrilled to announce that we’ve raised Kleiner Perkins’ 18th venture fund -- $600 million to focus on early stage investing. This marks 47 years for our firm, and with a fresh team and strategy, we’re incredibly excited for the next 47 years.
The 1776 Super Accelerator and Discovery Fund aims to identify promising startups disrupting highly regulated industries and provide them support. The Super Accelerator will select "Seed C stage" companies with evidence of traction but not yet a venture round. It will help startups navigate regulations and develop partnerships over a 90 day program. The Discovery Fund will make initial $75k-$150k investments in Accelerator companies and selectively in non-Accelerator companies, tracking performance to identify winners. It will leverage feedback to increase odds of acquisitions and follow-on funding. The "Moneyball" approach uses networks and data to filter investments, aiming for early wins and potential great companies.
Founders Factory is an accelerator and incubator based in London that was founded in 2015. It aims to build technology companies through two main programs - an accelerator that supports existing startups, and an incubator that develops new companies from scratch with Founders Factory and its corporate investors. It has a team of over 60 specialists and has worked with over 60 startups and created 12 startups through its incubator program. It is backed by six major corporate investors in sectors like media, travel, fintech, beauty, education technology and AI. The organization provides funding, services, expertise and access to corporate partnerships to help technology companies scale rapidly.
The Ultimate Investor Pitch Deck TemplateCrowdfunder
Great startups don’t fund themselves. Raising money from investors requires a great pitch, even for experienced founders with significant traction in their startup.
There’s a formula for pitching your startup that has helped startup founders raise millions.
In short, this formula involves crafting a larger story / narrative, while speaking directly to what investors are looking for and need to know about you, your company, your market, and your plan.
Notation Capital is a NYC-based pre-seed venture capital fund that seeks to partner with highly technical founders building scalable internet companies. They believe that operational and capital efficiency have increased dramatically, allowing companies to gain many users with little funding. As successful NYC startups mature, technical talent is leaving to start new companies, presenting opportunities. Notation is well positioned as experienced technologists and investors to help the next wave of founders with guidance and small amounts of early funding.
"What is Different This Time Around" at SaaStr Annual 2016saastr
Mark Suster shares his thoughts on the change in funding climate in 2016, what is the same this time around, and what most certainly isn't at SaaStr Annual 2016 held in San Francisco Feb 9-11th. www.saastrannual.com
This document discusses Dave McClure's investment thesis and experience in venture capital. It provides an overview of 500 Startups, including its history, strategy of making many small investments, and how it invests through its accelerator program and seed/follow-on funding. Details are given around 500's investment criteria, portfolio diversification approach, and generating deal flow through its brand and network.
Weekend Fund 3.0 - VC Pitch Deck ExamplesPitch Decks
Weekend Fund is a two-person team: Ryan Hoover (founder of Product Hunt) and Vedika Jain writing $100k-300k checks into early-stage startups around the world across consumer and B2B.
After raising an initial $3M angel fund in 2017, then a $10M early-stage fund in 2019, Weekend Fund used this pitch deck to raise a $21M Fund "3.0" in 2022.
Weekend Fund is backed by notable LPs like Naval Ravikant, Troy Carter, Marc Andreessen, Chris Dixon, Suzy Ryoo, Miyuki Matsumoto, Kevin Rose, Chris & Crystal Sacca. They have funded startups like Intercom, Faze Clan, Deel, VoiceFlow & more.
Is your company growing fast enough to IPO?
Rory O'Driscoll, Partner at Scale Venture Partner, presents data defining a minimum level of growth a SaaS business needs to remain on track for venture funding and an eventual IPO.
Read more at: https://www.scalevp.com/blog/understanding-the-mendoza-line-for-saas-growth
The document provides tips for pitching venture capitalists (VCs) to obtain funding. It outlines 10 essential elements to include in a pitch, such as an elevator pitch, problem description, solution, market size, business model, proprietary technology, competition, marketing plan, team, and funding needs/milestones. It emphasizes making the pitch memorable, obvious, and fun while demonstrating an unfair advantage, large market opportunity, and achievable milestones that will increase company value. Graphics, customer testimonials, and working demos or screenshots are highly recommended to capture attention and showcase the product or solution.
