Get documents about "Venture Capital Report - Q4 2011
Description
Venture capitalists invested $7.6 billion in 755 companies in Q4 2011. Q4’s performance brought 2011’s total to $30.6B invested in 3051 deals which marked a 10-year high for the VC asset class on both deals and dollars.
Document Sample
Venture Capital Activity Report | Q4 2011
TABLE OF CONTENTS
QUARTER SUMMARY 2
QUARTERLY TRENDS 3
SECTOR REVIEW 11
1 INTERNET 11
2 HEALTHCARE 18
3 GREEN / CLEAN TECH 25
GEOGRAPHIC REVIEW
1 CALIFORNIA 32
2 MASSACHUSETTS 38
3 NEW YORK 43
4 WASHINGTON 49
5 TEXAS 54
DEFINITIONS & DATA INTEGRITY 59
© 2012, CB Insights. All rights reserved. For more information about CB Insights, please email info@cbinsights.com.
www.cbinsights.com
2 Venture Capital Activity Report | Q4 2011
Q4 2011 – This Quarter in Venture Capital
Bam! 2011 VC investment and deal totals mark highest seen in 10 years. Talk of
bubble begins in 3, 2, 1…..
VCs weren’t bashful in Q4 2011 showering 755 companies with $7.6 billion in venture funding. Q4’s performance brought
2011’s total to $30.6B invested in 3051 deals which marked a 10-year high for the VC asset class on both deals and dollars.
The Fat VC Funnel Healthcare VC – Rumors of Death Greatly Exaggerated
So with 2011’s results, the bubble talk will shift into Healthcare hit a five quarter high on funding and showed
overdrive. The reality is that VC funding is a funnel. More solid deal activity. Sector reverses downward trend and
companies get Series A than B than C – etc, etc. Within shows pulse to close out 2011.
tech, our data shows the VC funnel has gotten fat at the
top (a lot of Series A and Seed deals). And VC Massachusetts’ Balanced Attack Brings It Back to #2
Darwinism means that not all of these companies can or Massachusetts took back its #2 spot for both deals and
should receive Series B, C, etc. While some would say dollars with deals across multiple sectors. Healthcare
this is the way markets work, for a company raising was particularly strong. Internet investment in the state
money, this can represent a “chokepoint”. Some will was the one weak spot in an otherwise strong showing.
receive funding, some will die quickly, some will get acq-
hired or get dressed up as acquisitions, some will be Internet Takes 1/3 of VC Dollars in 2011
orphaned and figure out a way to make money and Cali and NY account for 59% of internet VC deals and
become steady businesses and some will die a slower, 66% of funding. Internet investments took over 1/3 of
more tortured death. venture dollars in 2011. Massachusetts fell to a five
quarter low on internet deal share. Mega-deals in the
New York – Back to Reality or a Speed Bump? data storage (Dropbox and Box.net) buoy funding.
One quarter does not a trend make. So after taking the
#2 spot for aggregate VC deals and dollars in Q3’11, NY California Steady as Ever.
slipped back to #3 behind Massachusetts. The state Cali still the top spot for VC deals and dollars. ‘Nuff said.
retains its hold on #2 for tech deals and dollars and
showed some life in the healthcare realm as well. We’ll Washington Stalls. Again.
see if NY can fight back like it’s resilient football Giants or We’ll bring back our “Sleeping in Seattle” metaphor as
whether the state will just talk incessantly and not perform Washington continued its multi-quarter dealflow slide and
like the Jets in future quarters. also came down on funding.
Only deals in which VCs are participating are included. Companies which raise money from mutual or private equity funds
or corporations (unless it is their corporate venture arms) are not included. We recommend you review our definitions and
methodology on p. 59 to see what is included/excluded as there is a great amount of misinformation out there.
www.cbinsights.com
3 Venture Capital Activity Report | Q4 2011
$7.6B over 755 Deals – Q4 Continues 2011’s Torrid Pace
Q4 ’11 was slower than recent quarters but continued 2011’s strong VC performance.
