PwC / CB Insights
MoneyTree Report
Q4 2017
PwC | CB Insights MoneyTree Report Q4 2017
2
Executive summary
Strong year in funding, driven by $100M+ mega-rounds
record for this millennium, but deals down
Annual funding tops $70B for second time: US VC-backed
companies saw $71.9B invested in 2017 across 5,052 deals. Funding
was up 17% from 2016, but deals fell 4%, declining to the lowest
annual total since 2012.
109 mega-rounds of $100M or more in 2017: Driving the
strong funding total was a record number of 109 mega-rounds,
edging out the count of 107 in 2015. Mega-rounds accounted for 36%
of 2017 US funding, just shy of the 37% high in 2015.
Seed deal share dips to 8-quarter low: Corresponding with the
broader deal slowdown, US seed deal share slid to an 8-quarter low
of just 22% in Q4'17. Seed share crested 30% every quarter in 2016,
but did not reach that mark in any quarter after Q1'17.
Four new unicorns 'birthed' in Q4'17: Four VC-backed
companies achieved a valuation of $1B or more in the US in Q4'17.
Through full-year 2017, 22 new unicorns were created in the US, up
modestly from 2016 but significantly below the peak of 41 in 2015.
Funding to AI tops $1B every quarter in 2017: Compared to
2016, total annual funding increased 28% in 2017 with $5B across
444 deals.
Global funding total surges to post-2000 record, propelled
by Asia
Global funding hits $164B: Total annual global funding increased
nearly 50% in 2017, as over $164B was invested across 11,042 deals.
Deal activity was up by 11%, with both deal and dollar figures
representing annual highs.
Asian and European financing activity see full-year
increases: Total annual Asian funding activity increased by 117%,
with $70.8B invested across 2,847 deals in 2017, up from $32.7B and
1,950 deals in 2016. Total annual European funding activity stood at
$17.6B across 2,483 deals, respectively up 40% and 16% from 2016.
San Francisco funding jumps even as deal activity declines:
Total quarterly funding to San Francisco-based companies increased
23% in Q4'17 reaching $5.2B. Deal activity declined 19% over the
same period, decreasing from 260 deals in Q3'17 to 210 deals in
Q4'17.
New York Metro financing activity returns to Q2'17 levels
and Silicon Valley sees more funding: Deal activity in the NY
Metro area declined from 184 deals to 177 deals in Q4'17. Absent the
$2B+ funding to WeWork in Q3'17, total quarterly funding declined
by 33%. SV total quarterly funding increased by 18%, to reach $2.7B,
with 4 mega-rounds of $100M or more.
Note: Report includes all rounds to VC-backed companies. For a detailed brief on
methodology, please reference page 100 of this report.
PwC | CB Insights MoneyTree Report Q4 2017
Table of contents
3
4 US Overall Trends
74 Global Trends
63 US Movers and Shakers
40 US Places
16 US Sectors
US Overall Trends
01
4
PwC | CB Insights MoneyTree Report Q4 2017
5
US financing trends
"
2017 was the second biggest year of investments ($71.9B) for
venture backed US startup firms, increasing 17% over 2016.
"
Tom Ciccolella, Partner, US Ventures Leader
at PwC
6
In 2017
UNITED
STATES
VC-backed companies raised
$71.9B
PwC | CB Insights MoneyTree Report Q4 2017
7
Annual US financing trend
US annual funding tops $70B on strong mega-round activity, but deals continue slip
Total annual funding increased 17% in 2017, as $71.9B was invested across 5,052 deals.
Q2'17 and Q4'17 both saw 33 rounds of $100M or more.
2017 was the second year that saw dollar funding top $70B, but deals declined for the third straight year, falling 4% from 2016 and reaching
the lowest annual total since 2012.
$32.6
$36.1
$59.4
$76.8
$61.4
$71.9
4,624
5,063
5,811
5,786
5,268
5,052
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2012
2013
2014
2015
2016
2017
TitleInvestment ($B)
Deals
PwC | CB Insights MoneyTree Report Q4 2017
8
US deal share by stage
US seed activity declines to 5 year low
Seed activity as a proportion of all deals declined to 27% in 2017, down from 32% the year before.
Early-stage activity remained constant, while expansion-stage and later-stage deal share increased.
35%
35%
35%
34%
32%
27%
25%
26%
25%
25%
26%
26%
22%
21%
20%
20%
19%
21%
12%
11%
11%
10%
8%
10%
6%
7%
9%
11%
15%
16%
2012
2013
2014
2015
2016
2017
Seed Stage
Early Stage
Expansion Stage
Later Stage
Other
9
In Q4 2017
UNITED
STATES
VC-backed companies raised
$18.7B
PwC | CB Insights MoneyTree Report Q4 2017
10
8-quarter US financing trend
US deals slip in Q4'17, but funding remains steady, again driven by plentiful mega-rounds
Deal activity receded 11% in Q4'17, as $18.7B was invested across 1,158 deals. Funding was down slightly from the record high of Q3'17, but
topped $18B for the third consecutive quarter.
33 mega-rounds of $100M or more added to the strong US quarterly funding total. This was up from 25 in Q3'17, and tied with Q2'17 for
mega-round activity.
$16.1
$17.9
$14.5
$12.9
$15.1
$19.0
$19.2
$18.7
1,415
1,321
1,311
1,221
1,335
1,260
1,299
1,158
0
200
400
600
800
1,000
1,200
1,400
1,600
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
TitleInvestments ($B)
Deals
PwC | CB Insights MoneyTree Report Q4 2017
11
US deal share by stage
US seed activity crashes to 8-quarter low
Seed activity as a proportion of all deals declined to 22% in Q4'17, the lowest percentage in 8 quarters. After consistently hovering around a
third of deals from Q1'16 to Q1'17, seed share has not topped 30% in any quarter since.
Expansion-stage deal share increased from 21% to 23% in Q4'17. Early-stage deal share ticked up a percentage point.
33%
32%
32%
32%
33%
25%
29%
22%
26%
26%
26%
25%
24%
28%
25%
26%
19%
20%
20%
17%
18%
21%
21%
23%
9%
8%
8%
9%
10%
10%
10%
10%
13%
15%
14%
17%
16%
17%
15%
19%
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
Seed Stage
Early Stage
Expansion Stage
Later Stage
Other
PwC | CB Insights MoneyTree Report Q4 2017
12
Median US deal sizes by stage
Expansion-, Early-, and Seed-stage deals all reach 8-quarter highs in Q4'17
Later-stage median deal size declined to $25.5M from $30M the quarter before, in line with 2016 quarterly averages.
