MoneyTree™
Report
Q2 2019
2
Executive summary
Q2 2019
$100M+ deals continue to elevate US VC funding levels,
with total funding on track to push records again.
At the 2019 halfway point, US VC funding shows no signs
of slowing: At the end of Q2, US VC funding was at $55B,
well above the mid-point for 2018 ($48B), which ultimately
saw a near-record $116B raised (compared to the record
$120B in 2000).
$100M mega-rounds drive funding higher: Driving the
trend toward bigger deals, US companies raised a record
quarterly number of $100M+ VC rounds in Q2, with 64
mega-rounds accounting for nearly half of all funding
raised.
Seed rounds fluctuate to lowest activity in six years: After
rebounding last quarter, Seed activity dropped below levels
last seen in Q1’14.
US produces 19 new unicorns: 19 US VC-backed companies
saw their valuations rise to $1B+, nearing the record set in
Q4’18 of 22 new unicorns.
Q2 2019 funding across North America, Asia, and Europe
remains relatively flat.
North America, Asia, and Europe combined funding hits
$53B: Total annual VC funding decreased by 2% from Q1
2019 totals. Deal activity increased by 2%, to 3,474
transactions.
Asia deal activity retreats behind North America: While Asia
came close to surpassing North America’s deal activity in Q3
2018, the region’s deal activity has since declined by 24%
from Q3’18 to Q2’19.
San Francisco Bay Area deal activity rebounds: After 3
consecutive quarters of decline, deal activity increased 17% to
438 transactions in Q2 2019. After record quarterly funding of
$25B in Q3 2018, dollar funding has since stabilized to $13B.
New York Metro sees slight decline in deal and dollar funding
activity: After deal activity rebounded by 29% in Q1 2019, it
declined by 8% in Q2 2019 to 212 transactions. Similarly,
dollar funding declined by 9% in Q2 2019.
Geographic Insights
US Insights
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
3
1,587
1,465
1,573
1,683
1,484
1,378
1,362
1,409
20.7
20.2
23.1
24.6
29.3
39.0
26.1
28.7
Q3'17
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q2 investments rise after fall from funding record set in Q4’18
US deals and dollars – Quarterly
Record
funding
(all-time)
Investments ($B)
# of deals
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
4
8,314
1,892
3,423
6,268
6,118
2,771
2019 YTD US funding is strong
US deals and dollars – Annual
2010
2005
2000
2015
2019
YTD
$120
$55
Record
funding
(all-time)
Investments ($B)
# of deals
$116
Record funding
(this century)
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
5
2019 records the largest first half this century
US funding – Quarterly seasonality
$8.2
$12.3
$18.9
$16.6
$16.0
$23.1
$26.1
$9.0
$16.9
$20.8
$18.6
$19.7
$24.6
$28.7
$9.1
$14.0
$20.8
$15.8
$20.7
$29.3
$10.1
$17.5
$17.6
$12.1
$20.2
$39.0
Record annual funding
(this century)
Record first
half funding
(this century)
Q3
Q2
Q1
Q4
Total
Investments ($B):
2017
2016
2015
2014
2013
2018
2019 YTD
$36.4
$116.0
$76.6
$63.1
$78.1
$60.7
$54.8
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
6
Seed deal activity fluctuated down to its lowest level in six years
Deal activity by round
Note: All deals include additional round types
1,247
All deals
554
105
70
330 SeriesA
113 Series C
60 Series E+
1,183
364 Seed
292
Q1
2019
Q1
2014
Q1
2015
Q1
2016
Q1
2017
Q1
2018
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
7
SeriesA
$8.0M
$2.0M
$2.2M Seed
Overall median deal size jumped 26% to $7.6M from Q1’19
Median deal size by round
Overall
$7.6M
$26.3M Series C
$0.6M
$3.8M
$9.0M
Note: Overall median includes additional round types
Q1
2019
Q1
2014
Q1
2015
Q1
2016
Q1
2017
Q1
2018
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