2011 reaches $30.6B in total venture funding marking 10 year high.
www.cbinsights.com
4 Venture Capital Activity Report | Q4 2011
Back to Reality? Mass’ Deal Share Eclipses NY
NY’s rise to #2 was short-lived as Mass regains its #2 spot on deals. Cali, Mass and
NY continued to own 60+% share of deals.
www.cbinsights.com
5 Venture Capital Activity Report | Q4 2011
Cali Dominates. Mass & Cali Take 65% of VC Dollars
NY funding share dipped back to historical levels. California and Mass took significant
share of venture dollars with Texas registering a big quarter on back of big deals.
www.cbinsights.com
6 Venture Capital Activity Report | Q4 2011
What Smart Investors, Bankers and
Wealth Managers Use to Get Ahead…
With CB Insights you can access deep private company info that was once exclusively
available behind prohibitively expensive paywalls.
CB Insights is accessible for free by visiting http://www.cbinsights.com
82,000+ Private Company Profiles. Coverage Universe
Over 82,000 high value private
company profiles across industries and • Venture Capital – 1999 to present
sectors. Medical devices to • Angel Investment
mobile. Industrial to internet. • Private Equity
• Federal SBIR Grants – 3 years
• State Grant Programs
From Angel to Private Equity. • Incubators – Over 300
Angel investment to venture capital to • Middle Market Private Companies
private equity to government funding to
under the radar mid-market private Sector Coverage
companies.
• Green/clean tech
• Internet
Company & Investor Updates via Email. • Mobile & Telecom
• Software
Add companies and investors of • Energy & Utilities
interest to your CBI Watchlist and get • Computer Hardware & Services
notified of changes and updates • Healthcare
automatically. • Industrial
• Automotive & Transportation
Management & Board Information • Business Products & Services
• Consumer Products & Services
Find out about the people behind the • Electronics
companies including management and • Environmental Services &
board of directors profiles. Equipment
• Financial Services
• Food & Beverages
• Leisure
Analytics & Reporting • Media
• Metals & Mining
Downloadable reports and analytics
• Retail
which allow you to manipulate data
• Risk & Security
when and how you want to.
www.cbinsights.com
7 Venture Capital Activity Report | Q4 2011
So Much for VCs Going on Vacation in December
VCs ended the year strong with 264 deals. Every month of 2011 had more than 200
deals and $2.2B invested marking a pretty consistent rate of activity for the full year.
www.cbinsights.com
8 Venture Capital Activity Report | Q4 2011
The Series B and C Crunch? Yeah, That’s Looking Likely
Seed and Series A were almost 50% of deals making Series B and beyond a potential
chokepoint for many companies raising early stage money.
www.cbinsights.com
9 Venture Capital Activity Report | Q4 2011
Healthcare Deals and Dollars Show Some Life
After a three quarter slide on deals, healthcare investment regained in Q4’11. Mobile
remained strong on both deals and dollars for a 2nd straight quarter.
www.cbinsights.com
10 Venture Capital Activity Report | Q4 2011
Get Started for Free with CB Insights
Basic membership on CB Insights is free. Just visit http://www.cbinsights.com. Or
connect with us via any of the following.
Twitter Newsletter
Follow us @cbinsights Click here to receive our weekly
dealflow newsletter.
Email Telephone
212-292-3148
info@cbinsights.com
www.cbinsights.com
11 Venture Capital Activity Report | Q4 2011
Q4 2011 Venture Capital
INTERNET
www.cbinsights.com
12 Venture Capital Activity Report | Q4 2011
Internet Investment Comes Back to Earth After Torrid Q3
Web companies took over $10.5B of venture funding in 2011 representing over 1/3 of
Internet
total VC investment.
www.cbinsights.com
13 Venture Capital Activity Report | Q4 2011
Cali Dominates Net Deals & Dollars and NY Solid at #2
NY’s thriving internet ecosystem holds strong and nearly doubles Mass on # of deals.
Internet
Washington DC shows strength on dollars on back of LivingSocial mega-deal.
