2. 2 Venture Capital Activity Report | Q4 2010
Q4 2010 – This Quarter in Venture Capital
Quarter sees highest dealflow and funding of last eight quarters. Internet saw Year-
over-Year deal count up 21%, Green Tech up 7% and Healthcare up 2%.
At $6.5B of venture capital funding over 735 deals, Q4 2010’s venture capital stats have something for everyone. For
those of you looking for a data point that suggests VC is back and on the road to recovery after 2009’s tough sledding, the
eight quarter high on deals and dollars gives you something to hang your hat on. For those of you who think VC is
overheated and we’re headed for a bubble, the eight quarter high on deals and dollars gives you something to hang your
hat on. Yes – it’s all a matter of perspective.
Overall, 2010 saw $23.7B of funding into 2792 deals which represented 14% growth in funding and 13% growth in deals
over 2009’s VC nadir.
Say Bye Bye Massachusetts – NY is #2 for Tech VC Healthcare VC – A Mixed Bag
Over the last five quarters, NY has seen 208 tech deals Deals in the Healthcare space were up modestly YoY but
vs. 207 for Massachusetts. Funding to NY tech funding was down almost 16%. The growth in funding
companies came in at $1.22B vs. $1.21B for and deals seen over the last 2 quarters ceased as well.
Massachusetts. The margin of victory for NY is ever so Mass and Cali took over 50% of Healthcare funding but
slight, but most striking is the trend for both states which Mass’ share of Healthcare VC fell to a five-quarter low.
are going in very different directions. (Trend can be Early stage activity in Healthcare hit a five quarter high.
seen here: http://bit.ly/dLmLYG)
Cali's Number of VC Deals Grows, Funding Down
Seed VC Retains Its Share | Early Stage Grows
California retained its belt as uncontested venture capital
Q3 2010 saw 11% of deals going to Seed VC deals and heavyweight champion. Relative to 2009, California saw
that share stayed consistent in Q4 2010. The share of 3% growth in deals and a 2% drop in VC funding. The
Series A deals increased over Q3 2010. Early stage state saw 14% growth in deals on a sequential basis over
deal activity was nearly 50% of total deals representing Q3 2010. 60% of the state's funding went to Internet and
the highest level seen in five quarters. Healthcare companies. Mobile also took its largest share
of deals in the last five quarters.
VCs Connecting With Internet Deals Often
Colorado - The New Green Tech Hub?
The growth in the quarter was driven largely by a red-
hot internet sector which hit a five quarter high (by a lot) Three of the top 10 green tech deals in the quarter were
on both deals and dollars. Early stage activity remained in Colorado. The state which is usually 3-4% of green
strong as did NY on the internet deal and dollar front. tech deals jumped to 10%.
Green Tech / Clean Tech Investments Stay Flat Texas Gets the Early Stage Bug
After two quarters of VC funding to Green Tech/Clean In aggregate, Texas stayed within its recent historical
Tech investments declining, the space saw deals and range, but it did see growth in early-stage deals with 6 of
dollars hold vs. the prior quarter. On a year-over-year 10 deals in the quarter being into early stage deals.
basis, investment funding was up 40%. Early stage
investment on a deals basis into Green Tech fell to a Washington At Five Quarter Low in VC Funding
five-quarter low. Renewables and Energy Efficiency
maintained their positions as the top 2 areas for Green Over 50% of Washington deals were in early-stage
Tech investment and in aggregate, they garnered their companies and almost 60% of deals were to Internet
largest share of deals of the last five quarters. firms. The smaller checks to less capital-hungry web
companies helped to drive Washington to a five quarter
low on VC funding.
It is worth noting what we included and what we didn’t as this quarter had some mega-deals which can and did greatly
impact results. For example, Groupon’s funding was included as there was VC participation although we only included the
portion of their funding that closed in 2010, i.e. $500M. We’d recommend you also review our definitions and methodology
on p. 59 for details on our approach to VC data.
www.cbinsights.com
3. 3 Venture Capital Activity Report | Q4 2010
$6.5B over 735 Deals – Highest Totals of Last 8 Quarters
Continued strength in seed VC funding led to a two-year high in number of deals.
Total VC funding hit high on back of mega-deals which buoyed funding total.
Quarterly VC Investment and Deal Volume Trend
Q1 '09 to Q4 '10
730 715 735
678 687
613 612
$6.5
483 $6.1 $5.9 $5.9
$5.3 $5.5 $5.4
$3.9
Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Funding ($B) # of Deals
www.cbinsights.com
www.cbinsights.com
4. 4 Venture Capital Activity Report | Q4 2010
Cali Maintains, NY Gains and Mass Wanes in Deal Share
Big Three (NY, Mass, Cali) bounced back from Q3 2010 lows based on strength of
Cali and NY. Mass and Washington share of deals dipped.