8
31
35
33
48
55
51
48
64
Q2’19 saw a record number of $100M+ funding rounds
Mega-rounds – Investments and deal counts
$8.2
$7.6
$7.9
$8.2
$14.6
$24.7
$11.9
$13.4
Q3'17
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Record
mega-rounds
(all-time)
Record
mega-round
investments
(all-time)
Mega-round investments ($B)
# of Mega-rounds
Note: Mega-rounds are $100M deals or larger
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
9
40%
38%
34%
33%
50%
63%
46%
47%
Mega-rounds maintain a high percentage of all deals
Mega-rounds – Funding and share of deals
$8.2
$7.6
$7.9
$8.2
$14.6
$24.7
$11.9
$13.4
$11.5
$12.5
$12.3
$12.3
$14.7
$15.8
$13.9
$13.2
Q3'17
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Record
mega-round
share
(all-time)
Mega-round investments ($B)
Non mega-round investments ($B)
Mega-round share
Note: Mega-rounds are $100M deals or larger
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
10
US $100M+ rounds are on track to set records again
Mega-rounds – Quarterly seasonality
$1.2
$2.9
$6.9
$4.3
$4.4
$7.9
$11.9
$0.9
$4.4
$7.3
$7.4
$7.0
$8.2
$13.4
$0.8
$3.5
$7.8
$4.9
$8.2
$14.6
$1.2
$6.9
$6.2
$2.1
$7.6
$24.7
2013
2014
2015
2016
2017
2018
2019 YTD
Record annual
mega-round
funding
(all-time)
Record quarterly
mega-round
funding
(all-time)
$4.1
$55.4
$27.2
$18.7
$28.2
$17.7
$25.3
Q3
Q2
Q1
Q4
Total
Investments ($B):
Note: Mega-rounds are $100M deals or larger
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
11
Sector
Deals
Funding
1 Internet
$12.0B
2 Healthcare
$4.6B
3 Mobile & Telecommunications
$3.1B
4 Software (non-internet/mobile)
$2.7B
5 Consumer Products & Services
$.7B
52
132
167
221
620
Internet companies raised the most funding rounds of any sector
Deals and dollars – US sectors
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
12
Q2 2019 saw one $1B+ funding round (13th largest of all time)
Largest US deals of Q2 2019
Company
Investment
Round
Select investors
Vertical
1 Cruise Automation
San Francisco, CA
$1.15B Corporate
Minority
General Motors
Automotive & Transportation
2 DoorDash
San Francisco, CA
$600M Series E+
Coatue Management, Darsana Capital
Partners, Dragoneer Investment Group
Internet
2 UiPath
New York, NY
$600M Series D+
Accel, capitalG, Coatue Management,
Dragoneer Investment Group
Software
3 SpaceX
Hawthorne, CA
$536M Other
Undisclosed
Industrial
4 SoFi
San Francisco, CA
$500M Series E+
Marketplace Funds, Qatar Investment
Authority, Third Point Ventures
Internet
4 Uber
San Francisco, CA
$500M Corporate
Minority
PayPal
Mobile & Telecommunications
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
13
Company
Funding Vertical
Emerging areas Select investors
1 Juul Labs
San Francisco, CA
$13.6B Consumer Products & Services Consumer
Hardware
Coatue Management, D1 Capital
Partners, Tiger Global Management
2 WeWork
New York, NY
$6.6B Business Product & Services
Co-Working &
Co-Living
Spaces
T. Rowe Price, Benchmark Capital,
Softbank Group
3 Airbnb
San Francisco, CA
$3.4B
Internet
E-Commerce
On-Demand
Sequoia Capital, Andreessen Horowitz,
Greylock Partners, General Catalyst
4 SpaceX
Hawthorne, CA
$2.7B
Industrial
Aerospace & Defense
Space Tech
Founders Fund, Threshold Ventures,
Fidelity Investments, Google
5 Magic Leap
Plantation, FL
$2.6B Software (non-internet/mobile)
Scientific, Engineering
Software
AR/VR
Alibaba Group, Fidelity Investments,
Google
Juul moves into the #1 spot following Uber’s IPO
Top 5 funded US companies – Q2 2019
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
14
Q2’19 saw new US unicorns at near-record levels
Unicorns – New US VC-backed unicorns by quarter
8
7
7
8
19
22
16
19
Q3'17
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Record new unicorns