Expansion-stage median deal sizes increased to $17.5M, up from $15M in Q3'17, hitting an 8-quarter high.
Early-stage median deal sizes also reached an 8-quarter high of $7M, while Seed-stage deals tied Q2'17 at $2M.
$1.0
$1.3
$1.1
$1.7
$1.3
$2.0
$1.5
$2.0
$5.0
$5.5
$6.0
$6.0
$6.0
$6.0
$6.4
$7.0
$17.0
$15.7
$13.2
$13.9
$15.0
$16.0
$15.0
$17.5
$25.0
$26.2
$22.7
$25.8
$22.2
$32.8
$30.0
$25.5
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
Seed Stage Deal Size ($M)
Early Stage Deal Size ($M)
Expansion Stage Deal Size ($M)
Later Stage Deal Size ($M)
PwC | CB Insights MoneyTree Report Q4 2017
13
US corporate deal participation
Corporate participation ticks upwards
Corporate participation in US deal activity increased by a percentage point in Q4'17 as corporations and CVCs were involved in 24% of all US
deals to VC-backed companies.
Corporate participation was lower in the back half of 2017 as compared to H1'17.
78%
77%
75%
77%
75%
74%
77%
76%
22%
23%
25%
23%
25%
26%
23%
24%
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
Other Investors
Corp / CVC Deal Participation
PwC | CB Insights MoneyTree Report Q4 2017
14
US first venture financing share (Quarterly)
Proportion of first venture rounds decline by a percentage point but remain in historical range
In Q4'17, 34% of all US deals were first venture financings.
Excepting Q4'16, first venture financings as a share of all US deals has remained in the 33-35% range since early 2016.
67%
66%
67%
64%
66%
65%
65%
66%
33%
34%
33%
36%
34%
35%
35%
34%
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
Other
% of Total First VC-Backed Deals
PwC | CB Insights MoneyTree Report Q4 2017
15
US first venture financing share (Annual)
Annual proportion of first venture rounds increase 1 percentage point over 2016
In 2017, 35% of all US deals were first venture financings, up from 34% in 2016.
65%
67%
66%
65%
66%
65%
35%
33%
34%
35%
34%
35%
2012
2013
2014
2015
2016
2017
Other
% of Total First VC-Backed Deals
US Sectors
02
PwC | CB Insights MoneyTree Report Q4 2017
56 Deals
87 Deals
129 Deals
182 Deals
491 Deals
17
US deals and funding by Top 5 sectors
$6.5B
Invested
$4.0B
Invested
$3.8B
Invested
$1.6B
Invested
$0.4B
Invested
Internet
Mobile & Telecommunications
Software (Non-Internet / Mobile)
Consumer Products & Services
Healthcare
PwC | CB Insights MoneyTree Report Q4 2017
18
US deal share by sector
Internet deal share declines to 8-quarter low; Healthcare outpaces Mobile for second straight quarter
Internet deal share decreased from 47% in Q3'17 to 42%, an 8-quarter low for the sector in the US market.
Healthcare deal share increased from 14% in Q3'17 to 16% this quarter. Healthcare deal share was greater than Mobile & Telecom activity
(traditionally the second largest slice of deal share) for full-year 2017.
45%
48%
49%
45%
43%
44%
47%
42%
13%
12%
13%
11%
16%
14%
14%
16%
16%
15%
13%
16%
14%
14%
12%
11%
4%
6%
7%
8%
7%
7%
8%
8%
6%
5%
4%
5%
3%
4%
4%
5%
16%
15%
15%
14%
18%
16%
15%
18%
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
Internet
Healthcare
Mobile & Telecommunications
Software (non-internet/mobile)
Consumer Products & Services
Other
PwC | CB Insights MoneyTree Report Q4 2017
19
Artificial Intelligence
PwC | CB Insights MoneyTree Report Q4 2017
20
Artificial Intelligence
"
2017 was a record year for AI investment, each quarter exceeding
$1B in total funding. Q4 had two mega-rounds for AI (Lemonade &
Uptake Technologies)
"
Anand Rao, Principal, Global Artificial Intelligence Leader
at PwC
PwC | CB Insights MoneyTree Report Q4 2017
21
AI: US annual funding
Full-year annual financing activity shows continued growth in AI investment
Total annual funding for AI increased 28% from 2016, as the dollar figure topped $5B for the first time.
Deal activity also continued its climb to hit 444 deals in 2017, up 6% from the preceding year.
$595
$1,118
$2,489
$3,203
$3,921
$5,012
124
199
292
354
417
444
0
50
100
150
200
250
300
350
400
450
500
2012
2013
2014
2015
2016
2017
TitleInvestment ($M)
Deals
PwC | CB Insights MoneyTree Report Q4 2017
22
AI: US quarterly funding
US Artificial Intelligence funding tops $1B every quarter in 2017
Total quarterly funding to US AI companies reached $1.2B in Q4'17, outranked only by Q3'17 in dollar terms. Deal activity declined by 34%,
as only 84 deals were completed in Q4'17, down from 127 the quarter before.
The strong total quarterly funding was led by investment rounds to companies such as Lemonade ($120M Series C), Uptake Technologies
($117M Series D), and Petuum ($93M Series B).
$1,036
$1,007
$945
$933
$1,065
$1,183
$1,516
$1,248
112
101
92
112
131
102
127
84
0
20
40
60
80
100
120
140
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
TitleInvestments ($M)
Deals
PwC | CB Insights MoneyTree Report Q4 2017
23
AI: US deal share over time
Expansion-stage deal share increases in Q4'17 as seed and early-stage activity declines
Expansion-stage deals increased to 29% in Q4'17, up from 20% the previous quarter. Later-stage deals increased 5 percentage points.
Seed stage deals declined to 32% of deal share from 38% the quarter prior. Early-stage deals also declined, decreasing to 25% in Q4'17, down
from 32% in Q3'17.
