Mattermark 10 Year Startup Funding Report 2015

Mattermark Startup Funding Report PUBLISHED FEBRUARY 4, 2015!

MATTERMARK STARTUP FUNDING REPORT!

Introduction This report provides a data-driven exploration of the United States startup ecosystem. Take an in-depth look at the funding events, growth signals, exits and other insights into the fastest growing private companies. The resources that flow into startups each year are a calculated risk on the part of investors, founders, employees, service-providers and everyone who stands to benefit from the proliferation of new product, better services, and saved time and money. Understanding how businesses are created, funded, grown and ultimately rewarded with sustainability or an exit helps inform the conversations and actions for the coming years, and it is our hope you will read this report and combine it with your special knowledge of your industry, region, role and community as you charge forward into the New Year. Sincerely,

Danielle Morrill, CEO & Cofounder of Mattermark

Acknowledgements The Startup Funding Report would not be possible without a team effort. Thank you to the Mattermark analysts, researchers, software engineers and designers who made this report possible: Sarah Catanzaro, and Avi Eisenberger.

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MATTERMARK STARTUP FUNDING REPORT!

Table of Contents Disclaimer This information has been prepared by Mattermark Inc. solely for informational purposes. It is not, and should not be regarded as, investment advice or as a recommendation regarding any particular security or course of action. Opinions expressed herein are current opinions as of the date appearing in this material only and are subject to change without notice. No part of this document may be reproduced in any manner, in whole or in part, without the prior written permission of Mattermark, Inc. This information is provided with the understanding that with respect to the material provided herein, you will make your own independent decision with respect to any course of action based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. Neither the information, nor any opinion contained herein, constitute a solicitation or offer by Mattermark, Inc. to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service. Mattermark, Inc. does not purport to, and does not, in any fashion, provide broker/dealer, consulting or any related services. Mattermark, Inc. shall not have any liability for any damages of any kind whatsoever relating to this material. By accepting this material, you acknowledge, understand and accept the foregoing.

5!

Historical Analysis

32!

Talent Wars

37!

Who Funds The Most Capital Efficient Companies

39!

Burn Book

45!

Fastest Employee Growth in 12 Months

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MATTERMARK STARTUP FUNDING REPORT!

Methodology Time Period For this report we examined companies funded in the past ten years. Funding year represents the calendar year at which a company was funded. For example companies receiving funding in 2014, received funding any time between January 1, 2014 and December 31, 2014. Funding Rounds For venture rounds, we only included deals in which the amount of funding raised was disclosed. Criteria All analyses include USA companies funded over the past 10 years. Companies in the Biotech, Energy, Clean Tech and Pharmaceutical industries have been excluded from all analyses. Data Sources Mattermark uses a broad range of sources to present the most complete picture possible of the startup ecosystem. In addition to extensive primary source research sourced specifically for this report, Mattermark uses publicly-available data from Crunchbase (www.crunchbase.com), AngelList (www.angel.co), NASDAQ (www.nasdaq.com), the United States Securities and Exchange Commission (www.sec.gov), The White House Office of Management & Budget, and source relationships with thousands of investors, community leaders and startup founders. Please send any questions, comments or corrections for the editor to [email protected].

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Historical Analysis The US startup ecosystem over the past 10 years

MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

Median Investment Size by Stage $35! Seed!

Series A!

Series B!

Series C!

Series D!

Series E!

Investment Size (in USD Million)!

$30!

$25!

$20!

$15!

$10!

$5!

$0! 2005!

2006!

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Median Investment Size by Stage (Seed – Series B) 100%!

Year over Year Change in Investment Size (%)!

80%!

Seed YoY Change!

Series A YoY Change!

Series B YoY Change!

60%!

40%!

20%!

0%!

-20%!

-40%!

-60%! 2005!

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MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

Median Investment Size YoY Change by Stage (Series C – E) 100%!

Year over Year Change in Investment Size (%)!

80%!