(all-time)
Note: Unicorns are startups valued at $1B or more
US VC-backed unicorn births
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
15
Record population
(all-time)
Unicorn population remains at record level, despite recent exits
US unicorn population
108
111
114
114
127
143
157
167
Q3'17
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Unicorn population count
Note: Unicorns are startups valued at $1B or more
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
16
Record aggregate
unicorn valuation
(all-time)
Unicorn valuations ($B)
$376.9
$378.8
$402.9
$412.3
$473.3
$575.6
$603.3
$552.9
Q3'17
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Total value of US unicorns fell from record highs in Q1’19
Unicorns – US aggregate unicorn valuation
Note: Unicorns are startups valued at $1B or more
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
17
Company
Valuation
Vertical
Emerging areas Select investors
1 Juul Labs
San Francisco, CA
$50.0B Consumer Products &
Services
Consumer Electronics
Consumer
Hardware
Coatue Management, D1 Capital
Partners, Tiger Global Management
2 WeWork
New York, NY
$47.0B
Business Product & Services
Co-Working &
Co-Living
Spaces
T. Rowe Price, Benchmark Capital,
Softbank Group
3 Airbnb
San Francisco, CA
$29.3B
Internet
On-Demand
General Catalyst Partners,Andreessen
Horowitz, ENIAC Ventures
4 Stripe
San Francisco, CA
$22.5B
Internet
Fin Tech
Khosla Ventures, Lowercase Capital,
capitalG
5 SpaceX
Hawthorne, CA
$18.5B
Industrial
Aerospace & Defense
Space Tech
Founders Fund, Threshold Ventures,
Fidelity Investments, Google
Juul replaces Uber as the most highly valued VC-backed company
Top 5 highest valued US unicorns — Q2 2019
Note: Unicorns are startups valued at $1B or more
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
18
7.9
6.7
6.6
6.8
6.2
7.1
6.3
7.5
149
157
165
179
162
183
162
163
Q3‘17
Q4‘17
Q1‘18
Q2‘18
Q3‘18
Q4‘18
Q1'19
Q2'19
Time-to-liquidation reaches highest level since Q3 2017
US M&A exits — Quarterly
Note: Median years to liquidate from first funding
Record
exits
(all-time)
M&A exits
Years
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
19
11
24
13
32
25
16
15
33
Q3‘17
Q4‘17
Q1‘18
Q2‘18
Q3‘18
Q4‘18
Q1'19
Q2'19
5.8
8.8
4.5
6.7
7.1
7.4
5.4
7.3
9th fastest
(this century)
8th
highest
(ever)
IPO activity
Years to IPO
US IPO exits reach 8-quarter record in Q2’19
US IPOs — Quarterly
Note: Median years to liquidate from first funding
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
20
7.9
6.7
6.6
6.8
6.2
7.1
6.3
7.5
5.8
8.8
4.5
6.7
7.1
7.4
5.4
7.3
Q3 ‘17
Q4 ‘17
Q1 ‘18
Q2 ‘18
Q3 ‘18
Q4 ‘18
Q1'19
Q2'19
Time-to-liquidation converges for M&A and IPO exits
M&A exits and IPOs combined — Time-to-liquidation
Years to M&A
Years to IPO
Note: Median years to liquidate from first funding
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
21
149
157
165
179
162
183
162
163
11
24
13
32
25
16
15
33
Q1’18
Q2’18
Q3’18
Q4’17
Q3’17
Q1’19
Q4’18
Q2’19
Q2’19 M&A exits nearly flat, but IPOs more than double from Q1
M&A exits and IPOs combined — Number of exits
IPO exits
M&A exits
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
22
Internet and Healthcare sectors dominate the top deals
Top 5 M&A exits of Q2 2019
Company
Last round Valuation Verticals
Select prior investors
Buyer
1 Looker
Santa Cruz, CA
Series E
$2.6B
Internet
Redpoint Ventures, Goldman
Sachs, First Round Capital
Google
2 Peloton Therapeutics
Dallas, TX
Series E
$2.2B Healthcare
BVF Partners, Foresite Capital,
Nextech Invest
Merck & Co.
3 Harry’s Razor
Company
New York, NY
Series D
$1.4B
Internet
Tiger Global Management, Thrive
Capital, Temasek Holdings
Edgewell
Personal
Care Co.
