Q3 2020
MoneyTree™
Report
2
Executive summary
Q3 2020
Q3’20 funding to US-based, VC-backed companies is the
second strongest quarter ever
Investments reach $36.5B in Q3’20, the second highest
quarter ever: VC investments to US-based companies hit a
7-quarter high in Q3’20 at $36.5B, up 22% year-over-year
(YoY) and 30% from Q2’20. The quarterly increase in deal
activity is more modest: 1,461 VC deals take place in
Q3’20, a 1% increase from 1,440 deals in Q2’20. While deal
activity has shown small increases each quarter so far this
year, Q3’20 deals are still down 11% YoY amid the
pandemic.
Number of quarterly mega-rounds climbs to a new record:
Mega-rounds drive funding gains as 88 US-based
companies raise rounds worth $100M or more in Q3’20,
surpassing the record set in Q2’20. As a result, mega-round
deal share rises to 54% of total funding.
Seed deals rise for the second consecutive quarter: Seed
deals continue their recovery after a sharp drop-off in Q4’19.
Later-stage deal size is still high: Series D median deal size
rises to $50M vs. $32M in Q2’20.
Geographic insights
US insights
Global deal activity and funding see quarterly rises
North America, Asia, and Europe see combined funding
of $71.9B in Q3’20, a historical record: Global VC funding
rises over 40% in Q3’20 compared to Q2’20.
Asia sees the largest jump in funding and deals, deal activity
surpasses North America: Asia deal activity rises over 14% in
Q3’20, compared to a 1% rise in North America and a flat
quarter in Europe. Funding to startups in Asia increases 74%,
while jumping 29% in both Europe and North America in
Q3’20 vs. Q2’20.
Los Angeles and Seattle Metros see significant upticks in
deal activity: Los Angeles deal activity increases to 115 in
Q3’20, up from 86 in Q2’20. Seattle deal activity jumps 33%
in Q3’20 compared to Q2’20.
Most of the top metros see an increase in investments: While
quarterly deal activity declines in six of the top ten metros,
only two see a decline in investments in Q3’20, as mega-
rounds drive funding gains across major metros.
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
3
Mega-rounds
Deals and Dollars
Metros
Unicorns
States
Emerging areas
Exits
Contents
Sectors
Global
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
Deals and Dollars
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
5
1,576
1,628
1,757
1,647
1,471
1,416
1,440
1,461
$40.5
$27.6
$31.1
$29.8
$25.1
$27.7
$28.1
$36.5
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
US deals and dollars – Quarterly
US VC funding in Q3’20 is second highest ever
Investments ($B)
# of deals
Historical
record
Second
highest
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
6
$52
$121 $114
$92
2001
2005
2010
2015
2020 YTD
5,016
6,932 6,507
4,317
US deals and dollars – Annual
2020 funding pace is near record levels while deals fall short
Second
highest
ever
Investments ($B)
# of deals
Historical
record
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
7
US funding – Quarterly seasonality
Q3’20 is the strongest third quarter in over six years
$12.4
$19.1
$17.2
$16.5
$23.7
$27.6
$27.7
$17.3
$21.0
$19.1
$20.7
$25.6
$31.1
$28.1
$14.1
$21.1
$17.1
$22.0
$31.0
$29.8
$36.5
$17.7
$18.3
$12.7
$21.7
$40.5
$25.1
$61.6
$79.4
$66.1
$80.9
$120.8
$113.7
$92.3
2014
2015
2016
2017
2018
2019
2020
Second highest
(all-time)
Q3
Q2
Q1
Q4
Total
Investments ($B):
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
8
Q3'15
Q3'16
Q3'17
Q3'18
Q3'19
Q3'20
US deal activity by round
Seed deal activity rises for second consecutive quarter
Note: “All deals" includes additional round types
1,568
547
177
64
1,461 All deals
414 Seed
189 Series B
124 Series C
54 Series D
60 Series E+
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
9
Q3'15
Q3'16
Q3'17
Q3'18
Q3'19
Q3'20
US median deal size by round
Series D median deal size jumps in Q3’20
$50.0M Series D
$18.0M
$13.3M
Note: “Overall" median includes additional round types
Emerging Company Solutions
Turn vision into reality.
Let’s get going at pwc.com
We’re focused on helping you clear the path for your next move,
so you can act fast and grow.
