SaaStr 2016 State of VC Market

SaaStr 2016 State of VC Market

• 1.
  Organizing the world’sbusiness information. The State of Venture Capital Fundraising
• 2.
  © 2016 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 The 10 Year Perspective yearly funded startups +3x yearly capital deployed +6x
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  SOURCES: MATTERMARK RESEARCH,CRUNCHBASE, ANGELLIST MATTERMARK 2015 US STARTUP FUNDING REPORT 2016: Strongest Start of the Past 10 Years 3 Yearly Cumulative Capital Deployed (All Stages): Last 10 Years CapitalDeployed(inbillionsUSD) $0 $10 $20 $30 $40 $50 $60 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec $7.3 B 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
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  SOURCES: MATTERMARK RESEARCH,CRUNCHBASE, ANGELLIST MATTERMARK 2015 US STARTUP FUNDING REPORT Historical Startup Capital Deployment vs. S&P 500 4 S&P500Index(^SPX) 0 500 1,000 1,500 2,000 2,500 CapitalDeployed(inBillions$USD) $0 $5 $10 $15 $20 $25 Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16Pace Quarterly Startup Investment Startup Investment 10YearTrend Quarter-End S&P 500 S&P 500 10YearTrend
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  SOURCES: MATTERMARK RESEARCH,CRUNCHBASE, ANGELLIST 5 10Year History of Startup Capital Deployment, by Quarter DollarsInvested(inBillionsUSD) $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 Quarter-EndS&P500 600 800 1000 1200 1400 1600 1800 2000 2200 Q 1 '06Q 2 '06Q 3 '06Q 4 '06Q 1 '07Q 2 '07Q 3 '07Q 4 '07Q 1 '08Q 2 '08Q 3 '08Q 4 '08Q 1 '09Q 2 '09Q 3 '09Q 4 '09Q 1 '10Q 2 '10Q 3 '10Q 4 '10Q 1 '11Q 2 '11Q 3 '11Q 4 '11Q 1 '12Q 2 '12Q 3 '12Q 4 '12Q 1 '13Q 2 '13Q 3 '13Q 4 '13Q 1 '14Q 2 '14Q 3 '14Q 4 '14Q 1 '15Q 2 '15Q 3 '15Q 4 '15 Q 1 '16 Pace Q1 2016 Capital Deployment Pace* is Down 23% from the Q3 2015 Peak *excluding Uber & Lyft deals
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  © 2016 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 Key Takeaway: Private funding levels reacted strongly to public markets, funding announcements lag 1-3 months. Raise now.
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  SOURCES: MATTERMARK RESEARCH,CRUNCHBASE, ANGELLIST 7 NumberofRoundsbyStage 0 200 400 600 800 1000 1200 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Seed/Angel +1516% Series A +137% Series B +99% Series C +112% Series D +132% Series E, F, G & H +348% MonthlyCapital Deployed (billionsUSD) $0 $2 $3 $5 $7 $8 $10 MATTERMARK 2015 US STARTUP FUNDING REPORT Historical Overall Deal Volume Trend: Last 10 Years
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  SOURCES: MATTERMARK RESEARCH,CRUNCHBASE, ANGELLIST 8 NumberofRoundsbyStage 0 200 400 600 800 1000 1200 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Pace Seed/Angel -27% Series A -22% Series B +18% Series C +57% Series D +56% Series E, F, G & H -1% MonthlyCapital Deployed (billionsUSD) $0 $2 $3 $5 $7 $8 $10 MATTERMARK 2015 US STARTUP FUNDING REPORT 2016 Pace: Deal Compression at Seed & Series A
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  SOURCES: MATTERMARK RESEARCH,CRUNCHBASE, ANGELLIST 9 10 Year Trends in Seed Stage Capital Deployment MATTERMARK 2015 US STARTUP FUNDING REPORT Monthly DealVolume 0 30 60 90 120 1.2006 1.2007 1.2008 1.2009 1.2010 1.2011 1.2012 1.2013 1.2014 1.2015 1.2016 Deals 6 Month Moving Average AverageDealSize(millionsUSD) $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 1.2006 1.2007 1.2008 1.2009 1.2010 1.2011 1.2012 1.2013 1.2014 1.2015 1.2016 $1.1M
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  © 2016 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 Key Takeaway: Seed stage companies with high cap (> $6 million) convertible notes are almost out of time to convert at/ above the cap. Raise now.
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  SOURCES: MATTERMARK RESEARCH,CRUNCHBASE, ANGELLIST 11 10 Year Trends in Series A Capital Deployment MATTERMARK 2015 US STARTUP FUNDING REPORTAverageDealSize(millionsUSD) $0 $2 $4 $6 $8 $10 $12 $14 $16 1.2006 1.2007 1.2008 1.2009 1.2010 1.2011 1.2012 1.2013 1.2014 1.2015 1.2016 Monthly DealVolume 0 30 60 90 120 1.2006 1.2007 1.2008 1.2009 1.2010 1.2011 1.2012 1.2013 1.2014 1.2015 1.2016 Deals 6 Month Moving Average $9.8M
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  © 2016 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 Key Takeaway: Series A deals are getting done at decent prices, but there is more competition than ever before. Raise now.
• 13.
  SOURCES: MATTERMARK RESEARCH,CRUNCHBASE, ANGELLIST 13 10 Year Trends in Series B Capital Deployment MATTERMARK 2015 US STARTUP FUNDING REPORTAverageDealSize(millionsUSD) $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 1.2006 1.2007 1.2008 1.2009 1.2010 1.2011 1.2012 1.2013 1.2014 1.2015 1.2016 Monthly DealVolume 0 15 30 45 60 1.2006 1.2007 1.2008 1.2009 1.2010 1.2011 1.2012 1.2013 1.2014 1.2015 1.2016 Deals 6 Month Moving Average $24M
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  © 2016 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 Key Takeaway: Early stage investors are doing inside rounds with their hottest companies. Multiple compression is just beginning to reach Series B and beyond. Raise now!
• 15.
  Plan B: CutBurn, Get Profitable
• 16.
  Organizing the world’sbusiness information. Keep calm. Read SaaStr. Raise now!