Beruflich Dokumente
Kultur Dokumente
TABLE OF CONTENTS
QUARTER SUMMARY 2
QUARTERLY TRENDS 3
SECTOR REVIEW 12
1 INTERNET 12
2 HEALTHCARE 19
GEOGRAPHIC REVIEW
1 CALIFORNIA 34
2 MASSACHUSETTS 40
3 NEW YORK 45
4 WASHINGTON 51
5 TEXAS 56
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2 Venture Capital Activity Report | Q1 2011
Q1 2011 numbers will likely reinforce whichever viewpoint you have as the quarter came in at pre-recessionary deal and
funding levels. Given the $1B jump in funding over the prior quarter with a similar number of deals, it is also clearly a
quarter driven by mega-financings in both internet and greentech companies.
If the final two quarters of the year maintain similar funding levels, we could approach $29-$30 billion invested by VCs.
Some pundits have suggested that the VC asset class’ ―right size‖ is around $25 billion so it will be interesting to see if the
momentum continues.
Before we get into specific notes on the quarter, it’s 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, the CB Insights database tracked Groupon’s
mega $950 funding closing in two tranches. So $500M of it was included in Q4 2010 with the remainder being reflected in
this report. Also, when non-VCs (mutual funds, hedge funds, etc) invest in internet companies for example, we do not
include those rounds unless there is also a venture firm participating. As always, we recommend you also review our
definitions and methodology on p. 59 to see what is included vs. what is not as there tends to be a fair amount of
misinformation out there about venture data.
NY Retains Spot as #2 for Tech Investment Over Mass Healthcare VC – Can’t Shake the Malaise
In Q4 2010, we’d revealed that NY overtook Mass for Deals in the Healthcare space were down 13% YoY while
tech VC dollars (http://bit.ly/dLmLYG ). While the trend funding grew 11%. On sequential basis, deals and dollars
hasn’t accelerated, the gap between the two tech VC have fallen in last 2 quarters. Mass and Cali continue to
hubs is slightly wider. Over the last six quarters, NY dominate share of Healthcare VC with Mass rebounding
has seen 261 tech deals vs. 250 for Massachusetts. over Q4 2010 levels. Early stage activity in Healthcare
Funding to NY tech companies came in at $1.60B vs. drops to five quarter low.
$1.44B for Massachusetts.
California Knows How to Party
Early Stage Investment Stays Strong Yes - California dominated (yawn). Funding climbs 47%
Q1 2011 early stage deal and funding share remained vs Q4 2010 and 32% vs. Q1 2010. Overall, Cali took
consistent with Q4 2010. Seed VC still represented 39% of deals and over 50% of funding. Deal count was
10% of overall dealflow. Its consistency over the last 4 down 7% sequentially and 3% YoY. Internet and
quarters suggests it may have found the right level of healthcare deals stayed flat and funding dipped. Energy
total VC deals (9-11%). Early stage deal activity was deals climbed with funding increasing significantly.
nearly 50% of total deals.
Texas Deals Down | Dollars Flat
Green Tech / Clean Tech Gets Its Mojo Back Texas deals and dollar stay within the state’s historical
After three quarters of what can technically be called range but deals dipped sequentially and year over year.
―blah‖ performance, green tech deals had a breakout Funding was up, however, vs. Q1 2010 and Q4 2010.
quarter with deals and dollars up 45% and 145%
respectively vs. Q4 2010. Cali consumed ¾ of the Washington At Five Quarter Low in VC Funding
greentech funding on the back of mega-deals in a Deal count in Washington grew 10% vs. Q4 2010 but
variety of areas including solar, software, electric funding remained at low levels seen in prior quarter.
vehicles and fuel cells. Greentech Seed VC deals Over 50% of Washington deals were in early-stage
ticked up nicely vs. Q4 2010 as well. companies and over 50% of deals were to Internet firms.
The smaller checks for these financings resulted in
Groupon Halo Effect? Washington’s funding levels remaining low.
Illinois saw an increase in the number of web
investments occurring in the area. The state has
historically been a non-entity in deal activity rankings but
has been showing increasing signs of life since
Groupon-mania began.
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Venture Capital Activity Report | Q1 2011
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4 Venture Capital Activity Report | Q1 2011
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5 Venture Capital Activity Report | Q1 2011
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6 Venture Capital Activity Report | Q1 2011
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7 Venture Capital Activity Report | Q1 2011
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8 Venture Capital Activity Report | Q1 2011
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9 Venture Capital Activity Report | Q1 2011
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10 Venture Capital Activity Report | Q1 2011
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11 Venture Capital Activity Report | Q1 2011
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12 Venture Capital Activity Report | Q1 2011
INTERNET
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13 Venture Capital Activity Report | Q1 2011
Internet
eclipse $2 billion for the second straight quarter.
