Y E ARBOOK
Data provided by
Credits & Contact
National Venture Capital Association
(NVCA)
Washington, DC | San Francisco, CA | Palo Alto, CA
nvca.org | nvca@nvca.org | 202-864-5920
NVCA Board of Directors 2019-2020
EXECUTIVE COMMITTEE
JAN GARFINKLE Arboretum Ventures, Chair
BARRY EGGERS Lightspeed Venture Partners,
BOBBY FRANKLIN President and CEO
Chair-Elect
JEFF FARRAH General Counsel
DENISE MARKS SV Health Investors, Treasurer
JUSTIN FIELD Senior Vice President of Government
ANDY SCHWAB 5AM Ventures, Secretary
Affairs
MICHAEL BROWN Battery Ventures, At-Large
MARYAM HAQUE Senior Vice President of Industry
RICH WONG Accel, At-Large
Advancement, NVCA; Executive Director, Venture
MAHA IBRAHIM Canaan Partners, At-Large
Forward
STEPHANIE VOLK Vice President of Development
AT-LARGE
HANNAH MUNIZZA Senior Director of
Development
BRUCE BOOTH Atlas Venture
RHIANON ANDERSON Programs Director, Venture
DIANE DAYCH Granite Growth Health Partners
Forward
RYAN DRANT Questa Capital
ALLYSON CHAPPELL Director of Conferences &
PATRICK ENRIGHT Longitude Capital
Events
STEVE FREDRICK Grotech Ventures
CASSIE ANN HODGES Director of Communications
CHRIS GIRGENTI Pritzker Group Venture Capital
CHARLOTTE SAVERCOOL Director of Government
JOE HOROWITZ Icon Ventures
Affairs
GEORGE HOYEM In-Q-Tel
MICHELE SOLOMON Director of Administration
CHARLES HUDSON Precursor Ventures
DEVIN MILLER Manager of Communications &
NAGRAJ KASHYAP M12
Digital Strategy
MARK KVAMME Drive Capital
JONAS MURPHY Manager of Government Affairs
LISA LAMBERT National Grid Ventures
EMILY VARADY Executive Assistant
MOHAMAD MAKHZOUMI NEA
EMILY MELTON Threshold Ventures
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JOHN GABBERT Founder, CEO
ADLEY BOWDEN Vice President,
Market Development & Analysis
PATRICIA NAKACHE Trinity Ventures
VIC PARKER Spectrum Equity
WILL PRICE Next Frontier Capital
RENATA QUINTINI Lux Capital
SCOTT RANEY Redpoint Ventures
GLENN RIEGER NewSpring Capital
PHIL SANDERSON Griffin Gaming Partners
DANA SETTLE Greycroft
JOHN SOMORJAI Salesforce Ventures
JENNIFER TEGAN Cayuga Venture Fund
NICOLE WALKER Baird Capital
DAVID YORK Top Tier Capital Partners
DATA AND DESIGN
VAN LE Senior Data Analyst
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CAROLINE SUT TIE Junior Graphic Designer
This publication has been created for the National Venture Capital Association by PitchBook Data, Inc. COPYRIGHT © 2020
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Contents
Dear Readers
4
Executive Summary
5-7
Venture Capital 101
8-11
The US Venture Industry At-A-Glance
12-19
Capital Commitments: Venture Fundraising
20-23
Capital Deployed: Investment into Venturebacked Companies
24-33
Exit Landscape: Venture-Backed IPOs &
M&As
34-37
NVCA Decade in Review
38-40
What’s Ahead for 2020
41
2019 NVCA Public Policy Initiatives
43-44
NVCA Member Community - Diverse,
Engaged, Committed
45-46
Glossary
47-58
Data Methodology
59
Geographic Definitions
60
Industry Code Definitions
61-70
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N VC A 2020 Y E A RBOOK
Data provided by
Dear Readers
March 2020
Dear Readers:
With NVCA’s 23rd annual Yearbook, we
District of Columbia, 242 metropolitan
an industry that has grown larger and
close the books on a vibrant decade for
statistical areas, and 397 Congressional
more complex. The data and analysis
the US venture capital (VC) industry.
Districts across the country—raised
in the Yearbook unpack these trends
We start a new decade of uncovering
$133 billion to help build, grow, and scale
for seasoned industry veterans and
their businesses. At the same time, 270+
newcomers. We also offer resources on
venture funds closed on $50+ billion to
what VC is, how it works and why it’s
deploy into promising startups.
important, and a glossary of important
the potential of budding entrepreneurs,
innovative technologies, and the next
generation of American companies that
will fuel the economy of the 2020s and
beyond.
VC experienced an unprecedented
transformation in the 2010s. The industry
today looks very different than it did
10 years ago, when we were slowly
recovering from the 2008 global financial
crisis. We’re excited to release the 2020
NVCA Yearbook, highlighting not only
important trends from the past year but
also the past decade. We look at how
VC has evolved, the impact it continues
to have on our economy and society,
Perhaps most noteworthy was the
terms to reference.
industry’s exit activity ending on a high
The Yearbook and its supporting data
note in 2019, with record IPO exit value
may be accessed three ways: 1) this PDF
generated from several startups that
report; 2) the PDF data pack, which is
received their first venture funding in
available to the public; and 3) the XLS
the late 2000s and early 2010s. The VC
data pack, which is available only to
industry ended the decade with 1,300+
NVCA members. We hope you find this
active institutional venture investors
industry resource helpful and encourage
managing a total of $444 billion in VC
you to share your feedback with us. We
assets.
thank all of our NVCA members whose
On the surface, the trends in US VC
assets under management, active
support makes resources like these and
our advocacy efforts possible!
investors, fundraising, investments,
Here’s to another vibrant decade of VC
and the role of NVCA in the venture
and exits are all “up and to the right,”
activity!
ecosystem.
but there’s more nuance that reflects
Critical to the growth and health of VC
is public policy that encourages new
company formation and makes the
US the most attractive place to start
and grow a business. 2019 proved an
important year for NVCA’s advocacy on
foreign investment legislation, capital
markets reform, high-skilled immigration,
and new regulatory proposals.
Against the backdrop of several critical
public policy debates in Washington,
the VC industry surged in the latter half
Bobby Franklin
President and CEO
Washington, DC
bfranklin@nvca.org
of the decade. In the last year of the
2010s, more than 10,000 venture-backed
companies—across 50 states and the
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N VC A 2020 Y E A RBOOK
Maryam Haque
Senior Vice President of
Industry Advancement, NVCA
Executive Director, Venture
Forward
San Francisco, CA
mhaque@nvca.org
Data provided by
Executive Summary
The US venture capital (VC) industry ended the decade on a high note in 2019. For the second consecutive year, high-growth startups
raised more than $130 billion, and 2019 represented the second year on record (after 2015) where more than 10,000 venture-backed
companies received an investment. From 2010 to 2019, investors deployed $761 billion into 87,000+ venture-backed companies
across 94,000+ financings to start, build, and grow their businesses across the country.
The VC industry grew steadily over the decade. At the end of 2019, there were 1,328 venture firms in existence, managing 2,211
active venture funds and translating to approximately $444 billion in US venture capital assets under management. Compared to
2010, this represents a growth of: 65% in number of firms, 73% in venture funds, and 87% in VC assets under management.
As the numbers of venture firms, startups, and available capital expanded in 2019, so did the prevalence of mega-funds and megadeals, most of which have been concentrated in a few metro areas on the coasts. However, these few metro areas do not have a
monopoly on talent and innovation. Startups and investors across the country continue to disrupt industries, create new sectors, and
fuel the next era of transformative American companies. And investors on the coasts are taking notice.
An important trend over the past decade has been the wave of new participants in the venture ecosystem. These include the surge
in first-time funds raised and companies receiving their first venture investment. The industry has also seen an evolution in the
investor base, with traditional venture funds now part of a broad mix of capital sources available to startups, i.e., accelerators,
incubators, angel groups, corporate venture group, growth equity firms, platforms like AngelList, mutual funds, hedge funds, and
sovereign wealth funds. And while the venture ecosystem still has a long way to go to demographically reflect the broader population
of our country, the industry has made some progress towards lowering barriers and increasing opportunities for historically
underrepresented founders and funders.
The start of a new decade brings a wave of excitement to the venture industry after riding on the waves of robust activity to end the
2010s. Many of the companies that will be making headlines ten years from now for their innovation, disruption, and value creation
are the ones being funded today.
Highlights of the US venture ecosystem in 2019
CAPITAL COMMITMENTS TO VENTURE FUNDS (More details starting on page 20)
•
Venture capital investors raised $51 billion across 272 funds to deploy into promising startups, marking the fifth consecutive year
of $35 billion or more raised.
•
35 first-time funds raised $4.0 billion in commitments last year, both a drop from 2018’s 15-year high.
•
TCV’s $3.2 billion final close for its tenth fund was the largest VC fund closed last year, one of eight funds closed at $1 billion or
more.
•
VC funds based in 26 states and the District of Columbia held final closes on venture funds in 2019, with Connecticut, Ohio,
Illinois, the District of Columbia, Georgia, and Michigan seeing the biggest year-over-year absolute gains.
•
The overall US median VC fund size in 2019 was $80 million, the highest since 2008 and a 7% increase from 2018.
•
Outside of California, Massachusetts, and New York, median VC fund size reached $43 million in 2019, an increase of 57%
compared to 2018, but still relatively small to the dominant venture hubs—the median for California, Massachusetts, and New
York, collectively, was $100 million.
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N VC A 2020 Y E A RBOOK
Data provided by
CAPITAL DEPLOYED TO STARTUPS (More details starting on page 24)
•
10,430 venture-backed companies received $133 billion in funding in 2019, the second consecutive year more than $130 billion
has been invested.
•
The 237 mega-deals (i.e., investments of $100 million+ into venture-backed companies) recorded in 2019 is the highest annual
deal count on record and accounted for nearly half (40%) of total capital invested in 2019.
•
Unicorns (i.e., venture-backed companies valued at $1 billion+), many of which raised mega-deals, attracted $37 billion, or
27% of total capital invested, but 1.4% of the total deals completed last year.
•
The number of angel/seed VC investments in 2019 remained steady compared to 2018, with 4,760 deals completed
representing 42% of total deals in 2019. Angel/seed deal count last year was more than 2.7x higher than in 2010.
•
Nearly 4,000 early-stage investments closed in 2019, representing a little over one-third of total deal count. Early-stage VC
grew 1.8x in absolute terms but dropped to 34% from 39% of deal share compared with 2010.
•
Later-stage VC investments surged in the latter part of the decade, reaching more than 2,700 closed in 2019 and a 1.7x
increase compared with 2010. Last year, later-stage deals comprised about one-quarter of total deal count.
•
The number of first-time financings (i.e., first round of equity funding in a startup by an institutional venture investor) spiked
in the middle of the decade and returned to pre-2012 levels in 2019. 2,729 companies raised first-time funding and attracted
$11.3 billion, the second highest annual amount of capital invested on record.
•
The software sector’s dominance continued in 2019. The life sciences sector has also seen significant growth, with more than
$22 billion invested across 1,487 companies in 2019, accounting for 17% of total capital invested and 14% of total deal count
last year. On a relative basis, both of these metrics are a decline compared with 2010. However, on an absolute basis, 2019 life
science dollars invested and deal count were 2.9x and 1.7x higher, respectively, than 2010.
•
2019 marked the seventh consecutive year where more than 1,200 venture investments involved corporate venture capital
(CVC) participation. In 2019, 24% of all VC deals involved CVC.
•
Momentum for growth equity* investment continued in 2019 and grew rapidly over the decade. Investors deployed $66 billion
across 1,217 growth equity investments last year, compared with $19.5 billion deployed across 551 deals in 2010.
•
Venture funding reached startups in all 50 states and the District of Columbia, 242 Metropolitan Statistical Areas (MSAs), and
397 Congressional Districts. Buffalo, NY, Boise City, ID, and Richmond, VA saw the biggest growth rate** for annual number of
VC investments over the past five years (for those MSAs with at least 15 in 2019). Bend, OR, Rochester, NY, and Grand Rapids,
MI saw the largest annual growth for VC investment over the past five years (for those MSAs with at least $10 million VC
investment in 2014 and 2019).
•
Startups that were venture-backed in 2019 represented approximately 2.27 million*** employees.
•
Globally, $257 billion was invested across 23,000+ deals in 2019. The US represented 52% and 49% of the global total,
respectively. In 2010, the US accounted for 67% of global VC dollars and 61% of global VC deal count.
