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.
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.
PreMoney SF 2017: State of the Venture Capital Industry by Mark Suster500 Startups
Global capital flows have warmed the venture capital industry, leading to increased investment from foreign investors like China, increased corporate venture capital activity, and more capital from limited partners. This influx of "global warming" has supported higher valuations and more deals from 2013 to 2015. However, some correction occurred in 2016 as valuations declined and more venture capitalists cut back on investment. Still, winter was relatively mild due to sustained global capital flows into the US startup ecosystem. Going forward, the venture capital industry is well-positioned with significant dry powder from limited partners and the continued influx of global capital.
- 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.
Eric Jackson's presentation to Yahoo outlining his plan to slash the company’s workforce by 75%, replace Marissa Mayer with an operations-focused CEO and bring in a strategic partner to help navigate the tax issues surrounding its Asian assets.
Source: http://www.wsj.com/public/resources/documents/yahoopresentation.pdf
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 Dow Jones VentureSource, Dow Jones LP Source, CB Insights, PitchBook, and Cambridge Associates.
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.
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.
PreMoney SF 2017: State of the Venture Capital Industry by Mark Suster500 Startups
Global capital flows have warmed the venture capital industry, leading to increased investment from foreign investors like China, increased corporate venture capital activity, and more capital from limited partners. This influx of "global warming" has supported higher valuations and more deals from 2013 to 2015. However, some correction occurred in 2016 as valuations declined and more venture capitalists cut back on investment. Still, winter was relatively mild due to sustained global capital flows into the US startup ecosystem. Going forward, the venture capital industry is well-positioned with significant dry powder from limited partners and the continued influx of global capital.
- 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.
Eric Jackson's presentation to Yahoo outlining his plan to slash the company’s workforce by 75%, replace Marissa Mayer with an operations-focused CEO and bring in a strategic partner to help navigate the tax issues surrounding its Asian assets.
Source: http://www.wsj.com/public/resources/documents/yahoopresentation.pdf
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 Dow Jones VentureSource, Dow Jones LP Source, CB Insights, PitchBook, and Cambridge Associates.
Silicon Valley Bank presents its eighth annual Startup Outlook report, capturing the sentiment of about 1,000 tech and healthcare entrepreneurs at a time of rapid transitions around the globe.
U.K. startups are planning for Brexit, and tech and healthcare entrepreneurs tell Silicon Valley Bank that while they are less optimistic about future business conditions compared to recent years, most plan to hire and keep their headquarters in Britain.
Silicon Valley Bank’s annual Startup Outlook survey provides insight into how startups in the UK, US 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 US and China reports at www.svb.com/IEO.
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.
For more, please visit http://bit.ly/1FCNNpl
Trade and investment ties are going to become stronger and more complex
An infographic from The Economist Intelligence Unit
United States Wealth Report 2015 infographicCapgemini
United States Wealth Report 2015 infographic highlights the key findings of the report sections - Market Sizing, HNWI Behaviors and the Spotlight on Automated Advice
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.
"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
Talent crisis in middle_market_tom_steward_ncmmMarcie Taylor
77% of middle-market executives consider the ability to attract, train and retain talent somewhat to highly challenging. Learn more about what this means to our region from Dr. Tom Stewart, Executive Director of the National Center for the Middle Market at Ohio State University.
The Affluent Millenial Opportunity Study - India LinkedIn India
The document discusses a study of 800 Indian millennials conducted by LinkedIn and Ipsos to understand how affluent millennials are reshaping the finance industry. Some key findings include:
- Affluent millennials are optimistic about their financial future and confident in India's economic growth, despite concerns about potential financial crises.
- They expect to be successful and are open to overseas opportunities. Independence, freedom, and traveling are priorities for them in defining success.
- While they conduct independent research, affluent millennials still value financial advisors for validating decisions. They are more open to debt and diverse sources of wealth than previous generations.
- Social networks are important for affluent millennials'
The document summarizes findings from an analysis of over 300 investments made by First Round Capital over 10 years. Some of the key findings include:
- Companies with female founders performed 63% better than those with only male founders.
- Founding teams with experience at major tech companies like Google and Facebook saw their companies perform 160% better.
- Teams with more than one founder significantly outperformed solo founders, by 163%.
- Technical co-founders were critical for enterprise companies, which saw 230% better performance, but did not provide as much benefit for consumer companies.