Quarter Highlights
283 deals | $2,514M
Top Deals
Dropbox
LivingSocial
WhaleShark Media
Box.net
Top Cities
San Francisco, CA
53 deals | $564M
New York, NY
40 deals | $362M
Washington, DC
6 deals | $207M
Austin, TX
5 deals | $164M
Palo Alto, CA
11 deals | $147M
Redwood City, CA
7 deals | $146M
Mountain View, CA
10 deals | $89M
San Mateo, CA
5 deals | $85M
Boston, MA
6 deals | $69M
Burlingame, CA
2 deals | $46M
www.cbinsights.com
14 Venture Capital Activity Report | Q4 2011
Deal/Dollar Share In Line With Historical Levels
NY’s ascent of Q3’11 didn’t continue, but the state still was the clear #2.
Internet
Massachusetts falls to 5 quarter low on share of internet deals.
www.cbinsights.com
15 Venture Capital Activity Report | Q4 2011
Seed and Series A Momentum Stays Strong
Seed deals in web companies maintained record levels, and Series A showed an
Internet
uptick. Series B and C deals both declined on deal share.
www.cbinsights.com
16 Venture Capital Activity Report | Q4 2011
Dropbox and Box.net Garner Data Storage Big Dollars
Deal and dollar distribution remains diverse with some new areas like business
Internet
intelligence, analytics and video showing deal strength.
www.cbinsights.com
17 Venture Capital Activity Report | Q4 2011
Internet Medians Drop Across the Board
While not dramatically declining, the internet sector did see median deal values drop
Internet
across-the-board on a sequential basis.
www.cbinsights.com
18 Venture Capital Activity Report | Q4 2011
Q4 2011 Venture Capital
HEALTHCARE
www.cbinsights.com
19 Venture Capital Activity Report | Q4 2011
What Healthcare VC Decline?
Healthcare
After three quarters of declining deal volume, healthcare re-emerged with strong
dealflow and the highest venture funding tally of the last five quarters.
www.cbinsights.com
20 Venture Capital Activity Report | Q4 2011
Mass and Cali Retain Dominance of Healthcare Sector
Healthcare
California and Massachusetts combine for 50% of deal share and 67% of dollars. The
rest of the field is fragmented as is typical.
Quarter Highlights
172 deals | $1,895M
Top Deals
Portola Pharmaceuticals
Agios Pharmaceuticals
Rempex Pharmaceuticals
Sensors for Medicine & Science
Dermira
Cleave Biosciences
Top Cities
Cambridge, MA
13 deals | $262M
San Diego, CA
14 deals | $172M
South San Francisco, CA
3 deals | $106M
Boston, MA
4 deals | $80M
Redwood City, CA
2 deals | $74M
Germantown, MD
1 deals | $54M
Irvine, CA
3 deals | $51M
New York, NY
3 deals | $47M
Watertown, MA
4 deals | $44M
Burlingame, CA
1 deals | $42M
www.cbinsights.com
21 Venture Capital Activity Report | Q4 2011
Cali Slides to Five Quarter Low on Deal Share
Healthcare
Overall, venture deal and dollar share stays within its historical bounds.
www.cbinsights.com
22 Venture Capital Activity Report | Q4 2011
Healthcare Sees Series A Deals Win the Quarter
Healthcare
Healthcare VCs committed significant deal volume and funding to Series A deals.
Series B was weak on both fronts. Is a Series B crunch which is discussed on the
tech front also going to hit healthcare?
www.cbinsights.com
23 Venture Capital Activity Report | Q4 2011
Medical Devices, Pharma and Biotech Rule Q4
Healthcare
Medical devices continue their leading position for deals and dollars within the
Healthcare sector, followed by strong quarters for both Pharma and Biotech.
www.cbinsights.com
24 Venture Capital Activity Report | Q4 2011
Healthcare Medians Come Down Across the Board in Q4
Healthcare
Across all stages, medians declined. Funding strength in healthcare in Q4’11 driven
by healthy deal volume.
www.cbinsights.com
25 Venture Capital Activity Report | Q4 2011
Q4 2011 Venture Capital
GREEN & CLEAN TECH
www.cbinsights.com
26 Venture Capital Activity Report | Q4 2011
Green Tech Deals and Dollars Maintain Levels
Q4 sees funding levels exceed $1B in Q4’11 and in-line with Q3’11. Relative to Q4’10,
Green
deals were up 17% and funding was up 62%.