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N VC A 2020 Y E A RBOOK
Data provided by
EXIT LANDSCAPE (More details starting on page 34)
•
Venture-backed exit activity was the big story for VC in 2019, a record year for exit value following a buildup of large, latestage companies in the private markets.
•
The 82 venture-backed IPOs representing $199 billion in exit value in 2019 marked the highest annual exit value on record.
•
Venture-backed companies accounted for 43% of all US IPOs in 2019.
•
Mergers and acquisitions (M&As) remained strong in the second half of the decade, with six straight years of $40 billion+ in
disclosed exit value. In 2019, 836 M&As (219 with disclosed values) represented a total of $61.4 billion in disclosed exit value, a
6% decrease year-over-year.
•
36 late-stage companies, many of them unicorns, held exits in 2019 for an aggregate exit value of $208 billion, both metrics
representing record highs.
While investors and entrepreneurs had a busy 2019, NVCA led the charge in Washington, DC on several important public policy
issues affecting the ecosystem (see page 43). NVCA also delivered on its mission to arm the venture community for success,
serving as the leading resource for venture capital data, practical education, peer-led initiatives, and networking. Our “Decade in
Review” starting on page 38 highlights several of these in 2019 and over the past ten years.
*Growth equity is not included as a subset of overall VC data in this publication, but is rather its own unique dataset. More details on the methodology are on page
[33].
**Calculated as compound annual growth rate.
***Based on PitchBook’s custom estimation methodology for number of employees at venture-backed companies in the US. Data is as of early November 2019.
Note to readers: Figures for prior years throughout this edition of the Yearbook may be different from last year’s edition due to new and updated information.
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N VC A 2020 Y E A RBOOK
Data provided by
Venture Capital 101
This section offers an overview of
what venture capital is, the impact this
unique form of financing has had on
our economy and society, and why it is
important for the future.
Risk Capital for HighGrowth Businesses
Venture capital is unique as an
institutional investor asset class. Venture
capital funds make equity investments
in a company whose stock is essentially
Venture capital firms are professional,
illiquid and worthless until a company
institutional managers of risk capital
Venture capital has enabled the United
States to support its entrepreneurial
talent by turning ideas and basic
research into products and services that
have transformed the world. Venture
capital funds build companies from
the simplest form—perhaps just the
entrepreneur and an idea expressed as a
matures five to eight years down the
that enable and support the most
road. Follow-on investment provides
innovative and promising companies.
Venture capital supports new ideas that
1) could not be financed with traditional
bank financing; 2) threaten established
products and services in a corporation or
industry; and 3) typically require five to
eight years (or longer!) to reach maturity.
business plan—to freestanding, mature
additional funding as the company grows.
These “rounds”, typically occurring every
year or two, are also based on equity in
the company, with the shares allocated
among the investors and management
team based on an agreed “valuation.”
However, unless a company is acquired
or goes public, there is little actual value.
organizations.
Venture capital is a long-term investment.
Venture Capital Plays a Vital Role in a Startup’s Growth
Company
Development
Investment
Stages
Concept,
business
planning
Idea/Startup
Development
Growth
Maturity
Seed/Angel
Early Stage VC
Late Stage VC
Exit
Product
development
Operational,
rollout
Growth
Expansion
Time
Cash flow
Sources of funding: VCs, angel investors, incubators, accelerators, strategic investors (corporate
groups), growth equity investors, private equity firms, debt investors
8
N VC A 2020 Y E A RBOOK
Data provided by
Venture Investors
Partner with
Entrepreneurs
The US venture industry provides the
capital to create some of the most
innovative and successful companies.
However, venture capital is more than
money. A venture capital professional’s
most precious asset is time. According to
year. Team, business model, product,
a board seat at the company, and
market, valuation, fit, ability to add
hiring employees. With a startup, daily
value, and industry are all important
interaction with the management team
factors venture investors consider when
is common. This active engagement
evaluating investments into startups.
with a fledgling startup is critical to the
Venture capital investors are seeking
company’s success and often limits the
entrepreneurs who are addressing
number of startups into which any single
global markets, have superb scalability,
fund can invest. Many one- and two-
demonstrate success within a reasonable
person companies have received funding,
timeframe, and truly innovative.
but no one- or two-person company has
ever gone public! Along the way, the
a 2016 study, How Do Venture Capitalists
A venture capital investor’s competitive
Make Decisions?,1 for every company
advantage is the expertise and guidance
in which a venture firm eventually
they provide to the entrepreneurs in their
invests, the firm considers roughly 100
portfolio. Once the investment into a
potential opportunities. The same study,
company has been made, venture capital
which included results from a survey
partners actively engage with a company,
of 889 venture capital professionals
providing strategic and operational
at 681 firms, showed that the median
guidance, connecting entrepreneurs
venture firm closes about four deals per
with investors and customers, taking
company must recruit talent and scale
up. Any venture capital investor who has
had a “home-run” investment will tell you
that the companies capable of breaking
through the gravity were able to evolve
the original business plan concept due to
careful input from an experienced hand.
The VC Fund Structure
Venture Capital Firm
(General Partners or GPs)
Limited Partners
(LPs, Investors)
VC
LP
Fund manager
LP
LP
LP
Examples: public pension funds,
corporate pension funds, insurance
companies, high net-worth individuals,
family offices, endowments,
foundations, fund-of-funds, sovereign
wealth funds
Ownership of the fund
Venture Capital Fund
(Limited Partnership)
Fund ownership of portfolio companies
Investment
into
company
Investment
into
company
Investment
into
company
Investment
into
company
Investment
into
company
1
Gompers, Paul A. and Gornall, Will and Kaplan, Steven N. and Strebulaev, Ilya A., How Do Venture Capitalists Make Decisions? (August 1, 2016). Stanford
University Graduate School of Business Research Paper No. 16-33; European Corporate Governance Institute (ECGI) - Finance Working Paper No. 477/2016.
Available at SSRN: https://ssrn.com/abstract=2801385
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N VC A 2020 Y E A RBOOK
Data provided by
Common Structure—
Unique Results
While the legal and economic structures
used to create a venture capital fund are
similar to those used by other alternative
investment asset classes, venture capital
itself is unique. Typically, a venture capital
firm will create a limited partnership with
the investors as LPs and the firm itself
as the general partner. Examples of LPs
include public pension funds, corporate
pension funds, insurance companies,
family offices, endowments, and
foundations. Each “fund,” or portfolio, is a
separate partnership.
A new fund is established when the
venture investors have high hopes for
venture capital firm obtains necessary
any company getting funded, the 2016
commitments from its investors, say
study How Do Venture Capitalists Make
$80 million (i.e., the median size of a US
Decisions? found that, on average,
venture fund closed in 2019). The money
15% of a venture firm’s portfolio exits
is taken from limited partners as the
are through IPOs while about half are
investments are made through what are
through an M&A.
referred to as “capital calls.” Typically, an
initial funding of a company will cause
the venture fund to reserve three or four
times that first investment for follow-on
financing. Over the next three to eight
Economic Alignment of
All Stakeholders—An
American Success Story
years, partners from the venture firm
Venture capital is rare among asset
works with the founding entrepreneur
classes in that success is truly shared. It
to grow the company. The potential
is not driven by quick returns, financial
payoff comes only after the company
engineering, debt, or transaction
is acquired or goes public. Although
fees. Economic success occurs when
How Venture Capital Works
Fundraising
Investment
Company Growth
Exit
Returns
Re-investment
VCs raise capital for
funds from LPs.
VCs typically invest in
young, high-growth
companies in need of
capital to scale.
VCs provide active
management and
act as advisors &
mentors, taking board
seats, providing
strategic advice,
facilitating
introductions.
After about 5–10 years
of creating a
high-growth company,
the VC exits its stake
via an acquisition or
IPO. IPOs have more
advantages: greater
capital raised, higher
returns, local job
creation.
In addition to
companies benefitting,
VCs and LPs make
a profit on their
investment.
High-quality jobs are
created, more
capital is available for
university research,
retirees have more
for retirement,
foundations have
more resources to fund
their work.
The fund ends when
all investments have
been exited and
proceeds have been
distributed to LPs. LPs
can then reinvest
earnings in a new crop
of funds.
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N VC A 2020 Y E A RBOOK
Data provided by
the stock price increases above the
backed companies have scaled, gone
pipeline of talent, and fair and open
purchase price. When a company is
public, and become household names,
capital markets. It is dependent upon
successful and has a strong public stock
and at the same time have generated
investment in scientific research,
offering, or is acquired, the stock price
high-skilled jobs and trillions of dollars of
motivated entrepreneurs, protection of
of the company reflects its success. The
benefit for the US economy.
entrepreneur benefits from appreciated
stock and stock options. The rank and file
employees throughout the organization
historically also do well with their stock
options. The venture capital fund and
its LP investors split the capital gains
per a pre-agreed formula. Many college
endowments, pension funds, charities,
individuals, and corporations have
benefited far beyond the risk-adjusted
returns of the public markets.
At the same time, the risk capital that
fuels startups can bring benefits to
local economies in the form of company
growth, competitiveness, and job
creation. In fact, recent studies have
found that high-growth startups account
for as many as 50% of gross jobs created,
and an average of 2.9 million net jobs
created annually between 1980 and
2010.2
The Impact of Venturebacked Companies
Beyond Financial
Returns
While venture investing has generated
A 2015 study, The Economic Impact of
Venture Capital: Evidence from Public
Companies, 3 analyzed the impact
venture-backed companies, as a subset
of all US public companies founded
between 1974 and 2015, have had on
the economy. The study found that of the
1,339 US companies that went public in
that period, 556 (or 42%) are venturebacked. These 556 companies represent
63% of the market capitalization and 85%
of total research and development.
At the end of 2019, venture-backed
companies accounted for the five
largest publicly traded companies by
market capitalization in the US: Apple
($1.29 trillion), Microsoft ($1.20 trillion),
Alphabet ($920.3 billion), Amazon
($920.2 billion), and Facebook ($585
billion).4
intellectual property, a skilled workforce,
and public policies that encourage
new company formation. The nascent
deployment of venture capital in some
countries is gated by a country’s or
region’s cultural fit, tolerance for failure,
services infrastructure that supports
developing companies, intellectual
property protection, efficient capital
markets, and the willingness of big
business to purchase from small
companies.
Venture capital investing is now global.
While the US historically has been a
stronghold of global venture capital
activity, the rest of the world has been
catching up. In the 1990s, US-based
startups attracted more than 90% of
annual global venture capital dollars
invested. Today, US-based startups
account for about half of global venture
capital dollars invested. It’s important
Furthermore, recent research released
by Silicon Valley Bank found that 42% of
FDA-approved US drugs between 2009
and 2018 originated with venture capital
funding.5
What’s Ahead
billions of dollars for investors and their
Much of venture capital’s success has
institutions and created millions of jobs
come from the vibrant entrepreneurial
over the years, the economic impact of
spirit in the US, financial recognition
venture-backed companies has been
of success, access to good science, a
to note that global investment has
grown over that time, i.e., the US decline
in global market share is on relative
terms, not by absolute dollars. However,
with global competition increasing for
innovation and talent, empowering
high-growth startups and ensuring the
US is the most attractive place to start
a company are critical to the continued
success of our country’s entrepreneurial
ecosystem.
even more far-reaching. Many venture-
2
Kauffman Foundation, The Economic Impact of High-Growth Startups (January 7, 2016). https://www.kauffman.org/-/media/kauffman_org/resources/2016/
entrepreneurship-policy-digest/pd_highgrowth060716.pdf and Decker, Ryan, John Haltiwanger, Ron Jarmin, and Javier Miranda. 2014. “The Role of
Entrepreneurship in US Job Creation and Economic Dynamism.” Journal of Economic Perspectives, 28 (3): 3-24. https://www.aeaweb.org/articles?id=10.1257/
jep.28.3.3
3
Gornall, Will and Strebulaev, Ilya A., The Economic Impact of Venture Capital: Evidence from Public Companies (November 1, 2015). Stanford University
Graduate School of Business Research Paper No. 15-55. Available at SSRN: https://ssrn.com/abstract=2681841 or http://dx.doi.org/10.2139/ssrn.2681841
4
Source: YCharts data as of December 31, 2019.