4 Kyriba
San Diego, CA
Series E
$1.2B
Internet
Upfront Ventures, Iris Capital,
HSBC Venture Capital
Bridgepoint
5 Paragon Bioservices
Baltimore, MD
Series B
$1.2B Healthcare
Camden Partners, NewSpring
Holdings
Catalent
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
23
San Francisco Bay Area sees continued surge of top IPOs
Top 5 IPOs of Q2 2019
Company
Last round Valuation
Verticals
Select prior investors
1 Uber
San Francisco, CA
Corporate
Minority
$75.5B
Mobile & Telecommunications SoftBank Group, DiDi Chuxing, Barclays
Bank, Citigroup, Goldman Sachs
2 Slack Technologies
San Francisco, CA
Series H
$15.7B
Internet
Atlassian, Accel, GGV Capital, Comcast
Ventures, Index Ventures
3 Pinterest
San Francisco, CA
Series H
$12.7B
Internet
Andreessen Horowitz, Bessemer Venture
Partners, FirstMark Capital
4 Zoom Video
Communications
San Jose, CA
Series D
$9.2B
Internet
Sequoia Capital, Emergence Capital,
Qualcomm Ventures
5 Adaptive Biotechnologies
Seattle, WA
Corporate
Minority
$2.4B
Healthcare
Labcorp, Viking Global Investors, Tiger
Management Corp
24
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
Three top metros raise notably more rounds in Q2’19
Top 10 Metros by deal activity
#1 San Jose-San Francisco-Oakland, CA
#2 New York-Newark, NY-NJ-CT-PA
#3 Boston-Worcester-Providence, MA-RI-NH-CT
#4 Los-Angeles-Long Beach, CA
#5 Seattle-Tacoma, WA
#6 Denver-Aurora, CO
#7 Austin-Round Rock, TX
#8 Washington-Baltimore-Arlington, DC-MD-VA-WV-PA
#9 San Diego-Carlsbad, CA
#10 Chicago-Naperville, IL-IN-WI
25
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
Eight top metros raise more capital in Q2’19
Top 10 Metros by investments
#1 San Jose-San Francisco-Oakland, CA
#2 New York-Newark, NY-NJ-CT-PA
#3 Boston-Worcester-Providence, MA-RI-NH-CT
#4 Los-Angeles-Long Beach, CA
#5 San Diego-Carlsbad, CA
#6 Seattle-Tacoma, WA
#7 Chicago-Naperville, IL-IN-WI
#8 Salt Lake City-Provo-Orem, UT
#9 Denver-Aurora, CO
#10 Raleigh-Durham-Chapel Hill, NC
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
26
120
103
119
115
102
105
74
87
$1.3
$0.9
$1.8
$1.7
$0.6
$2.0
$1.6
$1.6
Q3'17
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Investments ($B)
# of Deals
Quarterly deals rebound after sharp decline
LA Metro deals and dollars – Quarterly
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
27
One mega-round eclipses other top LA deals
Top 5 LA Metro deals
Company
Investment
Round
Select investors
Vertical
1 SpaceX
Hawthorne, CA
$536M N/A
N/A
Industrial
2 Virgin Hyperloop One
Los Angeles, CA
$172M Series C
DP World
Automotive & Transportation
3 Restaurant365
Irvine, CA
$88M Series C
Bessemer Venture
Partners, Tiger Global Management
Internet
4 VideoAmp
Los Angeles, CA
$70M Series C
Ankona Capital, The Raine Group
Internet
5 Criteria Corp
West Hollywood, CA
$56M Private Equity Sumeru Equity Partners
Internet
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
28
483
449
528
514
441
419
374
438
$6.6
$8.8
$10.9
$10.2
$14.0
$25.3
$12.2
$13.7
Q3'17
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Investments ($B)
# of Deals
Deals rebound after three consecutive quarters of decline
San Francisco Bay Area deals and dollars – Quarterly
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
29
Rounds over $500M dominate top deals
Top 5 San Francisco Bay Area deals
Company
Investment
Round
Select investors
Vertical
1 Cruise Automation
San Francisco, CA
$1.2B Corporate
Minority
General Motors, SoftBank Group,
T.Rowe Price
Automotive &
Transportation
2 DoorDash
San Francisco, CA
$600M Series G
SoftBank Group, Sequoia Capital,
Temasek Holdings
Internet
3 SoFi
San Francisco, CA
$500M Series G
Third Point Ventures, Qatar
Investment Authority
Internet
4 Uber
San Francisco, CA
$500M Corporate
Minority
PayPal
Mobile & Telecommunications
5 PAX
San Francisco, CA
$420M Series E
Tiger Global Management, Tao Capital
Partners, Redmile Group
Consumer Products & Services
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
30
239
233
229
241
203
178
230
212
$4.7
$3.1
$2.7
$3.0
$5.9
$2.2
$4.5
$4.1
Q3'17
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Investments ($B)
# of Deals
Q2’19 deals and dollars decline slightly compared to Q1
New York Metro deals and dollars – Quarterly
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
31
Internet, software, and mobile continue to outpace other sectors
Top New York Metro deals
Company
Investment
Round
Select investors
Vertical
1 UiPath
New York, NY
$568M Series D Accel, capitalG, Sequoia
Capital
Software (non-internet /
mobile)
2 Gympass
New York, NY