www.cbinsights.com
27 Venture Capital Activity Report | Q4 2011
Texas Green Tech Deals Down but Funding Share Way Up
Cali remains the overwhelming leader in terms of Green Tech deals and dollars. Texas
Green
shows funding strength on back of large Green Tech investment into
Quarter Highlights
69 deals | $1,281M
Top Deals
Better Place
Stion
Soraa
eRecyclingCorps
Top Cities
Irving, TX
2 deals | $206M
Palo Alto, CA
1 deals | $200M
San Jose, CA
2 deals | $145M
Sunnyvale, CA
5 deals | $97M
Fremont, CA
3 deals | $68M
Tucson, AZ
1 deals | $50M
Westborough, MA
2 deals | $31M
Orem, UT
1 deals | $30M
Ashland, OR
1 deals | $28M
Santa Monica, CA
1 deals | $27M
www.cbinsights.com
28 Venture Capital Activity Report | Q4 2011
Cali and Texas Take 75% of Green Tech Dollars
Deal share across states remains consistent. Mega-deals in Cali and Texas have
Green
them eating up most of Green Tech funding in Q4.
www.cbinsights.com
29 Venture Capital Activity Report | Q4 2011
Early Stage Green Tech Deals Hit 5-Quarter High
After Q3’11’s early stage investment beatdown, Q4’11 sees a resurgence with 40% of
Green
deals going to Seed and Series A.
www.cbinsights.com
30 Venture Capital Activity Report | Q4 2011
Renewables Hits Five Quarter Low on Deal Share
Renewables retains top spot, but sees new 5-quarter low in terms of deal share.
Green
Energy Efficiency technology has a strong quarter with a number of smaller deals.
www.cbinsights.com
31 Venture Capital Activity Report | Q4 2011
Green Tech Median Deal Values Generally Decline
Overall and across most stages, median deal values dropped with the exception of
Green
Series D. The reduction in investment in renewables helped to drop medians across the
board.
www.cbinsights.com
32 Venture Capital Activity Report | Q4 2011
Q4 2011 Venture Capital
CALIFORNIA
www.cbinsights.com
33 Venture Capital Activity Report | Q4 2011
What Smart Investors, Bankers and
Wealth Managers Use to Get Ahead…
With CB Insights you can access deep private company info that was once exclusively
available behind prohibitively expensive paywalls.
CB Insights is accessible for free by visiting http://www.cbinsights.com
82,000+ Private Company Profiles. Coverage Universe
Over 82,000 high value private
company profiles across industries and • Venture Capital – 1999 to present
sectors. Medical devices to • Angel Investment
mobile. Industrial to internet. • Private Equity
• Federal SBIR Grants – 3 years
• State Grant Programs
From Angel to Private Equity. • Incubators – Over 300
Angel investment to venture capital to • Middle Market Private Companies
private equity to government funding to
under the radar mid-market private Sector Coverage
companies.
• Green/clean tech
• Internet
Company & Investor Updates via Email. • Mobile & Telecom
• Software
Add companies and investors of • Energy & Utilities
interest to your CBI Watchlist and get • Computer Hardware & Services
notified of changes and updates • Healthcare
automatically. • Industrial
• Automotive & Transportation
Management & Board Information • Business Products & Services
• Consumer Products & Services
Find out about the people behind the • Electronics
companies including management and • Environmental Services &
board of directors profiles. Equipment
• Financial Services
• Food & Beverages
• Leisure
Analytics & Reporting • Media
• Metals & Mining
Downloadable reports and analytics
• Retail
which allow you to manipulate data
• Risk & Security
when and how you want to.
www.cbinsights.com
34 Venture Capital Activity Report | Q4 2011
The Golden State – Steady as Ever
California stays within its recent historical ranges on both deals and dollars. Versus
California
Q4’10, deals were down 3% and funding was up 45%.
www.cbinsights.com
35 Venture Capital Activity Report | Q4 2011
Mega Deals Across Sectors Maintain Funding Balance
California
On the deal side, Internet and Healthcare combine for 57% of deal share.
