The State of Venture Capital Fundraising

The State of Venture Capital Fundraising Organizing the world’s business information.

MATTERMARK 2015 US STARTUP FUNDING REPORT 2016: Strongest Start of the Past 10 Years Yearly Cumulative Capital Deployed (All Stages): Last 10 Years 2006 $60 2007 2008 2009 2010 $50 2011 2012 2013 2014 $40 2015 2016 $30 $20 Capital Deployed (in billions USD) $10 $7.3 B $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec SOURCES: MATTERMARK RESEARCH, CRUNCHBASE, ANGELLIST 3

MATTERMARK 2015 US STARTUP FUNDING REPORT Historical Startup Capital Deployment vs. S&P 500 Quarterly Startup Investment Startup Investment 10 Year Trend Quarter-End S&P 500 S&P 500 10 Year Trend $25 2,500 ) $20 2,000 D S U $ X) s P illion$15 1,500 S B (^ ex (in d In ed y lo $10 1,000 500 ep P D & l S a it p a $5 500 C $0 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10 11 11 11 11 12 12 12 12 13 13 13 13 14 14 14 14 15 15 15 15 ce 0 ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' a 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 P Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q 16 ' 1 Q SOURCES: MATTERMARK RESEARCH, CRUNCHBASE, ANGELLIST 4

Q1 2016 Capital Deployment Pace* is Down 23% from the Q3 2015 Peak *excluding Uber & Lyft deals 10 Year History of Startup Capital Deployment, by Quarter 2200 $18 2000 $16 ) $14 D 1800 S U 500 $12 s 1600 P illion & B S $10 d (in n 1400 -E $8 ed er t est r 1200 v a In u $6 s Q r 1000 $4 olla D 800 $2 600 $0 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10 11 11 11 11 12 12 12 12 13 13 13 13 14 14 14 14 15 15 15 15 ce ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' a Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 P 16 ' Q1 SOURCES: MATTERMARK RESEARCH, CRUNCHBASE, ANGELLIST 5

MATTERMARK 2015 US STARTUP FUNDING REPORT Historical Overall Deal Volume Trend: Last 10 Years Seed/Angel +1516% Series A +137% Series B +99% Series C +112% Series D +132% Series E, F, G & H +348% 1200 1000 800 600 400 Number of Rounds by Stage200 0 $10 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 $8 $7 $5 Deployed $3 Monthly Capital (billions USD)$2 $0 SOURCES: MATTERMARK RESEARCH, CRUNCHBASE, ANGELLIST 7

MATTERMARK 2015 US STARTUP FUNDING REPORT 2016 Pace: Deal Compression at Seed & Series A Seed/Angel -27% Series A -22% Series B +18% Series C +57% Series D +56% Series E, F, G & H -1% 1200 1000 800 600 400 Number of Rounds by Stage200 0 $10 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 $8 2016 Pace $7 $5 Deployed $3 Monthly Capital (billions USD)$2 $0 SOURCES: MATTERMARK RESEARCH, CRUNCHBASE, ANGELLIST 8

MATTERMARK 2015 US STARTUP FUNDING REPORT 10 Year Trends in Seed Stage Capital Deployment $3.0 $2.5 $2.0 $1.5 $1.0 $1.1M verage Deal Size (millions USD) A $0.5 $0.0 1.2006 1.2007 1.2008 1.2009 1.2010 1.2011 1.2012 1.2013 1.2014 1.2015 1.2016 120 olume90 60 Monthly Deal V30 0 1.2006 1.2007 1.2008 1.2009 1.2010 1.2011 1.2012 1.2013 1.2014 1.2015 1.2016 Deals 6 Month Moving Average SOURCES: MATTERMARK RESEARCH, CRUNCHBASE, ANGELLIST 9

Key Takeaway: Seed stage companies with high cap (> $6 million) convertible notes are almost out of time to convert at/ above the cap. Raise now. © 2016 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587

MATTERMARK 2015 US STARTUP FUNDING REPORT 10 Year Trends in Series A Capital Deployment $16 $14 $12 $10 $8 $9.8M $6 verage Deal Size (millions USD)$4 A $2 $0 1.2006 1.2007 1.2008 1.2009 1.2010 1.2011 1.2012 1.2013 1.2014 1.2015 1.2016 120 olume90 60 Monthly Deal V30 0 1.2006 1.2007 1.2008 1.2009 1.2010 1.2011 1.2012 1.2013 1.2014 1.2015 1.2016 Deals 6 Month Moving Average SOURCES: MATTERMARK RESEARCH, CRUNCHBASE, ANGELLIST 11

MATTERMARK 2015 US STARTUP FUNDING REPORT 10 Year Trends in Series B Capital Deployment $50 $45 $40 $35 $24M $30 $25 $20 verage Deal Size (millions USD)$15 A $10 $5 $0 1.2006 1.2007 1.2008 1.2009 1.2010 1.2011 1.2012 1.2013 1.2014 1.2015 1.2016 60 olume45 30 Monthly Deal V15 0 1.2006 1.2007 1.2008 1.2009 1.2010 1.2011 1.2012 1.2013 1.2014 1.2015 1.2016 Deals 6 Month Moving Average SOURCES: MATTERMARK RESEARCH, CRUNCHBASE, ANGELLIST 13

Key Takeaway: Early stage investors are doing inside rounds with their hottest companies. Multiple compression is just beginning to reach Series B and beyond. Raise now! © 2016 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587

Plan B: Cut Burn, Get Profitable

Keep calm. Read SaaStr. Raise now! Organizing the world’s business information.