Share of Venture Capital by State - Number of Deals
Five Quarter Trend
28% 31% 26% 29%
33%
4% 4%
4% 5% 4%
6% 5% 5% 5%
6% 8% 5%
8% 9%
7%
13% 14% 11%
12% 12%
44% 41% 43% 42%
38%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
California Massachusetts New York Texas Washington Other
www.cbinsights.com
www.cbinsights.com
5. 5 Venture Capital Activity Report | Q4 2010
The Big Three’s Share of VC Funding Falls to 5 Quarter Low
NY gained in terms of dollars as did Mass. Cali, Texas and Washington all fell. Impact
of a mega-deal (Groupon) is clearly evident given the large Other category.
Share of Venture Capital by State - Dollars of Funding
Five Quarter Trend
26% 23% 23% 27%
36%
2% 4%
3% 4% 4%
4% 4%
5% 6% 7%
5% 2%
12% 5% 5%
12% 15%
9% 7%
10%
49% 49% 52% 49%
40%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
California Massachusetts New York Texas Washington Other
www.cbinsights.com
www.cbinsights.com
6. 6 Venture Capital Activity Report | Q4 2010
CB Insights is the Premiere Venture
Capital and Angel Investment Database.
With CB Insights you can access deep private company info that was once exclusively
available behind prohibitively expensive paywalls.
CB Insights is accessible for free by visiting http://www.cbinsights.com
82,000+ Private Company Profiles. Coverage Universe
Over 82,000 high value private
company profiles across industries and • Venture Capital – 1999 to present
sectors. Medical devices to • Angel Investment
mobile. Industrial to internet. • Private Equity
• Federal SBIR Grants – 3 years
• State Grant Programs
From Angel to Private Equity. • Incubators – Over 300
Angel investment to venture capital to • Middle Market Private Companies
private equity to government funding to
under the radar mid-market private Sector Coverage
companies.
• Green/clean tech
• Internet
Company & Investor Updates via Email. • Mobile & Telecom
• Software
Add companies and investors of • Energy & Utilities
interest to your CBI Watchlist and get • Computer Hardware & Services
notified of changes and updates • Healthcare
automatically. • Industrial
• Automotive & Transportation
Management & Board Information • Business Products & Services
• Consumer Products & Services
Find out about the people behind the • Electronics
companies including management and • Environmental Services &
board of directors profiles. Equipment
• Financial Services
• Food & Beverages
• Leisure
Analytics & Reporting • Media
• Metals & Mining
Downloadable reports and analytics
• Retail
which allow you to manipulate data
• Risk & Security
when and how you want to.
www.cbinsights.com
7. 7 Venture Capital Activity Report | Q4 2010
2010 Ends with a Bang – VCs Scurry to Get Deals Done
Q4 2010 started flat but ended with a flurry of activity. December 2010 saw the 2nd
highest deal flow and the highest venture funding of the last 15 months.
Monthly VC Investment and Deal Volume Trend
October 2009 to December 2010
298
275 283
259
237 244 $3.2
230 223 232
220
205 212
190 193
178 $2.5
$2.3
$2.1
$1.9 $1.9 $2.0
$1.8
$1.6 $1.7 $1.7 $1.6 $1.7 $1.7
$1.5
Funding ($B) # of Deals
www.cbinsights.com
www.cbinsights.com
8. 8 Venture Capital Activity Report | Q4 2010
Seed VC Stays Strong. Early Stage Continues Climb
Q4 saw seed deals retain share of deals and also saw Series A deals climb. Later
stage deals garnered an increased share of venture funding.
Share of Venture Capital by Series - Number of Deals
Five Quarter Trend
4% 7%
11% 10% 10%
12% 7%
10% 9% 8%
18% 15% 18%
14% 19%
24% 22%
24%
28%
27%
33% 36%
33%
31% 28%
6% 6% 9% 11% 11%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Seed Series A Series B Series C Series D Series E +
www.cbinsights.com
Share of Venture Capital by Series - Dollars of Funding
Five Quarter Trend
6%
16% 19% 16% 16%
23%
16% 12%
15% 20%
20%
21% 19% 32%
28%
26% 30%
34% 22%
20%
20% 17% 20%
14% 15%
0% 0% 1% 1% 1%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Seed Series A Series B Series C Series D Series E +
www.cbinsights.com
www.cbinsights.com
9. 9 Venture Capital Activity Report | Q4 2010
Internet Climbs & Healthcare Dips; Energy VC Stays Flat
Perennial top 2 sectors retain their positions with internet gaining. Mobile also sees
highest share of deals of last 5 quarters. Energy & utilities stagnant.