$300M Series D Atomico, General Atlantic,
SoftBank Group
Internet
3 Lemonade
New York, NY
$300M Series D Allianz X, General Catalyst,
Google Ventures
Internet
4 Foursquare
New York, NY
$150M Series G The Raine Group
Mobile & Telecommunications
5 SpringWorks Therapeutics
Stamford, CT
$125M Series B Bain Capital, GlaxoSmithKline,
OrbiMed Advisors
Healthcare
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
32
35
38
27
40
27
34
23
39
$574.6
$296.5
$392.5
$589.6
$924.8
$741.6
$296.3
$805.8
Q3'17
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Investments ($M)
# of Deals
San Diego metro deals and dollars jump in Q2’19
San Diego Metro deals and dollars – Quarterly
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
33
Healthcare startups dominate San Diego top deals
Top San Diego Metro deals
Company
Investment
Round
Select investors
Vertical
1 Poseida Therapeutics
San Diego, CA
$142M Series C Novartis, Aisling Capital,
Vivo Capital
Healthcare
2 TuSimple
San Diego, CA
$105M Series D CDH Investments, Sina Weibo
Fund
Software
3 Acutus Medical
Carlsbad, CA
$100M Series D 8VC, Advent Venture Partners,
GE Ventures
Healthcare
4 Vividion Therapeutics
San Diego, CA
$82M Series B ARCH Venture Partners,
Versant Ventures, BVF Partners
Healthcare
5 Locana
San Diego, CA
$55M Series A ARCH Venture Partners,
Google Ventures, Temasek
Holdings
Healthcare
5 Tealium
San Diego, CA
$55M Series F Presidio Ventures, Bain Capital
Ventures, Silver Lake Partners
Internet
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
34
53
40
39
61
45
37
46
45
$691.0
$326.5
$351.0
$811.7
$656.6
$227.1
$473.7
$668.1
Q3'17
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Investments ($M)
# of Deals
Seattle funding jumps, deals down slightly in Q2’19
Seattle Metro deals and dollars – Quarterly
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
35
Seattle-based startups raise two $100M+ deals in Q2’19
Top Seattle Metro deals
Company
Investment
Round
Select investors
Vertical
1 Outreach
Seattle, WA
$114M Series E DFJ Growth Fund,
Sapphire Ventures, Spark
Capital
Internet
2 Auth0
Bellevue, WA
$103M Series E Bessemer Venture Partners, K9
Ventures, Trinity Ventures
Internet
3 Highspot
Seattle, WA
$60M Series D
ICONIQ Capital, Sapphire
Ventures, Shasta Ventures
Internet
4 Zenoti
Bellevue, WA
$50M Series C Accel, Norwest Venture
Partners, Tiger Global
Management
Internet
5 Flexe
Seattle, WA
$43M Series B Madrona Venture Group,
Redpoint Ventures, Tiger Global
Management
Internet
36
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
California and Washington materially increased deals in Q2’19
Top 10 States by deal activity
#1 California
#5 Washington
37
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
Seven top states raise more capital in Q2’19
Top 10 States by investments
#1 California
#5 Washington
#4 Florida
#7 Illinois
#8 Colorado
#9 Utah
#10 North Carolina
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
38
650
595
681
688
583
565
485
576
$8.5
$10.1
$13.1
$12.8
$15.8
$28.1
$14.3
$16.2
Q3'17
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Investments ($B)
# of Deals
California deal activity and funding jump in Q2’19
California deals and dollars – Quarterly
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
39
15
29
21
24
28
24
21
22
$1,054.0
$601.4
$510.3
$119.0
$230.5
$214.0
$161.1
$742.6
Q3'17
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Investments ($M)
# of Deals
Florida funding rises sharply in Q2’19
Florida deals and dollars – Quarterly
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
40
53
40
39
62
45
40
47
52
$691.0
$326.5
$351.0
$823.7
$656.6
$280.4
$473.7
$733.1
Q3'17
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Investments ($M)
# of Deals
WA deal activity and funding rise for the second-straight quarter
Washington deals and dollars – Quarterly
41
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
Startups selling Internet SaaS solutions dominate deal activity
Top 10 Verticals by deal activity
#1 Healthcare > Biotechnology
#2 Internet > SaaS > Monitoring & Security
#3 Internet > SaaS > BI, Analytics & Performance Mgmt
#3 Internet > eCommerce > Marketplace
#5 Internet > SaaS > Advertising, Sales & Marketing
#5 Internet > SaaS > Customer Relationship
#7 Internet > SaaS > HR & Workforce Management
#8 Internet > SaaS > Accounting & Finance
#9 Internet > SaaS > Healthcare
#10 Healthcare > Drug Development
42
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
Biotechnology, Drug Development and BI persist as top verticals
