FINANCING AND EXIT ANALYSIS
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We tracked a number of mega-deals this quarter whose investors included hedge funds or mutual funds for example. This report only includes only U.S.-based rounds in which VCs participated so that we can accurately reflect (and not inflate) VC investments. Page 100 details the rules and definitions we use.
Even versus 2013, the past year was huge as venture capital skyrocketed 62% YoY due to multiple $500M+ mega-rounds. Deal growth was more modest climbing 8%.
Although there were 738 VC-backed exits in 2014, the IPO picture was a bit mixed. The healthcare IPO market continued its momentum from 2013 with 64 US-companies going public in 2014, up 68% YoY. Venture-backed tech IPO activity stalled a bit after Alibaba’s IPO in September but did finish up versus 2013 and closed out with a strong Dec. Healthcare and tech M&A were up 27% and 34% YoY, respectively.
2014 saw the highest number of seed VC deals since 2009 at 976. Seed VC dollars deployed hit a five-year high in 2014 at $1.33B. Seed funding has increased for four straight quarters.
Seed VC deal sizes continued their steady increase with a sharp uptick in Q4’14. In Q4’14, they bumped up to their highest levels in four years with the average hitting $1.9M and the median at $1.7M up 25% and 30% versus the same quarter a year prior.
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As it targets a new $2.5B fund, New Enterprise Associates topped all venture investors by unique company deals in 2014, followed by fellow mega-funds Andreessen Horowitz and Kleiner Perkins, which ranked 5th in 2013. In Q4’14, VC funding to the mobile sector topped $3B for the first time ever due to mega-financings to Uber, Snapchat, Instacart, and Square. Overall VC funding to the mobile sector was up 109% versus 2013 driven by these mega-deals. Deal volume was up only 10%. NY saw every quarter eclipse $1B in VC financing for the first time ever. NY VC funding was up 54% YoY and saw 7% growth in deals versus 2013. However, on the IPO front, NY is a distant 3rd to Massachusetts.
Healthcare VC funding totaled $8.2B in 2014, up 28% YoY. Moderna and Intarcia raised a total of $650M making them the year’s largest healthcare deals.
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2014 hit the highest funding mark since 2001. A mix of traditional VC money coupled with corporate VCs, hedge funds, private equity investors and even sovereign wealth funds created a potent cocktail in 2014 lifting funding levels to the highs seen during the dot com boom.
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2014 saw venture capital deals rise a modest 8% versus 2013, but funding skyrocketed 62% due to multiple $500M+ rounds to a six-year high.
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The CB Insights platform has the details on each and every deal in 2014. That includes all 3,617 of the financings and 738 exits in this report.
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On a monthly basis, venture capital deals in 2014 topped those in 2013 in all but 2 months. April ’14 was the highest month for U.S. venture deals over the past year with 345 deals.
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2014 ended with a bang on the funding front as VC-backed deals hit $7.1B in the final month of the year. The massive funding figure was largely driven by mega tech deals to companies including Uber and Snapchat.
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As it targets a new $2.5B fund, New Enterprise Associates topped all venture investors by unique company deals in 2014, followed by fellow mega-funds Andreessen Horowitz and Kleiner Perkins, which ranked 5th in 2013.
Most Active Venture Capital Investors in 2014 Ranked by Unique Company Count Rank
Investor
2013 Rank
Rank
Investor
2013 Rank
1
New Enterprise Associates
4
11
Atlas Venture
-
2
Andreessen Horowitz
1
12
Accel Partners
18
3
Kleiner Perkins Caufield & Byers
5
13
Intel Capital
14
4
Google Ventures
3
13
Foundry Group
-
5
Khosla Ventures
6
15
Lerer Hippeau Ventures
8
6
SV Angel
8
16
Bessemer Venture Partners
10
6
500 Startups
2
17
True Ventures
18
8
Sequoia Capital
10
18
Lightspeed Venture Partners
15
9
First Round Capital
-
19
Greylock Partners
16
10
General Catalyst Partners
12
20
Redpoint Ventures
-
Note: Venture Capital investors with a minimum of 42 unique companies invested in 2014. For addition on this list next time please email
[email protected] with your deals data.