49%
38%
37%
46%
40%
25%
38%
32%
23%
28%
26%
30%
27%
36%
32%
25%
16%
22%
18%
19%
18%
22%
20%
29%
5%
5%
8%
3%
5%
8%
3%
8%
6%
8%
11%
3%
10%
9%
6%
6%
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
Seed Stage
Early Stage
Expansion Stage
Later Stage
Other
PwC | CB Insights MoneyTree Report Q4 2017
24
AI: Top states by deals
42 deals
$524M Invested
1. CA
13 deals
$200M Invested
6 deals
$110M Invested
5 deals
$81M Invested
4 deals
$122M Invested
3. MA
2. NY
5. IL
4. CO
PwC | CB Insights MoneyTree Report Q4 2017
25
AI: Largest US deals of Q4'17
Company
Location
Sector
Industry
Stage of
Funding
$ Value
of Deal
Select Investors
Lemonade
New York, NY
Internet
Internet Software
& Services
$120M
Google Ventures, Menlo Ventures, Sequoia
Capital, SoftBank Group
Uptake Technologies
Chicago, IL
Software (non-
internet /
mobile)
Biz Intelligence &
Analytics
$117M
Baillie Gifford & Co., GreatPoint Ventures,
Revolution
Petuum
Pittsburgh, PA
Software (non-
internet /
mobile)
Scientific,
Engineering
Software
$93M
Advantech Capital Partners, SoftBank
Group
Recursion
Pharmaceuticals
Salt Lake City, UT
Healthcare
Biotechnology
$60M
Advantage Capital Partners, Data
Collective
Feedzai
San Mateo, CA
Software (non-
internet /
mobile)
Security Software
$50M
Capital One Growth, Citi Ventures
Expansion
Stage
Early
Stage
Later
Stage
Seed
Stage
PwC | CB Insights MoneyTree Report Q4 2017
26
Cybersecurity
PwC | CB Insights MoneyTree Report Q4 2017
27
Cybersecurity
"
2017 was a record year for Cybersecurity funding, with total
investments exceeding $3.6B. 2017 also saw the most mega-rounds
in Cybersecurity, with seven companies receiving $100M+ in
funding.
"
Sean Joyce, Principal, US Cybersecurity Leader
at PwC
PwC | CB Insights MoneyTree Report Q4 2017
28
Cybersecurity: US annual funding
Cybersecurity funding increases in 2017, deal activity flat from 2016
Total annual funding to US Cybersecurity companies increased 40% in 2017, despite 3 fewer deals occurring.
2017's total funding of over $3.7B tops the $3.2B seen in 2015 for an annual high.
$1,313
$1,679
$2,555
$3,238
$2,624
$3,668
151
177
239
223
229
226
0
50
100
150
200
250
300
2012
2013
2014
2015
2016
2017
TitleInvestment ($M)
Deals
PwC | CB Insights MoneyTree Report Q4 2017
29
Cybersecurity: US quarterly funding
Cybersecurity financing activity flattens in the fourth quarter
Deals and dollars to US Cybersecurity companies flattened in Q4'17, with $801M invested across 52 deals.
Only one mega-round over $100M was recorded; the next largest round was $70M. Quarterly funding surpassed $800M for the third
consecutive quarter.
$596
$822
$796
$411
$685
$1,321
$861
$801
51
59
70
49
59
61
54
52
0
10
20
30
40
50
60
70
80
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
TitleInvestments ($M)
Deals
PwC | CB Insights MoneyTree Report Q4 2017
30
Cybersecurity: US deal share over time
Expansion-stage deal share grows significantly
Expansion-stage deal share increased to 38% of US Cybersecurity investments in Q4'17, up from 24% in Q3'17, and the highest mark this year.
Early-stage deal share declined from 37% to 23% this quarter.
31%
19%
20%
37%
25%
18%
20%
19%
33%
27%
31%
24%
25%
25%
37%
23%
20%
36%
33%
18%
31%
33%
24%
38%
12%
12%
10%
12%
14%
18%
15%
10%
4%
7%
6%
8%
5%
7%
4%
10%
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
Seed Stage
Early Stage
Expansion Stage
Later Stage
Other
PwC | CB Insights MoneyTree Report Q4 2017
31
Cybersecurity: Top states by deals
24 deals
$506M Invested
1. CA
7 deals
$69M Invested
4 deals
$39M Invested
3 deals
$32M Invested
2. MA
3. NY
4. FL
PwC | CB Insights MoneyTree Report Q4 2017
32
Cybersecurity: Largest US deals of Q4'17
Company
Location
Sector
Industry
Stage of
Funding
$ Value
of Deal
Select Investors
Skybox Security
San Jose, CA
Software (non-
internet/mobile)
Security
Software
$150M
CVC Capital Partners, Pantheon Ventures
Duo Security
Ann Arbor, MI
Internet
Internet
Software &
Services
$70M
Index Ventures, Lead Edge Capital, True
Ventures
Feedzai
San Mateo, CA
Software (non-
internet/mobile)
Security
Software
$50M
Capital One Growth Ventures, Citi Ventures
BitGo
Palo Alto, CA
Internet
Internet
Software &
Services
$43M
Valor Equity Partners, Bridgescale Partners
Menlo Security
Palo Alto, CA
Internet
Internet
Software &
Services
$40M
American Express Ventures, Ericsson
Ventures, Sutter Hill Ventures
Expansion
Stage
Early
Stage
Later
Stage
Seed
Stage
PwC | CB Insights MoneyTree Report Q4 2017
33
Genomics
PwC | CB Insights MoneyTree Report Q4 2017
34
Genomics
"
Genomics companies received record funding in 2017 at $2.5B.
Companies focusing on Disease Diagnosis received a majority of the
total funding this year ($1.7B), followed by Biotechnology ($550M).
"
Laura Robinette, Partner, US Pharmaceuticals and Life Sciences
Assurance Leader at PwC
PwC | CB Insights MoneyTree Report Q4 2017
35
Genomics: US annual funding
US Genomics funding nearly doubles to annual high of over $2.5B
Total annual funding to US Genomics companies jumped 142% to over $2.5B, more than the previous three years combined.
A nearly $1B mega-round in Q1'17 propelled this total, while deal activity also ticked upward.
$428
$411
$649
$649
$1,042
$2,525
39
45
47
51
44
52
0
10
20
30
40
50
60
2012
2013
2014
2015
2016
2017
TitleInvestment ($M)
Deals
PwC | CB Insights MoneyTree Report Q4 2017
36
Genomics: US quarterly funding
Genomics funding remains steady, deal activity dips from Q3'17 peak
Funding remained fairly steady, as US Genomics companies received $443M in Q4'17, down from half a billion dollars through each of the
second and third quarters of 2017. A $200M+ mega-round contributed the bulk of Q4'17 quarterly funding.
Deal activity declined from the spike of 22 deals in Q3'17 to 9 deals in Q4'17.
$310
$304
$140
$288
$1,039
$534
$509
$443
10
9
14
11
10
11
22
9
0
5
10
15
20
25
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
TitleInvestments ($M)
Deals
PwC | CB Insights MoneyTree Report Q4 2017
37
Genomics: US deal share over time
Expansion stage deals account for majority of quarterly investment
Expansion-stage deals accounted for more than half of the 9 US Genomics investments in Q4'17.