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
Mega-rounds
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
12
56
52
67
63
41
61
72
88
US mega-rounds – Investments and deal count
Number of quarterly mega-rounds climbs to a new high
$25.5
$12.6
$13.9
$15.6
$8.8
$12.5
$12.9
$19.8
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Historical
record
Mega-round investments ($B)
# of mega-rounds
Note: Mega-rounds are $100M+ deals
Historical
record
Second
highest
Second
highest
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
13
63%
46%
45%
52%
35%
45%
46%
54%
US mega-rounds – Funding and share of total funding
More than half of Q3’20 funding comes from mega-rounds
$25.5
$12.6
$13.9
$15.6
$8.8
$12.5
$12.9
$19.8
$14.9
$15.0
$17.3
$14.2
$16.3
$15.2
$15.2
$16.7
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Historical
record
Mega-round investments ($B)
Non-mega-round investments ($B)
Mega-round share
Note: Mega-rounds are $100M+ deals
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
14
US mega-rounds – Quarterly seasonality
2020 mega-round investments are growing at record pace
Note: Mega-rounds are $100M+ deals
$2.9
$6.9
$4.5
$4.4
$8.2
$12.6
$12.5
$4.6
$7.2
$7.4
$7.5
$8.6
$13.9
$12.9
$3.5
$7.8
$5.9
$9.3
$15.6
$15.6
$19.8
$6.9
$6.6
$2.4
$8.7
$25.5
$8.8
$17.9
$28.4
$20.2
$30.0
$57.9
$50.9
$45.2
2014
2015
2016
2017
2018
2019
2020
Q3
Q2
Q1
Q4
Total
Mega-round investments ($B):
Second
largest
year
Historical
record year
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
15
Largest US deals of Q3’20
Top 2 funding rounds in the US raise over $1B each
Company
Investment Round
Select investors
Vertical
1 SpaceX
Hawthorne, CA
$1.9B Series E+
Fidelity Investments, Legendary
Ventures
Industrial
Aerospace & Defense
2 Epic Games
Cary, NC
$1.5B Private
Equity
Lightspeed Venture Partners, Fidelity
Investments, KKR
Software (non-internet/mobile)
Gaming
3 Affirm
San Francisco, CA
$500M Series E+
Lightspeed Venture Partners, Spark
Capital, Founders Fund
Mobile & Telecommunications
Mobile Software & Services
Payments
3 Bright Health
Minneapolis, MN
$500M Series E+
New Enterprise Associates, Bessemer
Venture Partners, Greenspring
Associates
Healthcare
Health Plans
3 Diligent
New York, NY
$500M Private
Equity
Insight Partners, Blackstone, Clearlake
Capital Group
Internet
Internet Software & Services
Collaboration & Project
Management
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
Sectors
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
17
Sector
# of Deals
Funding
1 Internet
$12.7B
2 Healthcare
$8.0B
3 Mobile & Telecommunications
$4.3B
4 Software (non-internet/mobile)
$3.8B
5 Consumer Products & Services
$0.5B
61
127
166
271
578
Deals and dollars – US sectors
Internet startups continue to receive outsized financing
18
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
Top 10 US verticals by deal activity
Monitoring and security deals grow more than double in Q3’20
19
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
Top 10 US verticals by investments
Investments in four verticals more than doubled this quarter
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
Unicorns
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
21
23
17
21
17
16
13
11
17
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Unicorns – New US VC-backed unicorns by quarter
US unicorn births rebound in Q3’20
Historical record
Note: Unicorns are startups valued at $1B or more
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
22
Unicorns – Total unicorn population
The total US unicorn population continues to climb
Note: Unicorns are startups valued at $1B or more
Historical record
151
166
178
189
202
209
214
216
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
23
$577
$626
$577
$594
$594
$593
$628
$646
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Unicorn valuations ($B)
Note: Unicorns are startups valued at $1B or more
Unicorns – US aggregate unicorn valuation
Aggregate valuation rises for the second consecutive quarter
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
24
Company
Valuation Vertical
Emerging areas
Select investors
1 SpaceX
Hawthorne, CA
$46.0B Industrial
Aerospace & Defense
Space Tech
Fidelity Investments, Google
2 Stripe
San Francisco,
CA
$36.0B Internet
Internet Software & Services
Payments
FinTech
Tiger Global Management
3 Airbnb
San Francisco,
CA
$18.0B Internet
E-Commerce
Travel
On-Demand
Sequoia Capital, Andreessen Horowitz,
Greylock Partners, General Catalyst
4 Epic Games
Cary, NC
$17.0B Software (non-internet/mobile)
Gaming
Gaming
Lightspeed Venture Partners, KKR,
Smash Ventures, Tencent Holdings
5 DoorDash
San Francisco,
CA
$16.0B Internet
E-Commerce
Food & Grocery
On-Demand
Sequoia Capital, DST Global, Khosla
Ventures
Top 5 highest-valued US unicorns – Q3’20
SpaceX rises to highest-valued unicorn after $1.9B funding round
Note: Most recently disclosed valuations associated
with a funding round are included
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
25
Top 5 most-funded US-based companies – Q3’20