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1 - 25
26 - 50
51 - 75
76 - 102
New Enterprise Associates
Greycroft Partners
Insight Venture Partners
Mohr Davidow Ventures
Andreessen Horowitz
Norwest Venture Partners
Founders Fund
Lowercase Capital
Kleiner Perkins Caufield & Byers
Canaan Partners
Benchmark Capital
Novartis Venture Funds
Google Ventures
Sigma Partners
VegasTech Fund
Floodgate
Khosla Ventures
InterWest Partners
Polaris Partners
Domain Associates
SV Angel
SoftTech VC
Institutional Venture Partners
Correlation Ventures
500 Startups
Venrock
Felicis Ventures
Connecticut Innovations
Sequoia Capital
Menlo Ventures
CRV
Austin Ventures
First Round Capital
Data Collective
Comcast Ventures
Salesforce Ventures
General Catalyst Partners
Spark Capital
Mayfield Fund
Union Square Ventures
Atlas Venture
Crosslink Capital
Madrona Venture Group
IDG Ventures
Accel Partners
Softbank Capital
Matrix Partners
Ignition Partners
Intel Capital
US Venture Partners
Highland Capital Partners
Avalon Ventures
Foundry Group
Qualcomm Ventures
Versant Ventures
Sapphire Ventures
Lerer Hippeau Ventures
Draper Fisher Jurvetson
North Bridge Venture Partners
Tenaya Capital
Bessemer Venture Partners
Great Oaks Venture Capital
Kapor Capital
Lux Capital
True Ventures
FirstMark Capital
Samsung Ventures
ENIAC Ventures
Lightspeed Venture Partners
Foundation Capital
Thrive Capital
Adams Street Partners
Greylock Partners
Bain Capital Ventures
Sherpa Ventures
DAG Ventures
Redpoint Ventures
Trinity Ventures
Metamorphic Ventures
Sutter Hill Ventures
Index Ventures
OrbiMed Advisors
ff Venture Capital
Scale Venture Partners
RRE Ventures
August Capital
Grotech Ventures
Voyager Capital
Battery Ventures
CrunchFund
Founder Collective
LaunchCapital
BoxGroup
The Social+Capital Partnership
Upfront Ventures
Morgenthaler Ventures
Shasta Ventures
Formation 8
Rothenberg Ventures
Doll Capital Management Hyde Park Venture Partners GGV Capital
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California, New York, Massachusetts, Texas and Washington were the top five states for funding and deals for the second straight year. New York saw 22% more deals than Mass. and also beat The Bay State with over $300M more in funding. Rank State
Deals
Dollars ($M)
Rank State
Deals
Dollars ($M)
Rank State
Deals
Dollars ($M)
1
California
1631
26840.6
19
New Jersey
31
322.6
36
Louisiana
5
6.8
2
New York
422
4510.9
19
DC
31
247.4
38
Kentucky
4
60.4
3
Massachusetts
346
4163.8
21
Minnesota
29
329.8
38
Delaware
4
14.9
4
Texas
143
1203.1
21
Arizona
29
254.4
40
Arkansas
2
13.4
5
Washington
97
1144.6
21
Wisconsin
29
144.8
40
Maine
2
0.3
6
Illinois
89
1051.9
24
Oregon
25
160.2
42
Montana
1
26.0
7
Colorado
77
690.0
25
Missouri
20
179.8
42
Wyoming
1
4.6
8
Pennsylvania
73
711.9
26
Indiana
15
48.5
42
South Dakota
1
3.0
9
Maryland
54
350.0
27
New Hampshire
10
116.0
42
Oklahoma
1
2.4
10
Virginia
49
276.6
28
Nevada
9
65.5
42
Mississippi
1
1.5
11
Georgia
48
892.7
28
Nebraska
9
37.8
42
West Virginia
1
0.9
12
Utah
46
867.0
30
South Carolina
8
93.2
42
Idaho
1
0.9
12
North Carolina
46
355.2
31
Rhode Island
7
108.6
42
Alabama
1
0.5
14
Connecticut
38
377.3
31
Kansas
7
42.3
14
Michigan
38
296.0
31
Vermont
7
14.5
14
Ohio
38
257.9
31
Hawaii
7
11.7
17
Florida
36
867.6
31
New Mexico
7
10.3
17
Tennessee
36
110.7
36
Iowa
5
12.2
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On a year-over-year basis, California, Massachusetts, and New York saw deals increase by 13%, 9%, and 7% respectively. Among the big five, Washington actually saw a 17% decrease in deals versus 2013.
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“We track dealflow, understand valuation multiples, analyze industry trends and identify comparable companies. It is great to see CB Insights innovating in the venture capital data space. Will Porteous General Partner RRE Ventures
“We've found CBI to have the best data for the most accurate market view.” Jack Leeney Portfolio Manager Telefonica Ventures
@cbinsights
#VC2014
“CB Insights' intuitive user interface, analytical capabilities, and detailed investment information create a very powerful tool for our team's research needs.” Nate D’Anna Corporate Development Cisco
“They have the best quality data in the market for anyone looking to get an inside look at private company financings.” Ian Sigalow Partner Greycroft Partners
“CB Insights are changing the way investors access private company information.”
Kevin Diestel Investor Sapphire Ventures
“Designed by a VC insider who truly knows the space and understands end-user needs.” Greg Bae Investments & Biz Dev Comcast Ventures
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While venture capital investment rose across all major states, none saw a bigger increase than California which jumped 81% YoY. Funding totals were boosted by the 30+ $100M financings.
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Venture capital deal share to early-stage startups (Seed/Series A) remained at a combined 55% in 2014, while all other stages were relatively range-bound as compared to 2013 totals.
