Transcript VC Edge 4Q'11

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Dow Jones VC Edge 4Q’11
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GLOBAL OVERVIEW
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Global Overview: 4Q’11 Key Trends
• Quarter-over-quarter investment goes down at $11B.
• Deal flow decreases 12%: 1279 in 3Q’11 to 1129 in 4Q’11.
• U.S. reconfirms itself as the strongest region: $7.3B into 803
deals.
• Healthcare and Consumer Services are the strongest sectors both
with $2.5B.
• Business & Financial Services decreases 25% from $2.4B to $1.8B.
• IT goes down 19%: $2.7B in 3Q’11 to $2.2B in 4Q’11.
• Energy & Utilities down 26% from $1.1M in 3Q’11 to $0.8M.
• Median VC round size increases in Europe and Israel, but
decreases in U.S.
• Year-over-year investment sees a decrease both in amount
invested (24%) and in deal flow (19%).
Source: Dow Jones VentureSource
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Global VC Deal Flow Decreases in 4Q’11
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Deal Flow and Equity into Canadian, Chinese, European, Indian, Israeli* and U.S. Venture-Backed Companies
* Israel HQ only
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Source: Dow Jones VentureSource
U.S. Takes Largest Share of Global Investment Allocation
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Equity Investment by Selected Regions into Venture-Backed Companies
Source: Dow Jones VentureSource
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Consumer Services is the Largest Sector in 4Q’11
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Equity Investment by Selected Industry Groups into Venture-Backed Companies
*Other: Consumer Goods and Industrial Goods & Materials
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Source: Dow Jones VentureSource
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U.S.
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U.S. Amount Invested Down in 4Q’11
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Deal Flow and Equity into U.S. Venture-Backed Companies
Source: Dow Jones VentureSource
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Healthcare Gets Largest Share of Investment in 4Q’11
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Equity Investment by Selected Industry Groups into U.S. Venture-Backed Companies
*Other: Consumer Goods and Industrial Goods & Materials
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Source: Dow Jones VentureSource
Bay Area Draws Most Investment Dollars
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Regional Investment in the U.S. 4Q’11
Source: Dow Jones VentureSource
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4Q’11 Top U.S. Investors
500 Startups LP
SV Angel
New Enterprise Associates
First Round Capital LLC
Bessemer Venture Partners
Source: Dow Jones VentureSource
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ISRAEL
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Israeli Investment Up in 4Q’11
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Deal Flow and Equity into Venture-Backed Companies with Offices in Israel
Source: Dow Jones VentureSource
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Energy & Utilities Strongest Sector in 4Q’11
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Equity Investment by Selected Industry Groups into Venture-Backed Israeli Companies
*Other: Consumer Goods and Industrial Goods & Materials
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Source: Dow Jones VentureSource
Later Round Investment Allocation Up in 4Q’11
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Equity Investment by Round Class into Venture-Backed Companies with Offices in Israel
Source: Dow Jones VentureSource
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4Q’11 Top Israeli Investors
Vodafone Ventures
Mitsui & Co. Global Investment Ltd.
Qualcomm Inc.
BrainsToVentures
Bridge Investment Fund
Source: Dow Jones VentureSource
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EUROPE
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Investment & Deal Flow in 4Q’11
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Deal Flow and Equity into European Venture-Backed Companies
Source: Dow Jones VentureSource
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Healthcare Leads 4Q’11 Investment Allocation
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Equity Investment by Selected Industry Groups into European Venture-Backed Companies
Biopharmaceuticals
22%
Other*
23%
Other
17%
Energy &
Utilities
3%
Renewable Energy
3%
Healthcare
29%
Cons Serv
14%
IT
13%
Bus Serv
24%
Business Support
Services
21%
Software
9%
*Other: Consumer Goods and Industrial Goods & Materials
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Medical Devices
5%
Financial Institution &
Services
2%
Consumer Information
Services
5%
Food & Beverage
10%
Source: Dow Jones VentureSource
UK Takes Majority of European Investment
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4Q’11 Capital Raised in Europe by Country
Source: Dow Jones VentureSource
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4Q’11 Top European Investors
High-Tech Gruenderfonds
Management GmbH
Delta Partners Ltd.
Seventure Partners SA
Bayern Kapital GmbH
Fjord Invest
Source: Dow Jones VentureSource
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CHINA
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Deal Flow Down in 4Q’11
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Deal Flow and Equity into Mainland Chinese Venture-Backed Companies
Source: Dow Jones VentureSource
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Consumer Services Strongest Sector in 4Q’11
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Equity Investment by Selected Industry Groups into Mainland Chinese Venture-Backed Companies
*Other: Consumer Goods and Industrial Goods & Materials
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Source: Dow Jones VentureSource
Later Stage Investments Stronger in 4Q’11
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Equity Investment by Round Class into Mainland Chinese Venture-Backed Companies
Source: Dow Jones VentureSource
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4Q’11 Top Chinese Investors
IDG Capital Partners
Qiming Weichang Venture Capital
Management (Shanghai) Co. Ltd.
Intel Capital
Kleiner Perkins Caufield & Byers
Temasek Holdings Pvt. Ltd.
Source: Dow Jones VentureSource
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