Epic Games joins top 5 funded US startups after Palantir IPO
Company
Funding Vertical
Emerging areas
Select investors
1 Juul Labs
San Francisco, CA
$15.0B Consumer Products & Services
Consumer Electronics
Consumer
Hardware
Coatue Management, D1 Capital
Partners, Tiger Global Management
2 SpaceX
Hawthorne, CA
$5.1B Industrial
Aerospace & Defense
Space Tech
Founders Fund, Threshold Ventures,
Fidelity Investments, Google
3 Airbnb
San Francisco, CA
$3.6B Internet
E-Commerce
Travel
On-Demand
Sequoia Capital, Andreessen
Horowitz, Greylock Partners, General
Catalyst
4 Epic Games
Cary, NC
$3.4B Software (non-internet/mobile)
Gaming
Gaming
Lightspeed Venture Partners, KKR,
Smash Ventures, Tencent Holdings
5 Magic Leap
Plantation, FL
$3.0B Software (non-internet/mobile)
Scientific, Engineering
Software
AR/VR
Alibaba Group, Fidelity
Investments, Google
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
Exits
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
27
7.2
6.3
7.6
6.7
6.3
6.9
6.5
7.2
192
173
169
174
154
161
120
154
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
US M&A exits – Quarterly
Q3’20 M&A exits rebound after a fall in activity in Q2’20
Note: Average years to liquidate from first funding
Historical
record
M&A exits
Years to liquidation
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
28
7.0
5.4
7.2
7.5
6.1
7.2
6.7
6.9
17
15
34
22
18
14
24
51
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
IPO activity
Years to IPO
US IPOs – Quarterly
US IPO exits more than double in Q3’20 to reach new high
Note: Average years to liquidate from first funding
Second
highest
quarter
ever
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
29
7.2
6.3
7.6
6.7
6.3
6.9
6.5
7.2
7.0
5.4
7.2
7.5
6.1
7.2
6.7
6.9
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
US M&A exits and IPOs – Time-to-exit
IPO and M&A time-to-exit tick upward in Q3’20
Years to IPO
Years to M&A
Note: Average years to liquidate from first funding
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
30
192
173
169
174
154
161
120
154
17
15
34
22
18
14
24
51
209
188
203
196
172
175
144
205
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
US M&A exits and IPOs – Number of exits
Both M&A and IPO exits see significant quarterly rise in Q3’20
IPO exits
M&A exits
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
31
Top 5 US M&A exits of Q3’20
Healthcare startup GRAIL is the top M&A exit of Q3’20
Company
Valuation Last round Vertical
Select prior investors
Buyer
1 GRAIL
Menlo Park, CA
$8.0B Series D
Healthcare
Disease Diagnosis
ARCH Venture Partners,
Kleiner Perkins Caufield &
Byers
Illumina
2 OSIsoft
San Leandro, CA
$5.0B Secondary
Market
Internet
Internet & Software Services
Business Intelligence, Analytics
& Performance Mgmt
Kleiner Perkins Caufield &
Byers, Technology
Crossover Ventures
AVEVA
3 Postmates
San Francisco, CA
$2.7B Series H
Mobile & Telecommunications
Mobile Software & Services
Supply Chain & Logistics
AngelPad, Founders Fund,
Tiger Global Management
Uber
4 CradlePoint
Boise, ID
$1.1B Series C
Internet
Internet Software & Services
Networking & Connectivity
OVP Venture Partners,
Highway 12 Ventures
Ericsson
5 Silver Peak Systems
Santa Clara, CA
$0.9B Growth
Equity
Mobile & Telecommunications
Telecom Services
Wireless
Greylock Partners, DAG
Ventures
Hewlett
Packard
Enterprise
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
32
Top 5 US IPOs of Q3’20
Company
Valuation
Last round
Vertical
Select prior investors
1 Snowflake
Computing
San Mateo, CA
$33B Secondary
Market
Internet
Internet & Software Services
Database Management
Sutter Hill Ventures, Altimeter
Capital, Redpoint Ventures, Sequoia
Capital
2 Palantir Technologies
Denver, CO
$22B Corporate
Minority
Software (non-internet/mobile)
Business Intelligence, Analytics
& Performance Mgmt Software
Founders Fund, Tiger Global
Management
3 Unity
San Francisco, CA
$14B Series E+
Software (non-internet/mobile)
Multimedia & Graphics
Sequoia Capital, Silver Lake
4 GoodRx
Santa Monica, CA
$13B Option/Warrant Internet
Internet & Software Services
Information Providers & Portals
Founders Fund, Highland Capital
Partners, Upfront Ventures
5 Oak Street Health
Chicago, IL
$5B Unattributed
VC
Healthcare
Medical Facilities & Services
Long-term Care
General Atlantic, Aberdare Ventures
Snowflake Computing’s IPO is the largest exit in Q3’20
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
Metros
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
34
Majority of the top metros grow
investments despite declines in
deal activity in several areas
35
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
Top 10 Metros by deal activity
LA and Seattle deals grow by over 30% QoQ
36
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
Top 10 Metros by investments
Majority of the top metros grow investments in Q3’20
Emerging Company Solutions
Growth is within reach.
See how at pwc.com
Realize your growth ambitions with the experience, know-how and
mindset you need to innovate and disrupt.
