SDVG VC Outlook 2014 NVCA slides

SDVG VC Outlook 2014 NVCA slides

• 1.
  Venture Capital Outlook 2014 SanDiego Venture Group January 23, 2014 Bobby Franklin NVCA President & CEO
• 2.
  The Number ofU.S. Venture Firms: Back to Rational Levels Year Number of Active Firms Capital Managed 1970 28 $1B 1980 87 $4B 1990 96 $28B 2000 1,022 $220B 2010 462 $177B 2013 382 $203B
• 3.
  VC Raised $17Bin 2013: Down but hardly out Year Number of Funds VC Dollars Raised 2009 159 $16.1B 2010 173 $13.2B 2011 186 $18.9B 2012 208 $19.5B 2013 186 $16.7B
• 4.
  VC Investment byYear $120 $100 $105 B $32 B $60 $29. 4B $40 Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, Data: Thomson Reuters 4 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 $0 1989 $20 1988 $ Billion Invested $80
• 5.
  VC Fundraising vs.Investment in 2013 Six consecutive years with a considerable gap between venture capital fundraising and dollars invested. Is it an issue?
• 6.
  100% 80% 25% 60% 37 % 15 % 19% 40% 20% Software 2013 2011 2009 2007 2005 2003 2001 1999 1997 0% 1995 % of TotalVC Investment $ IT Software Attracting Most VC Dollars Biotech Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, Data: Thomson Reuters 6
• 7.
  Seed stage slowing,Early stage increasing 7
• 8.
  San Diego MetroVC Investment 300 2.4 2.297 250 1.9 1.846 1.579 150 100 1.4 1.197 1.203 1.23 1.209 0.997 235 1.156 0.939 0.825 0.881 0.927 0.9 0.757 169 156 114 125 132 143 130 0.4 135 134 114 Billions Invested # of Deals 200 114 105 97 50 -0.1 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, Data: Thomson Reuters 8
• 9.
  2013 San DiegoMetro VC Investment by Industry $ Funded 7% 4% 9% 51% 12% 17% Biotech Medical Devices Software Industrial/Energy IT Services Other Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, Data: Thomson Reuters 9
• 10.
  2013: More LifeSciences IPOs than the prior 5 years combined Source: Thomson Reuters/National Venture Capital Association 10
• 11.
  M&A Exits areDown 600 500 # Deals 400 300 200 543 499488 485488 443 423 402 380384363 360 323 377 227 189 143 100 0 1997 1999 2001 2003 2005 2007 2009 2011 2013 Source: Thomson Reuters/National Venture Capital Association 11
• 12.
  The future ofventure capital • Today, capital is essential to grow a company, not necessarily to start it • Tomorrow, better fund performance and returns to LPs • Venture Capital continues to fuel innovation in a way unlike any other asset class
• 13.
  The Washington Environment •Gridlock: Last year, Congress passed only 57 bills that got the President’s signature and became law – lowest in history • The obvious right thing to do is often widely supported by elected officials, but it gets tangled with other issues • Immigration • Tax Reform • NVCA can and does make a difference
• 14.
  In Summary... • Venturecapital had a great 2013 and 2014 will likely be even better • Venture capital continues to play an important role in the entrepreneurial ecosystem • Washington is messy but necessary for the innovation economy
• 15.
  nvca.org nvcaccess.nvca.org