Quarter Highlights
300 deals | $3,836M
Top Sector
# of Deals – Internet
$ of Funding – Internet
Top Deals
Dropbox
Better Place
Stion
Prysm
Portola Pharmaceuticals
Top Cities
San Francisco
80 deals | $818M
Palo Alto
29 deals | $529M
San Jose
12 deals | $355M
Redwood City
12 deals | $313M
Fremont
7 deals | $212M
San Diego
19 deals | $195M
Sunnyvale
10 deals | $143M
Mountain View
15 deals | $124M
South San Francisco
5 deals | $121M
Menlo Park
13 deals | $119M
www.cbinsights.com
36 Venture Capital Activity Report | Q4 2011
Healthcare Gains Modestly on Deals & Dollars in Cali
No violent shifts in deal or funding share for Cali during Q4’11. Quarter continued
California
demonstration of Cali’s balanced VC landscape.
www.cbinsights.com
37 Venture Capital Activity Report | Q4 2011
Early Stage Dealflow Hits Five Quarter High
Seed and Series A grow in number hitting 45% of deals. Series B and beyond
California
comparable to prior quarter ranges on both deals and funding.
www.cbinsights.com
38 Venture Capital Activity Report | Q4 2011
Q4 2011 Venture Capital
MASSACHUSETTS
www.cbinsights.com
39 Venture Capital Activity Report | Q4 2011
Massachusetts
Patriot Nation Hits Five Quarter High on Deals
After Q3’11s blah funding total, Q4’11 registers a 35% sequential increase and 52%
year over year increase on funding. Deals were up 12% sequentially and 19% year
over year.
www.cbinsights.com
40 Venture Capital Activity Report | Q4 2011
Massachusetts
Healthcare Wins on Both Deals and Dollars in Mass
Healthcare activity in Mass stays strong. Internet took back the #2 spot for funding
from Energy.
Quarter Highlights
93 deals | $959M
Top Sector
# of Deals – Healthcare
$ of Funding - Healthcare
Top Deals
Agios Pharmaceuticals
Rapid7
Cyber-Ark Software
Zink
SAGE Therapeutics
Top Cities
Cambridge
27 deals | $312M
Boston
16 deals | $169M
Waltham
10 deals | $123M
Newton
6 deals | $83M
Westborough
5 deals | $47M
Watertown
4 deals | $44M
Bedford
1 deals | $35M
Charlestown
1 deals | $18M
Southborough
1 deals | $17M
Woburn
2 deals | $16M
www.cbinsights.com
41 Venture Capital Activity Report | Q4 2011
Massachusetts
Internet Deals Hit Five-Quarter Low in Mass
Four out of ten deals and one out of two VC dollars in Mass went to healthcare
companies. Internet deal share hits a low watermark.
www.cbinsights.com
42 Venture Capital Activity Report | Q4 2011
Massachusetts
Early Stage Hits 5-Quarter High in Massachusetts
Seed and Series A combine for 42% of deals tying with levels seen in Q2’11. Larger
Series A deals primarily in healthcare drove funding share of Series A rounds to
highest level in five quarters.
www.cbinsights.com
43 Venture Capital Activity Report | Q4 2011
Q4 2011 Venture Capital
NEW YORK
www.cbinsights.com
44 Venture Capital Activity Report | Q4 2011
As the Jets Go, So Does New York’s VC Scene?
New York
After a breakout Q3’11 where NY took the #2 spot for overall VC, NY dipped but
remained strong still ahead on both deals and dollars vs. Q4’10.
www.cbinsights.com
45 Venture Capital Activity Report | Q4 2011
Get Started for Free with CB Insights
Basic membership on CB Insights is free. Just visit http://www.cbinsights.com. Or
connect with us via any of the following.
Twitter Newsletter
Follow us @cbinsights Click here to receive our weekly
dealflow newsletter.
Email Telephone
212-292-3148
info@cbinsights.com
www.cbinsights.com
46 Venture Capital Activity Report | Q4 2011
Internet Still Rules, but Mobile and Healthcare Show Life
New York
Internet continues to command the lion’s share of deals and dollars, but Mobile deals
register volume and Healthcare consumes serious dollars in Q4.