Series C YoY Change!

Series D YoY Change!

Series E YoY Change!

60%!

40%!

20%!

0%!

-20%!

-40%!

-60%! 2005!

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MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

Number of Investments by Region - 2005 to Present 2,000! SF Bay Area!

Boston Area!

Los Angeles Area!

New York Area!

1,800!

Total Number of Investments!

1,600! 1,400! 1,200! 1,000! 800! 600! 400! 200! 0! 2005!

2006!

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MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

Average Investment Size by Region $50! SF Bay Area!

Boston Area!

Los Angeles Area!

New York Area!

$45!

Investment Size (in USD Million)!

$40! $35! $30! $25! $20! $15! $10! $5! $0! 2005!

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MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

Median Investment Size by Region SF Bay Area!

Boston!

Los Angeles!

New York!

$8!

Investment Size (in USD Million)!

$7! $6! $5! $4! $3! $2! $1! $0! 2005!

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MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

Total Investment Size by Region $25! Bay Area!

New York!

Boston!

Los Angeles!

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Investment Size (in USD Million)!

$20!

$15!

$10!

$5!

$0! 2005!

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MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

Seed Investment Sizes $1.10!

Median! Average!

$1.00!

Investment Size (in USD Million)!

$0.90! $0.80! $0.70! $0.60! $0.50! $0.40! $0.30! $0.20! $0.10! $0.00! 2005!

2006!

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MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

Number of Seed Investments by Region 600!

SF Bay Area!

New York Area!

Boston Area!

Los Angeles Area!

Total Number of Investments!

500!

400!

300!

200!

100!

0! 2006!

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MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

Average Seed Investment Sizes by Region SF Bay Area!

Boston Area!

Los Angeles Area!

New York Area!

Investment Size (in USD Million)!

$2.50!

$2.00!

$1.50!

$1.00!

$0.50!

$0.00! 2005!

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MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

Series A Investment Sizes $8.00!

Median! Average!

$7.00!

Investment Size (in USD Million)!

$6.00!

$5.00!

$4.00!

$3.00!

$2.00!

$1.00!

$0.00! 2005!

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MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

Number of Series A Investments by Region 300! Bay Area!

Boston!

Los Angeles!

New York!

Total Number of Investments!

250!

200!

150!

100!

50!

0! 2005!

2006!

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MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

Average Series A Investment Sizes by Region $12.00! Bay Area!

Boston Area!

Los Angeles Area!

New York Area!

Investment Size (in USD Million)!

$10.00!

$8.00!

$6.00!

$4.00!

$2.00!

$0.00! 2005!

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MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

Series B Investment Sizes $18!

Median! Average!

Investment Size (in USD Million)!

$16! $14! $12! $10! $8! $6! $4! $2! $0! 2005!

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MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

Number of Series B Investments by Region 180! Bay Area!

Boston!

Los Angeles!

New York!

160!

Total Number of Investments!

140! 120! 100! 80! 60! 40! 20! 0! 2005!

2006!

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MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

Average Series B Investment Sizes by Region $25! Bay Area!

Boston!

Los Angeles!

New York!

Investment Size (in USD Million)!

$20!

$15!

$10!

$5!

$0! 2005!

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MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

Series C Investment Sizes $30! Median! Average!

Investment Size (in USD Million)!

$25!

$20!

$15!

$10!

$5!

$0! 2005!

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MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

Number of Series C Investments by Region 100! Bay Area!

Boston!

Los Angeles!

New York!

90!

Total Number of Investments!

80! 70! 60! 50! 40! 30! 20! 10! 0! 2005!

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MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

Average Series C Investment Sizes by Region $70!

Bay Area!

Boston!

Los Angeles!

New York!

Investment Size (in USD Million)!

$60!

$50!

$40!

$30!

$20!

$10!

$0! 2005!

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MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

Series D Investment Sizes $60!

Median! Average!

Investment Size (in USD Million)!

$50!