5
Silicon Valley Bank, “Trends in Healthcare Investments and Exits 2019” (Mid-year report 2019) https://www.svb.com/globalassets/library/managedassets/pdfs/
healthcare-report-2019-midyear.pdf
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N VC A 2020 Y E A RBOOK
Data provided by
At-A-Glance: The US
Venture Industry
in the number of venture investors and
VC AUM Summary Statistics
2007
2013
2019
# of VC Firms in Existence
946
917
1,328
end of 2019, 1,328 venture firms were
# of VC Funds in Existence
1,586
1,422
2,211
in existence (i.e., those who have raised
# of First-time VC Funds Raised
31
23
35
# of VC Funds Raising Money This Year
187
215
272
funds and had approximately $444
VC Capital Raised This Year ($B)
$35.1
$20.4
$50.5
billion in US venture capital assets under
VC AUM ($B)
$221.6
$257.6
$444.3
management (AUM) and $121 billion in
Avg VC AUM Per Firm ($M)
$221.6
$255.1
$337.9
Avg VC Fund Size to Date ($M)
$128.1
$131.0
$138.4
Avg VC Fund Size Raised This Year ($M)
$213.0
$102.4
$189.3
Median VC AUM Per Firm ($M)
$66.5
$70.2
$77.7
The industry’s latest AUM and dry
Median VC Fund Size to Date ($M)
$55.0
$52.0
$50.0
powder figures are both record highs and
Median VC Fund Size Raised This Year ($M)
$133.0
$37.5
$80.0
Largest VC Fund Raised to Date ($M)
$3,000.0
$1,100.0
$3,200.0
increase in VC AUM from 2018 to 2019.
cap a decade where venture funds closed
an aggregate of about $350 billion. From
where the decade started with about
$230 billion in VC AUM at the end of
2009, 2019’s VC AUM nearly doubled and
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
Note: The number of firms in existence is based on a rolling count of firms that raised a fund in the last eight vintage
years. The number of VC funds in existence is based on a rolling count of funds that have closed in the last eight
vintage years. AUM is calculated by adding together a firm’s total remaining value and their total dry powder.
had an annual growth rate* of 7%.
US Venture Capital AUM by Year
VC assets remain geographically
$500
concentrated in three states—the
$450
dominant hubs for venture activity—
$400
$0
$257.6
$50
$248.5
$100
$253.2
$150
$237.0
increases of 7%, 1%, and 1%, respectively.
$200
$229.1
New York saw slight year-over-year AUM
$250
$227.7
2018. California, Massachusetts, and
$300
$221.6
of total US VC AUM in 2019, on par with
$350
$198.5
These three states together made up 84%
$170.6
California, Massachusetts, and New York.
$425.1
Elevated fundraising levels the past
two years yielded a 5% year-over-year
$347.1
dry powder at the end of 2019.
$334.4
a fund in the last eight years). These
1,328 firms managed 2,211 venture
$315.6
managed by the venture industry. At the
$285.5
venture funds and the amount of assets
$444.3
2019 bookended a decade of growth
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
12
N VC A 2020 Y E A RBOOK
Data provided by
Iowa, Ohio, the District of Columbia,
The median venture firm size was $78
and Minnesota were among the states
million in 2019. While VC AUM has
1,012.
with the highest year-over-year VC
grown and mega-funds have become
AUM increases. At the end of 2019, 28
more prevalent, most firms (755 firms or
The US share of global fundraising has
states had more than $100 million in
56% of firms) managed less than $100
AUM. States that saw the largest annual
million at the end of 2019, and 92 firms
growth rate* in VC AUM over the decade
managed $1 billion+.
were Montana, Arizona, North Dakota,
Delaware, and Nebraska. However, it’s
important to note that VC assets by a
firm’s headquarter state oftentimes is
not the most telling since firms frequently
invest in companies outside their state,
as noted on the charts on page 28.
remained steady, accounting for 67% of
total funds raised. US companies gained
ground on global investment, accounting
for 52% of VC dollars in 2019. However,
this is a marked difference from the
In 2019, 7,958 active investors (all types
84% share of global investment the US
and headquartered globally) made one
accounted for in 2004 and has rapidly
or more investment in US companies, a
declined. Exit activity yielded the biggest
steady decline after peaking in 2015.
change in the US global market share
Active US-based VC investors also
after a record year of exits—78% of
continued to dip (2,279 in 2019) after
global venture-backed exit value in 2019
peaking in 2017, while US VC investors
came from US companies.
making first round investments fell to
*Calculated as compound annual growth rate.
Fund and Firm Analysis
Total
Cumulative
Funds
Total
Cumulative
Firms
2005
2,520
1,066
2006
2,715
2007
Total
Cumulative
Capital ($B)
Existing
Funds
Firms That Raised
Funds in the Last 8
Vintage Years
$281.7
1,655
931
$170.6
$148.1
$180.8
$60.0
$60.4
1,127
$313.0
1,672
960
$198.5
$188.4
$202.4
$92.0
$60.0
2,902
1,180
$348.1
1,586
946
$221.6
$213.0
$221.6
$133.0
$66.5
2008
3,096
1,238
$380.2
1,388
843
$227.7
$182.3
$225.4
$84.5
$65.1
2009
3,218
1,279
$393.3
1,264
788
$229.1
$121.2
$223.6
$50.0
$68.5
2010
3,368
1,344
$412.3
1,281
805
$237.0
$138.6
$242.3
$50.0
$75.7
2011
3,522
1,406
$435.6
1,330
830
$253.2
$163.4
$262.6
$45.6
$79.7
2012
3,727
1,496
$460.3
1,378
872
$248.5
$130.6
$250.6
$26.3
$66.6
2013
3,942
1,591
$480.7
1,422
917
$257.6
$102.4
$255.1
$37.5
$70.2
2014
4,235
1,727
$515.6
1,520
981
$285.5
$129.7
$261.3
$30.0
$60.5
2015
4,549
1,853
$552.9
1,647
1,041
$315.6
$126.7
$258.8
$33.5
$55.2
2016
4,877
1,987
$595.6
1,781
1,094
$334.4
$142.1
$265.9
$50.0
$53.9
2017
5,157
2,132
$631.6
1,939
1,200
$347.1
$137.9
$272.3
$47.5
$59.4
2018
5,461
2,271
$689.7
2,093
1,284
$425.1
$203.3
$334.0
$74.9
$71.7
2019
5,733
2,371
$740.2
2,211
1,328
$444.3
$189.3
$337.9
$80.0
$77.7
AUM
($B)
Average
Fund Size
($M)
Average
Commitments
+ NAV ($M)
Median
Fund Size
($M)
Median
Commitments
+ NAV ($M)
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
*Defined as Commitments + Net Asset Value
13
N VC A 2020 Y E A RBOOK
Data provided by
Number of Active Investors (#)
# of
Active
Investors
# of
# of
Active 1st
Round
Investors
Active
# of
Life
Active VC
Science
Investors
Investors
# of
# of
Active VC
1st Round
Investors
# of
# of
Active
# of
VC Life
Active US
Science
Investors
Investors
Active
Active US
1st Round
Investors
US Life
Science
Investors
# of
Active
US VC
Investors
# of
# of
Active US
Active US
VC 1st
VC Life
Round
Science
Investors
Investors
2005
2,536
1,020
818
1,284
564
473
1,851
814
572
1,034
491
367
2006
2,785
1,262
840
1,375
693
497
2,031
970
635
1,082
561
399
2007
3,358
1,478
977
1,563
743
548
2,415
1,134
725
1,244
629
445
2008
3,573
1,478
976
1,631
725
552
2,562
1,136
758
1,287
598
444
2009
3,063
1,281
870
1,433
582
499
2,208
986
667
1,114
500
404
2010
3,552
1,648
830
1,576
700
484
2,558
1,256
649
1,242
589
408
2011
4,592
2,352
879
1,809
894
504
3,092
1,652
714
1,406
741
429
2012
5,734
2,934
1,010
2,060
1,022
535
3,594
1,959
782
1,592
839
445
2013
7,306
3,432
1,126
2,330
1,072
586
4,046
1,990
848
1,740
859
482
2014
9,429
3,848
1,359
2,703
1,196
622
4,646
2,115
935
2,001
973
494
2015
10,278
3,789
1,610
2,957
1,252
726
4,805
1,995
1,063
2,146
1,002
579
2016
8,676
2,864
1,264
3,128
1,261
672
4,475
1,659
888
2,224
1,019
531
2017
8,512
2,829
1,558
3,369
1,444
849
4,436
1,689
1,048
2,377
1,155
640
2018
8,608
2,814
1,737
3,600
1,508
942
4,421
1,672
1,129
2,388
1,129
687
2019
7,958
2,477
1,497
3,453
1,319
833
4,213
1,500
987
2,279
1,012
604
*VC investors include entities with primary investor type as: Venture Capital, Corporate Venture Capital, or Not-forprofit Venture Capital
*VC investors are headquartered globally, but only counted if they invested in a US company
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
US as a % of Global VC Deal Flow by Year
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Global Deal Value ($B)
$47.6
$49.8
$37.0
$47.2
$66.0
$62.0
$71.4
$114.8
$158.1
$161.8
$183.9
$308.5
$257.3
US Deal Value ($B)
$37.9
$36.9
$27.5
$31.6
$44.8
$41.3
$47.7
$72.3
$83.5
$78.1
$87.1
$141.8
$133.4
Global Deal Value (#)
6,499
7,218
6,988
8,943
11,381
13,604
16,785
20,212
22,481
21,286
21,952
23,726
23,268
US Deal Value (#)
4,338
4,772
4,546
5,463
6,822
7,958
9,413
10,720
11,073
9,694
10,392
10,648
11,359
US as % of Global ($)
79.6%
74.0%
74.2%
66.9%
67.9%
66.6%
66.8%
62.9%
52.8%
48.3%
47.4%
46.0%
51.9%
US as % of Global (#)
66.7%
66.1%
65.1%
61.1%
59.9%
58.5%
56.1%
53.0%
49.3%
45.5%
47.3%
44.9%
48.8%
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
14
N VC A 2020 Y E A RBOOK
Data provided by
Active Investor Count in 2019 Deals by HQ State
118
1
7
24
1
5
19
-
28
91
26
106
4
63
30
28
36
28
1
21
9
1,473
43
7
-
126
18
3
51
1
11
25
40
22
6
3
265
19
7
5
10
525
32
1
2-
3
33
5
0
53
4
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
US as a % of Global VC Exits by Year
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Global Exit Value ($B)
$84.0
$25.3
$35.2
$66.1
$95.0
$133.2
$101.0
$203.0
$122.5
$113.2
$157.2
$394.5
$332.7
US Exit Value ($B)
$57.1
$17.4
$21.5
$41.4
$66.7
$124.4
$72.3
$111.6
$75.6
$73.3
$97.8
$130.3
$260.6
Global Exit Value (#)
1,075
837
793
1,196
1,260
1,428
1,549
1,959
2,007
1,825
1,849
1,837
1,719
US Exit Value (#)
627
493
480
707
739
868
906
1,081
1,030
908
929
1,022
918
US as % of Global ($)
68.0%
68.8%
61.3%
62.7%
70.2%
93.4%
71.6%
55.0%
61.7%
64.7%
62.2%
33.0%
78.3%
US as % of Global (#)
58.3%
58.9%
60.5%
59.1%
58.7%
60.8%
58.5%
55.2%
51.3%
49.8%
50.2%
55.6%
53.4%
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
15
N VC A 2020 Y E A RBOOK
Data provided by
Active Investor Count in 2019 Deals by Investor HQ State
56
1
2
19
2
12
2
3
23
2
55
9
40
27
24
7
909
37
17
1
35
7
-
79
14
3
24
1
6
11
25
5
2
19
5
151
20
8
99
17
359
34
5
7
1-
1
30
3
0
48
0
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
Note: This map breaks out the 2,113 active VC investors by their HQ state. Note that active VC investors headquartered outside of the US are not included in this map.