- Companies discovered through unconventional means like Twitter or demo days performed 58% better than referred companies.
Less is More: How to Make Your Funding Go Further with Market Focus from Main...saastr
When going up against larger competitors, the temptation is to try to measure up, but the best strategy may be to pull back. Startups shouldn’t be too quick to forfeit the advantages of being small, namely the ability to thrive in smaller sub-markets. Small companies can “cheat” efficiencies of scale by defining their target market narrowly enough that they are the leader. In this session, Kate will share lessons learned from Mainsail’s portfolio of bootstrapped SaaS companies on how focus can make every dollar go further, and tricks for assessing whether you’re focused enough.
The World Wealth Report 2015 infographic explores the wealth, population and asset allocation of global high net worth individuals (HNWIs). The global population of high net worth individuals and their wealth hit new highs as almost 1 million joined HNWI ranks. Asia-Pacific overtook North America HNWI population by a slim margin and is expected to take the lead in global HNWI wealth by end of 2015. China and the U.S. drove 52% of global HNWI population growth. Learn more about the World Wealth Report 2015 from Capgemini and RBC Wealth Management at http://www.worldwealthreport.com.
The document summarizes key findings from Silicon Valley Bank's 2017 Startup Outlook survey of nearly 950 technology and healthcare executives. It finds that while startups remain optimistic, uncertainty from the new US administration and Brexit has weighed on outlooks. Fundraising is also getting more difficult as investors raise standards. However, the M&A market is strong and over 85% of startups expect the same or more M&A activity in 2017. Hiring projections remain stable as the talent shortage shows signs of easing.
This document summarizes the results of a 2019 survey of limited partners (LPs) that invest in venture capital funds. Some key findings include:
- Single family offices and funds of funds made up the majority (66%) of survey respondents.
- Most LPs preferred committing under $5 million, with smaller funds and co-investments appealing more to non-institutional LPs.
- LPs expected to increase their allocations to both VC overall and emerging managers in 2019 compared to 2018.
- Thematic funds saw increased preference compared to generalist funds among LPs.
- Transparency, valuation issues, and strategy drift were the top frustrations cited by LPs.
- Overall confidence in
This document provides an overview of the findings from a report on women in U.K. venture capital in 2017. The key findings include:
- Women comprised just 27% of the overall U.K. venture capital workforce, significantly lower than their 47% representation in the national labor force.
- Only 18% of investment professionals (analysts, associates, principals, partners) in U.K. venture capital firms were women.
- Merely 13% of decision makers (partners or equivalents) in U.K. venture capital firms were women.
- Nearly half (48%) of U.K. venture capital firms had no women represented on their investment teams.
This Data Spotlight provides data and statistics on the attributes of the CEOs and CEO succession events at publicly traded companies in the United States. This data supplements the issues introduced in the Quick Guide “CEO Succession Planning.”
A study categorized 130 hospitals as either high- or low-performers based on their talent management strategies. High-performing hospitals had 91% less staff turnover, 85% less executive turnover, and 36% less nursing turnover compared to low-performing hospitals. They also had a leadership bench strength score 7x higher and spent 89% less on executive searches. Additionally, high-performing hospitals scored 23% higher on a new CMS metric evaluating quality of care, had 16% lower average Medicare spending per episode, and scored 13% higher on patient experience surveys. Overall, high-performing hospitals demonstrated 56% higher net patient revenue per employee.
Every startup begins with an idea. This is a talk on how to come up with startup ideas and how to use validation to pick the ones worth working on. It's based on the book "Hello, Startup" (http://www.hello-startup.net/). You can find the video of the talk here: https://www.youtube.com/watch?v=GkmiE8d_5Pw
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
Benchmarking Exceptional Series A SaaS CompaniesTomasz Tunguz
These slides from SaaStr 2016 cover:
1. The revenue growth rates of the fastest growing SaaS companies
2. The revenue profiles of these businesses at Series A
3. The round sizes at series A.
4. A broad overview of the venture capital environment in 2015
5. Implications of recent changes in 2016
Silicon Valley Bank presents its eighth annual Startup Outlook report, capturing the sentiment of about 1,000 tech and healthcare entrepreneurs at a time of rapid transitions around the globe.
U.K. startups are planning for Brexit, and tech and healthcare entrepreneurs tell Silicon Valley Bank that while they are less optimistic about future business conditions compared to recent years, most plan to hire and keep their headquarters in Britain.
