startup funding report: historical analysis 2005 - 2014
TRANSCRIPT
Mattermark Startup Funding ReportPUBLISHED FEBRUARY 4, 2015
© 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 2
IntroductionThis report provides a data-driven exploration of the United States startup ecosystem. Take an in-depth look at the funding events, growth signals, exits and other insights into the fastest growing private companies. The resources that flow into startups each year are a calculated risk on the part of investors, founders, employees, service-providers and everyone who stands to benefit from the proliferation of new product, better services, and saved time and money.
Understanding how businesses are created, funded, grown and ultimately rewarded with sustainability or an exit helps inform the conversations and actions for the coming years, and it is our hope you will read this report and combine it with your special knowledge of your industry, region, role and community as you charge forward into the New Year.
Sincerely,
Danielle Morrill, CEO & Cofounder of Mattermark
Acknowledgements
The Startup Funding Report would not be possible without a team effort. Thank you to the Mattermark analysts, researchers, software engineers and designers who made this report possible: Sarah Catanzaro, and Avi Eisenberger.
MATTERMARK STARTUP FUNDING REPORT
© 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 3
Table of ContentsDisclaimer
This information has been prepared by Mattermark Inc. solely for informational purposes. It is not, and should not be regarded as, investment advice or as a recommendation regarding any particular security or course of action. Opinions expressed herein are current opinions as of the date appearing in this material only and are subject to change without notice.
No part of this document may be reproduced in any manner, in whole or in part, without the prior written permission of Mattermark, Inc. This information is provided with the understanding that with respect to the material provided herein, you will make your own independent decision with respect to any course of action based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action.
Neither the information, nor any opinion contained herein, constitute a solicitation or offer by Mattermark, Inc. to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service. Mattermark, Inc. does not purport to, and does not, in any fashion, provide broker/dealer, consulting or any related services. Mattermark, Inc. shall not have any liability for any damages of any kind whatsoever relating to this material. By accepting this material, you acknowledge, understand and accept the foregoing.
MATTERMARK STARTUP FUNDING REPORT
5 Historical Analysis
32 Talent Wars
37 Who Funds The Most Capital Efficient Companies
39 Burn Book
45 Fastest Employee Growth in 12 Months
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MethodologyTime Period
For this report we examined companies funded in the past ten years. Funding year represents the calendar year at which a company was funded. For example companies receiving funding in 2014, received funding any time between January 1, 2014 and December 31, 2014.
Funding Rounds
For venture rounds, we only included deals in which the amount of funding raised was disclosed.
Criteria
All analyses include USA companies funded over the past 10 years. Companies in the Biotech, Energy, Clean Tech and Pharmaceutical industries have been excluded from all analyses.
Data Sources
Mattermark uses a broad range of sources to present the most complete picture possible of the startup ecosystem. In addition to extensive primary source research sourced specifically for this report, Mattermark uses publicly-available data from Crunchbase (www.crunchbase.com), AngelList (www.angel.co), NASDAQ (www.nasdaq.com), the United States Securities and Exchange Commission (www.sec.gov), The White House Office of Management & Budget, and source relationships with thousands of investors, community leaders and startup founders.
Please send any questions, comments or corrections for the editor to [email protected].
MATTERMARK STARTUP FUNDING REPORT
Historical AnalysisThe US startup ecosystem over the past 10 years
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
6
Median Investment Size by StageIn
vest
men
t Siz
e (in
USD
Mill
ion)
$0
$9
$18
$26
$35
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Seed Series A Series B Series C Series D Series E
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
7
Median Investment Size by Stage (Seed – Series B)Ye
ar o
ver Y
ear C
hang
e in
Inve
stm
ent S
ize
(%)
-60%
-40%
-20%
0%
20%
40%
60%
80%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Seed YoY Change Series A YoY ChangeSeries B YoY Change
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
8
Median Investment Size YoY Change by Stage (Series C – E)Ye
ar o
ver Y
ear C
hang
e in
Inve
stm
ent S
ize
(%)
-68%
-45%
-23%
0%
23%
45%
68%
90%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Series C YoY Change Series D YoY ChangeSeries E YoY Change
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
9
Number of Investments by Region - 2005 to PresentTo
tal N
umbe
r of I
nves
tmen
ts
0
500
1,000
1,500
2,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
SF Bay Area Boston Area Los Angeles AreaNew York Area
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
10
Average Investment Size by Region In
vest
men
t Siz
e (in
USD
Mill
ion)
$0
$4
$8
$12
$16
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
SF Bay Area Boston Area Los Angeles Area New York Area
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
11
Median Investment Size by Region In
vest
men
t Siz
e (in
USD
Mill
ion)
$0
$2
$4
$6
$8
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
SF Bay Area Boston Los Angeles New York
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
12
Total Investment Size by RegionIn
vest
men