US as a % of Global VC Fundraising by Year
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
$53.6
$52.4
$24.3
$35.3
$45.8
$39.5
$40.4
$52.2
$74.6
$72.8
$59.0
$87.0
$75.1
$35.1
$32.1
$13.1
$19.0
$23.4
$24.7
$20.4
$34.9
$37.4
$42.6
$36.0
$58.1
$50.5
413
447
341
398
434
432
394
490
522
534
466
460
432
US Capital Raised (#)
187
194
122
150
154
205
215
293
314
328
280
304
272
US as % of Global ($)
65.6%
61.2%
53.8%
53.9%
51.1%
62.5%
50.4%
66.8%
50.1%
58.6%
61.0%
66.8%
67.3%
US as % of Global (#)
45.3%
43.4%
35.8%
37.7%
35.5%
47.5%
54.6%
59.8%
60.2%
61.4%
60.1%
66.1%
63.0%
Global Capital Raised
($B)
US Capital Raised ($B)
Global Capital Raised
(#)
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
16
N VC A 2020 Y E A RBOOK
Data provided by
AUM by State in 2019
$7.3B
$99.1M
$71.6M
$68.8M
$50.0M
$1.1B
$31.9M
$244.1M
$46.2M
-
-
$2.3B
$9.7B
$2.7B
$3.6B
$57.1B
$92.1M
$88.4M
$84.0M
$208.7M
$1.3B
$45.9M
$3.2B
$172.3M
$3.1B
-
$1.6B
$2.9B
$52.7M
$257.7B
$1.3B
$704.4M
$1.3M
$5.6B
$3.3B
$71.6M
$760.8M
$7.4B
$1.4M
$17.7M
$11.3M
$60.2B
$34.95M
-
$46.2M
$0.2B
$0.5B
$222.3M
$1.9B
$0.9M
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
Top 5 States by AUM in
2019 ($B)
AUM
California
$257.7
Massachusetts
$60.2
New York
$57.1
Distribution of Firms by AUM in 2019
350
294
300
250
236
200
177
166
176
150
121
100
Illinois
$9.7
District of Columbia
$7.4
Total
$444.3
75
92
50
0
$0M$10M
$10M$25M
$25M$50M
$50M$100M
$100M$250M
$250M$500M
$500M$1B
$1B+
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
17
N VC A 2020 Y E A RBOOK
Data provided by
AUM by Year by State ($M)
2005
2006
2007
2008
2009
2010
2011
2012
Alabama
$166.9
$184.0
$175.2
$176.8
$169.4
$171.4
$160.6
$143.8
Arizona
$90.2
$90.9
$81.5
$71.7
$65.7
$51.8
$93.5
$129.2
Arkansas
-
-
-
-
-
-
-
-
California
$80,896.3
$95,485.7
$103,514.5
$109,986.4
$112,552.2
$117,765.0
$126,467.8
$125,427.6
Colorado
$1,255.2
$1,171.6
$1,733.9
$1,656.6
$1,559.0
$1,950.7
$1,894.5
$1,742.6
Connecticut
$7,054.0
$9,647.5
$10,111.2
$9,049.0
$9,137.4
$9,431.1
$9,064.3
$9,058.6
Delaware
$6.6
$25.2
$18.0
$12.7
$11.5
$11.7
$11.7
$15.7
District of Columbia
$1,459.7
$1,593.8
$2,483.7
$2,488.8
$2,297.0
$2,112.4
$2,616.6
$2,449.7
Florida
$1,664.3
$1,638.4
$1,865.2
$1,935.4
$1,844.6
$1,807.2
$1,767.7
$2,162.6
Georgia
$1,387.5
$1,510.3
$1,779.8
$1,627.8
$1,625.2
$1,785.8
$1,779.0
$1,610.7
Hawaii
$11.5
$11.7
$11.6
$11.3
$11.3
$11.8
$12.0
$8.5
Idaho
$22.0
$21.6
$93.9
$81.7
$78.9
$94.8
$96.2
$92.1
Illinois
$3,080.6
$3,745.2
$4,195.0
$4,391.5
$4,229.4
$4,598.7
$5,442.3
$5,247.3
Indiana
$321.3
$309.2
$289.4
$244.3
$226.2
$221.8
$205.6
$189.2
Iowa
$28.7
$28.2
$26.3
$22.3
$18.8
$16.8
$14.9
$16.8
Kansas
$3.3
$6.1
$2.5
-
-
-
$2.7
$2.5
Kentucky
$147.4
$352.7
$341.8
$320.4
$294.0
$279.8
$300.6
$276.2
Louisiana
$542.5
$631.0
$627.4
$649.7
$691.2
$750.4
$693.1
$627.6
Maine
$258.1
$251.3
$301.2
$271.6
$264.2
$284.6
$311.6
$263.0
Maryland
$1,868.3
$2,169.3
$2,472.4
$2,134.8
$1,986.0
$1,777.3
$1,568.8
$1,506.3
Massachusetts
$29,843.8
$32,960.6
$38,323.2
$37,048.7
$37,114.7
$38,704.1
$41,193.2
$39,174.4
Michigan
$370.0
$365.3
$420.5
$1,310.2
$1,456.8
$1,468.6
$1,669.7
$1,568.2
Minnesota
$1,180.6
$1,572.3
$2,061.0
$2,112.0
$1,913.8
$1,806.2
$1,685.5
$1,814.4
Missouri
$1,252.8
$1,265.9
$1,508.1
$1,365.9
$1,293.5
$1,254.1
$1,297.1
$1,092.7
Montana
-
$1.7
$1.7
$1.7
$1.5
$1.6
$1.6
$1.5
Nebraska
$25.7
$22.7
$21.2
$16.2
$14.6
$16.1
$51.8
$40.1
Nevada
$48.8
$44.4
$43.7
$33.3
$30.6
$26.6
$21.3
$60.4
New Hampshire
$14.2
$63.4
$63.0
$60.2
$53.1
$51.7
$51.8
$48.1
New Jersey
$3,792.0
$5,216.9
$5,886.7
$5,183.6
$5,368.3
$5,135.1
$5,068.2
$4,900.1
New Mexico
$98.1
$123.0
$105.7
$99.1
$99.1
$93.0
$66.7
$46.8
New York
$15,570.5
$18,069.5
$20,809.3
$19,553.9
$19,266.3
$20,392.3
$24,265.0
$24,963.9
North Carolina
$1,094.0
$1,434.2
$1,410.9
$1,379.6
$1,284.0
$1,213.7
$1,020.3
$1,069.6
North Dakota
-
-
-
$10.6
$10.4
$10.5
$10.7
$10.5
Ohio
$1,040.2
$1,143.8
$1,217.8
$1,217.2
$1,184.0
$1,235.6
$1,267.4
$1,414.5
Oklahoma
$45.2
$70.0
$68.4
$51.4
$47.7
$41.8
$27.1
$13.9
Oregon
$95.6
$88.1
$82.0
$66.6
$61.9
$72.8
$68.6
$68.9
Pennsylvania
$2,911.5
$3,227.6
$3,483.4
$3,645.1
$3,914.1
$4,059.1
$3,970.2
$3,668.4
Rhode Island
-
-
-
-
-
-
-
-
South Carolina
-
-
-
-
-
-
-
-
South Dakota
$10.3
$9.9
$9.1
$40.5
$39.2
$54.8
$54.6
$54.4
Tennessee
$629.1
$662.6
$688.9
$645.4
$611.0
$615.2
$552.0
$625.4
Texas
$5,881.4
$5,968.5
$5,800.0
$6,021.9
$5,670.7
$5,596.5
$6,347.3
$5,493.9
Utah
$400.1
$529.1
$850.4
$928.5
$1,045.9
$1,025.7
$1,237.7
$1,217.2
Vermont
$12.8
$12.5
$11.7
$23.5
$21.5
$25.7
$25.0
$24.5
Virginia
$2,175.5
$2,566.8
$2,722.3
$3,374.3
$3,346.4
$3,251.9
$3,328.2
$3,216.0
Washington
$3,713.8
$3,954.0
$5,661.4
$8,104.7
$7,921.0
$7,255.7
$6,908.9
$6,353.5
Wisconsin
$84.0
$246.4
$244.0
$280.0
$255.3
$442.8
$475.3
$572.5
Wyoming
$16.3
$14.4
$13.4
$10.3
$9.3
$8.6
$7.1
$5.8
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
18
N VC A 2020 Y E A RBOOK
Data provided by
2013
2014
2015
2016
2017
2018
2019
Alabama
$128.6
$123.1
$117.9
$88.8
$52.0
$57.5
$46.2
Arizona
$248.2
$422.1
$448.9
$481.4
$541.8
$794.4
$704.4
Arkansas
-
$10.1
$9.7
$11.3
$14.0
$21.7
$17.7
California
$128,696.7
$150,508.8
$168,486.9
$185,559.0
$194,904.6
$241,916.3
$257,693.1
Colorado
$2,097.8
$2,122.3
$3,130.4
$2,837.0
$2,765.8
$3,514.0
$3,645.2
Connecticut
$8,538.0
$8,327.6
$6,401.8
$5,516.4
$5,007.4
$4,931.5
$5,619.5
Delaware
$16.4
$42.6
$44.6
$57.2
$66.2
$86.3
$71.6
District of Columbia
$2,689.7
$2,494.2
$2,457.5
$2,956.1
$5,106.0
$5,545.2
$7,431.7
Florida
$2,081.8
$2,302.4
$2,358.3
$2,623.8
$2,675.6
$2,728.1
$1,902.7
Georgia
$1,583.4
$1,497.5
$1,608.5
$1,435.0
$1,436.9
$1,586.1
$1,506.0
Hawaii
$9.8
$8.0
$7.2
$5.8
$1.3
$0.9
$0.9
Idaho
$103.2
$85.8
$73.7
$83.8
$119.4
$47.7
$46.2
Illinois
$5,284.2
$6,095.4
$6,340.1
$6,505.9
$7,097.4
$9,136.8
$9,739.4
Indiana
$179.6
$117.4
$110.8
$78.9
$40.8
$181.9
$172.3
Iowa
$18.7
$5.0
$5.8
$5.5
$6.6
$7.4
$92.1
Kansas
$2.7
$3.0
$3.3
$3.7
$3.3
$49.2
$45.9
Kentucky
$277.5
$224.2
$238.5
$188.8
$156.6
$150.8
$52.7
Louisiana
$655.2
$673.8
$629.8
$519.5
$324.5
$252.7
$222.3
Maine
$301.4
$224.6
$336.0
$296.9
$206.4
$233.2
$208.7
Maryland
$1,545.0
$1,428.0
$1,307.6
$1,032.4
$769.1
$906.2
$760.8
Massachusetts
$42,043.6
$41,765.7
$46,173.1
$48,804.3
$48,792.8
$59,604.0
$60,230.0
Michigan
$1,751.5
$1,774.3
$1,856.7
$2,016.6
$1,983.7
$2,072.9
$2,255.9
Minnesota
$1,779.7
$1,889.8
$1,524.9
$1,123.4
$1,061.7
$866.7
$1,134.8
Missouri
$1,285.8
$981.4
$1,041.3
$1,118.3
$1,296.6
$1,689.7
$1,574.9
Montana
$1.5
$4.3
$4.1
$26.0
$28.3
$72.3
$71.6
Nebraska
$41.8
$45.8
$50.3
$87.1
$82.8
$88.0
$88.4
Nevada
$50.1
$53.2
$62.2
$55.2
$78.8
$85.6
$84.0
New Hampshire
$50.2
$48.7
$50.0
$40.8
$40.4
$95.2
$68.8
New Jersey
$4,926.4
$4,722.4
$4,828.8
$4,367.7
$3,671.0
$3,565.6
$3,335.7
New Mexico
$48.2
$42.1
$42.3
$34.5
$32.5
$14.9
$11.3
New York
$26,977.5
$33,234.8
$40,197.8
$40,967.0
$43,745.7
$56,343.3
$57,073.2
North Carolina
$1,141.2
$1,070.9
$1,083.0
$1,206.5
$1,333.2
$1,295.2
$1,375.1
North Dakota
$54.3
$62.4
$66.9
$67.6
$67.0
$77.3
$99.1
Ohio
$1,651.4
$1,696.8
$1,782.0
$2,048.5
$2,064.5
$2,233.6
$3,097.3
Oklahoma
$13.3
$12.8
$12.4
$9.6
$8.7
$6.3
-
Oregon
$97.8
$119.7
$131.5
$151.4
$168.2
$249.1
$244.1
Pennsylvania
$3,602.6
$3,989.9
$4,196.1
$3,630.2
$3,281.9
$3,518.5
$3,233.7
Rhode Island
-
-
-
-
-
$1.4
$1.3
South Carolina
$5.9
$12.4
$13.0
$13.4
$20.6
$27.7
$34.9
South Dakota
$54.8
$67.0
$59.3
$55.1
$43.7
$32.0
$31.9
Tennessee
$764.9
$808.9
$885.2
$1,177.9
$1,313.0
$1,274.9
$1,303.5
Texas
$5,409.8
$4,680.3
$4,461.8
$4,378.2
$3,953.9
$5,024.4
$4,802.1
Utah
$1,452.5
$1,705.4
$2,165.5
$2,335.3
$2,398.2
$2,773.4
$2,732.6
Vermont
$24.7
$35.5
$31.4
$44.4
$45.0
$52.8
$50.0
Virginia
$2,848.9
$3,509.4
$3,419.1
$2,840.6
$2,796.5
$3,281.5
$2,874.4
Washington
$6,521.3
$5,616.2
$6,455.4
$6,629.7
$6,512.5
$7,376.6
$7,238.5
Wisconsin
$591.8
$875.0
$840.3
$856.6
$942.6
$1,240.6
$1,300.4
Wyoming
-
-
-
-
-
-
-
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
19
N VC A 2020 Y E A RBOOK
Data provided by
Capital Commitments:
Venture Fundraising
In 2019, 272 US venture capital funds
closed on $50.5 billion in capital
US VC Fundraising by Year
commitments, representing an 11% and
293
13% year-over-year decline, respectively,
compared with 2018. However, last year
171
187
205
194
Venture fund sizes remained elevated
150
154
$23.4
billion+ in fundraising.