30%
33%
21%
9%
40%
9%
18%
11%
30%
11%
43%
18%
10%
18%
45%
10%
44%
21%
36%
40%
27%
23%
56%
20%
11%
7%
18%
27%
5%
11%
10%
7%
18%
10%
18%
9%
22%
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
Seed Stage
Early Stage
Expansion Stage
Later Stage
Other
PwC | CB Insights MoneyTree Report Q4 2017
38
Genomics: Top states by deals
3 deals
$356M Invested
1. CA
1 deal
$65M Invested
1 deal
$10M Invested
2. MD
3. GA
PwC | CB Insights MoneyTree Report Q4 2017
39
Genomics: Largest US deals of Q4'17
Company
Location
Sector
Industry
Stage of
Funding
$ Value
of Deal
Select Investors
GRAIL
Menlo Park, CA
Healthcare
Disease
Diagnostics
$238M
ARCH Venture Partners, Kleiner Perkins
Caufield & Byers
Counsyl
South San Francisco,
CA
Internet
Internet
Software &
Services
$80M
Perceptive Advisors
Personal Genome
Diagnostics
Baltimore, MD
Healthcare
Biotechnology
$65M
New Enterprise Associates
Color Genomics
Burlingame, CA
Healthcare
Disease
Diagnosis
$37M
BlackRock, General Catalyst
Prelude Fertility
Atlanta, GA
Healthcare
Medical
Facilities &
Services
$10M
Khosla Ventures
Expansion
Stage
Early
Stage
Later
Stage
Seed
Stage
US Places
03
PwC | CB Insights MoneyTree Report Q4 2017
$5,162M
41
US top five regions of Q4'17 by deals
84
105
147
177
210
San Francisco (N. Bay Area)
New York Metro
Silicon Valley (S. Bay Area)
New England
LA/Orange County
$2,883M
$2,667M
$2,089M
$892M
PwC | CB Insights MoneyTree Report Q4 2017
42
US: Q4'17 funding by region
Total US:
$18.7B
SF (N. Bay Area)
$5,162M
Northwest
$456M
AK/HI/PR
$5.5
North
Central
$160M
Southeast
$1,317M
CO
$268M
Texas
$256M
New England
$2,089M
Midwest
$734M
New York Metro
$2,883M
Upstate
NY
$18M
DC/Metroplex
$1,259M
LA/Orange County
$892M
Philadelphia Metro
$50M
Silicon Valley (S. Bay Area)
$2,667M
San Diego
$236M
Sacramento/N. Cal
$25M
Southwest
$199M
South Central
$48M
PwC | CB Insights MoneyTree Report Q4 2017
43
US: Q4'17 deals by region
SF (N. Bay Area)
210 Deals
Northwest
49 Deals
AK/HI/PR
1 Deal
North
Central
22 Deals
Southeast
64 Deals
CO
40 Deals
Texas
42 Deals
New England
105 Deals
Midwest
80 Deals
New York Metro
177 Deals
Upstate
NY
3 Deals
DC/Metroplex
48 Deals
LA/Orange County
84 Deals
Philadelphia
Metro
16 Deals
Silicon Valley (S. Bay Area)
147 Deals
San Diego
28 Deals
Sacramento/N. Cal
1 Deal
Southwest
23 Deals
South Central
6 Deals
Total US:
1,158 Deals
PwC | CB Insights MoneyTree Report Q4 2017
44
San Francisco
"
San Francisco continued to be the region with the highest annual
funding level at $17.1bn in 2017 despite seeing decreases in annual
funding for VC-backed companies in both deal count (-12%) and
investment amounts (-8%) from 2016.
"
Danny Wallace, Partner, US Emerging Company Services Co-leader
at PwC
PwC | CB Insights MoneyTree Report Q4 2017
45
Annual financing trend: San Francisco (North Bay Area)
San Francisco deals and dollars are down in 2017
Funding activity in San Francisco declined by 8% in 2017 compared to 2016, as $17B was invested across 980 deals.
Deal activity declined by 12% over the same time period.
$6.0
$6.6
$15.8
$26.7
$18.7
$17.1
849
1,010
1,225
1,246
1,113
980
2012
2013
2014
2015
2016
2017
TitleInvestment ($B)
Deals
PwC | CB Insights MoneyTree Report Q4 2017
46
8-quarter financing trend: San Francisco (North Bay Area)
Q4'17 San Francisco funding surges even as deal activity declines
Total quarterly funding to San Francisco-based companies increased 23% in Q4'17 reaching $5.2B.
Deal activity declined 19% over the same period, decreasing from 260 deals in Q3'17 to 210 deals this past quarter as deal volume and seed-
stage deals have declined across the industry.
$3,585
$7,466
$4,896
$2,767
$3,563
$4,233
$4,190
$5,162
281
315
295
222
260
250
260
210
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
TitleInvestments ($M)
Deals
PwC | CB Insights MoneyTree Report Q4 2017
47
New York Metro
"
New York Metro Region received over $11.5B in funding in 2017. 12
NY Metro companies raised over $100M this year, with WeWork
leading the way ($2.76B raised across 3 deals).
"
David Silverman, Partner, US Emerging Company Services Co-leader
at PwC
PwC | CB Insights MoneyTree Report Q4 2017
48
Annual financing trend: New York Metro
New York funding activity has up year, despite flattening in deal activity
Funding to New York-based VC-backed companies increased by 41% in 2017, despite 10 fewer deals occurring.
$2.6
$4.3
$5.8
$8.6
$8.2
$11.5
567
667
756
771
741
731
2012
2013
2014
2015
2016
2017
TitleInvestment ($B)
Deals
PwC | CB Insights MoneyTree Report Q4 2017
49
8-quarter financing trend: New York Metro
Deals and dollars return to Q2'17 levels in the fourth quarter
Deal activity in the New York Metro area declined from 184 deals in Q3'17 to 177 deals this past quarter.
Absent the $2B+ funding to WeWork in Q3'17, total quarterly funding declined by 33%. 7 mega-rounds of $100M or more were recorded this
quarter however, compared to 4 in Q3'17.
$2,680
$1,562
$1,782
$2,176
$1,591
$2,744
$4,326
$2,883
197
193
182
169
193
177
184
177
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
TitleInvestments ($M)
Deals
PwC | CB Insights MoneyTree Report Q4 2017
50
Silicon Valley
"
Silicon Valley venture-backed startups received the most funding
ever in 2017 (surging 57% to $12.1B) while deal activity was down
slightly (-5%) from 2016.
