1Q 2009 REPORT
On a daily basis, TechCrunch is devoted to breaking news and profiling new products, companies and events in technology. The 1Q 2009 Report takes a step back and discusses the major trends of the quarter. This report covers foundings, product development, financings and exits across a variety of technology sectors – search, social networking, cloud computing, mobile communications, ecommerce, and new media. CrunchBase is our newest tool for entrepreneurs and investors looking for information on the most significant companies and people in the technology business, and it is the source for much of the data discussed.
Contents
Schedule of Exhibits Attached in Interactive Excel Format .......................................................................... 5 The TechCrunch Take Away on 1Q 2009 ...................................................................................................... 7 1Q 2009 ..................................................................................................................................................... 7 Looking forward 2009 ............................................................................................................................... 7 Statistical Executive Summary .................................................................................................................... 10 Start-Ups Getting Started ........................................................................................................................... 12 New Start-Ups Founded by Month: 1Q 2009 vs. 2008 ........................................................................... 12 # Start-Ups Founded by Month: January 2008 – March 2009 ................................................................ 12 Start-Ups Founded by Category .............................................................................................................. 13 Average Team Size of New Start-Ups ..................................................................................................... 13 Trends in Start-Ups Getting Founded and Funded ................................................................................. 13 Firms Founded in Q1 2008 - Venture Capital Raised by Quarter thru Present ...................................... 14 Venture Funding ......................................................................................................................................... 15 Total Venture Capital Raised, Q108 vs. Q109 ......................................................................................... 15 Total Venture Capital Invested: January 2008 - March 2009 ................................................................. 15 Venture Capital Transactions: January 2008 - March 2009 .................................................................... 16 Number of Deals Financed by Stage: Q108 vs. Q109 ............................................................................. 16 Venture Capital Financed by Stage: Q108 vs. Q109 ............................................................................... 17 Venture Investment, by Sector: Q108 vs. Q109 ..................................................................................... 18 1Q 2009 Financing Key Trends ................................................................................................................ 18 Notable Transactions – Web ................................................................................................................... 18 The New York Times - $250 million from Carlos Slim. ........................................................................ 18 Twitter - $35 million Series from Benchmark Capital, Institutional Venture Partners and Others. ... 18 bit.ly - $2M from O'Reilly AlphaTech Ventures, Ron Conway and Other Angels. .............................. 19 Offerpal Media – $15 million Series B from D.E. Shaw Group, InterWest Partners, and North Bridge Venture Partners. ................................................................................................................................ 19 Zag – $37.4 million Series F ................................................................................................................. 19 Notable Transactions - Advertising ......................................................................................................... 20 Omniture - $25 million from WPP. ..................................................................................................... 20 Tremor Media – $18M from Meritech Capital Partners, Canaan Partners, Masthead Venture Partners, European Founders Fund. ................................................................................................... 20 TechCrunch Research © All Rights Reserved Page | 2
AdMob - $12.5M, from Draper Fisher Jurvetson, Northgate Capital. ................................................ 20 Notable Transactions – Mobile/Wireless................................................................................................ 20 OboPay - $70 million from Nokia and undisclosed investors. ............................................................ 20 Pocket Communications - $25 million from Bank Street Group. ........................................................ 21 Carrier IQ - $20 million from Intel Capital, Presidio Ventures, Sumitomo Ventures. ......................... 21 ChaCha - $12M from Scott Jones, Morton Meyerson, Simon Properties........................................... 21 SendMe - $12 million from Triangle Peak Partners, Amicus Capital, Spark Capital, True Ventures, Grandbanks Capital. ............................................................................................................................ 21 Notable Transactions – Software ............................................................................................................ 21 Transera Communications - $17M from Accel Partners, Apax Partners, Lighthouse Capital Partners, Storm Ventures. .................................................................................................................................. 