Silicon Valley Bank’s annual Startup Outlook survey provides insight into how startups in the UK, US 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 US and China reports at www.svb.com/IEO.
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.
For more, please visit http://bit.ly/1FCNNpl
Trade and investment ties are going to become stronger and more complex
An infographic from The Economist Intelligence Unit
United States Wealth Report 2015 infographicCapgemini
United States Wealth Report 2015 infographic highlights the key findings of the report sections - Market Sizing, HNWI Behaviors and the Spotlight on Automated Advice
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.
"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
Talent crisis in middle_market_tom_steward_ncmmMarcie Taylor
77% of middle-market executives consider the ability to attract, train and retain talent somewhat to highly challenging. Learn more about what this means to our region from Dr. Tom Stewart, Executive Director of the National Center for the Middle Market at Ohio State University.
The Affluent Millenial Opportunity Study - India LinkedIn India
The document discusses a study of 800 Indian millennials conducted by LinkedIn and Ipsos to understand how affluent millennials are reshaping the finance industry. Some key findings include:
- Affluent millennials are optimistic about their financial future and confident in India's economic growth, despite concerns about potential financial crises.
- They expect to be successful and are open to overseas opportunities. Independence, freedom, and traveling are priorities for them in defining success.
- While they conduct independent research, affluent millennials still value financial advisors for validating decisions. They are more open to debt and diverse sources of wealth than previous generations.
- Social networks are important for affluent millennials'
The document summarizes findings from an analysis of over 300 investments made by First Round Capital over 10 years. Some of the key findings include:
- Companies with female founders performed 63% better than those with only male founders.
- Founding teams with experience at major tech companies like Google and Facebook saw their companies perform 160% better.
- Teams with more than one founder significantly outperformed solo founders, by 163%.
- Technical co-founders were critical for enterprise companies, which saw 230% better performance, but did not provide as much benefit for consumer companies.
- Companies discovered through unconventional means like Twitter or demo days performed 58% better than referred companies.
Less is More: How to Make Your Funding Go Further with Market Focus from Main...saastr
When going up against larger competitors, the temptation is to try to measure up, but the best strategy may be to pull back. Startups shouldn’t be too quick to forfeit the advantages of being small, namely the ability to thrive in smaller sub-markets. Small companies can “cheat” efficiencies of scale by defining their target market narrowly enough that they are the leader. In this session, Kate will share lessons learned from Mainsail’s portfolio of bootstrapped SaaS companies on how focus can make every dollar go further, and tricks for assessing whether you’re focused enough.
The World Wealth Report 2015 infographic explores the wealth, population and asset allocation of global high net worth individuals (HNWIs). The global population of high net worth individuals and their wealth hit new highs as almost 1 million joined HNWI ranks. Asia-Pacific overtook North America HNWI population by a slim margin and is expected to take the lead in global HNWI wealth by end of 2015. China and the U.S. drove 52% of global HNWI population growth. Learn more about the World Wealth Report 2015 from Capgemini and RBC Wealth Management at http://www.worldwealthreport.com.
The document summarizes key findings from Silicon Valley Bank's 2017 Startup Outlook survey of nearly 950 technology and healthcare executives. It finds that while startups remain optimistic, uncertainty from the new US administration and Brexit has weighed on outlooks. Fundraising is also getting more difficult as investors raise standards. However, the M&A market is strong and over 85% of startups expect the same or more M&A activity in 2017. Hiring projections remain stable as the talent shortage shows signs of easing.
This document summarizes the results of a 2019 survey of limited partners (LPs) that invest in venture capital funds. Some key findings include:
- Single family offices and funds of funds made up the majority (66%) of survey respondents.
- Most LPs preferred committing under $5 million, with smaller funds and co-investments appealing more to non-institutional LPs.
- LPs expected to increase their allocations to both VC overall and emerging managers in 2019 compared to 2018.
- Thematic funds saw increased preference compared to generalist funds among LPs.
- Transparency, valuation issues, and strategy drift were the top frustrations cited by LPs.
- Overall confidence in
This document provides an overview of the findings from a report on women in U.K. venture capital in 2017. The key findings include:
- Women comprised just 27% of the overall U.K. venture capital workforce, significantly lower than their 47% representation in the national labor force.