This document discusses the potential value that venture capital firms (VCs) can provide to entrepreneurs beyond just funding. It argues that while VCs are primarily financial investors, the best ones can significantly help startups through advice, connections, experience and other support. However, the level and type of support varies greatly between VCs and depends on factors like the individual VC's skills and the firm's resources and approach. The document also notes some potential misalignments between VCs and entrepreneurs.
Transparency is one of our core values at Seedcamp and we are no strangers to how tough the fundraising process can be. In a continued spirit of openness and to show how - like with startups - our own story and proposition moves on, we're sharing the deck we used to raise our heavily-oversubscribed Seedcamp Fund V.
Read more about our plans to invest in and support the next generation of exceptional European talent on our blog: https://seedcamp.com/news/
A look at the Venture Capital industry heading into 2020. Some have questioned whether the industry has a future. This deck does a detailed look at where the industry is and why the future of VC still looks bright.
The seed stage of the venture capital industry went through a boom cycle from 2006-2014 but has lately seen a sharp decline. What's happening? Is it temporary or are their structural problems? This deck answers that question.
At the Notation annual LP meeting this past fall, we gave a short talk on how we think about pre-seed investing & risk, and why we think there's a particularly interesting risk versus reward tradeoff at this stage.
This document provides an overview of Notation, a venture capital firm focused on pre-seed investments in technical founding teams building internet companies in NYC. Notation raised an $8M Fund I and had successful outcomes, proving their model of partnering with exceptional early-stage founders. For Fund II, Notation is raising a $25M first-check fund to continue dedicating to technical founders primarily in NYC, with the goal of building a long-term institutional firm and vibrant founder community.
Qualcomm Ventures is Qualcomm's strategic investment arm that has been operating since 2000. It has 31 team members spread across 7 global regions and has made investments in software, consumer applications, healthcare devices, and other sectors related to wireless technology. Some of Qualcomm Ventures' objectives include generating financial returns while also providing insight into emerging technologies. It also hosts events like the CEO Summit and QPrize competition to support its portfolio companies.
Tech and Venture Capital in the Time of Corona Dave McClure
Isomer Capital is a private investment firm based in London that focuses exclusively on venture capital investments in European companies. It makes primary investments in VC funds as well as direct co-investments in companies. It has notable portfolio unicorns, investments in over 30 funds across 6 countries, and underlying portfolio companies. Venture capital has delivered strong returns over the past 25 years, outperforming other major asset classes like stocks and bonds. The European VC market has also outperformed the US market over the past 20 years based on Cambridge Associates indices.
AlphaTech Ventures is seeking to raise $75 million for its seed stage venture capital fund. The seed funding landscape has expanded significantly in recent years with the rise of accelerators and incubators. AlphaTech differentiates itself through its connections to O'Reilly Network, focus on specific investment themes, disciplined investment process, and ability to work with highly referenceable founders. It plans to address the ongoing funding gap between seed and growth stages. The fund has significantly outperformed projections with strong returns for its first fund and high multiples for its second.
We’re thrilled to announce that we’ve raised Kleiner Perkins’ 18th venture fund -- $600 million to focus on early stage investing. This marks 47 years for our firm, and with a fresh team and strategy, we’re incredibly excited for the next 47 years.
The 1776 Super Accelerator and Discovery Fund aims to identify promising startups disrupting highly regulated industries and provide them support. The Super Accelerator will select "Seed C stage" companies with evidence of traction but not yet a venture round. It will help startups navigate regulations and develop partnerships over a 90 day program. The Discovery Fund will make initial $75k-$150k investments in Accelerator companies and selectively in non-Accelerator companies, tracking performance to identify winners. It will leverage feedback to increase odds of acquisitions and follow-on funding. The "Moneyball" approach uses networks and data to filter investments, aiming for early wins and potential great companies.