21 Aster Data Systems - $17M from Jafco Ventures, Sequoia Capital, Cambrian Ventures, First Round Capital, Institutional Venture Partners. .............................................................................................. 21 Notable Transactions – Enterprise and Hardware .................................................................................. 22 N-Trig - $24M from Microsoft, Aurum Ventures, Challenger Ltd., Canaan Partners, and Evergreen Venture Partners. ................................................................................................................................ 22 Notable Transactions - CleanTech .......................................................................................................... 22 NorSun - $72.3M from Good Energies, Scatec AS, Norsk Hydro ASA. ................................................ 22 Boston Power - $55 million. ................................................................................................................ 22 Notable Transactions – Biotech .............................................................................................................. 22 Sangart, Inc., $100 million from Leucadia National. ........................................................................... 22 Ardian Inc., $47M, from Emergent Medical Partners, Advanced Technology Ventures, Morgenthaler Ventures, Medronic, Split Rock Partners. ........................................................................................... 23 BioVex, $40M, from Forbion Capital Partners, Credit Agricole Private Equity, Harris & Harris Group, Innoven Partners, New Science Ventures, Triathlon Medical Venture Partners, Scottish Equity Partners. .............................................................................................................................................. 23 M&A Highlights ........................................................................................................................................... 24 # Acquisitions by Month: January 2008 - March 2009 ........................................................................... 24 Total Deal Value of Acquisitions: Q108 vs. Q1 09 .................................................................................. 24 M&A Deals by Category: Q108 vs. Q109................................................................................................ 25 Traditional Dealmakers Sit Out the Quarter ........................................................................................... 25 1Q 2009 M&A Top Deals......................................................................................................................... 27 Pure Digital acquired by Cisco............................................................................................................. 27 TechCrunch Research © All Rights Reserved Page | 3
Interwoven acquired by Autonomy .................................................................................................... 27 Applimation acquired by Infomatica .................................................................................................. 27 1Q 2009 Examples of Tactical M&A Deals .............................................................................................. 28 LeGuide acq by GoAdv ........................................................................................................................ 28 TV Games Network acq by BetFair ..................................................................................................... 28 Mazu Networks acq by Riverbed Technologies .................................................................................. 28 Fictionwise acq by Barnes & Noble ..................................................................................................... 28 Miva acq by AdKnowledge .................................................................................................................. 28 PicksPal acq by Liberty Media ............................................................................................................. 28 Wamba acq by Mio.tv ......................................................................................................................... 28 Disclaimer and Feedback ............................................................................................................................ 29
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Schedule of Exhibits Attached in Interactive Excel Format
Summary Exhibits 1. # Start-Ups Founded by Month: January 2008 - March 2009 2. Total $ Venture Capital Invested by Month: January 2008 - March 2009 3. # of Venture Capital Transactions: January 2008 - March 2009 4. # Acquisitions by Month: January 2008 - March 2009 5. NASDAQ Composite Index: January 2008 - March 2009
Detailed Exhibits: Start-Ups Founded 6. # Start-Ups Founded by Month: 1Q 2008 vs 1Q 2009 7. # Start-Ups Founded by Category: 1Q 2008 vs 1Q 2009 8. Average # Employees, Start-Ups Founded:1Q 2008 vs 1Q 2009 9. List - Firms Founded: 1Q 2008 10. List - Firms Founded: 1Q 2009 11. # Start-Ups Founded that Raised Funds:1Q 2008 vs 1Q 2009 12. $ Start-Ups Founded in Q1 2008 - Total Venture Capital Raised by Month thru March 2009 13. $ Firms Founded in Q1 2008 - Total Venture Capital Raised by Quarter through 1Q 2009 14. List - Firms Founded: 1Q 2008 that Received Funding 15. List - Firms Founded: 1Q 2009 that Received Funding 16. Product Launches - 1Q 2008 17. Product Launches - 1Q 2009
Detailed Exhibits: Venture Capital 18. $ Total Venture Capital Raised, 1Q 2008 vs. 1Q 2009 19. # Total Venture Capital Deals by Stage, 1Q 2008 vs. 1Q 2009 20. % Venture Capital Raised by Stage, 1Q 2008 vs. 1Q 2009 21. # and $ Total Venture Capital Deals by Stage, 1Q 2008 vs. 1Q 2009 22. $ Venture Investment, by Sector: 1Q 2008 vs. 1Q 2009 23. $ Average Size of Venture Investment, by Sector: 1Q 2008 vs. 1Q 2009 24. List - All Firms Funded 1Q 2008 25. List - All Firms Funded 1Q 2009
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Detailed Exhibits: Mergers & Acquisitions 26. Acquisitions: 1Q 2008 vs. 1Q 2009 27. Acquisitions by Sector: 1Q 2008 vs. 1Q 20