$40!

$30!

$20!

$10!

$0! 2005!

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MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

Number of Series D Investments by Region 50! Bay Area!

Boston!

Los Angeles!

New York!

45!

Total Number of Investments!

40! 35! 30! 25! 20! 15! 10! 5! 0! 2005!

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MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

Average Series D Investment Sizes by Region $100!

Bay Area!

Boston!

Los Angeles!

New York!

$90!

Investment Size (in USD Million)!

$80! $70! $60! $50! $40! $30! $20! $10! $0! 2005!

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MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

Series E Investment Sizes $70!

Median! Average!

Investment Size (in USD Million)!

$60!

$50!

$40!

$30!

$20!

$10!

$0! 2005!

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MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

Number of Series E Investments by Region 35! Bay Area!

Boston!

Los Angeles!

New York!

Total Number of Investments!

30!

25!

20!

15!

10!

5!

0! 2005!

2006!

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MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

Average Series E Investment Sizes by Region $90! Bay Area!

Boston!

Los Angeles!

New York!

$80!

Investment Size (in USD Million)!

$70! $60! $50! $40! $30! $20! $10! $0! 2005!

2006!

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MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

Total Funding by Stage Seed

Series A

Series B

Series C

Series D

Series E

30,000

U.S. Dollars (in Millions)

25,000

20,000

15,000

10,000

5,000

0 2005

2006

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31!

Talent War Field Report: Funds & Companies

MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

Accelerator Portfolio Employees Total Employees!

Employees 1 Month Ago!

Employees 6 Months Ago!

30000!

Number of Employees!

22500!

15000!

7500!

0! Y Combinator!

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500 Startups!

Techstars!

33!

MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

Accelerator Portfolio Company Employees Total Employees!

Employees 1 Month Ago!

Employees 6 Months Ago!

Kleiner Perkins! Accel! Sequoia! SV Angel! NEA! Benchmark! Y Combinator! Lightspeed! General Catalyst! A16Z! Greylock! Google Ventures! Redpoint! 0!

10000!

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20000!

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30000!

40000!

50000!

60000! 34!

MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

Average Employees by Stage Series A!

Series B!

Series C!

Lightspeed! Accel! Greylock! Benchmark! Lerer Ventures! General Catalyst! Bessemer! Sequoia! SV Angel! A16Z! Kleiner Perkins! Foundry Group! Y Combinator! Google Ventures! Union Square! NEA! Redpoint! Atlas Venture! 0!

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250!

300!

350!

400! 35!

MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

Average Series A Stage Startup Team Size Median Employee Count!

Average Employee Count!

Bessemer! General Catalyst! Sequoia! Redpoint! Google Ventures! Benchmark! Foundry Group! Kleiner Perkins! Atlas Venture! Accel! Andreessen Horowitz! NEA! Greylock! Lerer Ventures! SV Angel! Y Combinator! Union Square Ventures! BENCHMARK! Lightspeed! 0!

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Who Funds The Most Capital Efficient Companies?

MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

Top Participants in U.S. Series A Rounds* SV Angel! True Ventures! Lerer Hippeau Ventures! Great Oaks Venture Capital! Accel Partners! First Round Capital! Sequoia Capital! Kleiner Perkins Caufield & Byers! Thrive Capital! SoftBank Capital! Grotech Ventures! Upfront Ventures! Atlas Venture! Fuel Capital! Lightspeed Venture Partners! ff Venture Capital! Silicon Valley Bank! Felicis Ventures! 0!

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4!

6!

8!

10!

12!

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16!

18!

20!

22!

Total Number of Companies!

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Burn Book September 2014

MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

U.S. FUNDING DISTRIBUTION

Current Funding Range (in USD Million)!

0 - 1 M! 1 - 3M! 3 - 10M! 10 - 25M! 25 - 50M! 50 - 100M! 100 - 200M! 200 - 500M!

Last Funding Round Was In the Past:

0 - 1 years!