t Siz
e (in
USD
Mill
ion)
0
7.5
15
22.5
30
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Bay Area New York BostonLos Angeles
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
13
Seed Investment Sizes In
vest
men
t Siz
e (in
USD
Mill
ion)
$0.00
$0.25
$0.50
$0.75
$1.00
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
MedianAverage
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
14
Number of Seed Investments by Region To
tal N
umbe
r of I
nves
tmen
ts
0
150
300
450
600
2006 2007 2008 2009 2010 2011 2012 2013 2014
SF Bay Area New York AreaBoston Area Los Angeles Area
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
15
Average Seed Investment Sizes by Region In
vest
men
t Siz
e (in
USD
Mill
ion)
$0.00
$0.75
$1.50
$2.25
$3.00
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
SF Bay Area Boston Area Los Angeles Area New York Area
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
16
Series A Investment Sizes In
vest
men
t Siz
e (in
USD
Mill
ion)
$0.00
$1.75
$3.50
$5.25
$7.00
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
MedianAverage
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
17
Number of Series A Investments by Region To
tal N
umbe
r of I
nves
tmen
ts
0
75
150
225
300
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Bay Area Boston Los Angeles New York
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
18
Average Series A Investment Sizes by Region In
vest
men
t Siz
e (in
USD
Mill
ion)
$0.00
$2.75
$5.50
$8.25
$11.00
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Bay Area Boston Area Los Angeles Area New York Area
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
19
Series B Investment Sizes In
vest
men
t Siz
e (in
USD
Mill
ion)
$0
$4
$8
$12
$16
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
MedianAverage
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
20
Number of Series B Investments by Region To
tal N
umbe
r of I
nves
tmen
ts
0
40
80
120
160
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Bay Area Boston Los Angeles New York
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
21
Average Series B Investment Sizes by Region In
vest
men
t Siz
e (in
USD
Mill
ion)
$0
$6
$12
$18
$24
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Bay Area Boston Los Angeles New York
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
22
Series C Investment Sizes In
vest
men
t Siz
e (in
USD
Mill
ion)
$0
$8
$15
$23
$30
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
MedianAverage
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
23
Number of Series C Investments by Region To
tal N
umbe
r of I
nves
tmen
ts
0
25
50
75
100
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Bay Area Boston Los Angeles New York
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
24
Average Series C Investment Sizes by RegionIn
vest
men
t Siz
e (in
USD
Mill
ion)
$0
$18
$35
$53
$70
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Bay Area BostonLos Angeles New York
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
25
Series D Investment Sizes In
vest
men
t Siz
e (in
USD
Mill
ion)
$0
$15
$30
$45
$60
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
MedianAverage
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
26
Number of Series D Investments by Region To
tal N
umbe
r of I
nves
tmen
ts
0
13
25
38
50
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Bay Area Boston Los Angeles New York
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
27
Average Series D Investment Sizes by Region In
vest
men
t Siz
e (in
USD
Mill
ion)
$0
$25
$50
$75
$100
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Bay Area Boston Los Angeles New York
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
28
Series E Investment Sizes In
vest
men
t Siz
e (in
USD
Mill
ion)
$0
$18
$35
$53
$70
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
MedianAverage
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
29
Number of Series E Investments by Region To
tal N
umbe
r of I
nves
tmen
ts
0
10
20
30
40
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Bay Area Boston Los Angeles New York
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
30
Average Series E Investment Sizes by Region In
vest
men
t Siz
e (in
USD
Mill
ion)
$0
$23
$45
$68
$90
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Bay Area Boston Los Angeles New York
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
31
Total Funding by Stage U
.S. D
olla
rs (i
n M
illio
ns)
0
7,500
15,000
22,500
30,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Seed Series A Series B Series C Series D Series E
Talent WarField Report: Funds & Companies
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
33
Accelerator Portfolio EmployeesN
umbe
r of E
mpl
oyee
s
0
7500
15000
22500
30000
Y Combinator 500 Startups Techstars
Total Employees Employees 1 Month Ago Employees 6 Months Ago
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
34
Accelerator Portfolio Company Employees
Kleiner Perkins
Accel
Sequoia
SV Angel
NEA
Benchmark
Y Combinator
Lightspeed
General Catalyst
A16Z
Greylock
Google Ventures
Redpoint
Bessemer
0 15000 30000 45000 60000
Total Employees Employees 1 Month Ago Employees 6 Months Ago
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
35
Average Employees by Stage
LightspeedAccel
GreylockBenchmark
Lerer VenturesGeneral Catalyst
BessemerSequoia
SV AngelA16Z
Kleiner PerkinsFoundry Group
Y CombinatorGoogle Ventures
Union SquareNEA
RedpointAtlas Venture
0 100 200 300 400
Series A Series B Series C
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
36
Average Series A Stage Startup Team Size
BessemerGeneral Catalyst
SequoiaRedpoint
Google VenturesBenchmark
Foundry GroupKleiner Perkins
Atlas VentureAccel
Andreessen HorowitzNEA
GreylockLerer Ventures
SV AngelY Combinator
Union Square VenturesBENCHMARK
Lightspeed
0 15 30 45 60
Median Employee Count Average Employee Count
Who Funds The Most Capital Efficient Companies?