"
Kathleen Borie, Director, US Emerging Company Services
at PwC
PwC | CB Insights MoneyTree Report Q4 2017
51
Annual financing trend: Silicon Valley (South Bay Area)
Funding to Silicon Valley companies increases in 2017
Funding to Silicon Valley-based VC-backed companies increased by 57% in 2017, as $12.1B was invested across 613 deals. Deal activity
declined by 5%.
$6.1
$7.1
$11.4
$10.0
$7.7
$12.1
683
698
793
746
645
613
2012
2013
2014
2015
2016
2017
TitleInvestment ($B)
Deals
PwC | CB Insights MoneyTree Report Q4 2017
52
8-quarter financing trend: Silicon Valley (South Bay Area)
Silicon Valley deal activity decreases as quarterly funding grows
Deals activity decreased to 147 in Q4'17, down from 162 in Q3'17.
Total quarterly funding increased by 18%, to reach $2.7B, with 4 mega-rounds of $100M or more.
$2,726
$2,085
$1,558
$1,320
$3,039
$4,112
$2,256
$2,667
191
142
170
142
159
145
162
147
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
TitleInvestments ($M)
Deals
PwC | CB Insights MoneyTree Report Q4 2017
53
Annual financing trend: New England
New England funding activity increases, but deals slip
Funding to New England-based VC-backed companies increased by 15% in 2017, as $7.4B was invested across 460 deals. Deal activity
declined by 5%.
$4.1
$4.0
$5.6
$7.3
$6.4
$7.4
508
509
557
555
485
460
2012
2013
2014
2015
2016
2017
TitleInvestment ($B)
Deals
PwC | CB Insights MoneyTree Report Q4 2017
54
8-quarter financing trend: New England
New England deal activity declines as funding hits a full-year high
Deals to New England-based companies sunk to an eight-quarter low of 105, while total funding increased 13% to $2Ba 2017 high.
$1,584
$1,208
$2,220
$1,415
$1,988
$1,437
$1,852
$2,089
121
118
118
128
128
111
116
105
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
TitleInvestments ($M)
Deals
PwC | CB Insights MoneyTree Report Q4 2017
55
Annual financing trend: LA/Orange County
Deal activity increases in LA/Orange County but full-year funding is down
Deal activity increased by 9% in LA/Orange county, but total annual funding declined by 15% as $4.3B was invested across 376 deals.
$2.9
$2.5
$4.0
$6.0
$5.1
$4.3
281
313
352
404
345
376
2012
2013
2014
2015
2016
2017
TitleInvestment ($B)
Deals
PwC | CB Insights MoneyTree Report Q4 2017
56
8-quarter financing trend: LA/Orange County
Deals and dollars sink in fourth quarter in LA/Orange County
Deal count decreased by 20% to 84 deals in Q4'17.
Quarterly funding declined by 29% to $892M, the lowest total funding amount since Q3'16.
$982
$2,491
$661
$937
$1,051
$1,112
$1,251
$892
86
104
78
77
89
98
105
84
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
TitleInvestments ($M)
Deals
PwC | CB Insights MoneyTree Report Q4 2017
57
DC Metroplex
"
Five $100M+ 2017 investments in VC-backed startups represented
the highest mega-round activity in DC/Metroplex's post-2000
history, further bolstered by a $500M deal in Q4'17, our region's
largest deal.
"
Gina Gin, Partner, Washington Metro Technology
Assurance Practice Leader at PwC
PwC | CB Insights MoneyTree Report Q4 2017
58
Annual financing trend: DC/Metroplex
Deal and dollar activity is down in 2017 in DC/Metroplex
Total annual funding to DC/Metroplex-based VC-backed companies declined by 11% as $2.5B was invested across 185 deals. Deal activity
declined by 9%.
$0.9
$1.4
$1.4
$2.5
$2.8
$2.5
194
183
238
210
204
185
2012
2013
2014
2015
2016
2017
TitleInvestment ($B)
Deals
PwC | CB Insights MoneyTree Report Q4 2017
59
8-quarter financing trend: DC/Metroplex
DC/Metroplex has a huge fourth quarter, driven by a big funding round
$1.3B was invested into 48 deals in Q4'17, the most funding since Q4'16. The large quarterly funding total was driven by a $500M round.
$432
$208
$634
$1,494
$498
$382
$316
$1,259
59
45
51
49
57
41
39
48
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
# DealsInvestments ($M)
Deals
PwC | CB Insights MoneyTree Report Q4 2017
60
US: Top 10 states of Q4'17 by deals
470 deals
$8,982M
167 deals
$2,829M
97 deals
$2,050M
42 deals
$256M
40 deals
$268M
1. CA
2. NY
3. MA
4. TX
5. CO
6. IL
34 deals
$388M
32 deals
$301M
24 deals
$599M
23 deals
$643M
23 deals
$150M
7. WA
8. FL
9. PA
9. VA
PwC | CB Insights MoneyTree Report Q4 2017
61
Q4'17 Regional comparison: Deals CA vs. NY vs. MA
California deals sink, New York deals down
Deal activity declined by 16% in California from 558 in Q3'17 to 470 in Q4'17.
6 fewer deals were recorded in New York, and 3 fewer deals were recorded in Massachusetts.
594
588
579
473
550
528
558
470
192
173
175
164
188
168
173
167
114
96
104
115
110
99
100
97
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
California
New York
Massachusetts
PwC | CB Insights MoneyTree Report Q4 2017
62
Q4'17 Regional comparison: Financing CA vs. NY vs. MA
California and Massachusetts funding increases, New York declines
California quarterly funding increased by 10% in Q4'17, while Massachusetts funding increased by 43%.
Funding to New York-based companies declined by 33% absent massive mega-rounds over $500M recorded in Q3'17.
$7.8
$12.5
$7.4
$5.3
$8.0
$9.9
$8.2
$9.0
$2.6
$1.4
$1.8
$2.0
$1.5
$2.6
$4.2
$2.8
$1.6
$1.1
$2.2
$1.3
$1.9
$1.4
$1.4
$2.0
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
California
New York
Massachusetts
US Movers & Shakers
04
PwC | CB Insights MoneyTree Report Q4 2017
64
Mega-rounds
"
2017 was also the busiest $100M+ mega-round year in history,
surpassing 2015's record by two deals (109 vs. 107).
"
Tom Ciccolella, Partner, US Ventures Leader
at PwC
PwC | CB Insights MoneyTree Report Q4 2017
65
Annual US mega-round activity
Mega-rounds have a record 2017
109 mega-rounds were recorded in 2017, topping the 107 mega-rounds recorded in 2015.