Founders Factory is an accelerator and incubator based in London that was founded in 2015. It aims to build technology companies through two main programs - an accelerator that supports existing startups, and an incubator that develops new companies from scratch with Founders Factory and its corporate investors. It has a team of over 60 specialists and has worked with over 60 startups and created 12 startups through its incubator program. It is backed by six major corporate investors in sectors like media, travel, fintech, beauty, education technology and AI. The organization provides funding, services, expertise and access to corporate partnerships to help technology companies scale rapidly.
The Ultimate Investor Pitch Deck TemplateCrowdfunder
Great startups don’t fund themselves. Raising money from investors requires a great pitch, even for experienced founders with significant traction in their startup.
There’s a formula for pitching your startup that has helped startup founders raise millions.
In short, this formula involves crafting a larger story / narrative, while speaking directly to what investors are looking for and need to know about you, your company, your market, and your plan.
Notation Capital is a NYC-based pre-seed venture capital fund that seeks to partner with highly technical founders building scalable internet companies. They believe that operational and capital efficiency have increased dramatically, allowing companies to gain many users with little funding. As successful NYC startups mature, technical talent is leaving to start new companies, presenting opportunities. Notation is well positioned as experienced technologists and investors to help the next wave of founders with guidance and small amounts of early funding.
"What is Different This Time Around" at SaaStr Annual 2016saastr
Mark Suster shares his thoughts on the change in funding climate in 2016, what is the same this time around, and what most certainly isn't at SaaStr Annual 2016 held in San Francisco Feb 9-11th. www.saastrannual.com
1) The venture capital outlook document discusses signs that private tech markets are overvalued due to an influx of new capital sources investing with less pricing discipline.
2) Late-stage valuations, median revenue multiples, and e-commerce multiples are much higher for private companies compared to historical levels and public market comparables.
3) Over 2/3 of mid-late stage deals now include non-VC investors like corporations, hedge funds, and mutual funds, and round sizes have increased with less consideration for price.
4) While some overpricing may occur, the document concludes that technology innovation will continue growing as a proportion of the economy, leading to returns for top venture capital firms.
Private valuations continued to grow in 2015 driven by increased crossover investor appetite. However, public valuations point to potential unicorn mispricing as most trade below final private valuations. Late-stage mega-rounds are slowing as investors require tighter terms and focus on profits over growth. The IPO window remains uncertain in 2016 amid macroeconomic headwinds.
In its mid-year report on the healthcare industry, Silicon Valley Bank analyzes the fundraising, investment, M&A and IPO activity of private, venture-backed biopharma, medical device and diagnostic/tools companies. Report author Jonathan Norris also provides his view of what's on the horizon for the second half of 2016.
Chinese startup executives surveyed for Silicon Valley Bank's annual Innovation Economy Outlook report seek venture capital funding and have long-term goals of going public through IPOs. However, they face challenges securing funds and finding qualified talent like startups in other countries. While fundraising is difficult globally, Chinese startups particularly struggle with recruiting talent and accessing financing. Cybersecurity is also a major policy concern for Chinese companies.
Every year Upfront Ventures surveys our peer group for their sentiment on the fund raising environment, burn rates, areas of technology interest and the year ahead. This report summarizes the views as of January 2017.
Silicon Valley Bank’s Trends in Healthcare Investments and Exits report analyzes the fundraising, investment, M&A and IPO activity of private, venture-backed biopharma, medical device and diagnostic/tools companies. Report author Jon Norris also gives his annual forecast of what’s likely to happen in 2016.
TRENDS IN PRIVATE COMPANY FINANCING & EXITS IN OPHTHALMOLOGYHealthegy
Presentation by Silicon Valley Bank at OIS@ASRS 2016.
Participant:
Jonathan Norris, Managing Director - Silicon Valley Bank
Powered by:
Healthegy
For more ophthalmology innovation
Visit us at www.ois.net
The State of the Venture Capital Industry is an annual report produced by TrueBridge Capital Partners highlighting the trends in venture fundraising, investing, valuations, exits, and performance.
All data sourced from Thomson Reuters, VentureSource, CB Insights, PitchBook, and Cambridge Associates.