Share of Venture Capital by Sector - Number of Deals
Five Quarter Trend
16% 14% 17% 13%
20%
8% 7% 10%
9%
8% 4% 4% 3%
4% 7% 8%
3% 8%
10% 8% 7% 6% 6%
4% 7%
33% 38% 33% 37%
30%
25% 24% 23% 26% 24%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Healthcare Internet
Energy & Utilities Software (non-internet/mobile)
Computer Hardware & Services Mobile & Telecommunications
Other
www.cbinsights.com
Share of Venture Capital by Sector - Dollars of Funding
Five Quarter Trend
14% 12% 15% 14%
22%
6% 6%
7% 4% 5%
4% 8% 3%
8% 6% 7%
9% 4% 8%
17% 8%
5% 7%
9%
15%
27% 23%
28% 39%
21%
33% 28% 33%
24% 24%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Healthcare Internet
Energy & Utilities Software (non-internet/mobile)
Computer Hardware & Services Mobile & Telecommunications
Other
www.cbinsights.com
www.cbinsights.com
10. 10 Venture Capital Activity Report | Q4 2010
Get Started for Free with CB Insights
Basic membership to CB Insights venture capital and angel investor database is free.
Just visit http://www.cbinsights.com. And also connect with us via any of the following.
Twitter Newsletter
Follow us @cbinsights Click here to receive our dealflow
newsletter.
Email Telephone
212-292-3148
info@cbinsights.com
www.cbinsights.com
11. 11 Venture Capital Activity Report | Q4 2010
Q4 2010 Venture Capital
INTERNET
www.cbinsights.com
12. 12 Venture Capital Activity Report | Q4 2010
Internet VC Hits 5 Quarter High
Optimism around internet deals didn’t abate with both deals and dollars way up. VC
Internet
deals and funding even after excluding Groupon stands at 5 quarter high.
Internet VC Investment and Deal Volume Trend
Last Five Quarters
272
224 233 233
221
$2,543
$1,618
$1,483
$1,265 $1,253
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
$ Funding # of Deals
www.cbinsights.com
www.cbinsights.com
13. 13 Venture Capital Activity Report | Q4 2010
NY Takes Hold of #2 Spot for Internet VC Deals and Dollars
California continued to dominate internet VC followed by New York on deals.
Internet
Excluding Groupon, NY would be #2 on funding as well.
Quarter Highlights
VC Deal Volume (#) in Internet by State, Q410
272 deals | $2,543M
2% California
2% Illinois Top Five Deals
13%
1% New York
Groupon
DC Twitter
6% Massachusetts LivingSocial
47% Whale Shark Media
3% Texas FleetMatics
Washington
8%
North Carolina Top Cities
Georgia
Chicago, IL
1% 14% Maryland 7 deals | $540M
All Other San Francisco, CA
36 deals | $398M
3%
www.cbinsights.com New York, NY
38 deals | $244M
Washington, DC
3 deals | $204M
VC Investment ($) in Internet by State, Q410 Austin, TX
8 deals | $102M
2% 1% 1% Mountain View, CA
4% California 9 deals | $98M
2% 4% Illinois Arlington Heights, IL
1 deals | $68M
New York
Los Angeles, CA
5% DC 8 deals | $66M
39% Redwood City, CA
Massachusetts
8% 5 deals | $62M
Texas Seattle, WA
Washington 9 deals | $49M
10% North Carolina
Georgia
Maryland
24%
All Other
www.cbinsights.com
www.cbinsights.com
14. 14 Venture Capital Activity Report | Q4 2010
~70% of Internet Deals Go To Big Three States
Internet VC deals maintained similar geographic pattern as prior quarters. Mass
Internet
internet share dropped to five quarter low.