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
38
LA Metro
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
39
118
98
114
123
105
108
86
115
$2.0
$1.7
$2.3
$2.9
$1.6
$1.9
$1.1
$3.9
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Investments ($B)
# of deals
LA Metro deals and dollars – Quarterly
Los Angeles Metro financing rebounds in Q3’20
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
40
Top LA Metro deals – Q3’20
Aerospace & Defense startups see major funding in Q3’20
Company
Investment Round
Select investors
Vertical
1 SpaceX
Hawthorne, CA
$1.9B Series E+
Fidelity Investments, Legendary
Ventures
Industrial
Aerospace & Defense
2 Zwift
Long Beach, CA
$450M Series C
KKR, Amazon Alexa Fund, Zone 5
Ventures
Internet
Internet Software & Services
Sports
3 Anduril
Irvine, CA
$200M Series C
Founders Fund, General Catalyst,
Andreessen Horowitz
Industrial
Aerospace & Defense
3 Surf Air
Santa Monica, CA
$200M Private
Equity
Global Emerging Markets
Automotive & Transportation
Air
5 Beyond Limits
Glendale, CA
$113M Series C
BP Ventures, G42
Software (non-internet/mobile)
Scientific, Engineering
Software
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
41
Raleigh Metro
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
42
13
8
20
12
14
15
14
13
$1.3
$0.1
$0.4
$0.0
$0.3
$0.1
$0.1
$1.9
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Investments ($B)
# of deals
Raleigh Metro deals and dollars – Quarterly
Epic Games’ $1.5B mega-round lifts funding in Raleigh Metro
Note: Mega-rounds are $100M+ deals
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
43
Top 5 Raleigh Metro deals – Q3’20
Epic’s billion-dollar raise surpasses their Q4’18 $1.25B raise
Company
Investment Round
Select investors
Vertical
1 Epic Games
Cary, NC
$1.5B Private
Equity
Lightspeed Venture Partners, Fidelity
Investments, KKR
Software (non-internet/mobile)
Gaming
2 ServiceTrade
Durham, NC
$49M Growth
Equity
Frontier Growth, Bull City Venture
Partners
Mobile & Telecommunications
Mobile Software & Services
Business Intelligence, Analytics &
Performance Mgmt
3 Metabolon
Morrisville, NC
$22M Series E+
Sevin Rosen Funds, EW Healthcare
Partners
Healthcare
Biotechnology
4 Levitate
Raleigh, NC
$6M Seed / Angel Bull City Venture Partners, Tippet
Venture Partners
Internet
Internet Software & Services
Advertising, Sales & Marketing
5 BioAesthetics
Durham, NC
$5M Series A
Hemi Ventures
Healthcare
Medical Devices & Equipment
Surgical Devices
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
44
Seattle Metro
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
45
42
60
48
62
47
48
43
57
$0.3
$0.7
$0.7
$0.6
$1.0
$0.4
$0.9
$1.2
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Investments ($B)
# of deals
Seattle Metro deals and dollars – Quarterly
Q3’20 financing rises in Seattle
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
46
Top 5 Seattle Metro deals – Q3’20
Seattle Metro top deals go to later-stage startups in Q3’20
Company
Investment Round
Select investors
Vertical
1 OfferUp
Bellevue, WA
$294M Series D
Andreessen Horowitz
Mobile & Telecommunications
Mobile Commerce
Auction & Classifieds
2 Qumulo
Seattle, WA
$125M Series E+ Kleiner Perkins Caufield & Byers,
Highland Capital Partners, Amity
Ventures
Computer Hardware & Services
IT Services
Data Storage & Security
3 Auth0
Bellevue, WA
$120M Series E+ Bessemer Venture Partners,
Sapphire Ventures, Salesforce
Ventures
Internet
Internet Software & Services
Monitoring & Security
4 Kymeta
Redmond, WA
$85.2M Series E+ Bill Gates
Mobile & Telecommunications
Telecom Devices & Equipment
Satellite & Broadcast Network Equipment
5 Remitly
Seattle, WA
$85M Series E+ Threshold Ventures, Owl Rock
Capital Partners
Mobile & Telecommunications
Mobile Software & Services
Payments
5 Silverback
Therapeutics
Seattle, WA
$85M Series C
U.S. Venture Partners, Hunt
Technology Ventures
Healthcare
Biotechnology
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
47
Chicago Metro
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
48
43
53
40
42
38
31
28
33
$402
$425
$533
$368
$303
$479
$253
$938
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Investments ($M)
# of deals
Chicago Metro deals and dollars – Quarterly
Chicago Metro funding sees an 8-quarter high
Note: Mega-rounds are $100M deals or larger
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
49
Top 5 Chicago Metro deals – Q3’20
Top 2 deals make up 63% of Chicago Metro’s funding in Q3’20
Company
Investment Round
Select investors
Vertical
1 Ryan Specialty
Group
Chicago, IL