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14 Venture Capital Activity Report | Q1 2011
Internet
Illinois registers high on investment due to portion of Groupon financing closing in Q1.
Quarter Highlights
Top Cities
Chicago, IL
12 deals | $491M
San Francisco, CA
49 deals | $315M
New York, NY
39 deals | $218M
Palo Alto, CA
12 deals | $189M
Redwood City, CA
4 deals | $82M
Mountain View, CA
8 deals | $78M
San Mateo, CA
7 deals | $72M
Seattle, WA
9 deals | $54M
Indianapolis, IN
1 deals | $54M
Los Angeles, CA
5 deals | $50M
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15 Venture Capital Activity Report | Q1 2011
Internet
some pop in deal volume due seemingly to Groupon halo effect.
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16 Venture Capital Activity Report | Q1 2011
Internet
stage investment funding levels show strength as well on back of large deals.
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17 Venture Capital Activity Report | Q1 2011
Internet
industries for internet investment. Groupon drives funding % in ecommerce discount.
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18 Venture Capital Activity Report | Q1 2011
Internet
later stage investment sizes fell substantially over same time period.
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19 Venture Capital Activity Report | Q1 2011
HEALTHCARE
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20 Venture Capital Activity Report | Q1 2011
Healthcare
Healthcare deals down for the quarter as well as year-over-year. Investment dollars
stay flat with previous quarter and are up 11% since Q1 2010.
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21 Venture Capital Activity Report | Q1 2011
Healthcare
California and Massachusetts combine for 56% of deals and 64% of overall Healthcare
venture funding solidifying their positions as healthcare hubs.
Quarter Highlights
Top Cities
Redwood City, CA
4 deals | $100M
Cambridge, MA
5 deals | $79M
Mountain View, CA
6 deals | $64M
Palo Alto, CA
3 deals | $59M
San Diego, CA
8 deals | $56M
Durham, NC
2 deals | $56M
Saratoga, CA
4 deals | $49M
Cupertino, CA
2 deals | $47M
Waltham, MA
6 deals | $44M
Irvine, CA
1 deals | $40M
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22 Venture Capital Activity Report | Q1 2011
Cali & Mass Grow Dollars and Deals YOY and Sequentially
Healthcare
Massachusetts stages a comeback, earning back share of deals that has been
trending down since Q2 2010. Cali sees 5-quarter high in share of deals and dollars.
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23 Venture Capital Activity Report | Q1 2011
Healthcare
Early stage Healthcare investment sees a 5-quarter low in share of deals and dollars
after a breakout Q4 2010. Series C to E+ all grow share of deals.
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24 Venture Capital Activity Report | Q1 2011
Healthcare
Devices which have reigned supreme continue to do so followed by Drug
Development, Pharmaceuticals, Biotech and Medical Facilities.
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25 Venture Capital Activity Report | Q1 2011
Healthcare
Seed and Series A deals see median deal growth versus last quarter and yoy, while
later stage deal sizes are a mixed bag but largely within historical values.
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Venture Capital Activity Report | Q1 2011
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27 Venture Capital Activity Report | Q1 2011
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28 Venture Capital Activity Report | Q1 2011
Green
145% respectively versus Q4 2010. Year-over-year, investment dollars up 46%.
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29 Venture Capital Activity Report | Q1 2011
Green
half of overall deal volume. The field remains fragmented after the big 2.
Quarter Highlights
86 deals | $1,936M
Top Cities
Oakland, CA
1 deals | $201M
Santa Clara, CA
2 deals | $197M
Irvine, CA
1 deals | $150M
San Leandro, CA
1 deals | $135M
Sunnyvale, CA
2 deals | $121M
San Jose, CA
3 deals | $80M
Santa Monica, CA
1 deals | $76M
Pleasanton, CA
1 deals | $75M
San Diego, CA
4 deals | $62M
Kansas City, MO
1 deals | $58M
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30 Venture Capital Activity Report | Q1 2011
Green
electric vehicles, fuel cells and energy efficiency software driving big share gain.
Greentech deals beyond outside of top 5 states hit five-quarter high.
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31 Venture Capital Activity Report | Q1 2011
Green
versus Q4 2010. Series E+ late stage investment dominates share of dollars.
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32 Venture Capital Activity Report | Q1 2011
Green
from Renewables. Greentech Software plays hold steady.
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33 Venture Capital Activity Report | Q1 2011
Green
of Fisker Automotive investment.
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34 Venture Capital Activity Report | Q1 2011
CALIFORNIA
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35 Venture Capital Activity Report | Q1 2011
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36 Venture Capital Activity Report | Q1 2011
California
within recent history. Deal volume, however, falls 7% sequentially and 3% YoY.