195
$19.0
marked the sixth consecutive year of $30
314
328
280
304
272
215
122
with a median and average size of $80
accounted for 28% of total capital raised,
$50.5
$58.1
$36.0
$42.6
$37.4
$34.9
$20.4
$24.7
$13.1
$32.1
$35.1
closed on $1 billion+ in 2019 and
$31.3
Large funds drove this trend—8 funds
$23.4
million and $189 million, respectively.
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
led by TCV’s $3.2 billion tenth fund
Capital Raised ($B)
closed in 2019. This was lower than 10
Fund Count
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
funds of that size closing in 2018 and
50
First-time funds have also been an
55
47
43
42
important trend of the decade. These
funds are typically created from
31
individuals who have spun out of
28
established firms, those who were
33
31
26
31
35
23
20
previously angel investors, or those who
31
$2.6
fund closed by Sequoia Capital.
US VC First-time Fundraising by Year
$2.2
accounting for 38% of capital that year,
thanks largely to the record $8 billion
seen healthy growth since then. 2018
set a record for the number of first-time
funds closed and total capital raised, but
$4.0
$5.4
$2.8
$2.4
$1.5
$1.7
$2.0
$0.9
$1.1
$2.3
$2.9
$3.0
companies. First-time funds dipped after
the 2008 global financial crisis but have
$3.3
were previously in operating roles at
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Capital Raised ($B)
Fund Count
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
activity dipped in 2019. Last year, 35
first-time funds raised $4.0 billion. 344
first-time funds raised more than $25
billion from 2010 to 2019. The prevalence
20
N VC A 2020 Y E A RBOOK
Data provided by
of first-time funds, many of which are
The overall US median VC fund size in
Second, comparing fundraising to
smaller in size, has made an impact
2019 was $80 million, the highest since
investment figures in this report is
on the number of players and capital
2008 and a 7% increase from 2018.
not apples-to-apples. Why? 1) Firms
availability at the seed and earlier stages
Outside of California, Massachusetts,
generally do not deploy all of their
of the venture investment cycle.
and New York, median VC fund size
capital into startups in one year or in
reached $43 million in 2019, an
the year they close their fund. 2) The VC
increase of 57% compared to 2018, but
fundraising statistics only capture US
still relatively small compared to the
funds, whereas VC funds outside the
VC funds based in 26 states and the
District of Columbia held final closes on
venture funds in 2019, with Connecticut,
Ohio, Illinois, the District of Columbia,
Georgia, and Michigan seeing the biggest
year-over-year absolute gains.
Funds based in California, New York, and
Massachusetts accounted for 62%, 15%,
US frequently invest in US startups. The
VC investment statistics are inclusive
collectively, was $100 million.
of investors headquartered outside the
Two important notes on the VC
fundraising data: first, as mentioned in
the prior section, a fund’s location doesn’t
and 9%, respectively, of total capital
mean the capital will only be deployed in
raised in the US in 2019. Collectively,
that geography. Local capital is important
these three states represented 86% of
total US capital raised, on par with 2018,
but a noticeable jump from the 79% share
in 2010. The ten largest funds closed in
dominant venture hubs – the median for
California, Massachusetts, and New York,
to support the local ecosystem, but
capital travels. Investors frequently invest
in companies outside of their state.
US; and 3) There are increasingly more
types of investors becoming active in
the venture ecosystem. Most of these
investors do not invest in companies via
venture funds, e.g., corporate venture
groups, hedge funds, mutual funds,
sovereign wealth funds, and family
offices.
2019 were based in California.
Top States by VC Raised
in 2019
10 Largest US VC Funds in 2019
Investor Name
Fund Name
TCV
TCV X
Andreessen
Andreessen Horowitz
Horowitz
LSV Fund I
Norwest Venture
Norwest Venture
Partners
Partners XV
Founders Fund
The Founders Fund VII
Vivo Capital
Sapphire Ventures
Vivo Capital Fund IX
Sapphire Ventures
Fund IV
Lightspeed
Lightspeed Venture
Venture Partners
Partners Select III
Bond Capital (San
Francisco)
Sequoia Capital
Bond Capital Fund
Fund Size ($M)
Close Date
Fund State
$3,200.0
January 31, 2019
California
$2,238.9
July 17, 2019
California
$2,000.0
$1,496.4
$1,430.0
$1,400.0
$1,361.8
November 14,
2019
November 20,
2019
October 30, 2019
December 18,
2019
June 21, 2019
California
California
California
California
California
# of
Capital Raised
Funds
($M)
California
123
$31,513.4
Massachusetts
28
$7,515.5
New York
40
$4,583.5
Connecticut
2
$910.0
Ohio
7
$894.1
Illinois
10
$721.1
Washington
10
$689.1
Texas
9
$546.3
Pennsylvania
4
$417.0
2
$365.0
District of
$1,250.0
May 1, 2019
California
Columbia
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
Sequoia Capital US
Growth Fund VIII
Andreessen
Andreessen Horowitz
Horowitz
Fund VI
$998.5
December 6, 2019
California
$840.0
July 17, 2019
California
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
21
N VC A 2020 Y E A RBOOK
Data provided by
VC Fundraising by State by Year ($M)
2005
2006
2007
2008
2009
2010
2011
2012
Alabama
$23.0
$21.9
-
$25.7
-
-
-
$5.0
Arizona
-
-
-
$20.0
-
-
$38.2
$56.6
Arkansas
-
-
-
-
-
-
-
-
California
$12,124.0
$15,409.7
$15,134.9
$17,085.0
$6,441.9
$9,657.4
$13,899.1
$14,782.1
Colorado
$25.0
$22.3
$420.8
$111.9
$5.0
$328.0
-
$88.7
Connecticut
$795.0
$3,050.0
$45.0
$650.0
$25.0
$1,259.3
$15.0
$617.5
Delaware
-
$13.0
-
-
-
$15.0
-
$4.9
District of Columbia
-
$200.0
$828.0
$340.0
-
-
$450.0
$20.5
Florida
$718.0
-
$348.5
$164.1
$145.6
$94.0
$97.6
$268.0
Georgia
$3.5
$215.0
$255.1
$138.0
$155.0
$293.2
-
$50.0
Hawaii
-
-
-
$1.8
-
-
-
-
Idaho
-
-
$75.0
-
-
-
-
-
Illinois
$165.5
$370.5
$818.2
$877.9
$225.0
$512.7
$738.0
$275.3
Indiana
$6.0
$26.3
-
-
$10.0
$90.0
-
$19.0
Iowa
-
-
-
-
-
-
-
$3.0
Kansas
-
-
-
-
-
-
$2.6
-
Kentucky
$20.1
$36.4
-
$175.0
-
-
-
$10.7
Louisiana
$73.5
$70.0
$28.0
$106.7
$70.0
$56.0
-
$6.0
Maine
-
-
$65.0
-
-
-
-
$10.1
Maryland
$25.0
$327.0
$575.0
$63.3
$21.0
-
-
$20.0
Massachusetts
$4,263.8
$4,862.8
$6,550.1
$3,332.9
$2,879.8
$2,942.5
$4,054.8
$1,854.2
Michigan
-
$20.0
$65.0
$910.0
$254.3
$41.4
$185.7
$45.2
Minnesota
$275.0
$398.0
$331.0
$475.1
$30.0
-
-
$150.0
Missouri
$66.0
-
$210.2
$128.9
$65.0
$2.0
-
$20.0
Montana
-
$1.8
-
-
-
-
-
-
Nebraska
-
-
-
-
-
$2.6
$37.3
$18.2
Nevada
-
-
-
-
-
-
-
$50.0
New Hampshire
-
$50.0
-
-
-
-
-
$4.5
New Jersey
$798.0
$1,063.0
$895.2
$9.0
$516.0
-
$500.0
$349.0
New Mexico
$47.5
$5.2
-
-
-
-
$10.0
-
New York
$1,839.4
$1,995.4
$5,147.2
$1,674.6
$759.6
$2,467.0
$2,484.9
$4,670.6
North Carolina
$232.0
$340.0
$40.3
$83.0
$102.0
-
-
$2.5
North Dakota
-
-
-
$11.0
-
-
-
-
Ohio
$18.9
$100.0
$15.5
$254.7
$23.7
$88.2
$86.1
$63.9
Oklahoma
-
$15.0
-
-
-
-
-
-
Oregon
-
-
$0.9
$2.6
$3.0
$20.4
$3.4
$7.8
Pennsylvania
$228.8
$397.2
$192.5
$739.6
$940.5
$129.9
$100.0
$298.0
Rhode Island
-
-
-
-
-
-
-
-
South Carolina
-
-
-
-
-
-
-
-
South Dakota
$10.0
-
-
$32.5
-
$16.0
-
-
Tennessee
$83.3
$54.0
$40.0
$93.2
$14.0
$74.2
$22.0
$190.0
Texas
$268.2
$892.1
$103.3
$1,221.8
$5.1
$175.5
$465.1
$31.2
Utah
-
$129.2
$352.0
$166.6
$122.0
$66.4
$33.0
$156.9
Vermont
-
-
-
$14.0
-
$5.0
-
-
Virginia
$564.1
$478.0
$309.8
$223.1
$274.6
$441.0
$110.0
$80.2
Washington
$722.2
$538.0
$2,293.5
$2,902.9
$2.5
$5.9
-
$328.2
Wisconsin
$10.7
$171.5
-
$57.8
-
$201.5
$40.0
$116.4
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
22
N VC A 2020 Y E A RBOOK
*For this table we give precedent to the fund location, but if unvailable,
we use the HQ location of the firm
Data provided by
2013
2014
2015
2016
2017
2018
2019
Alabama
-
-
-
-
-
$25.0
-
Arizona
$129.5
$156.9
$6.2
$28.6
-
-
$49.4
Arkansas
-
$10.0
-
$1.5
-
-
-
California
$9,198.7
$21,240.6
$21,272.5
$25,852.0
$22,475.3
$33,407.0
$31,513.4
Colorado
$230.5
$193.8
$640.8
$560.7
$32.0
$807.6
$166.6
Connecticut
$193.1
$500.0
$1.0
$151.7
$600.0
$395.4
$910.0
Delaware
-
$26.0
$2.4
-
-
-
-
District of Columbia
$200.0
$8.0
$60.5
$887.8
$2,398.0
$67.7
$365.0
Florida
-
$327.7
$184.0
$56.4
$45.5
$47.4
$35.0
Georgia
$114.7
$40.3
$262.0
$53.0
$111.0
-
$327.0
Hawaii
-
-
-
-
-
-
-
Idaho
-
-
-
-
-
-
-
Illinois
$268.5
$500.6
$574.0
$1,584.2
$658.1
$535.9
$721.1
Indiana
-
$1.7
-
-
-
$132.7
-
Iowa
$1.8
-
-
-
-
-
$80.7
Kansas
-
-
-
$0.2
-
$42.7
-
Kentucky
-
-
$5.6
-
-
$29.5
-
Louisiana
$14.2
$10.4
$11.1
-
-
-
-
Maine
-
-
$123.0
-
$11.0
-
-
Maryland
$213.0
$82.2
$152.7
$0.8
$78.0
$69.9
-
Massachusetts
$5,169.0
$2,453.3
$5,441.3
$6,253.1
$5,698.3
$7,528.1
$7,515.5
Michigan
$73.0
$26.3
$316.3
$407.5
$50.5
$26.7
$280.0
Minnesota
$107.4
-
$105.5
-
$36.2
$153.2
$279.2
Missouri
$320.0
$1.5
$116.7
$400.1
$108.1
$184.4
$23.5
Montana
-
-
-
$21.1
$2.8
$38.0
-
Nebraska
-
-
$0.6
-
$31.0
-
-
Nevada
-
-
-
-
$5.0
-
-
New Hampshire
-
$1.0
$7.7
-
$1.7
$56.1
-
New Jersey
$13.0
$18.6
-
$662.0
$10.0
$390.0
$277.0
New Mexico
-
-
-
-
-
-
-
New York
$1,682.7
$7,271.3
$6,054.3
$3,087.3
$2,188.4
$9,265.7
$4,583.5
North Carolina
$215.0
$35.6
$32.1
$205.2
$273.0
$112.6
$31.3
North Dakota
$45.0
$3.5
-
-
-
-
$30.0
Ohio
$104.7
$539.6
$126.7
$428.2
$32.7
$49.3
$894.1
Oklahoma
-
-
-
-
-
-
-
Oregon
$15.8
$32.7
$17.5
$31.5
$16.2
$58.0
$14.0
Pennsylvania
$171.6
$291.7
$235.0
$59.0
$111.7
$359.7
$417.0
Rhode Island
-
-
-
-
-
$1.3
-
South Carolina
$6.0
$6.2
-
-
$5.7
-
$10.2
South Dakota
-
-
-
-
-
-
-
Tennessee
$103.0
$2.5
-
$435.0
$125.4
$8.0
$86.0
Texas
$653.9
$444.0
$166.9
$224.6
$105.9
$917.8
$546.3
Utah
$345.9
$150.7
$245.2
$400.6
$86.2
$187.1
$220.0
Vermont
-
$12.0
-
-
$14.0
-
-
Virginia
$228.1
$88.8
$531.6
$180.0
$156.1
$387.6
$240.0
Washington
$551.2
$190.8
$690.3
$616.9
$420.8
$2,734.6
$689.1
Wisconsin
$5.1
$217.7
$0.6
$29.7
$93.9
$130.5
$227.0
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
*For this table we give precedent to the fund location, but if unvailable,
we use the HQ location of the firm
23
N VC A 2020 Y E A RBOOK
Data provided by
Capital Deployed:
Investment into
Companies
For the second consecutive year, highgrowth startups raised more than $130
US VC Deal Flow
billion, and 2019 represented the second
$160
year on record (after 2015) where more
$140
than 10,000 venture-backed companies
received an investment. From 2010 to
2019, investors deployed $761 billion
across nearly 94,000 financings to start,
build, and grow 87,000+ businesses
across the country.