Share of Internet VC by State - Number of Deals
Last Five Quarters
26% 24% 23% 21%
29%
5% 3% 6% 6%
5% 10% 8%
11%
10% 9% 2% 3%
1% 1%
1%
12% 15% 15% 14%
13%
46% 43% 47% 44% 47%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
California New York Illinois Massachusetts Washington Other
www.cbinsights.com
Share of Internet VC by State - Dollars of Funding
Last Five Quarters
12%
21% 17% 21%
1% 25%
7%
4% 7%
9% 5%
7% 7% 5%
2% 1% 8%
15% 0%
9% 16% 24%
12%
10%
56% 52% 56%
50%
39%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
California New York Illinois Massachusetts Washington Other
www.cbinsights.com
www.cbinsights.com
15. 15 Venture Capital Activity Report | Q4 2010
Early Stage Internet Investing Represented 50+% of Deals
Early stage (Seed / Series A) dealflow dipped slightly from last quarter but still over
Internet
50%. Series C, D and E+ deals increased share of funding.
Share of Internet VC by Series - Number of Deals
Last Five Quarters
4% 6% 1% 4%
6% 7%
8% 6% 5% 5%
13% 18% 15%
17% 19%
23% 20%
27% 18%
28%
40% 42% 38%
38% 33%
11% 11% 12% 13% 13%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Seed Series A Series B Series C Series D Series E +
www.cbinsights.com
Share of Internet VC by Series - Dollars of Funding
Last Five Quarters
5% 1%
13% 10%
16% 19% 25%
7%
10%
23%
28% 24%
40% 27%
27%
28% 33% 19%
19%
16%
31%
22% 19% 20%
12%
1% 1% 2% 1% 1%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Seed Series A Series B Series C Series D Series E +
www.cbinsights.com
www.cbinsights.com
16. 16 Venture Capital Activity Report | Q4 2010
VC Internet Investment Remains Diverse Across Industries
Social and Advertising remained strong. Gaming made a come back from Q3 2010.
Internet
VC Deal Volume (#) in Internet by Sub-Industry, Q410
2%
Discount
11% Social
Advertising, Sales & Marketing
Bus. Intelligence, Analytics & Performance Mgmt
12% Video
44%
Gaming
4% Data Storage
Data & Document Management
4% Health & Wellness
8% Conferencing & Communication
Information Providers & Portals
eCommerce enablement
3%
1% Travel (internet)
2% 3% 2%
Content Management
2% 1% All Other
1%
www.cbinsights.com
VC Investment ($) in Internet by Sub-Industry, Q410
Discount
1% Social
18% Advertising, Sales & Marketing
2% 26% Bus. Intelligence, Analytics & Performance Mgmt
1% Video
Gaming
2%
2% Data Storage
2% Data & Document Management
2% Health & Wellness
3% Conferencing & Communication
24% Information Providers & Portals
3% 5% eCommerce enablement
3% 6%
Travel (internet)
Content Management
All Other
www.cbinsights.com
www.cbinsights.com
17. 17 Venture Capital Activity Report | Q4 2010
Early Stage Medians Fall. Late Stage Medians Up Big.
Seed, Series A and Series C median deal sizes all were smaller. Series B up with
Internet
Series D and Series E+ were up big on back of many larger late stage web deals.
Internet Median Deal Size by Quarter
($ Million)
$20.0
$19.0
$9.0
$7.0
$2.4
$0.6
Seed Series A Series B Series C Series D Series E +
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
www.cbinsights.com
www.cbinsights.com
18. 18 Venture Capital Activity Report | Q4 2010
Q4 2010 Venture Capital
HEALTHCARE
www.cbinsights.com
19. 19 Venture Capital Activity Report | Q4 2010
Healthcare Investment Dips After 2 Qtrs of Funding Growth
Healthcare
Healthcare deals were up modestly YoY but funding levels down almost 16% vs. year
ago. Deals down vs. prior quarter and funding down over 12% qoq.
Healthcare VC Investment and Deal Volume Trend
Last Five Quarters
184
169 173 173
138
$1,830
$1,753
$1,639
$1,541
$1,405
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
$ Funding # of Deals
www.cbinsights.com
www.cbinsights.com
20. 20 Venture Capital Activity Report | Q4 2010
Mass and Cali Attract Over 50% of Healthcare VC Funding
Healthcare
Cali increased over Q3 2010 while Mass declined on # of deals basis. Pennsylvania
and Texas continue to hold strong.