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Series B funding share saw the largest jump in 2014 to 23% from 19% in 2013, while Series C and D funding share fell to 19% and 16%. With increased competition for deals and rising earlystage deal sizes, 2014 early-stage funding (Seed/Series A) share increased to 22% versus 20% in 2013.
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Venture capital deal share remained largely unchanged in 2014 versus 2013. Tech sectors (Internet, mobile, software, electronics & hardware) accounted for 75% of all VC deals in 2014, slightly up from 73% in 2013.
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Behind two mega-rounds to Uber totaling over $2B, mobile startup funding share increased from 13% to 17% in 2014. Healthcare funding share fell from 22% in 2013 to 17% in 2014.
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2014 saw the highest number of seed VC deals since 2009 with 976 financings. 4 of the 5 most active quarters for seed deals since 2011 occurred in 2014. Overall, seed VC funding hit a five-year high in 2014 at $1.33B as funding has increased in four straight quarters.
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Seed VC deal sizes continued their steady increase with a sharp uptick in Q4’14. In Q4’14, they bumped up to their highest levels in four years with the average hitting $1.9M and the median at $1.7M up 25% and 30% versus the same quarter a year prior.
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2014 was an active one for U.S. venture capital-backed IPOs, topping the previous year’s tally for the third straight year. Venture-backed M&A was also up 45% versus 2013.
Note: Venture-backed IPOs in this report covers public offerings of companies headquartered in the U.S.
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Nine of the ten largest states for venture-backed financing saw more overall VC-backed exits in 2014 than in 2013. California saw a 42% increase, while Massachusetts and New York increased 105% and 28% respectively. The only state to see fewer VC-backed exits versus 2013 was New Jersey.
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Overall venture-backed tech exits (both M&A and IPOs) increased 42% in 2014 but was driven primarily by M&A activity. Venture-backed healthcare exits swelled 44% behind healthy IPO activity.
Note: “Other” includes Agriculture, Business / Consumer Products & Services, Financial, Food & Beverage, Industrial, Risk & Security, Retail and Traditional Media
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The CB Insights platform has the details on each and every deal in 2014. That includes all 3,617 of the financings and 738 exits in this report.
Some of our happy customers
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The IPO market for healthcare companies caught fire in 2013 and continued in 2014 with 64 US-based VC-backed healthcare companies going public, up 68% YoY. Venture-backed tech IPOs slowed a bit after Alibaba’s IPO in September but still finished slightly up versus 2013 after a strong December finish.
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California and Mass took 62% of the U.S.-headquartered venture-backed IPOs in 2014. California saw a whopping 45% jump in venture-backed IPOs on a YoY basis. New York grew its # of IPOs significantly versus 2013 but remains a distant 3rd to Massachusetts.
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Venture-backed tech M&A exits in 2014 ticked up 43% as balance sheets and low interest rates contributed to spending sprees by some of tech’s biggest companies. The healthcare and energy sectors saw 27% and 122% growth respectively in venture-backed M&A activity.
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Venture-backed M&A saw increased totals in all major U.S. tech hubs including California, which increased 41% and Massachusetts, which saw M&A exit levels grow by 112%.
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Facebook’s acquisition of Sequoia Capital-backed WhatsApp for $22B was the largest venture-backed exit of 2014, followed by the IPOs of Lending Club and Zayo Group Holdings. Together, the 10 exits saw $48.55B in aggregate value.
Top Venture Backed Exits of 2014 Company
State
Sector
Valuation ($M)
Exit Type
Acquirer
WhatsApp
California
Mobile & Telecomm
22000
M&A
Facebook
Lending Club
California
Financial
5416.67
IPO
Public
Zayo Group Holdings
Colorado
Mobile & Telecomm
4447.9
IPO
Public
Nest Labs
California
Energy & Utilities
3200
M&A
Google
GoPro
California
Consumer Products & Services
3100
IPO
Public
Arista Networks
California
Computer Hardware & Services
2734.04
IPO
Public
Illinois
Internet
2038.03
IPO
Public
California
Software
2000
M&A
Facebook
Washington
Healthcare
1870.53
IPO
Public
California
Healthcare
1750
M&A
Johnson & Johnson
GrubHub Seamless Oculus VR Juno Therapeutics Alios BioPharma
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VC funding in the Internet sector hit $5.6B in Q2’14, but cooled off a bit to $4.5B and $4.6B in Q3 and Q4. Still, Q4 funding was up 39% compared to the same period last year. Internet VC deal activity was up modestly versus 2013 climbing 7%.
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Year
Funding ($B)
Deals
2013
$11.8
1562
2014
$19.6
1675
YoY Growth
67%
7%
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San Francisco topped the list of U.S. cities for Internet venture capital deals and funding. The top two largest Internet deals of the year went to Cloudera’s $900M Series F and AirBnB’s $475M Series D.