$317M Private
Equity
Onex Corporation
Financial
Insurance
Insurance Broker
2 VillageMD
Chicago, IL
$275M Series C
Kinnevik, Walgreens Boots Alliance
Healthcare
Medical Facilities & Services
Medical Practice Management &
Services
3 ShipBob
Chicago, IL
$68M Series D
SoftBank Group
Internet
Internet Software & Services
Supply Chain & Logistics
4 Keeper Security
Chicago, IL
$60M Growth
Equity
Insight Partners
Internet
Internet Software & Services
Monitoring & Security
5 Kin Insurance
Chicago, IL
$35M Series B
QED Investors, Commerce Ventures,
Alpha Edison, University of Chicago
Mobile & Telecommunications
Mobile Commerce
Comparison Shopping
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
50
Minneapolis Metro
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
51
14
14
16
10
16
6
11
13
$294
$120
$48
$38
$750
$103
$79
$600
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Investments ($M)
# of deals
Minneapolis Metro deals and dollars – Quarterly
Minneapolis Metro total funding saw a significant increase
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
52
Top 5 Minneapolis Metro deals – Q3’20
Healthcare startups are 4 of the 5 top deals in Minneapolis Metro
Company
Investment Round
Select investors
Vertical
1 Bright Health
Minneapolis, MN
$500M Series E+
New Enterprise Associates,
Bessemer Venture Partners, Tiger
Global Management
Healthcare
Healthcare Plans
2 CVRx
Minneapolis, MN
$50M Series E+
New Enterprise Associates, Gilde
Healthcare Partners, Johnson &
Johnson Innovation
Healthcare
Medical Devices & Equipment
Surgical Devices
3 Nuvaira
Minneapolis, MN
$17M Series E+
U.S. Venture Partners, Endeavour
Vision, Lightstone Ventures
Healthcare
Medical Devices & Equipment
Therapeutic Devices
4 Dispatch
Bloomington, MN
$11M Series B
Trinity Private Equity Group, Labora
Group, Great North Labs
Internet
eCommerce
Travel (internet)
5 Monteris Medical
Minneapolis, MN
$9M Series D
The Vertical Group, 3x5 Partners,
Vensana Capital
Healthcare
Medical Devices & Equipment
Surgical Devices
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
53
Dallas Metro
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
54
15
19
17
8
16
18
13
16
$63
$280
$148
$67
$85
$178
$115
$472
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Investments ($M)
# of deals
Dallas Metro deals and dollars – Quarterly
Dallas Metro funding rises to 8-quarter high
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
55
Top Dallas Metro deals – Q3’20
Two mega-rounds boost funding in Dallas Metro
Company
Investment Round
Select investors
Vertical
1
Instil Bio
Dallas, TX
$170M Series B
Venrock, Vivo Capital
Healthcare
Biotechnology
2 Alkami Technology
Plano, TX
$140M Series E+ S3 Ventures, Fidelity Investments,
D1 Capital Partners
Internet
Internet & Software Services
Accounting & Finance
3 Taysha Gene
Therapies
Dallas, TX
$95M Series B
Google Ventures, Venrock,
BlackRock
Healthcare
Biotechnology
4 K2View
Dallas, TX
$28M Series A
Genesis Partners, Forestay Capital Computer Hardware & Services
IT Services
IT Solutions & Software
Development
5 Goodman Solutions
Frisco, TX
$16M Other
Undisclosed Investor(s)
Mobile & Telecommunications
Telecom Services
Wireless
Note: Mega-rounds are $100M deals or larger
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
States
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
57
Together, startups in the top 3 states raised 71% of US funding
Note: Due to rounding, percentages may not total 100%
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
58
Seven states see substantial
investment growth amid
heightened deal activity
59
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
Top 10 states by deal activity
Seven top states see increase in deal activity
60
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
Top 10 states by investments
North Carolina, Illinois, and Minnesota see big investment gains
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
61
North Carolina State
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
62
20
16
25
21
19
22
21
20
$1,427
$136
$410
$57
$594
$236
$288
$2,075
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Investments ($M)
# of deals
North Carolina deals and dollars – Quarterly
North Carolina investments jump 620% from Q2’20
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
63
Top 5 North Carolina deals – Q3’20
Epic Games mega-round leads North Carolina funding in Q3’20
Company
Investment Round
Select investors
Vertical
1 Epic Games
Cary, NC
$1,530M Private
Equity
Lightspeed Venture Partners, T.