Quarter Highlights
VC Deal Volume (#) in Healthcare by State, Q410
173 deals | $1,541M
California
Massachusetts
Top Five Deals
23% Pennsylvania
Pearl Therapeutics
33% Texas Moksha8
1% New Jersey IDev Technologies
Sutro Biopharma
New York
3% Genocea Biosciences
North Carolina
3%
Colorado
3% Minnesota Top Cities
13%
4% 7% Michigan
4% 6% Cambridge, MA
All Other 9 deals | $143M
Redwood City, CA
www.cbinsights.com 4 deals | $135M
San Diego, CA
11 deals | $104M
Palo Alto, CA
VC Investment ($) in Healthcare by State, Q410 3 deals | $70M
South San Francisco, CA
2 deals | $67M
2% California
Wayne, PA
11% Massachusetts 1 deals | $61M
2%
3% Pennsylvania New York, NY
5 deals | $59M
3% Texas Malvern, PA
39%
New Jersey 2 deals | $48M
4% Webster, TX
New York
5% 1 deals | $46M
North Carolina Pleasanton, CA
6% Colorado 2 deals | $34M
Minnesota
9%
Michigan
16%
All Other
www.cbinsights.com
www.cbinsights.com
21. 21 Venture Capital Activity Report | Q4 2010
Cali Stays on Top. Mass Share of Deals Falls to 5 Qtr Low.
Healthcare
Massachusetts share of deals continued downward trend. Healthcare sector is most
geographically diverse with 4 of 10 deals occurring outside of top states.
Share of Healthcare VC by State - Number of Deals
Last Five Quarters
36% 30%
38% 37% 42%
6%
3% 3%
4% 3% 5% 5%
4% 4% 2%
6% 3%
4% 8% 6%
17% 23%
18% 13%
17%
32% 34% 33% 33%
28%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
California Massachusetts Pennsylvania New Jersey Washington Other
www.cbinsights.com
Share of Healthcare VC by State - Dollars of Funding
Last Five Quarters
22%
31% 33% 29% 29%
7%
4% 4% 1%
0% 7% 5%
5% 4% 4%
8% 4% 10%
6%
4%
23%
13% 17%
18% 27%
40% 42% 39%
35% 31%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
California Massachusetts Pennsylvania New Jersey Washington Other
www.cbinsights.com
www.cbinsights.com
22. 22 Venture Capital Activity Report | Q4 2010
Early Stage Healthcare Hits Five-Quarter High
Healthcare
Seed and Series A healthcare grew to 45% of total healthcare funding. Later stage
healthcare companies took 57% of total funding.
Share of Healthcare VC by Series - Number of Deals
Last Five Quarters
8% 6% 6%
11% 13%
7% 10%
9%
12% 10%
21% 16%
13% 21% 16%
23%
24%
30% 30% 26%
36% 39%
27%
30% 29%
6% 9% 6%
3% 3%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Seed Series A Series B Series C Series D Series E +
www.cbinsights.com
Share of Healthcare VC by Series - Dollars of Funding
Last Five Quarters
10% 11% 9% 6%
16%
7% 16%
11%
19% 14%
19% 36%
15% 35%
22%
31% 36%
23% 30% 19%
24% 22% 25% 24%
17%
0% 0% 0% 1% 1%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Seed Series A Series B Series C Series D Series E +
www.cbinsights.com
www.cbinsights.com
23. 23 Venture Capital Activity Report | Q4 2010
Medical Device Investment Remains Strong
Healthcare
Medical Devices continued their dominance of the Healthcare sector followed by
Pharmaceuticals, Biotech, Medical Facilities & Services and Drug Development.
VC Deal Volume (#) in Healthcare by Industry, Q410
2%
2% Medical Devices & Equipment
1%
Pharmaceuticals / Drugs
1% 7%
Biotechnology
Drug Development
11% 37% Medical Facilities & Services
Drug Manufacturing
8% Disease Diagnosis
Drug Discovery
14% NULL
17% All Other
www.cbinsights.com
VC Investment ($) in Healthcare by Industry, Q410
2%
2% 2% 2% Medical Devices & Equipment
4% Pharmaceuticals / Drugs
Biotechnology
5% Drug Development
37% Medical Facilities & Services
12% Drug Manufacturing
Disease Diagnosis
Drug Discovery
14%
NULL
20% All Other
www.cbinsights.com
www.cbinsights.com
24. 24 Venture Capital Activity Report | Q4 2010
More Small Series A Healthcare Deals
Healthcare
The increased # of Series A deals (p. 22) also saw smaller amounts of funding. Seed
VC, Series C and D medians all climbed.
Healthcare Median Deal Size by Quarter
($ Million)
$24.0
$16.0
$13.0
$7.3
$2.6
$1.3
Seed Series A Series B Series C Series D Series E +
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
www.cbinsights.com
www.cbinsights.com
25. 25 Venture Capital Activity Report | Q4 2010
Q4 2010 Venture Capital
GREEN & CLEAN TECH
www.cbinsights.com
26. 26 Venture Capital Activity Report | Q4 2010
Green Tech Performance In-Line with Last Quarter
Green Tech figures consistent with Q3 – Funding steadied at $790M, while deal count
Green
fell slightly. Investment dollars were up 40% year-over-year.