- Only 18% of investment professionals (analysts, associates, principals, partners) in U.K. venture capital firms were women.
- Merely 13% of decision makers (partners or equivalents) in U.K. venture capital firms were women.
- Nearly half (48%) of U.K. venture capital firms had no women represented on their investment teams.
This Data Spotlight provides data and statistics on the attributes of the CEOs and CEO succession events at publicly traded companies in the United States. This data supplements the issues introduced in the Quick Guide “CEO Succession Planning.”
A study categorized 130 hospitals as either high- or low-performers based on their talent management strategies. High-performing hospitals had 91% less staff turnover, 85% less executive turnover, and 36% less nursing turnover compared to low-performing hospitals. They also had a leadership bench strength score 7x higher and spent 89% less on executive searches. Additionally, high-performing hospitals scored 23% higher on a new CMS metric evaluating quality of care, had 16% lower average Medicare spending per episode, and scored 13% higher on patient experience surveys. Overall, high-performing hospitals demonstrated 56% higher net patient revenue per employee.
Every startup begins with an idea. This is a talk on how to come up with startup ideas and how to use validation to pick the ones worth working on. It's based on the book "Hello, Startup" (http://www.hello-startup.net/). You can find the video of the talk here: https://www.youtube.com/watch?v=GkmiE8d_5Pw
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
Benchmarking Exceptional Series A SaaS CompaniesTomasz Tunguz
These slides from SaaStr 2016 cover:
1. The revenue growth rates of the fastest growing SaaS companies
2. The revenue profiles of these businesses at Series A
3. The round sizes at series A.
4. A broad overview of the venture capital environment in 2015
5. Implications of recent changes in 2016
Venture capitalists, especially those investing at the early stage, could be described as “relationship capitalists”. You’ll often hear how investors approach their commitments like a marriage, and that they think long and hard about with whom they want to go to bed. Avoid picturing that second part.
But the VC mystique can be inexplicable at times. Why do they send such curt emails? What the #%$! do they mean by “traction”? Are they even paying attention?!
Here are some things they might be thinking (but probably won’t flat-out say) during the courtship process, and how you can prepare, take ownership, and rock the pitch.
From Bootstrapping to Crowdfunding, the financing of startup companies requires a range of considerations along with "funding creativity" and strong dose of persistence. Great value propositions have to find a way to get funded. Here's how.
This deck is a sample from the Jackdaw Research Quarterly Decks Service, which includes similar deck for around a dozen companies and industry sectors. You can learn more and sign up for the service at: https://jackdawresearch.com/quarterly-company-decks/.
Presentation given by CEO Jeff Weiner, and CFO Steve Sordello, at LinkedIn Q4 2015 Earnings Call. For more information, check out http://investors.linkedin.com/.
How to Become a Thought Leader in Your NicheLeslie Samuel
Are bloggers thought leaders? Here are some tips on how you can become one. Provide great value, put awesome content out there on a regular basis, and help others.
Pollen VC Building A Digital Lending BusinessPollen VC
Pollen VC builds a digital lending business to help app developers access their app store earnings early. Their tech platform connects directly to app stores to price risk in real time. This allows developers to reinvest earnings daily into user acquisition instead of waiting 60+ days for platforms to pay out. Typically, developers fail to get early credit and can't acquire more users, but Pollen VC's new model provides funding using real-time app data to validate risk. They aim to fund more opportunities for long tail developers by improving access to working capital.
UX, ethnography and possibilities: for Libraries, Museums and ArchivesNed Potter
1) The document discusses how the University of York Library has used various user experience (UX) techniques like ethnographic observation and interviews to better understand user needs and behaviors.
2) Some changes implemented based on UX findings include installing hot water taps, changing hours, and adding blankets - aimed at improving the small details of user experience.
3) The presentation encourages other libraries, archives and museums to try incorporating UX techniques like behavioral mapping and cognitive interviews to inform design changes that enhance services for users.