Top 10 Verticals by investments
#1 Healthcare > Biotechnology
#2 On Premise Software > Scientific, Engineering Software
#3 Automotive & Transportation > Automobile Parts
#4
Internet > SaaS > Monitoring & Security
#5
Internet > SaaS > Accounting & Finance
#6 Internet > eCommerce > Marketplace
#7 Healthcare > Drug Development
#8 Internet > eCommerce > Food & Grocery
#9 Internet > SaaS > BI, Analytics & Performance Mgmt
#10 Industrial > Aerospace & Defense
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
43
72
55
68
77
71
54
51
70
$1.2
$1.6
$2.1
$2.1
$2.2
$1.1
$1.3
$1.9
Q3'17
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Investments ($B)
# of Deals
Biotech deal activity rises sharply in Q2’19
Healthcare Biotechnology deals and dollars – Quarterly
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
44
23
35
23
39
32
27
31
30
$629
$1,412
$1,098
$1,312
$903
$1,056
$953
$948
Q3'17
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Investments ($M)
# of Deals
Drug Development financing declines slightly in Q2’19
Healthcare Drug Development deals and dollars – Quarterly
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
45
53
52
57
57
66
54
41
40
$563
$517
$516
$1,461
$857
$875
$444
$665
Q3'17
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Investments ($M)
# of Deals
Cloud BI funding rebounds after declining three straight quarters
Internet Business Intelligence Software deals and dollars – Quarterly
46
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
Fin Tech and AI tie for the most deals this quarter
Top 10 Emerging Areas by deal activity
#1 Fin Tech
#1 AI
47
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
Fin Tech continues to raise the most money with AI close behind
Top 10 Emerging Areas by investments
#1 Fin Tech
#2 AI
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
48
158
131
156
153
119
111
128
139
$1.5
$1.8
$2.1
$2.6
$2.8
$2.6
$2.7
$4.9
Q3'17
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Investments ($B)
# of Deals
AI-related financing increases for the second-straight quarter
Artificial Intelligence deals and dollars – Quarterly
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
49
The AI sector saw one $1B+ deal in Q2’19
Top Artificial Intelligence deals
Company
Investment
Round
Select investors
Vertical
1 Cruise Automation
San Francisco, CA
$1.15B Corporate
Minority
General Motors, Honda,
SoftBank Group
Automotive & Transportation
2 UiPath
New York, NY
$568M Series D Accel, capital, Coatue
Management, Dragoneer
Investment Group
Software
3 Lemonade
New York, NY
$300M Series D Allianz X, General Catalyst,
Google Ventures
Internet
4 Afirm
San Francisco, CA
$300M Series E+ Baillie Gifford & Co. Fidelity
Investments, Founders Fund
Mobile & Telecommunications
5 Tempus
Chicago, IL
$200M Series E+ Baillie Gifford & Co., Franklin
Templeton Investments, New
Enterprise Associates
Healthcare
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
50
164
161
217
180
174
158
177
139
$2.3
$2.5
$2.5
$3.4
$3.0
$3.5
$3.6
$5.1
Q3'17
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Investments ($B)
# of Deals
Fin Tech-related deals fall amid rise in funding
Fin Tech deals and dollars – Quarterly
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
51
Top 5 Fin Tech deals all $300M and higher
Top Fin Tech deals
Company
Investment
Round
Select investors
Vertical
1 UiPath
New York, NY
$568M Series D Accel, capital, Coatue
Management, Dragoneer
Investment Group
Software
2 SoFi
San Francisco, CA
$500M Series E+ Marketplace Funds, Qatar
Investment Authority, Third
Point Ventures
Internet
3 Carta
Palo Alto, CA
$300M Series E+ Andreessen Horowitz, Goldman
Sachs, Principal Strategic
Investments
Internet
4 Lemonade
New York, NY
$300M Series D Allianz X, General Catalyst,
Google Ventures
Internet
5 Affirm
San Francisco, CA
$300M Series E+ Baillie Gifford & Co. Fidelity
Investments, Founders Fund
Mobile & Telecommunications
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
52
71
60
71
73
56
52
68
56
$1.1
$0.8
$0.6
$1.7
$1.1
$1.1
$1.8
$2.1
Q3'17
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Investments ($B)
# of Deals
Cybersecurity deals fall amid slight rise in funding in Q2’19
Cybersecurity deals and dollars – Quarterly
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
53
Cybersecurity companies saw multiple $100M+ deals in Q2’19
Top Cybersecurity deals
Company
Investment
Round
Select investors
Vertical
1 KnowBe4
Clearwater, FL
$300M Series D Elephant Venture Capital,
KKR, Ten Eleven Ventures
Internet
2 Digital Guardian
Waltham, MA