28
25
77
107
62
109
2012
2013
2014
2015
2016
2017
Mega-rounds into US VC-Backed Companies
PwC | CB Insights MoneyTree Report Q4 2017
66
Mega-rounds
"
On-demand transportation apps received over $2.5B of investment
in 2017, marking the fourth consecutive year this category has
received $2.5B+ in total annual funding. One company received the
lion's share of funding this year, raising $2.1B over three rounds.
"
Mark McCaffrey, Partner, US Technology, Media and
Telecommunication Leader at PwC
PwC | CB Insights MoneyTree Report Q4 2017
67
Largest US deals of Q4'17
Company
Location
Sector
Industry
Stage of
Funding
$ Value
of Deal
Select Investors
Lyft
San Francisco, CA
Mobile &
Telecommunications
Mobile Commerce
$1000M
capitalG
Magic Leap
Plantation, FL
Software (non-
internet/mobile)
Scientific,
Engineering
Software
$502M
Alibaba Group, Fidelity Investments
OneWeb
Arlington, VA
Mobile &
Telecommunications
Telecom Services
$500M
SoftBank Group
Lyft
San Francisco, CA
Mobile &
Telecommunications
Mobile Commerce
$500M
Baillie Gifford & Co., capitalG, Rakuten
Compass
New York, NY
Internet
Internet Software
& Services
$450M
SoftBank Group
Expansion
Stage
Early
Stage
Later
Stage
Seed
Stage
PwC | CB Insights MoneyTree Report Q4 2017
68
Quarterly US mega-round activity
$100M+ mega-round financings surpass 30 for the second time in 2017
Contributing to the high US quarterly funding total were 33 rounds of $100M or more, 8 more than Q3'17 and matching Q2'17 for an 8-
quarter high.
19
14
15
14
18
33
25
33
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
Mega-rounds Into US VC-Backed Companies
PwC | CB Insights MoneyTree Report Q4 2017
69
Annual US mega-round share
US mega-rounds represent 36% of total funding in full-year 2017
US mega-rounds accounted for 36% of total funding in 2017, up from 30% in 2016, as $25.7B of investment was comprised rounds valued at
$100M or more.

In full-year 2017, the US saw 109 mega-rounds.
4.9
4.1
16.9
28.1
18.2
25.7
27.7
32.0
42.5
48.7
43.2
46.2
15%
11%
28%
37%
30%
36%
2012
2013
2014
2015
2016
2017
Mega-round funding ($B)
Non mega-round funding ($B)
% Mega-rounds funding
PwC | CB Insights MoneyTree Report Q4 2017
70
Quarterly US mega-round share
US mega-rounds represent nearly 40% of total funding
US mega-rounds as a percentage of total quarterly funding in the US reached 39% in Q4'17, up from 38% the quarter before.
$7.3B of total US funding was comprised of mega-rounds in 2017, the second straight quarter of this amount.
$4.0
$6.9
$4.0
$3.3
$4.1
$6.9
$7.3
$7.3
$12.1
$10.9
$10.5
$9.6
$10.9
$12.1
$11.8
$11.4
25%
39%
27%
26%
28%
36%
38%
39%
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
Mega-round funding ($B)
Non Mega-round funding ($B)
% Mega-rounds funding
PwC | CB Insights MoneyTree Report Q4 2017
71
US annual new unicorn births
VC-backed unicorn creation increases in 2017
22 private companies reached a billion-dollar valuation in 2017.
This was up 57% from the slowdown in 2016, but is still down significantly compared to the unicorn craze of 2014 through 2015.
7
10
37
41
14
22
2012
2013
2014
2015
2016
2017
US VC-Backed Unicorn Births
PwC | CB Insights MoneyTree Report Q4 2017
72
US quarterly new unicorn births
VC-backed unicorn creation rate flattens in the US
4 new VC-backed companies reached $1B+ valuations in Q4'17, one less than in Q3'17.
New companies joining the unicorn club included Affirm, Duo Security, and Squarespace.
6
2
5
4
3
3
10
5
4
Q4'15
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
Number of New US VC-Backed Unicorns
PwC | CB Insights MoneyTree Report Q4 2017
73
Most active VC firms of Q4'17 in the US
Investor
Location
No. of US
Companies
Select Q4'17 Investments
1. New Enterprise Associates
Menlo Park, CA
32
WellTok, Moda Operandi, Allakos
2. Intel Capital
Santa Clara, CA
17
MAANA, Foghorn Systems, MariaDB
3. Plug and Play Ventures
Sunnyvale, CA
15
Madison Reed, Slice Labs, Cargo Systems
3. Google Ventures
Mountain View, CA
15
Arcus Biosciences, Veo Robotics,
Lemonade
5. Lightspeed Venture Partners
Menlo Park, CA
14
Affirm, Daily Harvest, Kespry
PwC | CB Insights MoneyTree Report Q4 2017
Stage of
funding
Location of investors
Seed
Total number of seed stage deals: 257
Early
Total number of early stage deals: 300
Expansion
Total number of expansion stage deals: 264
Later
Total number of later stage deals: 118
74
Q4'17 Investor locations
California investor presence continues to be strong at every stage
California-based investors were represented in approximately a third of all deals at all stages to US-based companies.
Non-US investors are investing in 27% of seed and early-stage deals and 25% of expansion deals.
32%
36%
35%
35%
13%
11%
12%
14%
4%
5%
7%
9%
24%
21%
20%
20%
27%
27%
25%
22%
California
New York
Massachusetts
Other US
International
Global Trends
05
PwC | CB Insights MoneyTree Report Q4 2017
76
2017 Global regional comparison
Deals
Deals
5,365
$74.5B
2,847
$70.8B
2,483
$17.6B
11,042 Deals
$164.4B Invested
Globally
PwC | CB Insights MoneyTree Report Q4 2017
77
Annual global financing trend
Global financing activity sees record year in this millenium
Total annual global funding increased nearly 50% in 2017, as $164.4B was invested across 11,042 deals.
Deal activity increased by 11% to over 11,000. Both deal and dollar activity surpassed the highs seen in 2015.
$45.3
$52.0
$93.3
$136.2
$110.0
$164.4
6,823
7,861
9,201
10,102
9,989
11,042
0
2,000
4,000
6,000
8,000
10,000
12,000
2012
2013
2014
2015
2016
2017
TitleInvestment ($B)
Deals
PwC | CB Insights MoneyTree Report Q4 2017
78
Q4'17 Global regional comparison
Deals
Deals
1,223
$19.3B
881
$22.6B
624
$4.3B
2,827 Deals
$46.6B Invested
Globally
PwC | CB Insights MoneyTree Report Q4 2017
79
8-quarter global financing trend
Global funding increases as deals flatten
Total global quarterly funding increased 5% in Q4'17, as $46.7B was invested across 2,827 deals.