Green VC Investment and Deal Volume Trend
Last Five Quarters
85
61 59
55 $1,322 55
$1,046
$790 $790
$565
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
$ Funding # of Deals
www.cbinsights.com
www.cbinsights.com
27. 27 Venture Capital Activity Report | Q4 2010
Colorado Shows Its Greener Side
Colorado emerged as a serious destination for Green Tech investment, taking 3 of the
Green
top 10 Green deals in Q4. As usual, California was the overall leader.
Quarter Highlights
VC Deal Volume (#) in Green by State, Q410
California 59 deals | $790M
Colorado
15% Top Five Deals
3% Illinois
Abound Solar
2% Massachusetts Elevance Renewable Sciences
2% 41% Michigan Solopower
Soladigm
5% Arizona LS9
2% New York
5% Oregon Top Cities
Ohio
13% Loveland, CO
10% Texas 1 deals | $110M
All Other Bolingbrook, IL
2% 1 deals | $100M
www.cbinsights.com San Jose, CA
2 deals | $57M
Milpitas, CA
2 deals | $43M
VC Investment ($) in Green by State, Q410 Cambridge, MA
1%
1% 3 deals | $38M
1%
1% 2% Fremont, CA
2% California 2 deals | $37M
Colorado Lansing, MI
2 deals | $37M
5% Illinois South San Francisco, CA
Massachusetts 1 deals | $30M
39% Michigan North Lexington, MA
11%
2 deals | $26M
Arizona Windsor, CO
New York 1 deals | $24M
13% Oregon
Ohio
Texas
24% All Other
www.cbinsights.com
www.cbinsights.com
28. 28 Venture Capital Activity Report | Q4 2010
California Loses Green Share for Fourth Straight Quarter
The downward trend for California continued, as Texas, Colorado, Massachusetts and
Green
Illinois ate into The Golden State’s Green Tech dominance.
Share of Green VC by State - Number of Deals
Last Five Quarters
25% 28% 27% 28% 31%
2%
4% 4% 4% 3% 2%
5% 2%
7% 7% 15% 10%
9% 8%
13% 3%
8% 14%
53% 55%
47% 46% 41%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
California Massachusetts Texas Colorado Illinois Other
www.cbinsights.com
Share of Green VC by State - Dollars of Funding
Last Five Quarters
13% 15% 12% 12%
25% 1% 1% 3%
6% 4% 1% 13%
1% 9% 21%
2%
5%
4% 10%
4% 24%
1%
11%
79%
64% 62% 59%
39%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
California Massachusetts Texas Colorado Illinois Other
www.cbinsights.com
www.cbinsights.com
29. 29 Venture Capital Activity Report | Q4 2010
Green Tech Seed Investment Disappears in Q4 2010
Early stage Green Tech investment share crept back to Q2 2010 levels. Investors
Green
favored Series C and later in Q4.
Share of Green VC by Series - Number of Deals
Last Five Quarters
3% 7% 2%
8% 9%
3% 11% 10%
7%
12%
18% 10% 19%
23%
19%
32% 39%
29% 38%
25%
32% 27%
33% 31%
31%
8% 10%
2% 3%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Seed Series A Series B Series C Series D Series E +
www.cbinsights.com
Share of Green VC by Series - Dollars of Funding
Last Five Quarters
7% 6% 4%
16%
26% 19%
22%
28%
3% 18%
12%
25% 14% 41%
27%
44%
27%
44%
27% 29%
19% 16%
8% 10% 8%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Seed Series A Series B Series C Series D Series E +
www.cbinsights.com
www.cbinsights.com
30. 30 Venture Capital Activity Report | Q4 2010
Renewables and Energy Efficiency See an Uptick in Share
Green Tech Software yielded to Renewable and Energy Efficiency investments.
Green
Energy Storage investments held steady.