Top Cities for Internet: 2014 Top Cities
Top Internet Deals: 2014
Deals
Dollars ($M)
Company
Round
Amount ($M)
Quarter
San Francisco
343
$5,198
Cloudera
Series F
$900
Q1'14
New York
237
$2,554
AirBnB
Series D
$475
Q2'14
Palo Alto
56
$1,852
SurveyMonkey
Private Equity
$250
Q4'14
Boston
56
$378
Vice Media
Growth Equity
$250
Q3'14
Mountain View
46
$710
AvantCredit
Series D
$225
Q4'14
San Mateo
39
$378
Pinterest
Series F
$200
Q2'14
Seattle
39
$398
Houzz
Series D
$165
Q3'14
Chicago
38
$526
Automattic
Series C
$160
Q2'14
Austin
37
$237
Qualtrics
Series B
$150
Q3'14
Cambridge
29
$169
Pluralsight
Series B
$135
Q3'14
Note: Venture capital deals included in the ranking may be tranched fundings.
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While California took 46% of overall Internet VC deal share in 2014, New York came in a solid second at 16% and captured more than double the Internet VC deals of rival tech hub Massachusetts for the second straight year.
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California again took the majority of Internet VC funding (57%). NY took 15% of VC dollars (down from 19% share in 2013) behind nine-figure financings to Vice Media and Flatiron Health. Massachusetts came in third with a 5% internet funding share.
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Internet deal share at the Seed and Series A stage fell slightly in 2014. All other stages were relatively range-bound, with modest increases for Series C and Series E+ deal share versus 2013.
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With Internet companies staying private longer, 2014 saw Series E+ funding share continue to rise from 21% in 2013 to 26% in 2014.
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Business Intelligence (BI) and Advertising, Sales & Marketing grabbed the highest share of Internet deals in 2014, followed by CRM and Monitoring & Security. Deal distribution across Internet sub-industries remains quite diverse across both consumer and enterprise markets.
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BI saw double the VC funding versus any other internet area in 2014. Ad, Sales & Marketing, CRM, and Monitoring and security trailed with 5% funding share each.
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In Q4’14, VC funding to the mobile sector topped $3B for the first time ever due to megafinancings to Uber, Snapchat, Instacart, and Square. Overall VC funding to the mobile sector in 2014 was up 109% versus 2013, despite only a 10% increase in deals. The Uber impact was clear in the mobile numbers.
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Year
Funding ($B)
Deals
2013
$3.7
521
2014
$7.8
571
YoY Growth
109%
10%
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San Francisco and New York top the list of U.S. cities for Mobile & Telecom venture capital deals. Uber’s Series D and E rounds which cumulatively raised $2.4B were the largest mobile VC deals of 2014, while Snapchat closed the third-largest mobile deal shortly before the new year.
Top Cities for Mobile: 2014 Top Cities
Top Mobile Deals: 2014
Deals
Dollars ($M)
Company
Round
Amount ($M)
Quarter
San Francisco
139
$4,141
Uber
Series E
$1,200
Q4'14
New York
73
$394
Uber
Series D
$1,200
Q2'14
Palo Alto
19
$95
Snapchat
Series D
$486
Q4'14
Boston
19
$123
TangoMe
Series D
$280
Q1'14
Mountain View
17
$450
Lyft
Series D
$250
Q2'14
Austin
10
$53
Instacart
Series C
Q4'14
Redwood City
9
$76
Square
Series E
Seattle
9
$43
Lookout
Series F
Menlo Park
9
$26
NextNav
Series D
San Diego
9
$46
Yik Yak
Series B
$220 $210 $150 $150 $70 $62
Q4'14 Q3'14 Q3'14 Q4'14
Note: Venture capital deals included in the ranking may be tranched fundings.
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The trifecta of California, New York and Massachusetts increased their mobile deal share to 76% in 2014, up from 71% in 2013.
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California once again sits atop mobile venture capital by investment dollars. New York and Massachusetts were the only two states with funding share greater than 1%.
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Early stage investments at the Seed and Series A stage made up 70% of VC deals in the mobile sector as investors increasingly bet on the promise of mobile.
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Late-stage mega-deals saw 58% of funding going to Series D+ stages.
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VCs chased deals in a wide range of mobile sub-industries in 2014, but none more than Health & Wellness, which took 8% of all deals in the mobile sector. Social, CRM, and Conferencing & Communication followed.
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With the rise of Uber and Lyft in 2014, Travel dominated funding share in Mobile, accounting for 35% of all VC dollars to Mobile startups. Photo garnered the second most funding largely due to Snapchat’s $485.6M Series D at 7%.