Rowe Price, BlackRock
Software (Non-Internet/Mobile)
Gaming
2 AvidXchange
Charlotte, NC
$119M Series E+ Foundry Group, Bain Capital
Ventures, QED Investors
Consumer Products & Services
Consumer Electronics
3 ServiceTrade
Durham, NC
$49M Growth
Equity
Frontier Growth, Bull City Venture
Partners
Mobile & Telecommunications
Mobile Software & Services
Business Intelligence, Analytics &
Performance Mgmt
4 Metabolon
Morrisville, NC
$22M Series E+ Sevin Rosen Funds, Fletcher
Spaght Ventures
Healthcare
Biotechnology
5 Fluree
Winston-Salem, NC
$7M Seed /
Angel
Ray Rothrock, 4490 Ventures,
Engage Venture
Internet
Internet & Software Services
Database Management
Note: Mega-rounds are $100M+ deals
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
64
Minnesota State
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
65
14
14
18
12
17
6
11
14
$294
$120
$49
$43
$775
$103
$79
$600
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Investments ($M)
# of deals
Minnesota deals and dollars – Quarterly
Financing activity increases in Minnesota in Q3’20
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
66
Top 5 Minnesota deals – Q3’20
Bright Health mega-round leads top Minnesota funding in Q3’20
Company
Investment Round
Select investors
Vertical
1 Bright Health
Minneapolis, MN
$500M Series E+ New Enterprise Associates,
Bessemer Venture Partners, Tiger
Global Management
Healthcare
Healthcare Plans
2 CVRx
Minneapolis, MN
$50M Series E+ New Enterprise Associates,
Venrock, Hatteras Venture
Partners
Healthcare
Medical Devices & Equipment
Surgical Devices
3 Nuvaira
Minneapolis, MN
$17M Series E+ U.S. Venture Partners, Endeavour
Vision, Lightstone Ventures, Vertex
Ventures HC
Healthcare
Medical Devices & Equipment
Therapeutic Devices
4 Dispatch
Bloomington, MN
$11M Series B
Trinity Private Equity Group,
Revolution Rise Of The Rest Seed
Fund
Internet
eCommerce
Travel (Internet)
5 Monteris Medical
Minneapolis, MN
$9M Series D
The Vertical Group, 3x5 Partners,
Vensana Capital
Healthcare
Medical Devices & Equipment
Surgical Devices
Note: Mega-rounds are $100M+ deals
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
67
Illinois State
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
68
43
56
43
45
40
32
30
35
$402
$427
$542
$371
$304
$481
$253
$944
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Investments ($M)
# of deals
Illinois deals and dollars – Quarterly
Illinois funding activity reaches an 8-quarter high
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
69
Top 5 Illinois deals – Q3’20
Late-stage startups gain traction in Illinois
Company
Investment Round
Select investors
Vertical
1 Ryan Specialty
Group
Chicago, IL
$317M Private
Equity
Onex Corporation
Financial
Insurance
Insurance Broker
2 VillageMD
Chicago, IL
$275M Series C
Kinnevik, Walgreens Boots Alliance Healthcare
Medical Facilities & Services
Medical Practice Mgmt &
Services
3 ShipBob
Chicago, IL
$68M Series D
SoftBank Group
Internet
Internet & Software Services
Supply Chain & Logistics
4 Keeper Security
Chicago, IL
$60M Growth
Equity
Insight Partners
Internet
Internet & Software Services
Monitoring & Security
5 Kin Insurance
Chicago, IL
$35M Series B
August Capital, QED Investors,
Commerce Ventures, Alpha Edison
Mobile & Telecommunications
Mobile Commerce
Comparison Shopping
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
70
Texas State
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
71
$490
$1,075
$763
$684
$536
$904
$446
$1,084
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
71
81
82
55
74
62
63
59
Investments ($M)
# of deals
Texas deals and dollars – Quarterly
Texas funding rises over 140% in Q3’20
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
72
Top 5 Texas deals – Q3’20
Mega-rounds push Texas funding to 8-quarter high
Company
Investment Round
Select investors
Vertical
1 Instil Bio
Dallas, TX
$170M Series B
Venrock, Vivo Capital
Healthcare
Biotechnology
2 Alkami Technology
Plano, TX
$140M Series E+
S3 Ventures, Franklin Templeton,
Fidelity Investments, MissionOG
Internet
Internet Software & Services
Accounting & Finance
3 Preventice Solutions
Houston, TX
$137M Series B
Novo Holdings, Vivo Capital, Boston
Scientific
Mobile & Telecommunications
Mobile Software & Services
Healthcare
4 Taysha Gene
Therapies
Dallas, TX
$95M Series B
Google Ventures, Venrock, Invus
Group
Healthcare
Biotechnology
5 Triumvira
Immunologics
Austin, TX
$55M Series A
Bloom Burton & Co., Oceanpine
Capital
Healthcare
Biotechnology
Note: Mega-rounds are $100M+ deals
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
73
Florida State
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
74
26
25
30
30
23
27
23
36
$209
$161
$779
$256
$171
$214
$444
$898
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Investments ($M)
# of deals
Florida deals and dollars – Quarterly
Two $300M+ mega-rounds boost funding along with more deals
Note: Mega-rounds are $100M+ deals
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
75
Top 5 Florida deals – Q3’20
Late-stage startups win funding in Florida
Company
Investment Round
Select investors
Vertical
1 Fanatics
Jacksonville, FL
$350M Series E+ CMT Digital, Goldfinch Partners,