Deal activity declined by less than a percentage point compared to the quarter before.
$28.2
$30.9
$27.2
$23.7
$29.2
$44.3
$44.3
$46.7
2,561
2,474
2,524
2,430
2,673
2,691
2,851
2,827
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
Investments ($B)
Deals
PwC | CB Insights MoneyTree Report Q4 2017
80
Global corporate deal participation
Corporate participation increases to 28% globally in the fourth quarter
Corporations (and/or their venture arms) participated in 28% of all deals to VC-backed companies in Q4'17.
Corporates have participated in 25%+ of deals throughout full-year 2017.
76%
76%
74%
76%
74%
73%
75%
72%
24%
24%
26%
24%
26%
27%
25%
28%
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
Other Investors
Corp / CVC Deal Participation
PwC | CB Insights MoneyTree Report Q4 2017
81
Annual global financing trend: North America
North America funding increases as deal activity declines in full-year 2017
Total annual funding activity increased 17% in 2017, as $74.5B was invested across 5,365 deals. Deal activity decreased by 5%.
$34.0
$37.8
$60.7
$78.8
$63.5
$74.5
4,818
5,299
6,063
6,080
5,620
5,365
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2012
2013
2014
2015
2016
2017
TitleInvestment ($B)
Deals
PwC | CB Insights MoneyTree Report Q4 2017
82
8-quarter financing trend: North America
North America financing activity directionally similar to US; funding and deal count decrease
VC-backed companies in North America received $19.3B of total funding across 1,223 deals, a 4% decrease in funding and a 12% decrease in
deal activity.
US financing activity accounted for 95% of deals and 97% of dollars invested in North America.
$16.5
$18.5
$14.9
$13.7
$15.6
$19.5
$20.1
$19.3
1,505
1,409
1,390
1,316
1,417
1,335
1,390
1,223
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
Investments ($B)
Deals
PwC | CB Insights MoneyTree Report Q4 2017
83
North America corporate deal participation
Corporate participation increases a percentage point in North America, but remains below Q2'17 high
Corporations (and/or their venture arms) participated in 24% of Q4'17 deals to VC-backed companies in North America; a one percentage
point increase from 23% in Q3'17, but still below 26% in Q2'17.
78%
77%
75%
78%
76%
74%
77%
76%
22%
23%
25%
22%
24%
26%
23%
24%
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
Other Investors
Corp / CVC Deal Participation
PwC | CB Insights MoneyTree Report Q4 2017
84
Annual global financing trend: Europe
Europe financing activity increases in full-year 2017
Total annual Europe funding activity increased by 40% in 2017, as $17.6B was invested across 2,483 deals. Deal activity increased by 16%.
$5.3
$6.4
$9.6
$13.6
$12.6
$17.6
1,132
1,403
1,482
1,851
2,134
2,483
0
500
1,000
1,500
2,000
2,500
3,000
2012
2013
2014
2015
2016
2017
TitleInvestment ($B)
Deals
PwC | CB Insights MoneyTree Report Q4 2017
85
8-quarter financing trend: Europe
Europe funding activity slips, but deal activity increases
Quarterly funding decreased to $4.3B in Q4'17, a 22% decrease from $5.5B last quarter.
Deal activity increased 6% in Q4'17, increasing from 590 deals in Q3'17 to 624 deals.
$3.6
$3.0
$2.5
$3.5
$3.4
$4.4
$5.5
$4.3
469
526
558
581
663
606
590
624
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
Investments ($B)
Deals
PwC | CB Insights MoneyTree Report Q4 2017
86
Europe corporate deal participation
Corporate participation increases a percentage point
Corporations (and/or their venture arms) participated in 24% of Q4'17 deals to VC-backed companies in Europe, up from 23% the quarter
before.
Corporates averaged 24% participation through full-year 2017.
80%
78%
78%
76%
77%
75%
77%
76%
20%
22%
22%
24%
23%
25%
23%
24%
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
Other Investors
Corp / CVC Deal Participation
PwC | CB Insights MoneyTree Report Q4 2017
87
Annual global financing trend: Asia
Asia achieves massive year-over-year growth in financing activity through full-year 2017
Total annual Asia funding activity increased by 117% as $70.8B was invested across 2,847 deals, up from $32.7B in 2016. The top 5 largest
deals of Q4'17 accounted for over $11B in funding.
Deal activity increased by 46%.
$5.2
$7.3
$21.6
$42.5
$32.7
$70.8
743
1,011
1,488
1,951
1,950
2,847
0
500
1,000
1,500
2,000
2,500
3,000
2012
2013
2014
2015
2016
2017
TitleInvestment ($B)
Deals
PwC | CB Insights MoneyTree Report Q4 2017
88
8-quarter financing trend: Asia
Asia funding activity continues significant growth
Quarterly funding increased by 22% as $22.6B of capital was invested in China-based startups.
Deals activity in Asia increased 10% in Q4'17 reaching 881, up from 802 in the quarter prior.
$7.8
$9.3
$9.6
$6.1
$9.9
$19.9
$18.5
$22.6
529
475
486
460
524
640
802
881
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
Investments ($B)
Deals
PwC | CB Insights MoneyTree Report Q4 2017
89
Asia corporate deal participation
Corporate participation in Asia increases after Q3'17
Corporations (and/or their venture arms) participated in 35% of deals to VC-backed companies in Asia in Q4'17.
This represents a return to the level of corporate participation recorded in the first half of 2017 and gives Asia the highest continental
percentage compared to N. America and Europe by 11 percentage points.
68%
68%
62%
70%
64%
65%
68%
65%
32%
32%
38%
30%
36%
35%
32%
35%
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
Other Investors
Corp / CVC Deal Participation
PwC | CB Insights MoneyTree Report Q4 2017
90
Largest global deals of Q4'17
Company
Location
Sector
Industry
Stage of
Funding
$ Value
of Deal
Select Investors
Didi Chuxing
Beijing, China
Mobile &
Telecommunications
Mobile Commerce
$4,000M
Mubadala Investment Company, SoftBank
Group
China Internet Plus
Beijing, China
Internet
e-Commerce
$4,000M
Coatue Management, IDG Capital, Sequoia
Capital China
Olacabs
Bengaluru, India
Mobile &
Telecommunications
Mobile Commerce
$1,100M
SoftBank Group, Tencent Holdings
Ofo
Beijing, China
Mobile &
Telecommunications
Mobile Commerce
$1,000M
Alibaba Group
NIO
Shanghai, China
Automotive &
Transportation
Automobile
Manufacturing
$1,000M
Baillie Gifford & Co., China Asset
Management Co.