The document summarizes the findings of the Pepperdine Private Capital Markets Project survey of privately held businesses in spring 2011. It finds that while business owners are enthusiastic about growth, many lack the financial resources to execute their strategies. Access to capital remains a challenge, especially for smaller companies. Deal activity and valuations are improving for larger companies but still difficult for smaller firms. Overall conditions are improving from six months ago but challenges around access to capital remain, particularly for securing senior debt.
Silicon Valley Bank’s annual Startup Outlook survey provides insight into how startups in the US, UK and China are feeling about the year ahead. The 2016 report finds that while startups across the globe are eternally optimistic, they are preparing for a new reality.
Learn more about the Startup Outlook Report and view the UK and China reports at www.svb.com/IEO.
The document summarizes the findings of a survey on capital confidence and M&A outlook. Some key points:
- Executives are more confident in the stability of the global economy, improving M&A sentiment. Nearly half see the economy as stable.
- Deal pipelines and expectations for future deals have increased significantly over the past six months. Two-thirds expect further expansion.
- The vast majority (81%) are focused on middle-market deals below $1 billion to expand their core businesses, fueling the next wave of M&A activity.
- Appetite for M&A is at a three-year high, with 40% expecting to pursue acquisitions in the next
ClearPath Investment Perspectives - Nov 17 2014bcdconna
The document is a weekly investment newsletter from ClearPath Capital Partners dated November 17, 2014. It provides an overview of the US and global economic outlooks, recent market performance, and commentary on stocks, bonds, and consumer spending. Global GDP and inflation are forecast to increase in 2014 and 2015. US GDP is expected to grow 2.9% in 2014 and stock markets posted gains last week, with the S&P 500 up 7.21% for the month. Retail sales rose slightly in October and lower gas prices are expected to boost consumer spending.
Stocks from the Gurus, Goldman Sachs and Hedge Funds NowAlpesh Patel
We look at the picks which hedge funds and big banks have in common and our own stringent criteria which narrows down 10k to the top 1%. Part of our www.campaignforamillion.com
Dr. Don Levy of the Siena College Research institute analyzed the results of the Annual Survey of Upstate NY business leaders and what they mean for the Buffalo region.
In the first half of 2016:
- Corporate VCs participated in $12.7 billion across 633 deals globally, an 11% decrease in deals from Q1 2016.
- Europe saw rising CVC activity, accounting for 19% of deals in Q2 2016, a 5-quarter high.
- Early-stage deals (seed/Series A) made up 46% of CVC deals in Q2 2016.
- Internet and mobile sectors dominated with 63% of CVC deal share.
- 53 new corporate VC units made their first investments, putting 2016 on track to set a record.
- CVC deal sizes averaged $19 million in Q2 2016, consistently above overall VC average
If you want to understand how decisions are made at a VC firm it is important to understand the staff who work there. Here is a guide but you can also read more at this blog post: https://bothsidesofthetable.com/how-to-improve-your-odds-of-getting-to-yes-with-a-vc-land-and-expand-b46a0a102a07
1. The document discusses three distinct layers related to cryptocurrencies: blockchains, cryptocurrencies/tokens, and ICOs. It provides an overview of each layer and debates issues around them.
2. ICOs captured nearly 6% of total tech startup financing in 2017 but this may have been an anomaly due to bitcoin price rises. ICOs lack mechanisms for governance and accountability that VCs provide.
3. Ultimately blockchains could enable a decentralized Internet 3.0 that reduces big tech companies' control over users' data and innovation, but many evangelists apply blockchains inappropriately without understanding technical limitations and costs.
Upfront Ventures surveys VC firms every year to gauge their views on technology markets. This year we asked people their views about cryptocurrencies & blockchain.
Upfront Ventures blockchain and crypto deckMark Suster
Mark Suster of Upfront Ventures gives a presentation primer on Cryptocurrencies & Blockchain. This is best consumed with a video that will be released and available on Upfront's YouTube page: https://www.youtube.com/user/upfrontventures/videos
Fundstrat Bitcoin & Blockchain presentation for Upfront SummitMark Suster
An equity analyst case for the value in cryptocurrencies. Thomas Lee of Fundstrat was lead equity researcher for JP Morgan before founding Fundstrat. He takes a market approach to valuing Bitcoin and other cryptocurrencies. Here is his presentation for the #UpfrontSummit 2018.