Pantera Capital
Internet
eCommerce
Apparel & Accessories
2 ReliaQuest
Tampa, FL
$300M Private
Equity
Coatue Management, Insight
Partners
Computer Hardware & Services
IT Services
Data Storage & Security
3 MDLIVE
Miramar, FL
$50M Growth
Equity
N/A
Internet
Internet & Software Services
Healthcare
4 PayCargo
Miami, FL
$35M Series A
Base10 Partners, Companyon,
Hyde Park Venture Partners
Internet
Internet & Software Services
Payments
5 Ubicquia
Melbourne, FL
$30M Series C
Mesh Ventures, VentureSouth
Software (non-internet/mobile)
Networking & Connectivity
Software
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
Emerging areas
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
77
Four emerging areas show
promising signs
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
78
Four emerging areas get majority of deal activity among Top 20
0
50
100
150
200
250
300
Digital Health
Fintech
Artificial Intelligence
Medical Devices
E-Commerce
Cybersecurity
In-Store Retail Tech
Internet of Things - ( IoT )
Smart Cities
Capital Markets Tech
Payments
Real Estate Tech
Blockchain
Regtech
Supply Chain & Logistics Tech
Wealth Tech
InsurTech
Advanced Manufacturing
Augmented Reality / Virtual Reality
Auto Tech
Q3’14
Q3’20
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
79
0%
50%
100%
1995
2000
2005
2010
2015
2020
Top 20 emerging areas – Financing share
Overall emerging areas account for half of venture financing
Share of deals
Share of investments
80
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
Top 10 emerging areas by deal activity
Six emerging areas see increased deals in Q3’20
81
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
Top 10 emerging areas by investments
Most emerging areas grow investments in Q3’20
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
82
Digital Health emerging area
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
83
134
153
185
155
155
166
182
172
$2.4
$1.9
$3.1
$1.8
$2.9
$3.2
$3.1
$5.8
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Investments ($B)
# of deals
Digital Health deals and dollars – Quarterly
Digital Health funding rises significantly in Q3’20
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
84
Top Digital Health deals – Q3’20
Top 3 Digital Health deals raise over $300M each in Q3’20
Company
Investment Round
Select investors
Vertical
1 Bright Health
Minneapolis, MN
$500M Series E+
New Enterprise Associates, Bessemer
Venture Partners, Tiger Global
Management
Healthcare
Healthcare Plans
2 XtalPi
Cambridge, MA
$319M Series C
Sequoia Capital China, Tencent Holdings
Internet
Internet Software & Services
Healthcare
3 Zymergen
Emeryville, CA
$300M Series D
True Ventures, SoftBank Group, Baron
Capital Management, Data Collective
Software (non-internet/mobile)
Healthcare Software
4 VillageMD
Chicago, IL
$275M Series C
Kinnevik, Walgreens Boots Alliance
Healthcare
Medical Facilities & Services
Medical Practice Mgmt &
Services
5 Freenome
South San
Francisco, CA
$270M Series C
Google Ventures, Kaiser Permanente
Ventures, T. Rowe Price, Andreessen
Horowitz
Healthcare
Disease Diagnosis
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
85
Artificial Intelligence emerging area
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
86
$2.9
$2.8
$5.7
$4.5
$3.6
$3.9
$2.9
$4.7
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
151
166
199
190
170
155
148
149
Investments ($B)
# of deals
Artificial Intelligence deals and dollars – Quarterly
AI funding jumps while deal activity holds steady in Q3’20
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
87
Top Artificial Intelligence deals – Q3’20
Healthcare companies account for four of the largest AI deals
Company
Investment Round
Select investors
Vertical
1 Affirm
San Francisco, CA
$500M Series B
Toyota, Morningside Venture Capital
Mobile & Telecommunications
Mobile Software & Services
Payments
2 XtalPi
Cambridge, MA
$319M Series C
Sequoia Capital China, Tencent
Holdings
Internet
Internet Software & Services
Healthcare
3 Zymergen
Emeryville, CA
$300M Series D
True Ventures, SoftBank Group,
Baron Capital Management, Data
Collective
Software (non-internet/mobile)
Healthcare Software
4 Freenome
South San Francisco,
CA
$270M Series C
Google Ventures, Kaiser Permanente
Ventures, T. Rowe Price, Andreessen
Horowitz
Healthcare
Disease Diagnosis
5 Recursion
Pharmaceuticals
Salt Lake City, UK
$239M Series E+
Insight Partners, Accel, Tiger Global
Management, Redpoint Ventures
Healthcare
Biotechnology
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
88
eCommerce emerging area
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
89
55
67
69
56
65
51
45
67
$1.1
$1.3
$1.2
$1.6
$1.1
$1.0
$0.9
$2.6
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Investments ($B)
# of deals
eCommerce deals and dollars – Quarterly
eCommerce financing rises considerably in Q3’20
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
90
Top eCommerce deals – Q3’20
eCommerce sees four $200M+ mega-rounds in Q3’20
Company
Investment Round
Select investors
Vertical
1 Fanatics
Jacksonville, FL
$350M Series E+
CMT Digital, Goldfinch Partners, Pantera
Capital
Internet
eCommerce
Apparel & Accessories
2 OfferUp
Bellevue, WA