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“We track dealflow, understand valuation multiples, analyze industry trends and identify comparable companies. It is great to see CB Insights innovating in the venture capital data space. Will Porteous General Partner RRE Ventures
“We've found CBI to have the best data for the most accurate market view.” Jack Leeney Portfolio Manager Telefonica Ventures
@cbinsights
#VC2014
“CB Insights' intuitive user interface, analytical capabilities, and detailed investment information create a very powerful tool for our team's research needs.” Nate D’Anna Corporate Development Cisco
“They have the best quality data in the market for anyone looking to get an inside look at private company financings.” Ian Sigalow Partner Greycroft Partners
“CB Insights are changing the way investors access private company information.”
Kevin Diestel Investor Sapphire Ventures
“Designed by a VC insider who truly knows the space and understands end-user needs.” Greg Bae Investments & Biz Dev Comcast Ventures
See what other customers have to say at http://www.cbinsights.com/customer-love
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Healthcare VC funding totaled $8.2B in 2014, up 28% YoY. Q2’14 was the biggest quarter on both a funding and deals basis buoyed by Intarcia Therapeutics’ $200M growth equity round.
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Year
Funding ($B)
Deals
2013
$6.4
550
2014
$8.2
537
YoY Growth
28%
-2%
55
Leading life sciences hubs Cambridge and San Diego saw the most healthcare VC deals in 2014. RNA therapeutics company Moderna’s $450M Series E deal in December was the biggest of the year and in biotech history.
Top Cities for Healthcare: 2014
Top Healthcare Deals: 2014
Top Cities
Deals
Dollars ($M)
Company
Round
Amount ($M)
Quarter
Cambridge
41
$1,182
Moderna
Series E
$450
Q4'14
San Diego
30
$452
Intarcia Therapeutics
Growth Equity
$200
Q2'14
Redwood City
21
$556
Juno Therapeutics
Series B
$134
Q3'14
San Francisco
19
$377
Alignment Healthcare
Growth Equity
$125
Q2'14
Menlo Park
15
$261
InVitae
Series F
$120
Q4'14
Sunnyvale
11
$121
Naurex
Series C
$80
Q4'14
New York
11
$121
Spark Therapeutics
Series B
$73
Q2'14
Waltham
10
$171
Melinta Therapeutics
Growth Equity
$70
Q1'14
Seattle
9
$266
Data Driven Delivery Systems
Series B
$61
Q3'14
South San Francisco
9
$193
Kolltan Pharmaceuticals
Series D
$60
Q1'14
Note: Venture capital deals included in the ranking may be tranched fundings.
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California and Massachusetts continued their dominance of healthcare venture deals in 2014, taking 55% of all deal activity in the sector. Pennsylvania’s growing life sciences hub took 5% of all deals.
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California and Massachusetts owned healthcare VC funding in 2014, taking 65% of total funding share.
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Seed and Series A deals took 36% of deal share in 2014, down from 38% in 2013. Laterstage deals both ticked up modestly, with Series D+ rounds accounting for 24% of all healthcare deals versus 21% in the year prior.
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Series A rounds in the healthcare sector saw the largest drop in funding share across all stages to 16% from 23% in 2013. Late-stage rounds both saw modest increases on a YoY basis, while Series B deal share rose to 29% from 24%.
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For the second straight year, medical device companies garnered the most healthcare deals of any industry. Biotech and drug discovery rounded out the top three, as the three industries combined to take over 7 of every 10 healthcare deals in 2014.
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Funding share to medical devices firms took 28% of healthcare VC funding in 2014. Biotech firms trailed closely with a 27% funding share, while only three industries saw more than 10% of healthcare dollars.
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After deal activity fell 22% in 2013 compared to 2012, 2014 saw a smaller 2% drop in YoY deals. Total funding increased 17% YoY which was a good sign for green tech although the year ended on a sour note with funding and deals declining in both Q3’14 and Q4’14.
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Year
Funding ($B)
Deals
2013
$1.7
161
2014
$2.0
158
YoY Growth
17%
-2% 64
San Francisco led the list for Green Tech VC by overall deals and dollars deployed. Solar service company SunRun had the biggest round of the year in a $150M Series E financing that valued the company at $1B.
Top Cities for Green Tech: 2014 Top Cities
Deals
Dollars ($M)
San Francisco
10
Oakland
Top Green Tech Deals: 2014 Company
Round
Amount ($M)
Quarter
$213
SunRun
Series E
$150
Q2'14
9
$160
Atieva
Series C
$100
Q2'14
Boston
8
$88
Sungevity
Growth Equity
$70
Q2'14
Austin
7
$90
LanzaTech
Series D
$60
Q1'14
San Jose
5
$32
GlassPoint Solar
Series C
$53
Q3'14
New York
5
$9
Cool Planet Energy Systems
Series D - III
$51
Q1'14
San Diego
4
$32
SolarBridge Technologies
Series E
$42
Q1'14
Scotts Valley
4
$18
Quench USA
Growth Equity
$39
Q1'14
Menlo Park
4
$63
Kateeva
Series D
$38
Q3'14
Cambridge
2
$37
Chromatin
Series E
$36
Q1'14
Note: Venture capital deals included in the ranking may be tranched fundings.
