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With the VC asset class shrinking, the large balance sheets of corporate investors and an increasing focus on growth is spurring corporate venture arms to become more active and also to write larger checks. In fact, peeling back the 100 largest VC-backed tech deals over the last five years highlights that corporations participated in nearly 40% of the largest 100 tech deals in 2012 and 2013 YTD.
As 2013 comes to an end, we wanted to take a look at the 10 largest U.S.-based financing rounds that involved the participation of a corporate venture capital arm. Google Ventures-backed Uber was the largest CVC-backed financing round (and largest overall U.S. tech VC round in the year to date), followed by a $150M round to Tech IPO Pipeline candidate MongoDB backed by Intel Capital and equally large rounds to Pure Storage and Fab.com.
Continue reading “The 10 Largest Corporate Venture Capital-Backed Financing Rounds in 2013” »
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General Electric and Siemens AG compete with each other in key sectors including healthcare, industrials and energy. And in recent years, the two firms have been investing heavily in growing private companies across their competing areas of interest.
With new technologies and markets including the Internet of Things and big data now impacting, disrupting and creating opportunity for their core businesses, we wanted to analyze some high-level trends on where the two conglomerates have been investing over the past four years.
Continue reading “General Electric and Siemens Venture Capital: A Comparison of Their Investments” »
In our previous piece on tech’s Unicorn VCs, we talked about two critical levers in understanding VC performance – one, a history of consistent big exits, and two, a proclivity for making early investments into these breakout companies (what we call Selection Aptitude). A lot of readers were curious about the investors who met these criteria so we decided to dig in a little deeper to see what stage they’re getting into companies and how this might be changing over time.
Continue reading “The Unicorn VCs are Increasing Their Early Stage Investment Focus – Not Decreasing It” »
Last Sunday, Amazon gave a glimpse of a future in which unmanned aerial vehicles (aka drones) may be delivering your next set of birthday gifts. But Amazon isn’t the only one placing early bets on a future of commercial drones. To date, venture capital investments into drone-related startups has hit $79M across 15 deals.
With drone sales estimated in the billions of dollars over the next decade, there are already more venture capital investors who have done a deal in a drone-related startup than actual investor-backed drone startups (similar to a phenomena we have noted in bitcoin startups). Prominent VCs who have made drone investments in the past year include Google Ventures, Andreessen Horowitz and Felicis Ventures. The chart below highlights the financing growth trend over the past several years to the nascent drone market.
Continue reading “Drones & Robots – Venture Capitalists Investing More in Our Future Overlords” »
2012 saw venture capital and private equity investors pour over $1B into private Ed Tech companies. But while deal activity remains high, 2013 has seen Ed Tech investors pursue primarily smaller investments as funding dropped 26% in the first half of the year driven by strong deal activity into early stage companies.
Despite the drop, there have been several notable large Ed Tech financing deals in the year-to-date. Both Laureate Education and Lynda.com took over $100M, respectively, in separate investment rounds. And online MOOC platform Coursera took over $60M from investors including GSV Capital, New Enterprise Associates and Kleiner Perkins Caufield and Byers.
Continue reading “The 10 Largest Ed Tech Financings Rounds in 2013” »
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Venture capital mega-financings seem to be more frequent these days, and with each one, we hear the chatter and bloviation about a bubble. So we wanted to see if mega-financings (those greater than $100 million) are actually on the rise.
In the year to date, there have been 45 $100M+ financing rounds to private tech companies, already a 50% jump from the number of $100M tech funding rounds in all of 2012 and a 105% increase from the number of rounds in 2010. And while 2011 saw a jump in large consumer rounds buoyed by massive pre-IPO deals to Facebook, Groupon and Zynga, 2013 levels have surpassed those as well.
Continue reading “The Number of $100M+ Mega Financing Rounds is Growing” »
Building a billion-dollar tech company is hard, identifying and investing in these companies early is harder still. Our previous brief detailed how exceedingly rare VCs who invest in billion dollar tech exits are. We wanted to see what these numbers looked like within healthcare venture capital to see if the trends observable in tech carried over to the healthcare sector. Here is the data.
Using CB Insights venture capital data, we identified 50 venture-backed U.S.-based healthcare companies that exited (via either and IPO or an acquisition) between 2004 and 2013 YTD with a valuation of at least $500M. To assess past performance, we only included companies that have already exited and not companies with rumored valuations which we track but which can change wildly between financing rounds and ultimate exit.
We then analyzed the investors in these fifty $500M+ exits to understand the trends within Healthcare Unicorn VCs.
Continue reading “Healthcare’s Unicorn VCs” »
Behind a flurry of healthcare companies (biotech, pharma, drug, medical devices) going public this year, 2013 has turned out to be a robust year for venture-backed IPOs. There were several investors who participated in many of these IPOs including the group of eleven detailed below who participated in five or more IPOs in 2013 YTD. As a testament to the booming healthcare IPO market, seven of the eleven investors on the list are healthcare-focused VCs including MPM Capital, which has quietly racked up a wave of healthcare IPOs this year already.
In addition, 2013 has seen 204 venture firms participate in at least 1 IPO – a significant increase over years past. Corporate VCs also had a great year with IPOs with 27 corporate venture units having invested in at least one IPO company.
Continue reading “204 Venture Capital Firms Participated in At Least One IPO This Year. Here are the Firms Who Were in the Most IPOs.” »
From smart locks to WiFi-enabled doorbells, a range of new technologies are ushering in the rise of the “The Connected Home.” Like the movement to “quantify” the physical body using Internet-enabled sensors, startups focused on the connected home are providing services for your home ranging from security, temperature management and lighting controls and are doing it in ways that leverages data, hardware and internet and mobile software.
In our earlier research, we noted that a diverse group of industrial, telecom, technology and private equity players were jockeying to invest and acquire in the home automation space. And just a year later, it appears venture capital and private equity investors are doubling down on the promise of the connected home. Matt Turck, an investor at FirstMark Capital, captured the growing sense of VC excitement, recently writing that
“Connected home entrepreneurs have an opportunity to create, quite literally, new household brands. The emergence of connected devices is one of those disruptive waves that define entire new product categories”
Since the start of 2012, home automation startups have raised $468M across 56 deals. While a number of companies including August, SmartThings and Zonoff just recently received Series A funding, the jump in funding dollars has been driven by a handful of startups that have raised large financing rounds. The chart below highlights the growth in cumulative funding to the home automation market since 2010.
Continue reading “The Rise of the Connected Home: Venture Capital Funding to Home Automation Hits $468M Since 2012” »
As the data proves again and again, Silicon Valley dominates every other region by a huge margin when it comes to tech VC activity. Our earlier piece on why Silicon Valley is the only relevant market for venture capital ruffled a few feathers among folks who believe that the growth of VC financing in other regions constitutes a significant dent in Silicon Valley’s dominance. As our prior research briefs only looked at more recent timeframes (2012-2013), we wanted to look back a bit further to see if Silicon Valley is slipping and if a next Silicon Valley is really emerging or if this is more industry and pundit bloviating.
The reality based on the data, however, is that Silicon Valley has maintained its dominance of the largest exits and is unique in its ability to breed venture capital Black Swans – the massive outsized hits that (most) venture capitalists require to make LPs money but which most are not very good at generating.
Continue reading “The Black Swan Effect – Why Silicon Valley Is a Tech Venture Capitalist’s Best Bet” »