Upfront LP Survey of the Venture Capital & Startup IndustryMark Suster
Upfront Ventures surveyed Limited Partners (LPs) on their outlook on the venture capital markets and the underlying technology startups we back. This presentation created in Q1 2017 shares this outlook.
A 2016 overview of the technology & venture capital industries in Los Angeles presented by Mark Suster, Managing Partner of Upfront Ventures for the Mayor's LP / VC Summit.
There is Something Going on in the LA Tech Market by Upfront VenturesMark Suster
The Los Angeles technology market is one of the largest and fastest growing in the US. It is the third largest tech ecosystem and has grown 4 times faster than the national average in recent years. Capital investment in LA startups has also increased significantly, with over $1.5 billion invested in 2013. LA has a strong talent base and is a leader in the key industries of the future, particularly content, commerce, and communication. The future looks bright for continued growth and success of the LA tech sector.
The Changing Structure of the Venture Capital IndustryMark Suster
I presented this deck at the 2014 PreMoney Conference. I wrote a blog post here that goes into more detail: http://bit.ly/ChangingVC
The video of the presentation I gave is here: http://youtu.be/5MClCBUjbbE
The VC industry is changing. The press has focused on the wrong story - crowd funding. The bigger story is the shift from public financing to private financing and the bifurcation of the venture industry. This presentation examines the case.
- There has been significant disruption in the venture capital industry due to changes like the rise of internet users, faster internet speeds, increased mobility, and social connectivity.
- The venture capital model has changed from relying primarily on board interactions and "VC knows best" to providing more operational support, thought leadership, peer learning platforms, and industry insights for portfolio companies.
- Leading venture capital firms are differentiating themselves by investing in extensive operational support services, transparency through blogging, peer-to-peer learning opportunities, and leveraging their domain expertise and relationships within specific industries.
This document discusses building and funding a startup. It begins with background on the author and an agenda. The agenda discusses what startup life is really like, getting started, raising capital, and final thoughts. It notes startups are a grind and raising money is a full-time job for CEOs. When raising money, it recommends getting as long a runway as possible, taking coffee meetings, proving you can ship product, and not hiring people just like yourself. It emphasizes the importance of meeting investors early and getting an anchor investor. The document ends by noting most people who want to start a company never start, there is value in taking the first leap, trusting your own judgment, and only starting with an idea you are passionate about
YouTube is the largest video distribution platform but maintains a revenue split that provides low margins for multi-channel networks (MCNs) and content creators. However, YouTube's scale and market power make it very difficult to compete with. Rather than seeing YouTube as the entire business, MCNs should focus on driving superfans to higher-margin owned and operated channels, produce some independent content, and build direct customer relationships. The future of online video is promising as it allows for low-cost testing and global distribution, but MCNs must offer technology support, production capabilities, and develop non-advertising revenue streams to achieve sustainable margins beyond being mere aggregators. Amazon poses a serious competitive threat to YouTube due to its existing
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2. There is Some Stuff We All Know
We all know the funding markets for venture-backed
startups have been strong for 7 straight years
2
3. LP contributions to the VC industry are back to pre-recession levels
and anecdotally 2016 seems likely to increase further
3
US VC fundraising activity
0
75
150
225
300
$0
$15
$30
$45
$60
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Capital raised ($B)
# of funds closed
235
271
209
218
192
176
162
214
235236233
$28
$31
$18
$20$19
$13
$16
$25
$30$31$30
233 236 235
214
162
176
192
218
209
271
235
Source: Dow Jones VentureSource; Upfront analysis.
4. With more money (and new non VC entrants) venture financings have
obviously increased. 2015 was an enormous year (2x pre recession)
4
US VC financing activity
0
2,500
5,000
7,500
10,000
$0
$25
$50
$75
$100
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Capital invested ($B)
# of rounds closed
8,097
9,381
8,563
7,572
6,428
5,193
4,3164,533
4,119
3,145
2,574
$77
$68
$44
$40$42
$30
$26
$36$35
$28
$23
2,574
3,145
4,119
4,533 4,316
5,193
6,428
7,572
8,563
9,381
8,097
Source: PitchBook 2015 Annual U.S. Venture Industry Report; Upfront analysis.