11,359 12,000
10,720 11,073
10,648
9,694 10,392
9,413
$120
7,958
8,000
6,822
$100
$80
$60
10,000
4,772 4,546
4,338
2,995
5,463
6,000
3,358
4,000
funding. Mega-deals (i.e., investments
$0
of $100 million+ into venture-backed
$133.4
$141.8
$87.1
$78.1
$83.5
$72.3
$47.7
$41.3
$44.8
$31.6
$27.5
$36.9
companies received $133 billion in
$37.9
$20
$29.3
In 2019, 10,430 venture-backed
$23.7
$40
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Deal Value ($B)
Deal Count
companies) accounted for 44% of total
2,000
0
Company Count
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
capital invested in 2019, slightly down
US VC Deal Flow by Stage (#)
Angel &
seed
Early
VC
Later
VC
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
460
790
923
1,235
1,746
2,618
3,557
4,668
5,491
5,783
4,790
4,956
4,622
4,760
1,758
2,125
2,288
1,859
2,129
2,453
2,630
2,852
3,172
3,250
3,016
3,384
3,731
3,882
1,140
1,423
1,561
1,452
1,588
1,751
1,771
1,893
2,057
2,040
1,888
2,052
2,295
2,717
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
24
N VC A 2020 Y E A RBOOK
Data provided by
from 2018, but the 237-deal count
was the highest on record. Many of
2019 US VC Deals by Stage ($B)
these mega-deals are for unicorns (i.e.,
$9.6
venture-backed companies valued at
$1 billion+), since they tend to be later in
their growth cycle and larger companies.
Late VC
Unicorns attracted $37 billion, or 27%
$43.2
of total capital invested, but less than
Early VC
1.4% of the total deals completed in 2019.
Mirroring mega-deal count, unicorn deal
count (157) also hit a record high last
$80.7
year.
Angel & Seed
Mega-deals and unicorns were
much rarer in 2010, but the decade’s
progression brought a new normal with
increased 2.4x, and the median laterstage VC deal increased 1.8x compared
with 2010. Median pre-money valuations
grew by even higher multiples—Series
A increased 3.7x, Series B 3.6x, Series C
4.1x, and Series D+ 5.7x.
180
$45
160
$40
140
$35
120
$30
100
$25
80
$20
60
$15
40
With the shift in deal sizes and
$5
valuations, many consider a Series A
$0
deal today what a seed investment was
$14.4
$10
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Deal Value ($B)
earlier in the decade. Capital needs for
starting a company, particularly in the
$36.6
2.3x, the median early-stage VC deal
$50
$47.0
the median angel/seed deal increased
US VC Unicorn Deal Activity by Year
$17.8
stages and series. By the end of 2019,
$18.3
valuations, and company age across
$18.4
a steady rise in deal sizes, pre-money
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
20
0
Deal Count
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
Sectors
count last year. On a relative basis, both
has undercut large infrastructure costs
The software sector’s dominance
with 2010. However, on an absolute
that were once the norm. At the same
continued in 2019. Last year, companies
basis, 2019 life science dollars invested
time, more data-centric and software/
in this sector comprised 34% of total
and deal count were 2.9x and 1.7x higher,
services companies have emerged,
capital invested and 36% of total deal
respectively, than 2010.
compared to the prior era of hardware-
count. This is on par with the sector’s
centric business models. Furthermore, an
annual share over the decade.
tech sector, have significantly dropped.
The prevalence of cloud-based services
influx of capital available through several
strong venture fundraising years—and
more sources of capital from a diverse
investor base across company stages—
have transformed the industry.
The upward trend of life sciences VC
of these metrics are a decline compared
Companies in the business products
and services (B2B) sector took the top
two spots in the ranking of largest
activity continued, with more than $22
investments in 2019: The We Company’s
billion invested across 1,487 companies
$5 billion investment and Flexport’s $1
in 2019, accounting for 17% of total
billion investment.
capital invested and 14% of total deal
25
N VC A 2020 Y E A RBOOK
Data provided by
Investment Stages &
First-time Fundings
by an institutional venture investor)
annual growth for VC investment over
spiked in the middle of the decade and
the past five years (for those MSAs with
returned to pre-2012 levels in 2019.
at least $10 million in VC investment in
The number of angel/seed VC
2,729 companies raised first-time
2014 and 2019).
investments in 2019 remained steady
compared to 2018, with 4,760 deals
completed representing 42% of total
deals in 2019. Angel/seed deal count last
year was more than 2.7x higher than in
2010.
funding and attracted $11.3 billion, the
second-highest annual amount of capital
invested on record. Though the life
sciences sector attracted 17% of overall
capital invested in 2019, the sector
attracted 26% of capital invested via
first-time financings. Pharma & biotech
Nearly 4,000 early-stage investments
companies attracted $2.9 billion in
closed in 2019, representing a little over
first-time financings, the highest among
one-third of total deal count. Early-
sectors last year.
stage VC grew 1.8x in absolute terms
but dropped from 39% of deal share
compared with 2010.
Geographical Analysis
Venture funding reached startups in all
California, Massachusetts, and New
York continued their dominance as the
country’s VC hubs; however, California
and Massachusetts both saw year-overyear declines in capital invested in 2019
versus 2018. Collectively, these three
states accounted for 53% of total deal
count and 73% of total capital invested
in 2019. The share of deal count last year
was on par with the start of the decade in
2010, whereas their share of total capital
invested in 2010 was 64%.
Globally, startups raised $257 billion
Later-stage VC investments surged in the
50 states and the District of Columbia,
latter part of the decade, reaching more
242 Metropolitan Statistical Areas
across 23,268 deals in 2019, a 17% and
than 2,700 closed in 2019 and a 1.7x
(MSAs), and 397 Congressional Districts.
2% year-over-year decline, respectively.
increase compared with 2010. Last year,
Buffalo, NY, Boise City, ID, and Richmond,
The US represented 52% and 49% of the
later-stage deals comprised about one-
VA saw the biggest growth rate** for
global total, respectively. In 2010, the US
quarter of total deal count.
annual number of VC investments over
accounted for 67% of global VC dollars
the past five years (for those MSAs with
and 61% of global VC deal count.
The number of first-time financings (i.e.,
first round of equity funding in a startup
at least 15 in 2019). Bend, OR, Rochester,
NY, and Grand Rapids, MI saw the largest
2019 US VC Deals by Sector ($B)
Commercial Services
Consumer Goods & Recreation
$14.0
$6.3
IT Hardware
Media
*Other industry groups below:
$3.9
$2.9
Energy
$1.5
Other
$30.6
HC Devices & Supplies
$5.7
Pharma & Biotech
$16.7
Other Financial Services
Commercial Transportation
Other Healthcare
Other Business Products and
Services
Consumer Durables
Consumer Non-Durables
Services (Non-Financial)
Transportation
Other Consumer Products and
Services
Utilities
HC Services & Systems
$7.1
Software
$44.8
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
26
N VC A 2020 Y E A RBOOK
Insurance
Commercial Products
Other Energy
Capital Markets/Institutions
Commercial Banks
IT Services
Other Information Technology
Agriculture
Chemicals and Gases
Construction (Non-Wood)
Containers and Packaging
Forestry
Metals, Minerals and Mining
Textiles
Other Materials
Data provided by
US VC Deal Flow by State in 2019
Company
Count
# of Deals
Closed
Capital
Invested ($M)
Alabama
29
30
$58.9
Alaska
11
13
$25.1
Arizona
116
123
$834.7
Arkansas
28
32
$71.9
California
3519
3870
$65,601.7
Colorado
361
401
$2,509.4
Connecticut
100
116
$867.8
Delaware
72
78
$249.4
District of Columbia
68
73
$464.2
Florida
255
269
$2,918.7
Georgia
153
169
$1,672.7
Hawaii
15
19
$41.8
Idaho
29
30
$86.8
Illinois
293
312
$2,213.0
Indiana
131
145
$380.8
Iowa
31
32
$41.2
Kansas
27
28
$276.1
Kentucky
34
35
$248.1
Louisiana
22
22
$130.4
Maine
27
29
$46.3
Maryland
136
146
$921.4
Massachusetts
720
773
$10,832.5
Michigan
127
140
$803.2
Minnesota
122
135
$1,217.9
Mississippi
6
7
$7.9
Missouri
67
70
$440.5
Montana
24
25
$119.0
Nebraska
31
34
$69.0
Nevada
33
34
$141.0
New Hampshire
27
29
$135.2
New Jersey
139
146
$1,271.2
New Mexico
29
30
$302.6
New York
1283
1400
$20,901.7
North Carolina
199
211
$1,218.5
North Dakota
7
7
$21.2
Ohio
139
149
$960.0
Oklahoma
16
17
$36.6
Oregon
130
141
$952.3
Pennsylvania
265
289
$2,653.1
Rhode Island
22
22
$61.6
South Carolina
55
65
$132.2
South Dakota
8
8
$9.1
Tennessee
95
107
$928.7
Texas
538
584
$3,695.4
Utah
141
150
$1,390.4
Vermont
26
29
$94.8
Virginia
194
211
$1,171.1
Washington
421
460
$3,887.8
West Virginia
1
1
$0.2
Wisconsin
63
68
$248.5
Wyoming
9
9
$8.3
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
Top 10 US VC Deals in 2019
Company Name
The We Company
Close Date
January 8; October 22,
2019
Deal Size ($M)
Deal Type
Industry Sector
State
$5,000.0
Later VC
B2B
New York
Flexport
April 22, 2019
$1,000.0
Later VC
B2B
California
Nuro
February 11, 2019
$940.0
Early VC
B2C
California
REEF Technology
March 1, 2019
$900.0
Late VC
IT
Florida
JUUL
August 16, 2019
$785.2
Late VC
B2C
California
GoPuff
August 1, 2019
$750.0
Late VC
B2C
Pennsylvania
DoorDash
November 13, 2019
$700.0
Late VC
B2C
California
Bright Health
December 16, 2019
$635.0
Late VC
Financial Services
Minnesota
Aurora Innovation
February 7, 2019
$600.0
Early VC
B2C
California
UiPath
April 30, 2019
$568.0
Late VC
IT
New York
27
N VC A 2020 Y E A RBOOK
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
Data provided by
2019 VC Deals & Company Counts by # of States Invested Into by Investor
HQ State
State
Company
Count
% of Total
Capital Invested
($M)
% of
Total
Investor HQ State
# of States Invested In
46
California
3,519
33.7%
$65,601.7
49.2%
California
New York
1,283
12.3%
$20,901.7
15.7%
New York
43
Massachusetts
720
6.9%
$10,832.5
8.1%
Illinois
40
Washington
421
4.0%
$3,887.8
2.9%
Texas
538
5.2%
$3,695.4
2.8%
Florida
255
2.4%
$2,918.7
2.2%
Pennsylvania
265
2.5%
$2,653.1
2.0%
Colorado
361
3.5%
$2,509.4
1.9%
Illinois
293
2.8%
$2,213.0
1.7%
Georgia
153
1.5%
$1,672.7
1.3%
All Others
2,622
25.1%
$16,535.4
12.4%
Total
10,430
$133,421.5
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
Top 5 States by Percentage of 2019
Deals Done in State Which Featured
Investor(s) from Outside State
Massachusetts
35
Texas
34
District of Columbia
33
Maryland
32
Colorado
31
Florida
29
Washington
27
Georgia
26
New Jersey
26
Ohio
25
Tennessee
25
Missouri
25
Pennsylvania
23
Virginia
23
North Carolina
23
Minnesota
21
Company HQ State
% Invested From Outside State
Delaware
100%
Michigan
21
District of Columbia
88%
Utah
21
New Jersey
84%
Indiana
20
Minnesota
76%
Connecticut
19
64%
Oregon
18
New Hampshire
17
Wisconsin
16
Kansas
15
Kentucky
14
Iowa
13
Nebraska
12
Nevada
11
10
Arizona
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
Example of how to read this table: 88% of deals done by DC-based investors were
investments into DC-based companies.
