Mattermark Q1 2015 Quarter Midpoint Analysis - U.S. Venture Capital Activity

U.S.Venture Capital
Q1 2015 Mid-QuarterTrend Analysis
February 22, 2015

© 2015 ALL RIGHTS RESERVED ● MATTERMARK TRACTION REPORT ● MATTERMARK.COM ● (415) 366-6587
This report provides a data-driven exploration of the United States startup funding environment over the past year. The
resources that ﬂow into startups each year are a calculated risk on the part of investors, founders, employees, service-
providers and everyone who stands to beneﬁt from the proliferation of new product, better services, and saved time
and money.
Understanding how businesses are created, funded, grown and ultimately rewarded with sustainability or an exit helps
inform the conversations and actions for the coming years, and it is our hope you will read this report and combine it
with your special knowledge of your industry, region, role and community as you charge forward into the New Year.
Sincerely,
Danielle Morrill, CEO & Cofounder of Mattermark
Acknowledgements
This analysis would not be possible without a team effort. Thank you to the Mattermark analysts, researchers, software
engineers and designers who made this report possible: Sarah Catanzaro, Bryan Chang, Clare Corthell, Avi
Eisenberger, Nick Frost, Kevin Liu, Josh Luxton, Samiur Rahman, and Tristan Williams and many more.
MATTERMARK Q1 2015 MID-QUARTER ANALYSIS
2
Introduction

© 2015 ALL RIGHTS RESERVED ● MATTERMARK TRACTION REPORT ● MATTERMARK.COM ● (415) 366-6587 3
Table of Contents
2
3
5
9
13
16
18
22
INTRODUCTION
METHODOLOGY
DEAL VOLUMES
CAPITAL DISTRIBUTION
CAPITAL CONCENTRATION
MEGA “PRIVATE IPO” ROUNDS
RISING VALUATIONS
ECOSYSTEM IMPACT: NEW YORK
Disclaimer
This information has been prepared by Mattermark Inc.
solely for informational purposes. It is not, and should not be
regarded as, investment advice or as a recommendation
regarding any particular security or course of action.
Opinions expressed herein are current opinions as of the
date appearing in this material only and are subject to
change without notice.
This information is provided with the understanding that with
respect to the material provided herein, you will make your
own independent decision with respect to any course of
action based on your own judgment, and that you are
capable of understanding and assessing the merits of a
course of action.
Neither the information, nor any opinion contained herein,
constitute a solicitation or offer by Mattermark, Inc. to buy or
sell any securities, futures, options or other ﬁnancial
instruments or provide any investment advice or service.
Mattermark, Inc. does not purport to, and does not, in any
fashion, provide broker/dealer, consulting or any related
services. Mattermark, Inc. shall not have any liability for any
damages of any kind whatsoever relating to this material. By
accepting this material, you acknowledge, understand and
accept the foregoing.

© 2015 ALL RIGHTS RESERVED ● MATTERMARK TRACTION REPORT ● MATTERMARK.COM ● (415) 366-6587
Time Period
For this report we compared Q1 2014 and the 2014 calendar year to Q1 2015 in progress. For all “pace” metrics, we
have taken the current deal volumes or amounts invested between January 1st and February 15th and assumed the
same pace for the remainder of the quarter.
Funding Rounds
For venture rounds, we only included deals in which the amount of funding raised was disclosed.
“Late” stage rounds include all rounds Series D and beyond (traditionally the 4th round of venture funding).
“New York” includes the New York metro region (for example Jet is based in New Jersey according to our data set, but
was still included in the geographical analysis).
Data Sources
Mattermark uses a broad range of sources to present the most complete picture possible of the startup ecosystem. In
addition to extensive primary source research sourced speciﬁcally for this report, Mattermark uses publicly-available
data from Crunchbase (www.crunchbase.com), AngelList (www.angel.co), NASDAQ (www.nasdaq.com), the United
States Securities and Exchange Commission (www.sec.gov), The White House Ofﬁce of Management & Budget, and
source relationships with thousands of investors, community leaders and startup founders.
4
Methodology

DEALVOLUME
MATTERMARK COPYRIGHT 2015,ALL RIGHT RESERVED — WWW.MATTERMARK.COM

NumberofFundingEvents
0
20
40
60
80
100
120
Q1 2015
Seed Series A Series B Series C Late Other
32
78
37
59
74
109
U.S. STARTUP FUNDING JAN. 1 - FEB. 15, 2015
366 COMPANIES FUNDED

NumberofFundingEvents
0
50
100
150
200
250
300
350
400
Q1 2014 Q1 2015
37
78
37
59
74
108
124
67
38
74
102
359
Q1 ’15 MIDPOINT VS. ’14 MIDPOINT

Q1 2014
Other
16%
Late Stage
9%
Series C
5%
Series B
10%
Series A
13%
Seed
47%
Q1 2015
Other
9%
Late Stage
20%
Series C
9%
Series B
15%
Series A
19%
Seed
27%
DEAL VOLUME BY STAGE

CAPITAL INVESTED

$9.7B DOLLARS INVESTED
CapitalInvested(inBillionsofDollarsUSD)
$1
$2
$3
$3
$4
$5
$6
Investment Stage
$1.13
$5.18
$1.16$1.26
$0.76$0.20

DollarsInvested(inBillionsUSD)
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
Q1 2014 Q1 2015
$1.17
$5.18
$1.16$1.26
$0.76
$0.20
$0.63
$2.00
$1.12$1.06
$0.61
$0.21
Q1 ’15 MIDPOINT VS. ’14 MIDPOINT