5. And what's interesting is that if you look at the spread between dollars raised by VCs
and dollars invested, you see the huge shift from a decade ago of non-VC capital
5 Source: Upfront analysis.
US VC fundraising vs financing (2006-07, $B)
0
35
70
105
140
175
Funds raised by VCs Funds invested by VCs
6361
1x
US VC fundraising vs financing (2014-15, $B)
0
35
70
105
140
175
Funds raised by VCs Funds invested by VCs
145
59
2.5x
6. Angel & Seed deals have grown fastest but dollars have scaled massively into
a smaller number of later-stage deals (doubling in just 2 years)
6 Source: PitchBook 2015 Annual U.S. Venture Industry Report; Upfront analysis.
US VC # of rounds closed by stage US VC capital invested ($B) by stage
0
10
20
30
40
50
2010 2011 2012 2013 2014 2015
0
1,000
2,000
3,000
4,000
5,000
2010 2011 2012 2013 2014 2015
Early
Stage
CAGR
21%
36%
16%
CAGR
1%
22%
3%
Angel/
Seed
Late
Stage
Early
Stage
Late
Stage
Angel/
Seed
7. And the dollars into late-stage deals has largely been driven by non-
traditional VCs entering the market (up 50% in the last 3 years)
7 Source: CBInsights, VC-backed $20M+ rounds; non-VC defined as Asset Mgmt, Corporate/Corporate VC, Family Office, Hedge & Mutual Funds; Upfront analysis.
Non-VC participation in US $20 million-plus rounds
0%
15%
30%
45%
60%
2012 2013 2014 2015
55%
47%47%
37%
CAGR
’12-’15
15%
8. M&A pace hasn’t matched the increases in funding pace so VC mark-ups
have been good but cash distributions less so
8
US VC-backed M&A activity
300
375
450
525
600
$0
$38
$75
$113
$150
2011 2012 2013 2014 2015
Amount Paid ($B)
Number of M&As
473
510
470
462
542
$54
$81
$42$43$47
542
462
470
510
473
Source: Dow Jones VentureSource Venture Capital Report 4Q’15; Upfront analysis.
9. IPO exits are down 32% in volume and 38% in value
9
US VC-backed IPO activity
0
30
60
90
120
$0
$4
$8
$11
$15
2011 2012 2013 2014 2015
Raised ($B) through IPO
Number of IPOs
66
107
73
50
46
$6
$9
$8
$11
$5
46
50
73
107
66
Source: Dow Jones VentureSource Venture Capital Report 4Q’15; Upfront analysis.
50
10. But there are other truths that people have only
recently begun to speak about
10
11. 11
Public Tech Markets are obviously off dramatically in the past three months
beginning the question of what this means for private valuations
NASDAQ
LinkedIn
Apple
Twitter
(9%)
(18%)
(19%)
(41%)
Source: 3-month valuations November 02, 2015 to January 29, 2016; Upfront analysis.
12. Private market valuations had risen beyond what some believe are sustainable (up 3x in 2 years).
Q4 saw massive correction (we asked VCs if they thought it was an anomaly or a trend).
12
US VC-backed financing median pre-money valuation ($M)
$0
$20
$40
$60
$80
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15
$28
$68
$53
$60
$58
$37
$51
$22$21
$19
$24
$17
Source: Dow Jones VentureSource Venture Capital Report 4Q’15; Upfront analysis.
13. More than 90% of respondents in the Upfront VC Survey expected valuations to go
down in 2016 with a full 1/3rd of investors expecting significant price corrections
13
Do you expect valuations to go up, down or remain about the same as
previous quarters?
0%
25%
50%
75%
100%
Q4'15 1H'16 Proj
30%
5%
61%
61%
8%
28%
6% Increase
About the same
Marginally down
Significantly down
Source: Upfront Survey Jan 2016, 156 VCs for Q4’15, 158 VCs for 1H’16; Upfront analysis.