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
38
Top Participants in U.S. Series A Rounds*SV Angel
True VenturesLerer Hippeau Ventures
Great Oaks Venture CapitalAccel Partners
First Round CapitalSequoia Capital
Kleiner Perkins Caufield & ByersThrive Capital
SoftBank CapitalGrotech VenturesUpfront Ventures
Atlas VentureFuel Capital
Lightspeed Venture Partnersff Venture Capital
Silicon Valley BankFelicis Ventures
Total Number of Companies0 5 10 15 20
Burn BookSeptember 2014
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
40
U.S. FUNDING DISTRIBUTION
7,464 startups have raised new funding in the past 2 years
0 - 1 M
1 - 3M
3 - 10M
10 - 25M
25 - 50M
50 - 100M
100 - 200M
200 - 500M
500M+
0 875 1750 2625 3500
0 - 1 years 1 - 2 yearsLast Funding Round Was In the Past:
Cur
rent
Fun
ding
Ran
ge (i
n U
SD M
illio
n)
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50 - 100M
100 - 200M
200 - 500M
500M+
0 125 250 375 500
0 - 1 years1 - 2 years
Cur
rent
Fun
ding
Ran
ge (i
n U
SD M
illio
n)MATTERMARK STARTUP FUNDING REPORT: 2005-2014
41
U.S. FUNDING DISTRIBUTION
511 STARTUPS with > $50M in funding have raised in the past 2 years
Last Funding in
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
42
No More VC Needed?
107 companies with > $50M in funding have NOT raised in the past 2 years, but have made hires in past 6 months
50 - 100M
100 - 200M
200 - 500M
500M+
Time Since Last Funding (Years)
0 1 2 3 4
Cur
rent
Fun
ding
Ran
ge (i
n U
SD M
illio
n)
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
43
No More VC Needed?
352 companies with > $50M have raised in the past year.
3%
33%
64%
B2BB2CMarketplace
Fastest Employee Growth In 12 Months
Fastest Employee Growth Rate Since Last Round Total Funding > $50M, Raised in Past 12 Months
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
45
Consumer (w/ >$50M Funding)
Company Total Funding Total Employees Employees Added Since Last Round
Employee Months Added Since Last
Round
Blue Apron $58M 145 99 2760
Tango $369.25M 223 74 2688
Birchbox $71.9M 354 86 2558
HotelTonight $80.69M 185 47 2216
One Medical Group $116.5M 379 67 2005
Prosper $189.9M 169 73 1866
1stdibs $117M 152 33 1836
BuzzFeed $96.3M 698 185 1762
VICE $580M 1412 207 1525
Rdio $125.7M 177 42 1116
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
46
Marketplace (w/ >$50M Funding)
Company Total Funding Total Employees Employees Added Since Last Round
Employee Months Added Since Last
Round
Lyft $332.5M 1532 1018 32538
Airbnb $794.82M 2055 682 19411
Coursera $85M 313 209 13462
Birchbox $71.9M 354 86 2558
Prosper $189.9M 169 73 1866
Thumbtack $148.2M 439 160 1274
Uber $4907.45M 4143 516 516
Wish $128.7M 64 28 444
Minted $89.1M 358 114 323
Etsy $97.26M 1532 62 319
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
47
B2B Software (w/ >$50M Funding)
Company Total Funding Total Employees Employees Added Since Last Round
Employee Months Added Since Last
Round
Kony Solutions $98.4M 1069 595 6703
Zenefits $83.6M 396 300 5204
Sprinklr $77.5M 559 284 7808
Atlassian $210M 1019 278 6690
Domo $248.65M 607 249 11941
Spredfast $64.1M 380 207 13151
Mulesoft $130.5M 472 180 6584
Nutanix $312.2M 757 175 1485
AtTask $62M 565 168 8275
InsideSales.com $143.05M 574 158 1766
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MATTERMARK STARTUP FUNDING REPORT: 2005-2014
48
Hardware (w/ >$50M Funding)
Company Total Funding Total Employees Employees Added Since Last Round
Employee Months Added Since Last
Round
NJOY $165M 109 15 613
Aquantia $153.62M 115 8 176
SimpliSafe $57M 34 11 153
Luxtera $91.08M 80 5 103
MinuteKey $55.8M 30 14 82
Roku $153.1M 318 23 56
4moms $60M 142 10 47
Anki $105M 87 8 41
Prysm $293.08M 202 10 10
Misfit Wearables $63M 110 4 4