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65
California dominated green tech VC, taking 42% of deals in 2014 followed by Massachusetts and Texas at 12% and 7%, respectively.
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66
California, Massachusetts and Texas combined to take 70% of green tech funding in 2014, down from 77% in 2013. Pennsylvania and Illinois each accounted for 6% as well behind multiple $20M+ financings.
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67
Series B deal share fell from 26% to 18% YoY in 2014, while Series C deal share fell to 20%. Meanwhile each end of the spectrum saw deal share increase drastically as Seed jumped to 13% deal share, while Series E+ grew to 18% in 2014 from 10% a year prior.
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68
Mid-stage funding share followed the deal share trends. Series E+ dollar share jumped drastically from 17% in 2013 to 30% in 2014 in part due to SunRun’s $150M Series E and Sungevity’s $70M growth equity financing.
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69
Renewables took 20% of all green tech VC deals in 2014. Green tech software and services, energy efficiency, and green/environmental software companies each took 8% of deals in the space.
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70
Renewables led all green tech industries in VC dollar share as the previously-mentioned SunRun $150M financing was the largest in all of green tech in 2014.
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71
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72
The CB Insights platform has the details on each and every deal in 2014. That includes all 3,617 of the financings and 738 exits in this report. Click here to sign up for free Some of our happy customers
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73
California saw another strong year in venture capital. On a year-over-year basis, California deals increased a modest 13% while funding levels were up 81%, ballooning to $26.8B in 2014.
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Year
Funding ($B)
Deals
2013
$14.8
1449
2014
$26.8
1631
YoY Growth
81%
13%
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74
The usual suspects of SF, Palo Alto, and Mountain View dominated with the most deals in California in 2014. Snapchat was the only non-Valley based company to make the top 10.
Top Cities in California: 2014 Top Cities
Deals
Dollars ($M)
San Francisco
584
Palo Alto
Top California Deals: 2014 Company
Round
Amount ($M)
Quarter
$10,948
Uber
Series E
$1,200
Q4'14
103
$2,872
Uber
Series D
$1,200
Q2'14
Mountain View
85
$1,715
Cloudera
Series F
$900
Q1'14
Sunnyvale
66
$731
Snapchat
Series D
$486
Q4'14
San Jose
62
$1,095
AirBnB
Series D
$475
Q2'14
San Diego
60
$715
Palantir Technologies
Series H - III
$337
Q3'14
San Mateo
59
$514
TangoMe
Series D
$280
Q1'14
Redwood City
59
$1,324
Private Equity - II
$250
Q4'14
Menlo Park
55
$603
Lyft
Series D
$250
Q2'14
Santa Clara
39
$452
Pure Storage
Series F
$225
Q2'14
SurveyMonkey
Note: Venture capital deals included in the ranking may be tranched fundings.
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75
Tech sectors (Internet, mobile, software, computer hardware, electronics) accounted for 79% of all VC deals in California in 2014.
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76
Mobile VC funding jumped from 15% to 23% in 2014 behind multiple mega-financings to Uber. The Internet sector led with 41% of total VC funding in California. Healthcare trailed at 13%.
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77
Early-stage deal share at the Seed and Series A stage accounted for a combined 55% of all California deals in 2014. All other stages remained relatively range-bound versus 2013.
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78
After a down 2013, Series D and E+ VC dollar share in California bounced back. All other stages were casualties, all falling YoY in 2014.
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79
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80
Deal activity finished strong in Massachusetts giving the state 9% YoY growth in deals in 2014. Mass. also finished the year strong on a funding basis, with an eight quarter high in VC funding at $1.6B which resulted in 37% funding growth YoY.
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Year
Funding ($B)
Deals
2013
$3.0
318
2014
$4.2
346
YoY Growth
37%
9%
81
Cambridge and Boston combined to take $2.42B across 195 deals. Healthcare accounted for 5 of the top 10 deals in Massachusetts in 2014.
Top Cities in Massachusetts: 2014 Top Cities
Top Massachusetts Deals: 2014
Deals
Dollars ($M)
Company
Round
Amount ($M)
Quarter
Boston
103
$817
Moderna
Series E
$450
Q4'14
Cambridge
92
$1,602
ActiFio
Series E
$100
Q1'14
Waltham
26
$429
SimpliSafe
Series A
$57
Q2'14
Burlington
10
$201
Thinking Phone Networks
Series D
$57
Q4'14
Woburn
9
$144
Civitas Therapeutics
Series C
$55
Q3'14
Watertown
8
$75
Syros Pharmaceuticals
Series B
$53
Q4'14
Acton
8
$59
Kaminario
Series E
$53
Q4'14
Wellesley Hills
4
$16
Blueprint Medicines
Series C
$50
Q4'14
Westborough
4
$20
Acquia
Series F
$50
Q2'14
Somerville
4
$10
Seres Health
Series C
$48
Q4'14
Note: Venture capital deals included in the ranking may be tranched fundings.