$294M Series D
Andreessen Horowitz
Mobile & Telecommunications
Mobile Commerce
Auctions & Classifieds
3 Thrasio
Walpole, MA
$260M Series C
Advent International
Business Products & Services
Consulting & Outsourcing
Mgmt & Strategy Consulting
4 Ro
New York, NY
$200M Series C
FirstMark Capital, General Catalyst
Internet
eCommerce
Pharmacies
5 AppDirect
San Francisco, CA
$185M Series E+
Caisse de depot et placement du Quebec Internet
eCommerce
eCommerce Enablement
Note: Mega-rounds are $100M+ deals
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
91
Medical Devices emerging area
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
92
104
126
134
122
120
110
121
142
$1.6
$1.4
$2.2
$1.1
$1.8
$1.9
$2.1
$2.9
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Investments ($B)
# of deals
Medical Devices deals and dollars – Quarterly
Medical Devices financing increases materially in Q3’20
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
93
Top Medical Devices deals – Q3’20
Disease diagnosis startups lead Medical Devices deals in Q3’20
Company
Investment Round
Select investors
Vertical
1 Freenome
South San
Francisco, CA
$270M Series C
Google Ventures, Kaiser Permanente
Ventures, T. Rowe Price, Andreessen
Horowitz
Healthcare
Disease Diagnosis
2 Thrive Earlier
Detection
Cambridge, MA
$257M Series B
Lux Capital, T. Rowe Price, The Blue
Venture Fund
Healthcare
Disease Diagnosis
3 Preventice
Solutions
Houston, TX
$137M Series B
Novo Holdings, Vivo Capital, Boston
Scientific
Mobile & Telecommunications
Mobile Software & Services
Healthcare
4 Sema4
Stamford, CT
$121M Series C
Connecticut Innovations, Deerfield
Management, Blackstone
Healthcare
Disease Diagnosis
5 Warby Parker
New York, NY
$120M Series E+
T. Rowe Price, Baillie Gifford & Co., D1
Capital Partners, Durable Capital
Partners
Internet
eCommerce
Apparel & Accessories
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
94
InsurTech emerging area
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
95
37
43
40
46
35
45
31
40
$0.8
$1.2
$0.9
$1.3
$1.5
$0.6
$1.1
$1.3
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Investments ($B)
# of deals
InsurTech deals and dollars – Quarterly
Q3’20 InsurTech financing ticks up amid rise in deal activity
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
96
Top InsurTech deals – Q3’20
Late-stage startups lead top InsurTech deals in Q3’20
Company
Investment Round
Select investors
Vertical
1 Bright Health
Minneapolis, MN
$500M Series E+
New Enterprise Associates, Bessemer
Venture Partners, Tiger Global
Management
Healthcare
Healthcare Plans
2 Next Insurance
Palo Alto, CA
$250M Series D
capitalG, Munich Re Ventures, FinTLV
Financial
Insurance
3 Hippo
Palo Alto, CA
$150M Series E+
Horizons Ventures, Felicis Ventures, RPM
Ventures
Internet
Internet & Software Services
Accounting & Finance
4 Extend
San Francisco, CA
$40M Series B
Meritech Capital Partners, GreatPoint
Ventures
Software (non-internet/mobile)
Legal Software
4 Growers Edge
Financial
Johnston, IA
$40M Series B
Finistere Ventures, Cox Enterprises,
Skyline Global Partners
Internet
Internet & Software Services
Accounting & Finance
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
97
Are VCs keeping busy?
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
98
Top VCs by amount raised in Q3’20
Three of the top 5 VCs raised over $1B each in Q3’20
Investor
Funds raised
(Q3 2020)
Year
founded Select investments
Location
1 Valor Equity Partners
$3.0B
1995 Sonder, MODE Analytics
Chicago, IL
2 Sequoia Capital
$1.4B
2000 Unacademy, Groww, smallcase
Menlo Park, CA
3 SVB Capital
$1.0B
2000 Olive, Roofstock, BlueVine
Menlo Park, CA
4 Silversmith Capital Partners
$0.8B
2015 Appfire, Absorb Software
Boston, MA
4 DCM Ventures
$0.8B
1996 VIPThink, Ujet
Menlo Park, CA
Note: Includes all funds under the Sequoia Capital umbrella
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
99
Top VCs by amount raised in last five years
Sequoia Capital leads VCs in total fundraising since Q4’15
Investor
Funds raised
(last five years)
Year
founded Select investments
Location
1 Sequoia Capital
$19.7B
1972 Robinhood, Rappi, UiPath
Menlo Park, CA
2 General Atlantic
$17.7B
1980 Reliance Retail, Neon, Blend
New York, NY
3
Insight Partners
$17.3B
1995 Checkout.com, Duck Creek
Technologies
New York, NY
4 Summit Partners
$12.1B
1984 Brooklinen, NinjaRMM, Podium
Boston, MA
5 Andreessen Horowitz
$11.5B
2009 Dialpad, Tanium, Robinhood
Menlo Park, CA
Note: Includes all funds under the Sequoia Capital umbrella
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
100
Most active VCs in Q3’20
SOSV takes the lead as most active VC in Q3’20
Investor
Deals Select investments
Location
1 SOSV
20 FoodMarble, optimize.health, Finless Foods
Princeton, NJ
2 Lightspeed Venture Partners
17 Seismic, ShareChat, Outschool, Affirm
Menlo Park, CA
2 Andreessen Horowitz
17 Tanium, Robinhood, Deel, Silo
Menlo Park, CA
2 Google Ventures
17 Veem, Lambda School, Science 37
Mountain View, CA
5 Khosla Ventures
16 Kernel, Oscar Health, True Link Financial
San Francisco, CA
5 General Catalyst
16 Cazoo, Olive, Melio
Palo Alto, CA
Source: PwC/CB Insights MoneyTree™ Report Q3 2020
Global