Lyft
San Francisco,
United States
Mobile &
Telecommunications
Mobile Commerce
$1,000M
capitalG
Expansion
Stage
Early
Stage
Later
Stage
Seed
Stage
PwC | CB Insights MoneyTree Report Q4 2017
91
Most active VC firms of Q4'17 globally
Investor
Location
No. of Global
Companies
Select Q4'17 Investments
1. New Enterprise Associates
California, US
33
Allakos, Cydan, WellTok
2. Sequoia Capital China
Beijing, China
28
Guazi, Klook, Kneron
3. 500 Startups
California, US
26
Shippo, Trukker, Finova Financial
4. Intel Capital
California, US
25
Horizon Robotics, EchoPixel,
MAANA
5. ZhenFund
Beijing, China
22
NEIWAI, TransferEasy, MioTech
PwC | CB Insights MoneyTree Report Q4 2017
92
Global mega-round activity
North America retakes market with most $100M+ rounds
North America and Asia record the third-straight quarter of nearly 30 mega-rounds of $100M or more, combining for 64 mega-rounds
together in Q4'17.
19
15
16
15
18
34
27
34
21
21
20
17
20
29
34
30
3
4
2
6
6
6
6
3
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
North America Asia Europe
PwC | CB Insights MoneyTree Report Q4 2017
93
Global new unicorn births
Unicorn creation flattens in Q4'17
North America saw 4 companies joining the ranks of private companies valued at $1B or more in Q4'17, one less than Q3'17. Asia saw 4
companies become unicorns, one less than Q3'17.
5
3
3
5
3
4
6
5
4
0
1
0
0
0
0
1
3
0
6
2
5
4
3
10
4
Q4'15
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
Asia
Europe
North America
PwC | CB Insights MoneyTree Report Q4 2017
94
Global seed-stage median deal size
Seed deals sizes increase in North America and Asia
Median North America deal sizes increased from $1.5M to $2.1M in Q4'17.
Asia seed deals increased from a median of $1M to $1.5M this quarter.
$1.0
$1.3
$1.1
$1.5
$1.3
$1.9
$1.5
$2.1
$0.7
$1.0
$0.9
$0.9
$0.8
$1.3
$1.0
$1.5
$0.8
$0.9
$0.9
$1.0
$1.0
$1.1
$1.2
$1.3
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
North America ($M)
Asia ($M)
Europe ($M)
PwC | CB Insights MoneyTree Report Q4 2017
95
Global early-stage median deal size
North America retakes largest median early-stage deal sizes in Q4'17
Median early-stage deal sizes in North America increased to $6.9M this quarter. Asia median deal sizes declined to $6.2M.
$5.0
$5.5
$6.0
$5.8
$6.0
$6.0
$6.3
$6.9
$5.0
$5.2
$6.0
$6.1
$5.8
$6.6
$7.1
$6.2
$5.8
$4.5
$3.9
$5.0
$5.0
$5.0
$5.0
$5.0
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
North America ($M)
Asia ($M)
Europe ($M)
PwC | CB Insights MoneyTree Report Q4 2017
96
Global expansion-stage median deal size
Expansion-stage deal sizes decline in Asia, North America deal sizes bend upwards
Median expansion-stage deal sizes in Asia slid to $15.1M in Q4'17, down from $18.4M in Q3'17.
North America expansion-stage deal sizes increased from $15M to $17.5M.
$16.7
$15.4
$13.0
$14.1
$15.0
$15.6
$15.0
$17.5
$16.7
$20.0
$15.5
$15.0
$16.0
$15.0
$18.4
$15.1
$12.0
$15.8
$9.1
$10.4
$11.2
$10.5
$10.5
$10.5
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
North America ($M)
Asia ($M)
Europe ($M)
PwC | CB Insights MoneyTree Report Q4 2017
97
Global later-stage median deal size
Asia later-stage deal sizes decrease but remain head and shoulders above North America and Europe
Median later-stage deal sizes declined from $67.5M in Q3'17 to $61.2M in Q4'17.
North America deal sizes declined to $26.6M after two quarters at ~$30M. Europe later-stage deal sizes jumped up from $12M in Q3'17 to
$20.8M in Q4'17.
$23.0
$25.6
$23.0
$25.0
$22.9
$30.7
$30.0
$26.6
$25.1
$100.0
$30.0
$33.3
$55.5
$76.3
$67.5
$61.2
$12.1
$15.0
$13.3
$13.5
$17.8
$11.7
$12.0
$20.8
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
North America ($M)
Asia ($M)
Europe ($M)
Appendix
PwC | CB Insights MoneyTree Report Q4 2017
99
US States: Full listing
State
$M
No. of
Deals
Alabama
$0.47
2
Arizona
$5.33
3
California
$8,982
470
Colorado
$268
40
Connecticut $33
7
DC
$214
10
Delaware
$13.5
4
Florida
$599
24
Georgia
$574
14
Hawaii
$5.5
1
No disclosed quarterly activity: AK, AR, KY, MS, ND, NH, NM OK, WV, WY
State
$M
No. of
Deals
Idaho
$0.5
1
Illinois
$388
34
Indiana
$55.6
8
Iowa
$2.5
2
Kansas
$34.6
3
Louisiana
$13.7
3
Maine
$5
2
Maryland
$401.7
15
Massachusetts $2,050
97
Michigan
$150.6
9
State
$M
No. of
Deals
Minnesota
$107.5
7
Missouri
$2.9
2
Montana
$5.5
2
Nebraska
$31.7
7
Nevada
$4.5
2
New Jersey
$70.7
12
New York
$2,829
167
North Carolina $102.7
16
Ohio
$22.2
16
Oregon
$149.4
14
State
$M
No. of
Deals
Pennsylvania
$150
23
Rhode Island
$1.8
1
South Carolina $3.6
2
Tennessee
$37
6
Texas
$256
42
Utah
$188.8
18
Vermont
$1
1
Virginia
$643.1
23
Washington
$301
32
Wisconsin
$18.3
6
PwC | CB Insights MoneyTree Report Q4 2017
100
Notes on methodology
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 encou rage 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).
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 in Asia.
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.
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 January 5, 2018. 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.
2018 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.