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82
Internet led Massachusetts’ deal share in 2014 at 37% followed closely by healthcare, which fell to 26% deal share versus 30% in 2013. Mobile & Telecom came in a distant third in the state at 14%.
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83
While the Internet sector topped 2014 deal activity in Mass., healthcare took a whopping 46% of funding share vs. Internet funding, which made up 25% of all VC Funding in the state.
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84
Series E+ deal share grew from 7% of overall deal volume in Mass. in 2013 to 10% in 2014. Series A saw the most deals across the spectrum taking 28% of deal share in the state.
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85
After 2013 saw Series B deals take 31% of all funding, funding share fell to 20%, while Series E+ funding share skyrocketed from 17% to 29% funding share in 2014 behind Moderna’s $450M Series E and ActiFio’s $100M Series E.
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86
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87
Venture capital funding levels broke out in NY in 2014 with every quarter clocking in above $1B in total funding. NY VC funding was up 53% YoY while deals grew at a more modest 7% YoY.
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Year
Funding ($B)
Deals
2013
$2.9
396
2014
$4.5
422
YoY Growth
53%
7%
#VC2014
88
New York saw multiple nine-figure deals in 2014. Top deals covered a broad array of industries ranging from eCommerce to Media to Finance. Real estate venture, WeWork, which offers co-working spaces, had 2 of the 3 largest NY deals of the year. Top Cities in New York: 2014
Top New York Deals: 2014
Top Cities
Deals
Dollars ($M)
Company
Round
Amount ($M)
Quarter
New York
365
$3,957
WeWork
Series B
$355
Q4'14
Brooklyn
33
$446
Vice Media
Growth Equity
$250
Q3'14
Long Island City
5
$48
WeWork
Series A
$157
Q1'14
Rochester
3
$5
Flatiron Health
Series B
$130
Q2'14
Troy
2
$3
Oscar Health Insurance Co.
Series A
$80
Q2'14
West Henrietta
2
$6
OnDeck Capital
Series E
$77
Q1'14
Forest Hills
2
$5
IEX Group
Series C
$75
Q3'14
Geneva
1
$2
Harry's Razor Company
Series B
$75
Q4'14
Victor
1
$1
Harry's Razor Company
Series A
$75
Q1'14
Tappan
1
$1
FanDuel
Series D
$70
Q3'14
Note: Venture capital deals included in the ranking may be tranched fundings.
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89
63% of deals in New York went to Internet firms in 2014. Mobile saw an increased deal share for the second straight year at 19%, coming in at a solid #2 to Internet in NY.
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90
2014 saw 67% of venture capital dollars in NY go to the Internet sector, followed by Mobile & Telecom at 9% of funding share. Business Products & Services were buoyed by a combined $512M in funding to co-working space WeWork.
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91
Seed deal share grew from 34% to 40% of all NY VC deals in 2014. Series A deal share decreased for the third straight year, falling from 31% in 2012 to 28% in 2013 and reaching just 26% in 2014.
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92
With huge deals including Flatiron Health in 2014, Series B jumped to a 32% funding share for the year. Series C and D deal share fell drastically as a result of this, while Series E+ deals saw modest growth to 19% funding share behind large deals including now-public OnDeck Capital.
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93
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94
Washington funding grew 34% YoY behind several sizable deals led by Juno Therapeutics. But yearly deal totals were down 17% YoY.
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Year
Funding ($B)
Deals
2013
$0.9
117
2014
$1.1
97
YoY Growth
34%
-17%
95
Seattle took the lion’s share of venture capital deals and dollars in Washington. Juno Therapeutics saw the largest deal in the state for the second straight year, followed by real estate tech company Redfin and wire data analytics company ExtraHop Networks.
Top Cities in Washington: 2014 Top Cities
Deals
Dollars ($M)
Seattle
71
Redmond
Top Washington Deals: 2014 Company
Round
Amount ($M) Quarter
$853
Juno Therapeutics
Series B
$134
Q3'14
7
$45
Redfin
Series G
$71
Q4'14
Bellevue
7
$86
ExtraHop Networks
Series C
$41
Q2'14
Kirkland
5
$56
Avvo
Series D
$38
Q2'14
Bainbridge Island
2
$56
SmartSheet
Series E
$35
Q2'14
Bellingham
1
$4
Skytap
Series D
$35
Q4'14
Tacoma
1
$14
Juno Therapeutics
Series A - III
$31
Q2'14
Renton
1
$5
Integrated Diagnostics
Series B
$30
Q2'14
Arlington
1
$17
Julep Beauty
Series C
$30
Q2'14
Liberty Lake
1
$10
Avalara
Series E
$30
Q1'14
Note: Venture capital deals included in the ranking may be tranched fundings.
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96
The Internet sector took nearly half of the venture capital deals in Washington in 2014. Mobile overtook healthcare in 2014, taking 16% of deals, as healthcare fell from 20% in 2013 to just 13% in 2014.