CAPITAL ALLOCATED BY STAGE
Q1 2014
Other
11%
Late Stage
35%
Series C
20%
Series B
19%
Series A
11%
Seed
4%
Q1 2015
Other
12%
Late Stage
53%
Series C
12%
Series B
13%
Series A
8%
Seed
2%

TREND #1: GREATER CAPITAL
CONCENTRATION IN SEED DEALS
60%YEAR-OVER-YEAR DECLINE IN
DEALVOLUME
25%YEAR-OVER-YEAR INCREASE IN
CAPITAL DEPLOYMENT

RoundSize(inMillionsofDollarsUSD)
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
NumberofRounds
0
300
600
900
1200
1500
Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015*
Average Seed Deal Size Median Seed Deal Size Seed DealVolume
216202
456421
542
U.S. SEED DEAL VOLUME VS. ROUND SIZE
* Q1 2015 BASED ON PACE AS OF FEB. 15, 2015

$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
TotalSeedCapitalDeployed(inMillionsUSD)
0
100
200
300
400
500
Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015*
Average Seed Deal Size Median Seed Deal Size Seed DealVolume
$397.6
$342.6$348.7
$302.7
$320.5
U.S. SEED CAPITAL VS. ROUND SIZE

TREND #2: LATE STAGE
MEGA “PRIVATE IPO”
ROUNDS

10 BIGGEST DEALS OF 2014
1. Uber - $1.2B
2. Cloudera - $900M
3. Chobani - $750M
4. Cape Wind - $600M
5. ABILITY Network - $550M
6. Magic Leap - $542M
7. Dropbox - $500M
8. Snapchat - $485M
9. Airbnb - $475M
10. WeWork - $355M

NumberofRounds
0
18
36
54
72
90
Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015*
34
48
20
30
20
4239
34
46
39
Deals $50M - $100M Deals > $100M
MEGA “PRIVATE IPO” DEAL VOLUME

TREND #3: VC ROUND SIZES (AND
VALUATIONS) ON THE RISE AS DEAL
VOLUMES CONTINUE TO DECLINE
YoY Change in
Average Round
Size
YoY Change in
Total Capital
YoY Change in
Deal Volume
Pre Series A +142% 25% -60%
Series A +52% +24% -19%
Series B +44% +19% +7%
Series C +16% +3% +14%
Late Stage +19% +159% +16%

$0
$1
$3
$4
$6
$7
$8
$10
$11
NumberofRounds
0
100
200
300
400
500
Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015*
Average Round Size Median Round Size Series A DealVolume
170176190
232
210
SERIES A DEAL VOLUME VS. ROUND SIZE

$0
$4
$8
$11
$15
$19
$23
$26
$30
NumberofRounds
0
100
200
300
400
500
Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015*
Average Round Size Median Round Size Series B DealVolume
140
97
127132131
SERIES B DEAL VOLUME VS. ROUND SIZE

$0
$4
$8
$12
$16
$20
$24
$28
$32
NumberofRounds
0
100
200
300
400
500
Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015*
Average Round Size Median Round Size Series C DealVolume
80
5959
7770
SERIES C DEAL VOLUME VS. ROUND SIZE

TREND #3 EXAMPLE: NEW YORK
36% YEAR-OVER-YEAR DECLINE DEAL VOLUME,
50% INCREASE IN TOTAL CAPITAL INVESTED
YoY Change in
Average Round
Size
YoY Change in
Total Capital
YoY Change in
Deal Volume
Pre Series A +66% -37% -62%
Series A +26% -31% -49%
Series B +35% +45% +8%
Series C -24% -13% +14%
Late Stage +167% +434% +100%

DollarsInvested(inMIllionsUSD)
$0
$300
$600
$900
$1,200
$1,500
$1,800
Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 PROJECTION*
NEW YORK CAPITAL ALLOCATION

$0
$200
$400
$600
$800
$1,000
$1,200
Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015
PROJECTION*
NEW YORK CAPITAL ALLOCATION
- WeWork
- Harry’s
- Rent the Runway
- VICE
- AppNexus
- CommonBond
- HelloFresh
- Taboola

NumberofInvestmentDeals
0
20
40
60
80
100
120
140
160
Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 PROJECTION*
NEW YORK DEAL VOLUME

NumberofDeals
0
10
20
30
40
50
60
70
Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015
PROJECTION*
12121111
26
20
910
7
10
8
5
7
11
7
14
5
17
19
13
16
22
29
31
29
24
27
58
46
63
NEW YORK DEAL VOLUME

$0
$20
$40
$60
$80
$100
$120
Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015
PROJECTION*
NEW YORK AVERAGE ROUND SIZES

$0
$5
$10
$15
$20
$25
$30
Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015
PROJECTION*
Seed Series A Series B Series C
NEW YORK AVERAGE ROUND SIZES

This analysis was created using Mattermark Professional.
Our deal intelligence tools are trusted by the world’s leading venture
capital ﬁrms, investment banks, hedge funds and sales organizations
to provide data on more than one million private companies.
Sign up for your free 14-day trial today
www.mattermark.com

Mattermark Q1 2015 Quarter Midpoint Analysis - U.S. Venture Capital Activity

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

En vedette

En vedette (20)

Similaire à Mattermark Q1 2015 Quarter Midpoint Analysis - U.S. Venture Capital Activity

Similaire à Mattermark Q1 2015 Quarter Midpoint Analysis - U.S. Venture Capital Activity (20)

Dernier

Dernier (12)

Mattermark Q1 2015 Quarter Midpoint Analysis - U.S. Venture Capital Activity