$154M Series E+ Fairhaven Capital, LLR
Partners, Neocarta Ventures
Software (non-internet/mobile)
3 Druva
Sunnyvale, CA
$130M Series E+ Atreides Management,
Neuberger Berman, Nexus
Venture Partners
Internet
4 SentinelOne
Mountain View, CA
$120M Series D Data Collective, Granite Hill
Capital Partners, Insight
Partners
Computer Hardware & Services
5 Dashlane
New York, NY
$110M Series D Balderton Capital, Bessemer
Venture Partners, FirstMark
Capital
Internet
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
54
129
99
117
164
127
93
105
130
$1.2
$1.3
$1.9
$1.9
$2.7
$1.9
$1.4
$2.3
Q3'17
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Investments ($B)
# of Deals
Digital Health sector deals and dollars jumped in Q2’19
Digital Health deals and dollars – Quarterly
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
55
Digital health startups raised multiple $100M+ rounds in Q2
Top Digital Health deals
Company
Investment
Round
Select investors
Vertical
1 Collective Health
San Francisco, CA
$205M Series E+ DFJ Growth Fund,
Founders Fund, Google
Ventures
Financial
2 Tempus
Chicago, IL
$200M Series E+ Baillie Gifford & Co., Franklin
Templeton Investments, New
Enterprise Associates
Healthcare
3 Encoded Therapeutics
San Francisco, CA
$104M Series C Alexandria Venture
Investments, Altitude Life
Science Ventures, ARCH
Venture Partners
Healthcare
4 BHE
Boston, MA
$78M Growth
Equity
Leerink Transformation
Partners, Silversmith Capital
Partners
Software (non-internet/mobile)
5 Omada Health
San Francisco, CA
$73M Series E+ Andreessen Horowitz, Cigna
Ventures, Civilization Ventures
Internet
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
56
Investor
Funds raised
(2015–Q2’19)
Year
founded
Select investments
Location
1 Sequoia Capital*
$17.5B
1972
DoorDash, Noom, Klarna
Menlo Park, CA
2 Insight Partners
$12.5B
1995
SalesLoft, ezCater, Checkout.com
New York, NY
3 Andreessen Horowitz
$9.7B
2009
TripActions, ADDI, People.ai
Menlo Park, CA
4 Summit Partners
$9.1B
1984
Red Canary, Klaviyo
Boston, MA
5 New Enterprise Associates
$6.5B
1977
Collective Health, Tempus
Menlo Park, CA
The top 5 VCs have raised over $55B since 2015
Top VCs by amount raised
Note: includes all funds under the Sequoia Capital umbrella
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
57
Only one top 5 VC is focused on seed-stage deals
Most active VCs in Q2 2019
Investor
Deals
Select investments
Location
1 New Enterprise Associates
28
Coursera, Collective Health, Expel
Menlo Park, CA
2 Plug and Play Ventures
24
Zippia, Datch, Back Office
Sunnyvale, CA
3 Lightspeed Venture Partners
19
People.ai, BetterUp, Affirm
Menlo Park, CA
4 Google Ventures
19
Harness, Lemonade, Hover
Mountain View, CA
5 Kleiner Perkins
17
Nextdoor, Feather, Labelbox
Menlo Park, CA
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
58
1,691
1,552
1,698
1,810
1,596
1,475
1,468
1,519
1,032
1,139
1,166
1,540
1,537
1,259
1,181
1,169
750
747
758
784
718
779
759
786
Q3‘17
Q4‘17
Q1‘18
Q2‘18
Q3‘18
Q4‘18
Q1‘19
Q2‘19
North American deal activity pulls firmly ahead of Asia
Global deal activity: North America, Asia, and Europe
# of deals:
North America
Asia
Europe
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
59
$22
$21
$24
$26
$30
$40
$27
$30
$20
$23
$20
$22
$20
$22
$19
$15
$6
$5
$5
$6
$5
$5
$8
$8
Q3‘17
Q4‘17
Q1‘18
Q2‘18
Q3‘18
Q4‘18
Q1'19
Q2'19
North America maintains dollar funding lead over Asia
Global dollar funding: North America, Asia, and Europe
Investments ($B):
Europe
Asia
North America
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
60
SoftBank Group leads the world’s largest deals
Largest global deals of Q2 2019
Company
Investment
Round
Select investors
Vertical
1 Cruise Automation
San Francisco, USA
$1.15B Corporate
Minority
General Motors, Honda,
SoftBank Group
Automotive & Transportation
2 Rappi
Bogota, Colombia
$1.00B Corporate
Minority
SoftBank Group
Mobile & Telecommunications
3 Greensill
London, UK
$800M Corporate
Minority
SoftBank Group
Financial
4 Face++
Beijing, China
$750M Series D
Alibaba Group, Macquarie Group
Software (non-internet/mobile)
5 DoorDash
San Francisco, USA
$600M Series G
Coatue Management, SoftBank
Group, DST Global
Internet
Appendix
PwC / CB Insights
MoneyTree™ Report
Q2 2019
Source: PwC / CB Insights MoneyTree™ Report Q2 2019
62
US States: Full listing of Q2 2019 deals and investments
State
$M Deals
State
$M Deals
State
$M Deals
State
$M Deals
Alabama
8
2
Illinois
490
36
Missouri
42
11
Pennsylvania
204
25
Arizona
177
15
Indiana
37
13
Nebraska
2
1
South Carolina
24
5
California
16,227 576