*This ranking is inclusive of states with 20 or more investments
Top 5 States by Percentage of 2018
Deals Done in State which Featured
Investor(s) from that State
Company HQ State
% Invested From Within State
Louisiana
Nebraska
91%
Arizona
Connecticut
84%
California
82%
Indiana
81%
Michigan
70%
10
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
# of States California Investors
Invested Into by Year
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
Example of how to read this table: 91% of investments in Nebraska-based companies
featured at least one Nebraska-based investor.
*This ranking is inclusive of states with 20 or more investments
Year
# of States Invested In
2007
37
2013
45
2019
46
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
28
N VC A 2020 Y E A RBOOK
Data provided by
First-time Financings
US First VC & Follow-on VC Deal Flow ($B)
$160
$140
$120
US VC Deal Flow by
Sector: First-Round VC
in 2019
# of Deals
Capital Raised
Closed
($M)
317
$1,097.7
161
$521.6
31
$54.0
105
$551.1
205
$538.3
IT Hardware
70
$205.8
Sector
$100
Commercial
$80
Services
$60
Consumer
Goods &
$40
Recreation
$20
Energy
$0
HC Devices &
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
First
Follow-On
Supplies
HC Services &
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
Systems
US First VC & Follow-on VC Deal Flow
(Company Counts)
Media
110
$239.9
Other
820
$2,608.1
12,000
Pharma &
208
$2,898.3
903
$2,585.9
Biotech
10,000
Software
8,000
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
6,000
4,000
2,000
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
First
Follow-On
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
29
N VC A 2020 Y E A RBOOK
Data provided by
Life Sciences
US Life Sciences VC Deal Flow
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Company Count
10
9
8
8
9
9
10
13
15
13
18
24
22
# of Deals Closed
822
881
880
964
1,055
1,098
1,174
1,242
1,351
1,213
1,414
1,500
1,603
Company Count
767
810
808
885
975
1,006
1,086
1,157
1,253
1,161
1,329
1,408
1,487
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
US Life Sciences VC Invested ($M) by Sector
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
$1,788.6
$1,375.4
$1,980.7
$2,158.5
$2,101.8
$2,123.5
$2,506.3
$3,637.4
$5,444.3
$4,724.7
$7,700.6
$10,815.0
$10,005.9
$715.0
$762.6
$452.6
$691.4
$686.9
$615.6
$681.6
$850.4
$888.1
$740.2
$1,257.0
$1,509.0
$1,559.6
$119.6
$69.8
$113.0
$65.6
$77.7
$10.2
$88.0
$47.9
$71.6
$106.6
$62.1
$16.0
$192.0
Drug Delivery
$520.8
$559.7
$182.0
$168.6
$510.7
$325.9
$363.6
$345.6
$512.2
$287.2
$440.9
$213.2
$222.3
Drug Discovery
$1,457.1
$1,346.5
$1,388.0
$1,187.5
$1,336.4
$2,081.9
$2,496.7
$3,148.6
$4,120.3
$3,496.8
$3,366.8
$6,082.6
$4,640.5
Medical Supplies
$235.9
$176.6
$91.6
$116.3
$160.7
$298.0
$137.2
$109.8
$66.9
$113.1
$159.0
$233.4
$183.7
$216.4
$373.4
$181.9
$183.3
$388.0
$295.9
$494.9
$1,260.2
$456.1
$443.8
$682.9
$684.4
$790.3
$258.7
$168.8
$110.3
$80.1
$213.7
$284.0
$139.6
$241.8
$235.8
$201.6
$402.2
$602.1
$346.2
$57.2
$96.0
$64.8
$126.4
$69.8
$63.9
$23.9
$49.4
$45.6
$46.7
$63.8
$284.5
$282.6
Pharmaceuticals
$1,753.2
$1,583.5
$1,258.4
$976.4
$942.2
$604.4
$802.5
$608.5
$524.3
$560.4
$748.5
$1,104.3
$1,375.4
Surgical Devices
$1,188.5
$1,184.7
$920.9
$972.6
$1,106.3
$927.3
$1,115.4
$1,190.0
$1,130.8
$987.0
$1,184.2
$1,081.9
$940.5
Therapeutic Devices
$1,281.3
$1,644.2
$1,303.4
$1,104.9
$1,252.1
$1,130.1
$1,356.0
$1,030.6
$1,660.8
$1,142.0
$1,493.7
$1,773.9
$1,867.8
Biotechnology
Diagnostic
Equipment
Discovery Tools
(Healthcare)
Monitoring
Equipment
Other Devices and
Supplies
Other
Pharmaceuticals
and Biotechnology
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
30
N VC A 2020 Y E A RBOOK
Data provided by
US Life Sciences VC Deal Count by Sector
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
164
166
191
219
225
269
293
330
369
363
464
476
435
99
111
89
127
121
128
117
126
140
122
123
143
156
11
10
9
10
12
7
9
9
18
13
16
13
20
Drug Delivery
31
26
21
27
33
29
26
23
32
20
32
25
40
Drug Discovery
117
126
127
137
140
149
178
195
207
167
177
220
266
Medical Supplies
31
30
33
35
39
52
44
40
34
39
33
47
54
27
32
41
45
58
68
86
92
93
96
122
111
114
28
34
47
40
63
59
61
83
80
67
85
85
67
7
13
8
16
12
15
13
15
19
15
14
26
28
Pharmaceuticals
88
85
75
80
78
63
72
59
68
69
73
81
114
Surgical Devices
92
118
105
101
122
102
107
117
117
91
103
98
112
Therapeutic Devices
127
130
134
127
152
157
168
153
174
151
172
175
197
Biotechnology
Diagnostic
Equipment
Discovery Tools
(Healthcare)
Monitoring
Equipment
Other Devices and
Supplies
Other
Pharmaceuticals
and Biotechnology
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
US VC Activity (#) in Life Sciences
Life Sciences Deal
Count
Life Sciences as % of
Total US VC (#)
Company count
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
822
881
880
964
1,055
1,098
1,174
1,242
1,351
1,213
1,414
1,500
1,603
18.9%
18.5%
19.4%
17.6%
15.5%
13.8%
12.5%
11.6%
12.2%
12.5%
13.6%
14.1%
14.1%
767
810
808
885
975
1,006
1,086
1,157
1,253
1,161
1,329
1,408
1,487
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
US VC Activity ($B) in Life Sciences
Life Sciences Capital
Invested ($B)
Life Sciences as % of
Total US VC ($)
Company Count
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
$9.6
$9.3
$8.0
$7.8
$8.8
$8.8
$10.2
$12.5
$15.2
$12.8
$17.6
$24.4
$22.4
25.3%
25.3%
29.3%
24.8%
19.7%
21.2%
21.4%
17.3%
18.2%
16.5%
20.2%
17.2%
16.8%
767
810
808
885
975
1,006
1,086
1,157
1,253
1,161
1,329
1,408
1,487
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
31
N VC A 2020 Y E A RBOOK
Data provided by
Corporate Venture Capital
Activity from corporate venture capital
with investors disclosed). These 1,776
also marked the seventh consecutive
(CVC) investors remained elevated in
investments represented an aggregate
year where more than 1,200 venture
2019. CVC investors participated in 1,776
deal size (including non-CVC investors)
investments involved CVC participation.
venture deals last year, representing 24%
of $57 billion, the second-highest annual
of total VC deal count (for those VC deals
amount of the past 15 years. 2019
US Corporate VC Investment by Year
# of
# of VC Deals
All VC
with CVC
Deals
Involvement
% of VC Deals
Average
with CVC
Deal Value
Involvement
(All VC,
(#)
$M)
Average
Median
Deal
Deal
Median
Deal
Value
Value
Value
(CVC,
(All VC,
(CVC,
$M)
$M)
$M)
Average
Average
Median
Median
Post
Post
Post
Post
Valuation
Valuation
Valuation
Valuation
(All VC, $M)
(CVC, $M)
(All VC, $M)
(CVC, $M)
Total VC
Capital
Raised ($M)
Total CVC
% of VC Deals
Capital
with CVC
Raised
Involvement
($M)
($)
2005
2,339
526
22%
$9.6
$ 11.4
$6.0
$7.5
$42.4
$56.1
$23.9
$30.6
$21.0
$5.7
27%
2006
2,663
587
22%
$10.7
$16.4
$6.0
$10.0
$48.2
$65.5
$24.3
$40.0
$26.4
$9.1
35%
2007
3,338
710
21%
$11.2
$16.5
$5.6
$10.0
$60.7
$115.2
$24.4
$41.4
$34.3
$11.3
33%
2008
3,622
726
20%
$9.9
$14.7
$5.1
$8.5
$60.3
$75.4
$23.0
$35.5
$33.0
$10.1
31%
2009
2,923
532
18%
$8.8
$14.6
$4.1
$8.6
$62.0
$83.4
$19.0
$38.0
$22.9
$7.2
31%
2010
3,462
596
17%
$8.4
$15.5
$3.0
$8.0
$66.6
$92.8
$18.5
$33.9
$25.6
$8.5
33%
2011
4,653
775
17%
$9.5
$18.7
$2.6
$7.5
$134.5
$151.0
$18.5
$40.0
$38.4
$13.4
35%
2012
5,620
903
16%
$7.2
$14.7
$2.0
$6.5
$62.5
$98.6
$17.2
$35.4
$35.0
$12.2
35%
2013
6,555
1,209
18%
$7.2
$15.2
$2.0
$6.0
$66.6
$136.4
$17.3
$38.7
$40.7
$16.8
41%
2014
7,236
1,486
21%
$10.2
$22.3
$2.3
$7.0
$125.6
$266.8
$19.8
$41.9
$62.7
$30.4
48%
2015
7,182
1,613
22%
$12.1
$26.6
$2.8
$9.0
$141.2
$339.4
$21.0
$48.1
$74.3
$39.3
53%
2016
6,296
1,559
25%
$13.0
$26.6
$3.4
$9.1
$141.7
$313.6
$21.6
$41.2
$70.7
$37.2
53%
2017
6,750
1,667
25%
$13.4
$25.9
$4.0
$10.0
$121.3
$210.9
$22.9
$41.0
$77.2
$38.8
50%
2018
7,333
1,846
25%
$21.1
$42.2
$4.9
$11.0
$215.8
$412.6
$29.5
$54.9
$130.1
$71.4
55%
2019
7,427
1,776
24%
$20.4
$36.2
$5.3
$13.7
$221.5
$319.8
$33.3
$70.0
$121.2
$57.1
47%
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
32
N VC A 2020 Y E A RBOOK
Data provided by
Growth Equity
Growth equity* sits at the later end of the
the PitchBook Platform are available on
venture capital spectrum, filling a gap
page 60.
for mature companies that do not have
a need for early-stage venture capital
nor would a buyout by a private equity
firm make sense for their growth. Growth
equity can also meet capital needs for
larger later-stage companies staying
private longer than historically was the
case. Many growth equity deals are also
included in the venture capital statistics
in the Yearbook; however, others are
classified as growth/expansion and are
not included.