Share of Green VC by Industry - Number of Deals
Last Five Quarters
29% 31% 29%
42% 40%
5% 7%
8%
5% 11%
4% 11% 15%
5% 7% 4%
2% 2% 3%
4% 2% 7%
6% 3%
49% 46%
44% 40% 39%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Renewables Automobile Manufacturing
Green/Environmental Software Energy Efficiency
Energy Storage Other
www.cbinsights.com
Share of Green VC by Industry - Dollars of Funding
Last Five Quarters
13%
19%
7% 28%
37% 4% 38%
2% 6%
3% 6%
19% 7%
3% 5%
3%
15% 7%
18%
1%
1%
68%
55%
49%
38% 42%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Renewables Automobile Manufacturing
Green/Environmental Software Energy Efficiency
Energy Storage Other
www.cbinsights.com
www.cbinsights.com
31. 31 Venture Capital Activity Report | Q4 2010
Late Stage Green Tech Deals See Uptick in Size
With investment share shifting from Green Tech Software to Renewables, late stage
Green
median deal values climbed higher. Overall median stayed flat at $6.2 million.
Green Median Deal Size by Quarter
($ Million)
$26.0
$24.0
$21.5
$7.4 $6.2
$2.8
$0.0
Seed Series A Series B Series C Series D Series E + Overall
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
www.cbinsights.com
www.cbinsights.com
32. 32 Venture Capital Activity Report | Q4 2010
Q4 2010 Venture Capital
CALIFORNIA
www.cbinsights.com
33. 33 Venture Capital Activity Report | Q4 2010
CB Insights is the Premiere Venture
Capital and Angel Investment Database.
With CB Insights you can access deep private company info that was once exclusively
available behind prohibitively expensive paywalls.
CB Insights is accessible for free by visiting http://www.cbinsights.com
82,000+ Private Company Profiles. Coverage Universe
Over 82,000 high value private
company profiles across industries and • Venture Capital – 1999 to present
sectors. Medical devices to • Angel Investment
mobile. Industrial to internet. • Private Equity
• Federal SBIR Grants – 3 years
• State Grant Programs
From Angel to Private Equity. • Incubators – Over 300
Angel investment to venture capital to • Middle Market Private Companies
private equity to government funding to
under the radar mid-market private Sector Coverage
companies.
• Green/clean tech
• Internet
Company & Investor Updates via Email. • Mobile & Telecom
• Software
Add companies and investors of • Energy & Utilities
interest to your CBI Watchlist and get • Computer Hardware & Services
notified of changes and updates • Healthcare
automatically. • Industrial
• Automotive & Transportation
Management & Board Information • Business Products & Services
• Consumer Products & Services
Find out about the people behind the • Electronics
companies including management and • Environmental Services &
board of directors profiles. Equipment
• Financial Services
• Food & Beverages
• Leisure
Analytics & Reporting • Media
• Metals & Mining
Downloadable reports and analytics
• Retail
which allow you to manipulate data
• Risk & Security
when and how you want to.
www.cbinsights.com
34. 34 Venture Capital Activity Report | Q4 2010
California Deal Volume Experiences Five Quarter High
Funding levels in California remained relatively flat from last quarter, but deal count
California
saw a 14% uptick from Q3, and 3% year-over-year growth.
California VC Investment and Deal Volume Trend
Last Five Quarters
300 310
297
264 271
$3,062
$2,929
$2,685 $2,607 $2,630
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
$ Funding # of Deals
www.cbinsights.com
www.cbinsights.com
35. 35 Venture Capital Activity Report | Q4 2010
Internet & Healthcare Continue Dominance in Cali
California
Internet and Healthcare combined for more than 60% of overall VC investment in
California; Mobile continued its growth.
Quarter Highlights
VC Deal Volume (#) in California by Sector, Q410
4% 0% 2% Healthcare 310 deals | $2,630M
3% 4% Internet
18% Top Sector
Energy & Utilities
# of Deals – Internet
Software (non-internet/mobile) $ of Funding – Internet
12% Computer Hardware & Services
Mobile & Telecommunications Top Five Deals
3% Twitter
Industrial
Pearl Therapeutics
8% Electronics Solopower
Business Products & Services Space Exploration Technologies
5% 41% Fallbrook Technologies
Consumer Products & Services
All Other
Top Cities
www.cbinsights.com San Francisco
64 deals | $517M
Redwood City
VC Investment ($) in California by Sector, Q410 13 deals | $237M
Mountain View
0% 1% 19 deals | $216M
2%
Healthcare San Diego
3% 6% 20 deals | $185M
Internet San Jose
23% Energy & Utilities 13 deals | $152M
9% Software (non-internet/mobile) Palo Alto
21 deals | $141M
2% Computer Hardware & Services Sunnyvale
Mobile & Telecommunications 11 deals | $106M
7% Los Angeles
Industrial
14 deals | $97M
Electronics South San Francisco
9%
Business Products & Services 3 deals | $97M
38% San Mateo
Consumer Products & Services 9 deals | $67M
All Other
www.cbinsights.com
www.cbinsights.com
36. 36 Venture Capital Activity Report | Q4 2010
Internet Investment Expands in California
Internet saw its most dominant position of the last 5 quarters and grew its share of
California
investment by 14% versus Q3. Healthcare and Energy lost ground.