14. This is coupled with a very visible recalibration of valuations of the pre-IPO
mutual fund cohort at places like Fidelity
14
Fidelity’s holdings: % valuation change since purchase
Blue Bottle
MongoDB Series F
Taboola.com Series E
Turn Inc.
Zenefits Series C
Dataminr Series D
Dropbox Series C
Snapchat Series F
0% 25% 50% 75% 100%
Source: Fortune; Blue Bottle, Dropbox, Snapchat and Benefits data as 11/30/2015, rest as of 9/30/2015; Upfront analysis.
0% -25% -50% -75% -100%
-61%
-54%
-45%
-44%
-35%
-29%
-15%
-47%
15. 15
This has swung sentiment for many experienced VC firms firmly toward
controlling burn over rapid growth
16. This was clearly borne out in the Upfront VC Survey where 62% of firms are
advising companies to cut costs / burn as markets tighten
16
4%
35%
62%
Source: Upfront Survey Jan 2016, 156 VCs.
Which statement best describes the spending behavior at most
of the companies in which you are on the board or observe?
Generally cutting costs expecting
markets to tighten
Don’t see much change from a year ago
Generally not too worried about burn rates
100%
19. And with fewer VC exits many partners are more overloaded with boards and
financings and feel less pressure to do new deals quickly. FOMO is on the decline.
19
Average number of board / observer seats
0
2
4
6
8
10
Years of investment experience
0-3 years 3-6 years 6-10 years 10-15 years 15+ years
8
7
5
4
3
Source: Upfront Investor Survey, sample size of 76 early to late stage VCs, excluding angel/seed and corporate VCs; Upfront analysis.
20. There is a clear feeling that fund raising cycles are taking longer and 77% felt
this pace is likely to slow down even further in 2016
20
Do you expect deals to take longer in the process than previous funding
quarters, the same or shorter?
0%
25%
50%
75%
100%
Q4'15 1H'16 Proj
77%45%
22%
51%
1%4% Shorter than normal
About the same as normal
Getting longer
Source: Upfront Survey Jan 2016, 159 VCs for Q4’15 and 158 VCs for 1H’16.
21. 50% of respondents indicate they may slow down their pace, 35% thought it
would be the same pace as 2015 and only 16% expect 2016 to be robust
21
1%4%
43%
35%
16%
Source: Upfront Survey Jan 2016, 158 VCs.
How would you generally describe your investment
mindset heading into 2016?
“Seeing tons of great deal flow and expect this to be
a solid year”
“Unless a deal is amazing I’m likely to slow my pace a bit”
“I don’t feel compelled to do deals”
“2016 about the same pace as my last
several years”
“I’d rather fund when the dust settles
22. With the sentiment of the markets it’s no surprise that a full 82% of VCs
expressed caution or concern going into 2016
22
2%
30%
50%
9%
9%
Source: Upfront Survey Jan 2016, 155 VCs.
Hugely bullish
I’m very concerned
Things are bad & getting worse
Generally cautious
Generally optimistic
Which of the following statements best describes
your mood heading into 2016
100%
23. And how does the growth in funding, valuations and
anxiety play in the minds of LPs who fund the VC
industry ultimately?
23
24. The good news is that only 7% of LPs believe they will cut back on venture
programs with 26% of funds looking to increase exposure
24
4%
22%
67%
7%
Source: Upfront Survey Jan 2016, 73 LPs.
How would you describe your fund’s current
allocation to VC?
About the right allocation
Aggressively growing venture Too much allocated to venture
Trying to grow our venture program
25. But LPs expressed caution, too. Nearly 75% of LPs have concerns about
investment pace, valuation levels and burn rates of underlying companies.
25
6%
68%
26%
Source: Upfront Survey Jan 2016, 72 LPs.
How would you describe your fund’s outlook on your
existing (VC) managers activities?
Very happy with investment activities of
our existing managers
Deeply concerned about the market behavior
A bit concerned by pace, valuation
creep and burn rates
100%
26. 61% of LPs believe that VCs are coming back to market to raise money at too
quick of a pace - a reflection of anxieties of the over-funding of portfolios
26
61% 15%
24%
Source: Upfront Survey Jan 2016, 72 LPs.