How Much Further Will Internet Stocks Fall? (Share Price Performance)Mahesh Vellanki
The stock market has been getting walloped over the past few weeks, and the Internet sector has not escaped unscathed. This of course has far reaching implications for private market valuations and for what consumer startups can ultimately be worth. Three months ago, I created my own index of Internet companies and analyzed valuation and margins. Let's see how that very index has performed over the past three months by looking at stock performance (data as of Tuesday, 1/26).
https://www.linkedin.com/pulse/how-much-further-internet-stocks-fall-mahesh-vellanki?trk=prof-post
An immersive workshop at General Assembly, SF. I typically teach this workshop at General Assembly, San Francisco. To see a list of my upcoming classes, visit https://generalassemb.ly/instructors/seth-familian/4813
I also teach this workshop as a private lunch-and-learn or half-day immersive session for corporate clients. To learn more about pricing and availability, please contact me at http://familian1.com
Study: The Future of VR, AR and Self-Driving CarsLinkedIn
We asked LinkedIn members worldwide about their levels of interest in the latest wave of technology: whether they’re using wearables, and whether they intend to buy self-driving cars and VR headsets as they become available. We asked them too about their attitudes to technology and to the growing role of Artificial Intelligence (AI) in the devices that they use. The answers were fascinating – and in many cases, surprising.
This SlideShare explores the full results of this study, including detailed market-by-market breakdowns of intention levels for each technology – and how attitudes change with age, location and seniority level. If you’re marketing a tech brand – or planning to use VR and wearables to reach a professional audience – then these are insights you won’t want to miss.
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.
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.
The document discusses designing teams and processes to adapt to changing needs. It recommends structuring teams so members can work within their competencies and across projects fluidly with clear roles and expectations. The design process should support the team and their work, and be flexible enough to change with team, organization, and project needs. An effective team culture builds an environment where members feel free to be themselves, voice opinions, and feel supported.
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.
- Venture capital fundraising and investment levels reached record highs in 2015, with more money coming from non-traditional investors. However, public tech valuations have dropped and private valuations are correcting from overinflated levels.
- Most VCs and LPs expect a slowdown in 2016, with concerns about high burn rates, pace of investments, and valuations. VCs will be more cautious about dealmaking and controlling company spending.
- While LPs plan to maintain investment levels, many are worried about overfunding of portfolios and the rapid pace of new VC fund raising given market uncertainties. Concerns are highest about late-stage investments and valuations.
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.
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.
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.
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.
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.
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
Baxon Breakfast Seminar: ‘Navigating in uncertain times: An outlook on H1 Pri...Preqin Solutions
Presentation for the Baxon Breakfast Seminar (April 28th 2016) ‘Navigating in uncertain times: An outlook on H1 Private Equity activity.'
The seminar covered a number of topics around the global private equity outlook for 2016. These included general trends for the long term picture; private debt; challenges, opportunities and highlighted operational excellence & transparency as a key factor for competitive GPs and LPs.
Should you require more information do not hesitate to contact us at info@baxonpe.com
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.
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 document summarizes startup funding trends in India in 2016 based on a report. Some key points:
- Around 1,000 startups are expected to receive funding in 2016, similar to 2015 which saw a record 979 funded startups.
- Early-stage deal value declined over 50% in Q1 2016 compared to Q1 2015. Series A and B funding volumes also declined sharply.
- While angel/seed funding volumes rose, Series A funding volumes dropped 52% in Q1 2016 versus Q1 2015.
- Startups' share of overall private investment rose to a record 70% of total deals in 2015, though their share of total value slipped to 6% in 2016 so far.
Jerry Ganz • Packerland Brokerage Services
- Can lower returns lead to more money in retirement? The impact of sequencing and volatility on portfolio value by David Witkin
- Jump in Swiss franc triggers short-term losses and long-term uncertainty
- Crude oil’s message for the stock market by Tom McClellan
- Growing a referral network (Trish Beine, The Strategic Financial Alliance)
AmCham 2016 Business Climate Survey Full results Jan 19Gordon Stewart
- The survey found that 67% of companies were profitable in 2015, similar to previous years. However, forecasts for 2016 show a slight expected decline in revenues and profits.
- Investment levels are expected to remain unchanged or decrease slightly in 2016 after recovering in past years.
- Optimism in the 5-year business outlook dropped sharply from 60% to 47%, tracking a decline in Taiwan's GDP growth and raising concerns.
- The top issues impacting businesses are outdated laws, inconsistent regulations, declining domestic demand, bureaucracy, and lack of notice on legal changes.
AmCham Taipei 2016 Business Climate Survey - Full results Jan 19Gordon Stewart
- The survey found that 67% of companies were profitable in 2015, similar to previous years. However, forecasts for 2016 show a slight expected decline in revenues and profits.