Share of VC in California by Sector - Number of Deals
Last Five Quarters
27% 23% 24% 24%
30%
5% 5% 3%
6% 6% 8%
5% 7%
9% 4% 7% 7% 5%
5% 8%
41% 38% 41%
34% 32%
18% 20% 17% 19% 18%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Healthcare Internet
Energy & Utilities Software (non-internet/mobile)
Computer Hardware & Services Other
www.cbinsights.com
Share of VC in California by Sector - Dollars of Funding
Last Five Quarters
22% 19% 21% 21%
34%
5% 2%
7% 6% 8% 7%
10% 9% 9%
6% 19%
6% 3% 11%
20%
31% 24% 38%
30%
23%
24% 28% 23%
21%
15%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Healthcare Internet
Energy & Utilities Software (non-internet/mobile)
Computer Hardware & Services Other
www.cbinsights.com
www.cbinsights.com
37. 37 Venture Capital Activity Report | Q4 2010
Early Stage Deal Volume Remains Strong in California
Early stage deal volume increased share by 5% as Seed and Series A both continued
California
their upward trend in California. Series C took larger portion of investment dollars.
Share of VC in California by Series - Number of Deals
Last Five Quarters
9% 4% 6%
11% 11%
14% 8%
15% 13% 10%
21%
23% 18%
16% 23%
23%
23% 24%
25%
28%
31%
28% 27%
25%
22%
7% 8% 11% 12%
4%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Seed Series A Series B Series C Series D Series E +
www.cbinsights.com
Share of VC in California by Series - Dollars of Funding
Last Five Quarters
4%
14% 13% 14% 17%
29%
20% 16% 12%
24%
21%
22% 35%
32%
28%
31%
33% 21%
20% 21%
13% 13% 16% 15%
11%
0% 0% 1% 1% 1%
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
Seed Series A Series B Series C Series D Series E +
www.cbinsights.com
www.cbinsights.com
38. 38 Venture Capital Activity Report | Q4 2010
Q4 2010 Venture Capital
MASSACHUSETTS
www.cbinsights.com
39. 39 Venture Capital Activity Report | Q4 2010
Massachusetts
Massachusetts Recovers, but Levels Still Down Versus Q2
VC funding in Massachusetts jumped 35% versus Q3, but still was down 4% year-
over-year. Mass’ deal count hit its lowest point in five quarters.
Massachusetts VC Investment and Deal Volume Trend
Last Five Quarters
88 87 87
84
$898 78
$689
$653 $630
$466
Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
$ Funding # of Deals
www.cbinsights.com
www.cbinsights.com
40. 40 Venture Capital Activity Report | Q4 2010
Massachusetts
Healthcare & Internet Remain Atop the Rest in Mass
Healthcare and Internet combined for 68% of investment dollars and 61% of deal
volume. Mobile doubled its share in terms of deals and investment dollars versus Q3.
Quarter Highlights
VC Deal Volume (#) in Massachusetts by Sector, Q410
78 deals | $630M
4% 1%
Healthcare
4% Top Sector
0% Internet # of Deals – Healthcare /
6% Software (non-internet/mobile) Internet (tie)
29%
$ of Funding - Healthcare
Energy & Utilities
10%
Mobile & Telecommunications Top Five Deals
Computer Hardware & Services Genocea Biosciences
6%
Industrial NinePoint Medical
Rive Technology
9% Business Products & Services Cerulean Pharma
29% Electronics Aspen Aerogels
All Other
Top Cities
www.cbinsights.com Cambridge
18 deals | $258M
Waltham
VC Investment ($) in Massachusetts by Sector, Q410 8 deals | $45M
Newton
2% 2% 3 deals | $44M
Boston
Healthcare
11 deals | $41M
4% Internet North Lexington
2 deals | $26M
12% Software (non-internet/mobile) Burlington
0% 41% Energy & Utilities 2 deals | $22M
Northborough
6% Mobile & Telecommunications 1 deals | $22M
Computer Hardware & Services Woburn
6% 4 deals | $19M
Industrial Beverly
8% Business Products & Services 3 deals | $17M
Boxborough
Electronics 1 deals | $16M
20%
All Other
www.cbinsights.com
www.cbinsights.com