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97
Internet funding in Washington accounted for 44% of all VC dollars in 2014 taking three of the five largest deals in the state. Healthcare fell to a 28% funding share, while mobile and software were the only other sectors with more than 5% funding share.
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98
After seed-stage deals grew from 20% in 2012 to 28% in 2013, it fell back to 24% in 2014.
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99
Funding share to Series A rounds fell from 30% in 2013 to 22% in 2014, while all later stages saw modest gains. Series B rounds saw the largest growth driven by Juno Therapeutics $134M financing.
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#VC2014
100
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101
Texas saw funding activity hit an eight-quarter high in Q1’14. Compared to 2013, funding was up 21% while deals steadily grew up 8%.
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Year
Funding ($B)
Deals
2013
$1.0
132
2014
$1.2
143
YoY Growth
21%
8% 102
Austin dominated Texas venture capital financing activity in 2014, seeing over 5x as much funding as the second most active city, Houston. Geospatial solutions provider Surveying and Mapping’s $123M growth equity round was the biggest of the year.
Top Cities in Texas: 2014 Top Cities
Top Texas Deals: 2014
Deals
Dollars ($M)
Company
Round
Amount ($M)
Quarter
Austin
83
$741
Surveying and Mapping
Growth Equity - II
$123
Q1'14
Houston
15
$141
Spiceworks
Series E
$57
Q1'14
Dallas
8
$74
ZS Pharma
Series D
$55
Q1'14
Plano
7
$57
Bellicum Pharmaceuticals
Series C
$55
Q3'14
San Antonio
6
$41
TelaDoc
Series F
$50
Q3'14
Tomball
2
$4
BigCommerce
Series D
$50
Q4'14
Georgetown
2
$7
SolarBridge Technologies
Series E
$42
Q1'14
Richardson
2
$1
Surveying and Mapping
Growth Equity
$37
Q1'14
Grand Prairie
2
$18
Spredfast
Series D
$33
Q1'14
Spring
2
$2
Phunware
Series E
$30
Q1'14
Note: Venture capital deals included in the ranking may be tranched fundings.
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103
Concentrated primarily in Austin, Internet and mobile combined to take 50% of Texas VC deals in 2014. Healthcare saw 16% of deals in the state.
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104
On the funding front, Internet, healthcare, and software all took over 20% of overall share. Software’s 22% funding share was largely driven by the state’s biggest deal of the year, a $123M growth equity financing for Surveying and Mapping.
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105
Seed and Series A activity took a combined 49% of deal volume in Texas versus 44% in 2013 as VCs invested in more seed-stage deals. Series D deal share grew modestly to 8%, while all other stages ticked down YoY.
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#VC2014
106
After eRecyclingCorps $105M round buoyed Series C dollar share in 2013, Series D and E+ funding share grew drastically behind multiple $50M+ fundings.
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#VC2014
107
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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. What is included?
What is not?
Equity financings into emerging companies. Funding must come from venture capital firms including corporate venture groups.
•
Fundings of only private companies. Public companies of any kind on any exchange (including Pink Sheets) are excluded from our numbers even if they received investment by a venture firm(s) Companies must be headquartered in the USA. Our geographic data is based on the city and state where the company receiving investment is headquartered. If a company has a satellite office/presence in multiple cities or was founded in a particular city but has moved its HQ, our results reflect only this HQ address. Only include the investment made in the quarter for tranched investments. If a company does a second closing of its Series B round for $5M and previously had closed $2M in a prior quarter, only the $5M is reflected in our results. Round #s reflect what has closed –not what is intended. If a company indicates the closing of $5M out of a desired raise of $15M, our numbers reflect only the amount which has closed. Only verifiable fundings are included. Fundings are verified via (1) various federal & state regulatory filings (2) direct confirmation with firm or investor or (3) press release. Funding close date matters. Fundings are provided based on funding close date and not on announcement date.
•
• •
•
• •
•
•
•
• • •
•
• • •
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Angel investment. These are not included in numbers unless an investment round included Angels investing alongside a venture capital firm or corporate venture group. No contingent funding. If a company receives a commitment for $20M subject to hitting certain milestones but first gets $8M, only the $8M is included in our data. No business development/R&D arrangements whether transferable into equity now, later or never. If a company signs a $300M R&D partnership with a larger corporation, this is not equity financing nor is it from venture capital firms. As a result, it is not included. Buyouts, Consolidations and Recapitalizations. All three of these of transaction types are commonly employed by private equity firms and are tracked by CB Insights. However, they are excluded for the purposes of this report. Private equity investments into companies which may have received venture capital investment prior are also not included. Private placements. These investments also known as PIPEs (Private Investment in Public Equities) even if made by a venture capital firm(s) are not included. Debt/loans of any kind. Venture debt or any kind of debt/loan issued to emerging, startup companies even if included as an additional part of an equity financing is not included. If a company receives $3M with $2M 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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