500M+! 0!

500!

1000!

1500!

2000!

2500!

1 - 2 years! 3000!

3500!

7,464 startups have raised new funding in the past 2 years

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MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

Current Funding Range (in USD Million)!

U.S. FUNDING DISTRIBUTION

50 - 100M!

100 - 200M!

200 - 500M!

500M+!

Last Funding in! 0 - 1 years! 1 - 2 years! 0!

100!

200!

300!

400!

500!

511 STARTUPS with > $50M in funding have raised in the past 2 years

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MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

Current Funding Range (in USD Million)!

No More VC Needed? 50 - 100M!

100 - 200M!

200 - 500M!

500M+!

0!

0.5!

1!

1.5!

2!

2.5!

3!

3.5!

4!

4.5!

Time Since Last Funding (Years)! 107 companies with > $50M in funding have NOT raised in the past 2 years, but have made hires in past 6 months

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MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

No More VC Needed?

3% B2B 33% B2C 64%

Marketplace

352 companies with > $50M in funding have NOT raised in the past 2 years, but have made hires in past 6 months

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Fastest Employee Growth In 12 Months Fastest Employee Growth Rate Since Last Round Total Funding > $50M, Raised in Past 12 Months

MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

Consumer (w/ >$50M Funding) Company!

Total Funding !

Total Employees!

Employee Months Added Since Last Round!

Employees Added Since Last Round!

Blue Apron

$58M

145

99

2760

Tango

$369.25M

223

74

2688

Birchbox

$71.9M

354

86

2558

HotelTonight

$80.69M

185

47

2216

One Medical Group

$116.5M

379

67

2005

Prosper

$189.9M

169

73

1866

1stdibs

$117M

152

33

1836

BuzzFeed

$96.3M

698

185

1762

VICE

$580M

1412

207

1525

Rdio

$125.7M

177

42

1116

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MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

Marketplace (w/ >$50M Funding) Company!

Total Funding!

Employee Months Added Since Last Round!

Employees Added Since Last Round!

Total Employees!

Lyft

$332.5M

1532

1018

32538

Airbnb

$794.82M

2055

682

19411

Coursera

$85M

313

209

13462

Birchbox

$71.9M

354

86

2558

Prosper

$189.9M

169

73

1866

Thumbtack

$148.2M

439

160

1274

Uber

$4907.45M

4143

516

516

Wish

$128.7M

64

28

444

Minted

$89.1M

358

114

323

Etsy

$97.26M

1532

62

319

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MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

B2B Software (w/ >$50M Funding) Company!

Total Funding!

Total Employees!

Employees Added Since Last Round!

Employee Months Added Since Last Round!

Kony Solutions

$98.4M

1069

595

6703

Zenefits

$83.6M

396

300

5204

Sprinklr

$77.5M

559

284

7808

Atlassian

$210M

1019

278

6690

Domo

$248.65M

607

249

11941

Spredfast

$64.1M

380

207

13151

Mulesoft

$130.5M

472

180

6584

Nutanix

$312.2M

757

175

1485

AtTask

$62M

565

168

8275

InsideSales.com

$143.05M

574

158

1766

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MATTERMARK STARTUP FUNDING REPORT: 2005-2014!

Hardware (w/ >$50M Funding) Company!

Total Funding!

Employee Months Added Since Last Round!

Employees Added Since Last Round!

Total Employees!

NJOY!

$165M!

109!

15!

613!

Aquantia!

$153.62M!

115!

8!

176!

SimpliSafe!

$57M!

34!

11!

153!

Luxtera!

$91.08M!

80!

5!

103!

MinuteKey!

$55.8M!

30!

14!

82!

Roku!

$153.1M!

318!

23!

56!

4moms!

$60M!

142!

10!

47!

Anki!

$105M!

87!

8!

41!

Prysm!

$293.08M!

202!

10!

10!

Misfit Wearables!

$63M!

110!

4!

4!

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