NVCA defines most growth equity
investments as having the following key
characteristics: 1) company has a proven
US Growth Equity
Investments in 2019
by Sector (#)
Momentum for growth equity investment
continued in 2019 and grew rapidly
Software
over the decade. Investors deployed
Pharma & Biotech
$66 billion across 1,217 growth equity
investments last year, a slight year-over-
4%
1%
5%
year decline in capital invested but on par
with deal count in 2018. Growth equity
Other
9%
Media
38%
9%
has evolved into its own sub-asset class
HC Services & Systems
4%
2%
since 2010, when investors deployed
$19.5 billion across 551 deals.
IT Hardware
HC Devices & Supplies
22%
6%
Energy
Consumer Goods &
Recreation
Commercial Services
*Growth equity is not included as a subset
of overall VC data in this publication, but is
Source: NVCA 2020 Yearbook,
Data Provided by PitchBook
rather its own unique dataset. More details
on the methodology are on page 60.
business model (established product and/
or technology and existing customers);
2) company’s revenues are growing
rapidly; 3) company is often cashflow
positive, profitable or approaching
profitability; 4) company is often founder-
US Growth Equity Deal Flow by Year
1,217 1,217
owned and / or managed; 5) investor is
agnostic about control and purchases
893
than not; 6) industry investment mix is
similar to that of earlier-stage venture
623
capital investors; 7) capital is used for
company needs or shareholder liquidity;
1,021
1,001
minority ownership positions more often
643
603
474
670
882
695
551
409
378
$43.1
$70.5
$66.4
2010
$42.5
2009
$48.4
2008
$41.2
2007
$23.5
2006
$22.9
$19.5
2005
$24.3
$14.6
are primarily a function of growth, not
$23.1
at purchase; and 10) investment returns
$22.1
are often unlevered or use light leverage
$16.3
usually expected until exit; 9) investments
$11.1
8) additional financing rounds are not
2011
2012
2013
2014
2015
2016
2017
2018
2019
Deal Value ($B)
leverage, with a lower expected loss
Deal Count
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
ratio than venture capital portfolios.
Additional details on the criteria used to
identify growth equity investments from
33
N VC A 2020 Y E A RBOOK
Data provided by
Exit Landscape:
Venture-backed IPOs
& M&As
The exit environment drives the true
measure of success for venture-backed
US VC-backed IPOs by Year
$250
140
companies. Once successful portfolio
startups mature, venture funds generally
120
$200
100
exit their positions in those companies
by taking them public through an initial
$150
80
public offering (IPO) or by selling them
to presumably larger entities (via an
acquisition, merger, or trade sale) or to a
financial buyer (e.g., a private equity buyer).
This exit in the company allows the venture
firm to distribute the proceeds to investors,
60
$100
40
$50
20
$0
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
raise a new fund for future investment, and
Exit Size ($B)
Exit Count
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
US IPOs by Year
# of All IPOs
# of VC
Backed IPOs
2007
385
90
2008
193
13
2009
134
11
2010
218
40
2011
214
46
2012
244
59
2013
362
87
2014
392
2015
Top 10 US VC-backed IPOs in 2019
Company Name
Exit size ($M)
Industry Sector
State
Uber
$67,613.5
B2C
California
Slack (US)
$23,250.0
Information Technology
California
Lyft
$21,660.0
B2C
California
Zoom Video Communications
$8,873.2
Information Technology
California
Pinterest
$8,632.5
Information Technology
California
124
Datadog
$7,177.5
Information Technology
New York
286
80
Peloton
$6,942.3
B2C
New York
2016
194
42
CrowdStrike
$6,075.4
Information Technology
California
2017
246
59
2018
240
89
Cloudflare
$3,875.2
Information Technology
California
2019
192
82
10x Genomics
$3,270.1
Healthcare
California
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
34
N VC A 2020 Y E A RBOOK
Data provided by
invest in the next generation of companies.
This section collectively refers to any type
Ratio of IPO Pre-Valuation to Total VC Invested
Post Value
($B)
Capital Raised
($B)
IPO Pre Value
($B)
2007
$33.2
$24.5
$24.5
$5.00
4.9
2008
$2.8
$2.3
$2.3
$0.40
5.6
2009
$9.6
$7.8
$7.8
$0.80
9.9
2010
$15.3
$12.1
$12.1
$4.64
2.6
The 82 venture-backed IPOs representing
2011
$43.3
$37.8
$37.8
$6.52
5.8
$199 billion in exit value in 2019 marked
2012
$112.7
$91.2
$91.2
$7.62
12.0
2013
$52.5
$43.7
$43.7
$10.24
4.3
2014
$52.4
$42.7
$42.7
$11.10
3.9
2015
$39.0
$31.9
$31.9
$8.92
3.6
$369 million and median IPO post-money
2016
$15.7
$12.4
$12.4
$4.87
2.5
valuation reached $462 million, both metrics
2017
$59.7
$51.3
$51.3
$9.57
5.4
2018
$77.4
$65.3
$65.3
$15.83
4.1
2019
$223.5
$199.3
$199.3
$35.15
5.7
of sale to a corporate entity or to a financial
buyer as a merger and acquisition (M&A).
IPO trends are analyzed separately.
Venture-backed exit activity was the big
story for VC in 2019, a record year for exit
value following a buildup of large, latestage companies in the private markets.
the highest annual exit value on record.
Together, these 82 IPOs had a post-money
valuation of $223 billion, stemming from
just $35 billion invested prior to IPO. The
median size of IPOs in 2019 reached
breaking the 15-year high reached in 2018.
Companies that went public in 2018 had the
lowest median age from first VC funding
Total VC Raised
to Date ($B)
Ratio
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
US VC-backed IPO Value and Age Characteristics
# of IPOs
Deal Value
($M)
Median Deal
Value ($M)
2007
90
$24,510.0
$248.8
2008
13
$2,254.1
2009
11
2010
Average Deal
Value ($M)
Average Post
Value ($M)
Median Time
from 1st VC to
Exit
Post Value
($M)
Median Post
Value ($M)
Average Time
from 1st VC to Exit
$310.3
$33,169.0
$330.2
$409.5
5.2
5.7
$143.6
$281.8
$2,849.1
$212.2
$356.1
4.9
4.8
$7,838.8
$317.1
$783.9
$9,624.2
$387.1
$962.4
7.3
7.5
40
$12,133.2
$203.2
$303.3
$15,332.5
$278.7
$383.3
6.7
7.2
2011
46
$37,787.9
$331.2
$944.7
$43,333.4
$423.6
$1,083.3
5.7
6.6
2012
59
$91,249.3
$303.3
$1,862.2
$112,655.8
$356.6
$2,086.2
7.1
7.7
2013
87
$43,663.5
$240.1
$567.1
$52,500.9
$328.5
$648.2
6.7
7.2
2014
124
$42,732.7
$186.3
$359.1
$52,409.7
$250.4
$440.4
7.1
7.3
2015
80
$31,854.6
$220.6
$430.5
$38,989.5
$297.0
$526.9
6.5
6.0
2016
42
$12,363.6
$178.3
$325.4
$15,681.6
$239.3
$382.5
7.8
7.3
2017
59
$51,289.5
$306.2
$899.8
$59,683.2
$411.2
$1,047.1
7.1
6.9
2018
89
$65,280.1
$344.3
$759.1
$77,392.4
$448.8
$899.9
4.7
6.6
2019
82
$199,253.9
$369.5
$2,459.9
$223,469.4
$462.3
$2,758.9
6.9
6.9
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
35
N VC A 2020 Y E A RBOOK
Data provided by
US Venture-backed M&A Activity
to IPO (4.8 years), but the median age of
$80
1,200
$70
1,000
$60
800
$50
600
$40
$30
companies going public in 2019 increased
to 6.9 years.
The slate of 2019 IPOs included several
household names—B2C companies Uber,
Lyft, and Peloton were three of the 10 largest
IPOs of the year. Software companies Slack
and Zoom Video Communications ranked
400
second and fourth, respectively, of 2019’s
200
biotech company 10x Genomics—cracked
largest IPOs. One life sciences company—
$20
$10
$0
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Deal Value ($M)
Acquisition Count
Disclosed Value Count
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
the top 10 ranking. Geographically,
companies based in California comprised the
five largest IPOs of the year.
Venture-backed companies accounted
for 43% of all US IPOs in 2019, surpassing
the 15-year high set in 2018. Even with a
US VC-backed M&A Value and Age Characteristics
# of
Acquisitions
# with
Disclosed
Values
Deal Value
($M)
Median
Deal
Value
($M)
Average
Deal
Value
($M)
Median
Time from
1st VC to
Exit
Average
Time from
1st VC to
Exit
2007
537
250
$32,602.9
$47.5
$130.4
4.7
4.9
2008
480
183
$15,183.5
$34.2
$83.0
4.7
4.9
2009
469
148
$13,697.0
$22.4
$92.5
4.4
4.9
2010
667
239
$29,262.8
$40.0
$122.4
4.4
5.0
2011
693
262
$28,886.7
$42.2
$110.3
4.2
4.9
2012
809
253
$33,129.2
$41.2
$130.9
4.5
5.1
big year for venture-backed IPOs, M&As
continued to account for the majority of
exits, comprising an average of 92% of
annual venture-backed exits from 20042019.
M&A activity remained strong in the
second half of the decade, with six
straight years of $40 billion+ in disclosed
exit value. In 2019, 836 M&As (219 with
disclosed values) represented a total of
$61.4 billion in disclosed exit value, a 6%
decrease year-over-year.
After peaking in 2014, M&A exit count
dropped off. However, this diminished
2013
819
260
$28,659.2
$36.0
$110.2
3.8
4.9
volume posted in 2019 at higher
2014
957
314
$68,820.5
$50.0
$219.2
4.5
5.3
deal values reached $100 million and
2015
950
278
$43,699.7
$45.5
$157.2
4.3
5.5
2016
866
249
$60,916.8
$78.0
$244.6
4.5
5.7
2017
870
233
$46,505.6
$70.0
$199.6
5.2
6.2
venture funding to exit of 5.5 years.
2018
933
256
$65,062.8
$98.3
$254.2
5.2
6.1
M&A activity for software companies
2019
836
219
$61,378.6
$100.0
$280.3
5.5
6.3
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
valuations—the median and average
$280 million, respectively, both 16year highs. The age of companies that
were acquired or merged continued to
increase, with a median age from first
cooled in 2019 after a record year in 2018.
Last year, the software sector accounted
for 45% of disclosed M&As by value. SAP’s
$8 billion acquisition of Utah-based survey
platform provider Qualtrics was the largest
of the year. Four healthcare companies
36
N VC A 2020 Y E A RBOOK
Data provided by
ranked in the top 10 largest M&A events,
led by Johnson & Johnson’s $5.75 billion
acquisition of robotic micro-surgical device
Top 10 US VC-backed M&A in 2019
Company Name
Deal Size ($M)
Industry Sector
State
Qualtrics
$8,000.0
Information Technology
Utah
Massachusetts, or New York.
Auris
$5,750.0
Healthcare
California
Unicorns were a key driver of 2019’s robust
Honey Science
$4,000.0
unicorns, held $1 billion+ exits in 2019 for
IFM Tre
$1,575.0
Healthcare
Massachusetts
an aggregate exit value of $208 billion, both
ConnectWise
$1,500.0
Information Technology
Florida
Cylance
$1,400.0
Information Technology
California
next stage of growth, while generating
Promedior
$1,390.0
Healthcare
Massachusetts
record value for public and private market
Peloton Therapeutics
$1,050.0
Healthcare
Texas
found their performance and valuations
SignalFx
$1,050.0
Information Technology
California
on shaky ground after floating. Against a
Acquia
$1,000.0
Information Technology
Massachusetts
developer Auris. Three companies in the top
10 were headquartered outside California,
Consumer Products and
Services (B2C)
exit activity—36 companies, many of them
metrics representing record highs. These
companies matured and graduated to their
investors. However, some IPOs of 2019
backdrop of concerns around corporate
California
Source: NVCA 2020 Yearbook, Data Provided by PitchBook
governance and profitability, stock prices for
some notable companies dropped. These
trends will certainly be top of mind for
venture-backed companies waiting in the
wings to follow the IPO path in 2020.
US VC-backed IPO Post-Valuation
by Range (Company Count)
>$10B
$1B-
$500M-
$100M-
$10B
$1B
$500M
US VC-backed M&A by Range
(Company Count)
>$1B
$500M-$1B
$100M-$500M
2007
1
9
68
459
2008
1
4
34
441
2009
1
5
29
434
2010
1
12
58
596
2011
3
5
62
623
2012
4
9
67
729
2013
4
6
65
744
2014
9
18
89
841
2015
8
9
80
853
2016
8
18
84
756
2017
8
17
70
775
2018
10
13
89
821
2019
9
14
79
734
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