Survey of Emerging Manager VCs

1. Emerging Manager
Survey Results
November 15, 2018

2. INTERNAL USE ONLY
RE-ENGINEERING OF THE VENTURE LANDSCAPE 2
154
180
216
244
230
215
195
63 59
94 99
85
109 111
0
50
100
150
200
250
300
2012 2013 2014 2015 2016 2017 2018
Total Funds vs. First Funds Raised
Total Funds Raised
First Funds Raised

3. INTERNAL USE ONLY
3
38
29
54
48
41
59
57
9
12
16 15
12
17 18
6 7 8
14
8
12 1110 11
16
22
24
21
25
0
10
20
30
40
50
60
70
2012 2013 2014 2015 2016 2017 2018
First Funds Raised by Size
0-25MM
25-75MM
75-150MM
150MM+

4. INTERNAL USE ONLY
FRB’S COMMITMENT TO VENTURE CAPITAL 4
400+ 250+
Total Venture
Capital Firms
Banked
Emerging Venture
Capital Firms
Banked

5. INTERNAL USE ONLY
AVERAGE FUNDRAISING DURATION (IN MONTHS)
BY FUND TYPE 5
11
12
9
18
Fund I Fund II Fund III Industry Average

6. INTERNAL USE ONLY
AVERAGE FUNDRAISING DURATION (IN MONTHS)
BY PARTNERSHIP TYPE 6
11.0
mos.
Single GP Multiple GPs
11.9
mos.
Avg. Fund: $25M $41M

7. INTERNAL USE ONLY
AVERAGE FUNDRAISING DURATION (IN MONTHS)
BY PARTNERSHIP GENDER DIVERSITY 7
16.0
10.6
11.4
Female-led Diverse Team All-Male Team
DIVERSE TEAM: LARGER FUND SIZE AND SHORTER FUNDRAISING DURATION
Ave. Fund $31M $41M $35M
Investing
Background
15%
First-time Manager
92%
First-time Manager
65%
First-time Manager

8. INTERNAL USE ONLY
AVERAGE FUNDRAISING DURATION (IN MONTHS)
BY PARTNERSHIP INVESTING BACKGROUND 8
10.6
mos.
First-Time
Managers
Managers with
Previous Experience
12.9
mos.
Ave. Fund $20M $43M
Average$/Partner $13M $24M

9. INTERNAL USE ONLY
AVERAGE FUNDRAISING DURATION (IN MONTHS)
BY PARTNERSHIP INVESTING BACKGROUND 9
10.6
mos.
First-Time
Managers
Managers with
Previous Experience
12.9
mos.
Ave. Fund $20M $43M
Average$/Partner $13M $24M
Preqin Avg.$/Partner $60M

10. INTERNAL USE ONLY
AVERAGE INSTITUTIONAL LP BACKING
(% OF COMMITMENTS) 10
33%
47% 50%
Fund I Fund II Fund III

11. INTERNAL USE ONLY
FUNDS THAT HAVE MADE THE LEAP FROM NON-INSTITUTIONAL
TO INSTITUTIONAL (IN %) 11
Fund I to Fund II
15%

12. INTERNAL USE ONLY
AVERAGE INSTITUTIONAL LP BACKING (% OF COMMITMENTS)
BY PARTNERSHIP INVESTING BACKGROUND 12
29%
71%
First-Time Managers
Institutional LP
Non-Institutional LP
42%
58%
Managers with Previous
Experience – Fund I

13. INTERNAL USE ONLY
AVERAGE INSTITUTIONAL LP BACKING (% OF COMMITMENTS)
BY PARTNERSHIP INVESTING BACKGROUND 13
32%
28%
49%
31%
0%
10%
20%
30%
40%
50%
60%
Pre-2016 2017/2018
First Time Managers Managers with Previous Experience

14. INTERNAL USE ONLY
AVERAGE DURATION (IN MONTHS) BETWEEN RAISES
BY FUND TYPE AND FUND SIZE 14
Fund Size
$0-$25M $25M-$50M
24 mos. 36 mos.
2 years 3 years
Fund I Fund II Fund III37 mos.
Fund Type
34 mos.