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37 Venture Capital Activity Report | Q1 2011
California
Internet and Healthcare again combine for more than 60% of overall VC deal volume
in California, but Energy & Utilities surpasses Healthcare as #2 in investment dollars
Quarter Highlights
Top Sector
# of Deals – Internet
$ of Funding – Internet
Top Cities
San Francisco
72 deals | $533M
Santa Clara
7 deals | $379M
Palo Alto
23 deals | $322M
Mountain View
20 deals | $222M
Redwood City
14 deals | $215M
Oakland
3 deals | $211M
Irvine
3 deals | $196M
San Jose
11 deals | $193M
Sunnyvale
10 deals | $170M
San Leandro
1 deals | $135M
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38 Venture Capital Activity Report | Q1 2011
California
and Healthcare. Deal share remains largely consistent with prior quarters.
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39 Venture Capital Activity Report | Q1 2011
California
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40 Venture Capital Activity Report | Q1 2011
MASSACHUSETTS
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41 Venture Capital Activity Report | Q1 2011
Massachusetts
Massachusetts Sees Deals and Dollars Increase
First time in last five quarter that both deals and dollars up on sequential basis. Good
rebound over Q3 2010 funding nadir with deals getting back to historical range.
Overall, funding levels still down 20% year-over-year.
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42 Venture Capital Activity Report | Q1 2011
Massachusetts
Healthcare & Internet Still the Centerpiece in Mass
Healthcare and Internet combine for over half of investment dollars and deal volume.
Mobile is a solid #3 as Software, Energy and Computer Hardware round out the field.
Quarter Highlights
85 deals | $719M
Top Sector
# of Deals – Healthcare
$ of Funding - Healthcare
Top Cities
Cambridge
19 deals | $163M
Waltham
12 deals | $114M
Marlborough
3 deals | $61M
Lexington
3 deals | $53M
Boston
6 deals | $46M
Littleton
3 deals | $39M
North Lexington
1 deals | $28M
Newton
3 deals | $25M
Chelsea
1 deals | $20M
Burlington
4 deals | $18M
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43 Venture Capital Activity Report | Q1 2011
Massachusetts
Mobile & Energy Take ~30% of Funding
Internet deal share up YoY while Healthcare stays flat. Energy and Mobile both register
strong quarters in share of investment dollars and deals.
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44 Venture Capital Activity Report | Q1 2011
Massachusetts
Early Stage Deal Share Still High, Dollar Share Down
Early stage deal volume share up nicely YoY and on sequential basis. Share of
investment dollars give way to Series B and later stage deals consistent with Q4 2010.
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45 Venture Capital Activity Report | Q1 2011
NEW YORK
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46 Venture Capital Activity Report | Q1 2011
New York
New York sees another strong quarter, with deals up and investment dollars down only
slightly from a raging Q4. Investment dollars up 40% year-over-year.
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47 Venture Capital Activity Report | Q1 2011
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48 Venture Capital Activity Report | Q1 2011
New York
Internet consumes 60% of venture funding in New York. Computer Hardware &
Services has a strong showing, taking 18% of total investment.
Quarter Highlights
72 deals | $447M
Top Sector
# of Deals – Internet
$ of Funding - Internet
Top Cities
New York
61 deals | $383M
Brookyln
1 deals | $20M
Irvington
1 deals | $15M
Oneonta
1 deals | $12M
Brooklyn
2 deals | $7M
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49 Venture Capital Activity Report | Q1 2011
New York
NY’s internet focus continues. Mobile deal volume share also shrinks versus Q4.
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50 Venture Capital Activity Report | Q1 2011
New York
One out of every five deals in New York was a Seed deal, while overall, early stage
consumed 67% of deal volume and nearly half of all dollars invested. Significantly
above national averages for early stage and especially seed VC deals.
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51 Venture Capital Activity Report | Q1 2011
WASHINGTON
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52 Venture Capital Activity Report | Q1 2011
Washington
Washington’s venture woes continue as investment dollars stay flat versus Q4, down
14% year-over-year. On a positive note, deal volume sees a small uptick.
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53 Venture Capital Activity Report | Q1 2011
Washington
Internet consumes over half of all Washington funding dollars, led by a large investment
in the Cheezburger Network. Energy, Mobile and Software round out the field.
Quarter Highlights
31 deals | $119M
Top Sector
# of Deals – Internet
$ of Funding - Internet
Top Cities
Seattle
19 deals | $82M
Bellevue
6 deals | $19M
Vancouver
1 deals | $11M
Issaquah
1 deals | $2M
Shoreline
1 deals | $2M
Redmond
1 deals | $2M
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54 Venture Capital Activity Report | Q1 2011
Washington
Healthcare continues steep decline in share of deals and investment dollars, falling for
the third straight quarter. Internet loses deal share, but funding share grows.