Kansas
25
1
Nevada
4
2
Tennessee
86
10
Colorado
402
45
Kentucky
107
5
New Jersey
86
11
Texas
687
72
Connecticut
154
10
Louisiana
8
1
New Mexico
185
6
Utah
402
20
DC
57
6
Maine
102
2
New York
3,883
203
Virginia
131
23
Delaware
93
3
Maryland
224
21
North Carolina
381
19
Washington
733
52
Florida
743
22
Massachusetts 2,207
112
Ohio
131 11
Wisconsin
69
12
Georgia
208
20
Michigan
268
9
Oklahoma
4
1
Hawaii
NA
1
Minnesota
47
12
Oregon
50
7
63
What is included:
• Equity financings into emerging companies. Fundings must be to VC-backed
companies, which are defined as companies that have received funding at
any point from either: venture capital firms, corporate venture arms, or super
angel investors.
• Fundings of private companies only. Funding rounds raised by public companies of
any kind on any exchange (including Pink Sheets) are excluded from our numbers,
even if they received investment by a venture firm(s).
• Only includes the investment made in the quarter for tranched investments. If a
company does a second closing of its Series B round for $5M and previously had
closed $2M in a prior quarter, only the $5M is reflected in our results.
• Round numbers reflect what has closed, not what is intended. If a company
indicates the closing of $5M out of a desired raise of $15M, our numbers reflect
only the amount which has closed.
• Only verifiable fundings are included. Fundings are verified via (1) various federal
and state regulatory filings; (2) direct confirmation with firm or investor; (3) press
release; or (4) credible media sources.
• Equity fundings to joint ventures and spinoffs/spinouts are included, given that they
meet the VC-backed criteria.
• Geography note: Israel funding figures are classified inAsia.
What is excluded:
• No contingent funding. If a company receives a commitment for $20M subject to
hitting certain milestones but first gets $8M, only the $8M is included in our data.
• No business development/R&D arrangements, whether transferable into equity
now, later or never. If a company signs a $300M R&D partnership with a larger
corporation, this is not equity financing nor is it from venture capital firms. As a
result, it is not included.
• No buyouts, consolidations or recapitalizations. All three of these transaction types
are commonly employed by private equity firms and are tracked by CB Insights.
However, they are excluded for the purposes of this report.
• No private placements. These investments, also known as PIPEs (Private
Investment in Public Equities), are not included even if made by a venture
capital firm(s).
• No debt/loans of any kind (except convertible notes). Venture debt or any kind of
debt/loan issued to emerging, startup companies, even if included as an additional
part of an equity financing, is not included. If a company receives $3M with $2M
from venture investors and $1M in debt, only the $2M is included in these statistics.
• No non-equity government funding. Grants or loans by the federal government,
state agencies, or public-private partnerships to emerging, startup companies
are not included.
• No fundings to subsidiaries of a larger parent corporation.
PwC (pwc.com/moneytree) and CB Insights (cbinsights.com) encourage you to review the methodology and definitions employed to better understand
the numbers presented in this report. If you have any questions about the definitions or methodological principles used, we encourage you to reach out to
CB Insights directly. Additionally, if you feel your firm has been underrepresented, please send an email to info@cbinsights.com and we can work together to
ensure your firm’s investment data is up-to-date.
Rankings, e.g., top states and top sectors, are done by quarterly deal activity (that is, deal count for the given quarter).
Methodology
MoneyTree definitions
64
Disclaimer
This content is for general information purposes only, and should not be used as a substitute for consultation with
professional advisors. Data is current as of July 11, 2019. PricewaterhouseCoopers and CB Insights have taken
responsible steps to ensure that the information contained in the MoneyTree™ Report has been obtained from reliable
sources. However, neither PwC nor CB Insights can warrant the ultimate validity of the data obtained in this manner.
Results are updated periodically. Therefore, all data is subject to change at any time.
© 2019 PwC. All rights reserved. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may
sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure
for further details.