- Investment levels are expected to remain unchanged or decrease slightly in 2016 after recovering in past years.
- Optimism in the 5-year business outlook dropped sharply from 60% to 47%, tracking a decline in Taiwan's GDP growth and raising concerns.
- The top issues impacting businesses are outdated laws, inconsistent regulations, declining domestic demand, bureaucracy, and lack of notice on legal changes.
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
The document summarizes the key findings of Silicon Valley Bank's 2018 Startup Outlook Survey of over 1,000 startup companies globally. Some of the main findings include:
- Startups are optimistic about 2018, with 30% believing it will be better than 2017 and few expecting it to be worse.
- Raising capital is getting easier for startups, with fewer finding it extremely challenging compared to previous years. However, most startups still expect to rely on venture capital as their primary source of funding.
- Hiring outlook is at a 5-year high, with over 80% of startups planning to increase hiring in 2018. However, finding skilled talent remains a significant challenge for over 90%
Pitch book 2016 annual vc valuations reportIan Beckett
Seed stage valuations and deal sizes have significantly increased over the last several years. The median seed valuation reached $8 million in 2016, up 87% since 2010, while median seed deal sizes doubled to $1.5 million over the same period. Companies are now older, at a median of 2 years, when they raise their seed round due to alternative early financing options. Investors also maintained their typical 20% stake in seed deals across sectors such as software and life sciences. A few notable seed deals in 2016 included Boomcloud raising $5.5 million at a $132 million valuation and SafeGraph raising $19.5 million at a $78 million valuation.
This document summarizes the key findings from a survey of creative agency leaders conducted by The Agency Works in Q3 2015. The survey found that more respondents expect their agency's performance to decrease over the next quarter compared to late 2014. Agencies are focusing on increasing new business but struggling with retaining existing clients due to reduced budgets and increased competition. The majority of agencies set goals over the next 1-5 years and review targets monthly. Success is defined as both financial and personal achievements. The report provides insight into the challenges facing the creative industry.
Agency Food is a quarterly barometer for Agency heads to feed in their views on how their Agencies operate and in return benefit from the collective feedback.
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.
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.
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.
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.
- 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
The document discusses how the future of television is changing rapidly due to disruptive technologies and consumer behavior shifts. It argues that bundled television will go the way of albums as distribution models are disrupted and consumer choice increases. New digital producers are emerging on platforms like YouTube, driving down production costs and allowing for more direct relationships with viewers. While most television executives do not yet see the changes, the document predicts that the disruption of television will accelerate significantly in 2012.
The document discusses the rise of the sharing economy. It argues that economic challenges like unemployment, debt, and scarce resources are driving the growth of collaborative consumption models enabled by new networking technologies. These models allow underutilized assets and skills to be monetized, creating new opportunities for both individuals and businesses. The sharing economy empowers people in developing economies and removes physical boundaries to access global markets. While concerns exist around regulation and data privacy, the networking effects of these new platforms are opening up new peer-to-peer models that are disrupting traditional industries and hierarchies.
1) When first starting a company, the team is one of the most important things for investors. It's important to have the right co-founders and hire people who are capable of handling adversity.
2) An ideal early founding team configuration is a CEO plus 4-5 engineers. It's also important to have diversity in skills and backgrounds on the founding team.
3) As the company grows, functional roles like VP of Engineering, Product, Sales, and Marketing should be established to better divide work and make people accountable. An office manager can also provide important administrative support.
Mark Suster discusses how the marketing landscape has changed dramatically in recent years due to new digital and social media. He outlines the transition from traditional offline marketing like TV, print, and radio to online methods like display ads, email, search engine optimization and pay-per-click ads. More recently, social media platforms like Facebook, Twitter, and mobile apps have become major marketing channels. Suster advises that all marketing is becoming digital and metrics-driven, and that companies need to experiment with emerging trends on social networks to engage customers.
Optimistic vs pessimistic case for entrepreneursMark Suster
The document discusses differing views on the current state of Silicon Valley and venture capital funding. It outlines arguments that Silicon Valley may be coming to an end due to dominance by large tech companies, as well as counter arguments that there are more opportunities now due to more users online, ubiquity of mobile, and new industries being disrupted. While seed funding is up, later stage funding is more difficult to obtain. Los Angeles is emerging as a new startup hub but still lacks local venture funding. The future remains uncertain due to various "wild cards" globally.