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55 Venture Capital Activity Report | Q1 2011
Washington
Early stage deals comprise half of overall deal volume, while Series A consumes 54%
of overall investment. Seed deal volume share falls, giving way to Series A.
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56 Venture Capital Activity Report | Q1 2011
TEXAS
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57 Venture Capital Activity Report | Q1 2011
Texas
Texas exceeds $300 million in venture investment for the third straight quarter, while
deal volume stays fairly stable. Investment dollars up 19% year-over-year.
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58 Venture Capital Activity Report | Q1 2011
Texas
Internet wins share of deal volume while Energy wins share of dollars in Texas.
Beyond that, Mobile, Healthcare and Business Products & Services all see dealflow.
Quarter Highlights
34 deals | $314M
Top Sector
# of Deals – Internet
$ of Funding – Bus. Prods. &
Svcs.
Top Cities
Austin
20 deals | $184M
Houston
5 deals | $81M
Dallas
4 deals | $15M
West Lake Hills
1 deals | $13M
Richardson
2 deals | $12M
Plano
1 deals | $7M
Addison
1 deals | $2M
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59 Venture Capital Activity Report | Q1 2011
Texas
Healthcare share of deals and dollars shrinks substantially in Texas since Q4. Internet
wins share of overall deals, but loses ground to Energy and others in terms of dollars.
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60 Venture Capital Activity Report | Q1 2011
Texas
Seed VC deals do not register for the 2nd straight quarter while share of Series A deals
shrinks substantially vs. Q4. Share of early stage dollars, however, are stable.
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61 Venture Capital Activity Report | Q1 2011
Given the importance of venture capital in spurring innovation and entrepreneurship, measuring venture capital activity
accurately is important. We encourage you to review the methodology and definitions employed by us to better
understand the numbers presented in this report. If you have any questions about our definitions or methodological
principles, we encourage you to reach out to us directly.
• Equity financings into emerging companies. • Angel investment. These are not included in
Funding must come from venture capital firms including numbers unless an investment round included Angels
corporate venture groups. investing alongside a venture capital firm or corporate
• Fundings of only private companies. Public venture group.
companies of any kind on any exchange (including Pink • No contingent funding. If a company receives a
Sheets) are excluded from our numbers even if they commitment for $20M subject to hitting certain
received investment by a venture firm(s) milestones but first gets $8M, only the $8M is included
• Companies must be headquartered in the USA. Our in our data.
geographic data is based on the city and state where the • No business development/R&D arrangements
company receiving investment is headquartered. If a whether transferable into equity now, later or
company has a satellite office/presence in multiple cities never. If a company signs a $300M R&D partnership
or was founded in a particular city but has moved its HQ, with a larger corporation, this is not equity financing
our results reflect only this HQ address. nor is it from venture capital firms. As a result, it is not
• Only include the investment made in the quarter for included.
tranched investments. If a company does a second • Buyouts, Consolidations and Recapitalizations.
closing of its Series B round for $5M and previously had All three of these of transaction types are commonly
closed $2M in a prior quarter, only the $5M is reflected employed by private equity firms and are tracked by
in our results. CB Insights. However, they are excluded for the
• Round #s reflect what has closed – not what is purposes of this report. Private equity investments into
intended. If a company indicates the closing of $5M out companies which may have received venture capital
of a desired raise of $15M, our numbers reflect only the investment prior are also not included.
amount which has closed. • Private placements. These investments also known
• Only verifiable fundings are included. Fundings are as PIPEs (Private Investment in Public Equities) even
verified via (1) various federal & state regulatory filings if made by a venture capital firm(s) are not included.
(2) direct confirmation with firm or investor or (3) press • Debt/loans of any kind. Venture debt or any kind of
release. debt/loan issued to emerging, startup companies even
• Funding close date matters. Fundings are provided if included as an additional part of an equity financing
based on funding close date and not on announcement is not included. If a company receives $3M with $2M
date. from venture investors and $1M in debt, only the $2M
is included in these statistics.
• Government funding. Grants, loans, equity
financings by the federal government, state agencies
or public-private partnerships to emerging, startup
companies are not included. Strictly venture or
corporate venture outfits.
• Incubator investments. Investments of money as
equity or debt and/or services by incubators are not
included.
• Strategic corporate investments. Corporations
making strategic investments in companies but not as
part of a specific organized venture group are not
included.
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Venture Capital Activity Report | Q1 2011
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63 Venture Capital Activity Report | Q1 2011
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