Quarter Highlights
73 deals | $568M
Top Sector
# of Deals – Internet
$ of Funding - Internet
Top Deals
Fab.com
Imagen Biotech
Outbrain
Knewton
Top Cities
New York
61 deals | $491M
Buffalo
2 deals | $37M
Ithaca
3 deals | $28M
Brooklyn
5 deals | $7M
Highland
1 deals | $4M
www.cbinsights.com
47 Venture Capital Activity Report | Q4 2011
Internet Share Shrinks in Terms of Both Deals and Dollars
New York
Mobile deals see a jump in Q4, reclaiming share of deal volume experienced in Q2.
Healthcare experiences 5-quarter high in terms of dollar share.
www.cbinsights.com
48 Venture Capital Activity Report | Q4 2011
NY Early Stage Experiences Considerable Jump in Q4
New York
Following two relative weak quarters, early stage reclaims share in NY with
Seed/Series A commanding 60% of deal volume and nearly 40% of investment in Q4.
www.cbinsights.com
49 Venture Capital Activity Report | Q4 2011
Q4 2011 Venture Capital
WASHINGTON
www.cbinsights.com
50 Venture Capital Activity Report | Q4 2011
In Q4, Washington Fails to Build on Recent Momentum
Washington
Venture deal volume in Washington was down for a third straight quarter, while
investment dollars fall substantially after showing some pep in Q3.
www.cbinsights.com
51 Venture Capital Activity Report | Q4 2011
Internet and Healthcare Continue to Dominate in Washington
Washington
Internet and Healthcare split venture investment dollars fairly evenly, while Mobile
convincingly occupied the third spot.
Quarter Highlights
24 deals | $146M
Top Sector
# of Deals – Internet
$ of Funding - Internet
Top Deals
NanoString Technologies
adSage
RedFin
Zaarly
DreamBox
Top Cities
Seattle
15 deals | $92M
Bellevue
3 deals | $32M
Redmond
2 deals | $8M
Bothell
1 deals | $8M
Issaquah
1 deals | $3M
Kirkland
1 deals | $2M
www.cbinsights.com
52 Venture Capital Activity Report | Q4 2011
Healthcare Grows Share for Third Straight Quarter
Washington
Healthcare continues its tear, as both deal volume and investment dollars grow share
for the third straight quarter. Could it unseat Internet for top spot in the near future?
www.cbinsights.com
53 Venture Capital Activity Report | Q4 2011
Early Stage Investing Roars Back in Washington
Washington
Seed maintains its share of deals while Series A quadruples its share of deal volume
versus Q3. Early stage commands nearly 60% of overall deal volume.
www.cbinsights.com
54 Venture Capital Activity Report | Q4 2011
Q4 2011 Venture Capital
TEXAS
www.cbinsights.com
55 Venture Capital Activity Report | Q4 2011
Dollars Up, Deals Down in the Lone Star State
Texas
Texas experiences a substantial dip in deal volume in Q4, but investment dollars pop
on the backs of large deals.
www.cbinsights.com
56 Venture Capital Activity Report | Q4 2011
Energy Takes a Back Seat; Mobile Owns 50%+ of Dollars
Texas
Texas maintains sector diversity in Q4 in terms of deal volume, with Energy taking a
distant fifth seat. Mobile & Telecommunications swallows over half of dollars invested.
Quarter Highlights
24 deals | $476M
Top Sector
# of Deals – Internet
$ of Funding – Energy & Utils.
Top Deals
WhaleShark Media
eRecyclingCorps
Xtera Communications
Inova Labs
MedMark Services
Top Cities
Austin
13 deals | $208M
Irving
2 deals | $206M
Allen
1 deals | $30M
Lewisville
1 deals | $11M
Dallas
3 deals | $11M
San Antonio
1 deals | $4M
Houston
2 deals | $4M
Richardson
1 deals | $2M
www.cbinsights.com
57 Venture Capital Activity Report | Q4 2011
Energy Investment Dollars Disappear in Q4
Texas
Only a quarter after owning more than one-third of venture dollars invested in Texas,
Energy falls off the map. Mobile explodes; Internet also grows share.
www.cbinsights.com
58 Venture Capital Activity Report | Q4 2011
Early Stage Investment Regains Momentum in Texas
Texas
Seed VC deal volume comes back down to earth, but Series A explodes as early stage
commands 43% of overall deal volume.
www.cbinsights.com
59 Venture Capital Activity Report | Q4 2011
Definitions – Ensuring Data Integrity
What’s Included in our Quarterly Venture Capital Numbers? What is not?