How would you describe your fund’s outlook in your
existing (VC) managers funding (and fund raising) pace?
Managers come back at a normal
cadence and it hasn’t changed much
Managers have been coming back more quickly
than in the past and we’re fine with this
Managers have been coming back more
quickly than in the past and it concerns us
100%
27. But a full 82% of LPs are likely to maintain their existing investment pace
27
10%
82%
8%
Source: Upfront Survey Jan 2016, 73 LPs.
How would you describe your likely investment pace
in venture over the next 3 years?
We’re likely to increase our investment pace
We’re likely to keep the same investment pace
We’re likely to slow down our investment pace
100%
28. While the market for Seed Funds grew enormously in the past 7 years, many
LPs still express some concerns about capacity and market crowding
28
23%
66%
11%
Source: Upfront Survey Jan 2016, 70 LPs.
What is your fund’s outlook on the seed market?
Seed delivers the highest potential returns and we’ll
continue to invest heavilyThere are too many seed funds and we’re worried they
won’t have enough capacity
We fund seed VCs but we’re very
discerning on which ones we’ll fund
29. Also it’s not too surprising that LPs are most cautious about growth stage
funds - in particular concerns about late-stage valuations
29
68%
32%
Source: Upfront Survey Jan 2016, 71 LPs.
What is your fund’s outlook on later stage venture
capital / growth equity?
We like growth stage but want a healthy balance of
seed, A/B and growth
We’re worried that the growth stage is
the most over-valued part of the market
100%
30. What to make of all of the uncertainty and potential
change in the VC markets?
30
31. 31
Expect loss ratios to go up. But ultimately the creative destruction
of these storms can be good. New startup cohorts will sprout where
others get cleared out.
32. 32
A slowing pace should be
healthy for startups and for
VC returns. We believe the
next 3 years will value
patience over speed at all
costs.
33. 33
And despite market concerns in the short-term, as an asset class we see so
many industries ripe for innovation and disruption
Aerial & Space-techVR & ARTransportation Computational Biology Food & Agriculture
35. 159 VCs surveyed
35
Fund type
0
20
40
60
Angel Seed VC (Early) VC (Mid) VC (Late) PE Corp (blank)
11
96
19
47
60
7
Source: Upfront Survey Jan 2016.
Fund size ($ million)
0
20
40
60
$1-20 $20-100 $300-999 $100-300 $1000+ Evergreen Personal
779
2833
47
19
Survey respondent geography
0
40
80
Norcal SoCal NE US Other US ROW (blank)
178
24
31
79
Position
0
47
93
140
Partner / MD Analyst to Principal Sole proprietor/personal investor
79
134
How long has your firm existed (years)
0
35
70
0-3 3-10 10-20 20+
22
36
61
31
Personal investment experience (years)
0
40
80
0-3 3-6 6-10 10-15 15+
41
23
43
30
13
36. 73 LPs surveyed, part 1
36
Fund type
0
10
20
30
9
445
23
28
Fund size
0
10
20
$0-250M $250-750M $750M-1.5B $1.5-5B $5-10B $10B+ Blank
4
16
7
18
3
11
14
Which of the following best describes your focus on VC?
0
25
50
Only VC Mostly VC Very diverse Not much VC
2
42
10
19
Foundation or
Endowment
Fund of
Funds
Family
Office
Discretionary
Advisor
Insurance
Company
Other
Survey respondent geography
0
15
30
NorCal SoCal NE US Other US ROW Blank
2
4
28
11
6
22
Source: Upfront Survey Jan 2016.
37. 73 LPs surveyed, part 2
37
Position
0
20
40
60
Partner / MD Analyst to Principal Blank
1
18
54
How long has your firm been investing in VC (years)
0
20
40
0-3 3-10 10-20 20+
1
23
30
16
3
How long has your firm existed (years)
0
20
40
0-3 3-10 10-20 20+
38
1614
5
Personal investment experience (years)
0
20
40
0-3 3-6 6-10 10-15 15+
27
23
15
44
Haven’t invested
much in VC
Source: Upfront Survey Jan 2016.