Presentation from Blue Glass conference on marketing in the era of search, social and video and how many people are wasting money by advertising where there is banner blindness or measuring vanity metrics.
Entrepreneurshit. The Truth About Building StarutpsMark Suster
This document provides advice for entrepreneurs on what starting a company is really like versus common misconceptions. It discusses that the reality is a grind with long hours spent on fundraising, recruiting, accounting, and more. Success requires traits like tenacity, resiliency, decisiveness, and an ability to pivot. The author suggests entrepreneurs take 50 coffee meetings, ship product early, and create a sense of urgency. Fundraising is also a full-time job, and it's important to meet investors early to build relationships over time. Overall, starting a company is like a roller coaster, so entrepreneurs should have fun with it and go for their ideas now rather than waiting.
Explore the key differences between silicone sponge rubber and foam rubber in this comprehensive presentation. Learn about their unique properties, manufacturing processes, and applications across various industries. Discover how each material performs in terms of temperature resistance, chemical resistance, and cost-effectiveness. Gain insights from real-world case studies and make informed decisions for your projects.
2. With more money (and new non VC entrants) venture financings have
obviously increased. 2015 was an enormous year (2x pre recession)
2
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
$23
2,574
3,145
4,119
4,533 4,316
5,193
6,428
7,572
8,563
9,381
8,097
Source: PitchBook 2015 Annual U.S. Venture Industry Report; Upfront analysis.
3. Angel & Seed deals have grown fastest but dollars have scaled massively into
a smaller number of later-stage deals (doubling in just 2 years)
3 Source: PitchBook 2015 Annual U.S. Venture Industry Report; Upfront analysis.
US VC # of rounds closed by stage US VC capital invested ($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
4. 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)
4 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%
5. M&A pace hasn’t matched the increases in funding pace so VC mark-ups
have been good but cash distributions less so
5
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.
6. IPO exits are down 32% in volume and 38% in value
6
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
7. With fewer VC exits many partners are more overloaded with boards and
financings. 77% of surveyed VCs sit on or observe 4+ boards
7
2%3%
23%
39%
24%
9%
Source: Upfront Survey Jan 2016, 158 VCs.
How many boards do you sit on or observe?
11 - 14 0
7 - 10
4 - 6
1 - 3
15+
8. About 2/3rd of respondents and their partners write 1-4 first checks each year
8
How many first check investments do you and a typical partner at your
firm make each year?
0%
25%
50%
75%
100%
Respondent Typical partner at respondent's firm
6%6%
32%27%
34%
28%
24%
25%
5%
13%
10+
5-10
3-4
2
1
Source: Upfront Survey Jan 2016, 159 VCs for Respondent and 158 VCs for Typical partner at respondent’s firm.
9. 88% of Surveyed VCs are conservative on valuations
9
6%
42%
41%
11%1%
Source: Upfront Survey Jan 2016, 156 VCs.
How would you describe your outlook on valuations
right now?
Not much should change in 2016 over 2015
I expect valuations to continue to rise and you
have to pay if you want to be in the best deals
My best years are years where valuations are soft. If I
get a great deal, I’m in. Otherwise I’ll wait until later
in the year. Prices can only continue to drop
I’ve already reset valuations expectations in
my mind. If I don’t get what I consider a fair
valuation I’ll just move on. There are plenty
of deals out there and I’m not in a rush I find myself getting a little bit more
conservative on valuations and am even
willing to miss a deal if I feel it’s overpriced
10. Specifically more than 90% of respondents expected valuations to go down in
2016 with a full 1/3rd of investors expecting significant price corrections
10
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.
11. There is a clear feeling that fund raising cycles are taking longer and 77% of
respondents felt this pace is likely to slow down even further in 2016
11
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.
12. This has swung sentiment for many experienced VCs, with 62% of
respondents advising companies to cut costs / burn as markets tighten
12
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
13. 65% of respondents think their firms will make about the same first check
investments in 2016 as they had in 2015
13
23%
65%
11%
Source: Upfront Survey Jan 2016, 159 VCs.
Do you think your firm will make more new first
check investments or fewer in 2016 vs. 2015?
More New Investments
Fewer New Investments
About the Same Pace
14. 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
14
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
15. With the sentiment of the markets it’s no surprise that a full 82% of VCs
expressed caution or concern going into 2016
15
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
16. 159 VCs surveyed
16
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