Given the importance of venture capital in spurring innovation and entrepreneurship, measuring venture capital activity
accurately is important. 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 excluded?
• Equity financings into emerging companies. • Angel investment. These are not included in
Funding must come from venture capital firms including numbers unless an investment round included Angels
corporate venture groups. investing alongside a venture capital firm or corporate
• Fundings of only private companies. Public venture group.
companies of any kind on any exchange (including Pink • No contingent funding. If a company receives a
Sheets) are excluded from our numbers even if they commitment for $20M subject to hitting certain
received investment by a venture firm(s) milestones but first gets $8M, only the $8M is included
• Companies must be headquartered in the USA. Our in our data.
geographic data is based on the city and state where the • No business development/R&D arrangements
company receiving investment is headquartered. If a whether transferable into equity now, later or
company has a satellite office/presence in multiple cities never. If a company signs a $300M R&D partnership
or was founded in a particular city but has moved its HQ, with a larger corporation, this is not equity financing
our results reflect only this HQ address. nor is it from venture capital firms. As a result, it is not
• Only include the investment made in the quarter for included.
tranched investments. If a company does a second • Buyouts, Consolidations and Recapitalizations.
closing of its Series B round for $5M and previously had All three of these of transaction types are commonly
closed $2M in a prior quarter, only the $5M is reflected employed by private equity firms and are tracked by
in our results. CB Insights. However, they are excluded for the
• Round #s reflect what has closed – not what is purposes of this report. Private equity investments into
intended. If a company indicates the closing of $5M out companies which may have received venture capital
of a desired raise of $15M, our numbers reflect only the investment prior are also not included.
amount which has closed. • Private placements. These investments also known
• Only verifiable fundings are included. Fundings are as PIPEs (Private Investment in Public Equities) even
verified via (1) various federal & state regulatory filings if made by a venture capital firm(s) are not included.
(2) direct confirmation with firm or investor or (3) press • Debt/loans of any kind. Venture debt or any kind of
release. debt/loan issued to emerging, startup companies even
• Funding close date matters. Fundings are provided if included as an additional part of an equity financing
based on funding close date and not on announcement is not included. If a company receives $3M with $2M
date. 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.
www.cbinsights.com
60 Venture Capital Activity Report | Q4 2011
What Smart Investors, Bankers and
Wealth Managers Use to Get Ahead…
With CB Insights you can access deep private company info that was once exclusively
available behind prohibitively expensive paywalls.
CB Insights is accessible for free by visiting http://www.cbinsights.com
82,000+ Private Company Profiles. Coverage Universe
Over 82,000 high value private
company profiles across industries and • Venture Capital – 1999 to present
sectors. Medical devices to • Angel Investment
mobile. Industrial to internet. • Private Equity
• Federal SBIR Grants – 3 years
• State Grant Programs
From Angel to Private Equity. • Incubators – Over 300
Angel investment to venture capital to • Middle Market Private Companies
private equity to government funding to
under the radar mid-market private Sector Coverage
companies.
• Green/clean tech
• Internet
Company & Investor Updates via Email. • Mobile & Telecom
• Software
Add companies and investors of • Energy & Utilities
interest to your CBI Watchlist and get • Computer Hardware & Services
notified of changes and updates • Healthcare
automatically. • Industrial
• Automotive & Transportation
Management & Board Information • Business Products & Services
• Consumer Products & Services
Find out about the people behind the • Electronics
companies including management and • Environmental Services &
board of directors profiles. Equipment
• Financial Services
• Food & Beverages
• Leisure
Analytics & Reporting • Media
• Metals & Mining
Downloadable reports and analytics
• Retail
which allow you to manipulate data
• Risk & Security
when and how you want to.
www.cbinsights.com
61 Venture Capital Activity Report | Q4 2011
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