15. INTERNAL USE ONLY
AVERAGE FUND SIZE INCREASE (IN $) 15
For Funds w/MOIC 1.5x+
Average $ Increase $16M
Average % Increase 200%
For Funds w/MOIC <1.5x
Average $ Increase $7M
Average % Increase 7%

16. INTERNAL USE ONLY
A BENCHMARK SNAPSHOT 16
Median
MOIC
Mean MOIC Top MOIC
Emerging Manager Collective Pool 1.8x 2.37x 6.7x
Emerging Manager Collective – 2014 Vintage 2.3x 2.77x 5x
Cambridge Benchmark – 2014 Vintage 1.2x – 1.3x
Preqin Custom Benchmark – 2014 Vintage 1.1x – 1.5x

17. INTERNAL USE ONLY
PERFORMANCE (IN MOIC)
BY PARTNERSHIP GENDER DIVERSITY WITHIN 2014-2017 VINTAGE YEARS 17
Median 2014 2015 2016 2017
Diverse Team No Data 1.3x 1.1x 1.2x
Female-led 1.6x 1.35x 1.55x No Data
All-Male Team 2.55x 1.5x 1.45x 1.2x

18. INTERNAL USE ONLY
AVERAGE PORTFOLIO SIZE (# OF COMPANIES)
BY FUND TYPE AND FUND SIZE 18
32
34
31
Fund I Fund II Fund III
By Fund Type
36
31
29
$0-$25M $25M-$50M $50M-$100M
By Fund Size

19. INTERNAL USE ONLY
AVERAGE INITIAL CHECK SIZE (IN $000)
BY FUND TYPE AND FUND SIZE 19
$0.85
$1.12
$1.39
Fund I Fund II Fund III
By Fund Type
$0.31
$0.90
$3.02
$0-$25M $25M-$50M $50M-$100M
By Fund Size

20. INTERNAL USE ONLY
AVERAGE OWNERSHIP (IN %)
BY FUND TYPE AND FUND SIZE 20
8%
10%
12%
Fund I Fund II Fund III
By Fund Type
6%
10%
12%
$0-$25M $25M-$50M $50M-$100M
By Fund Size
Post Money
Valuation Avg.
$5M $9M $25M

21. INTERNAL USE ONLY
SPVS USED (IN %)
BY FUND TYPE 21
40%
60%
Fund I
SPVs Used Not Used
60%
40%
Fund III
SPVs Used Not Used
37%
63%
Fund II
SPVs Used Not Used

22. INTERNAL USE ONLY
SPVS USED (IN %)
BY FUND SIZE 22
36%
64%
$0-$25M
SPVs Used Not Used
31%
69%
$50M-$100M
SPVs Used Not Used
54%46%
$25M-$50M
SPVs Used Not Used

23. INTERNAL USE ONLY
MOIC VS. PORTFOLIO SIZE
(WITHIN 2014-2017 VINTAGE YEARS) 23
<20 Portfolio
Companies
20-30 Portfolio
Companies
30+ Portfolio
Companies
1.82x 1.68x 1.98x

24. INTERNAL USE ONLY
PERFORMANCE FOR SINGLE GP (AVERAGE MOIC)
WITHIN 2014-2017 VINTAGE YEARS 24
2.2x
3.2x
1.4x
No Data
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2014 2015 2016 2017

25. INTERNAL USE ONLY
2014 – 2017 PERFORMANCE (AVERAGE MOIC)
BY FUND TYPE 25
2.6x
2.3x
1.4x 1.3x
3.9x
1.7x
1.5x
1.2x
1.4x 1.3x
3.3x
2.2x
1.6x
1.3x
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2014 2015 2016 2017
Fund I Fund II Fund III Top Quartile

26. INTERNAL USE ONLY
2014 – 2017 PERFORMANCE (AVERAGE MOIC)
BY FUND SIZE 26
2.56x
2.20x
1.35x
1.20x
3.03x
1.43x
1.68x
1.25x1.31x
1.20x
1.33x1.33x
1.25x 1.1x
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
2014 2015 2016 2017
$0-$25M $25M-$50M $50M-$100M Cambridge Top Quartile

27. Questions?