the 100,000 company investment study

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DAVID FEINLEIB THE 100,000 COMPANY INVESTMENT STUDY: VENTURE CAPITAL TRENDS 100,000+ COMPANIES 10 YEARS OF STARTUP DATA MARCH, 2013 IN PARTNERSHIP WITH Copyright © 2013 The Big Data Group, LLC and SiSense SISENSE.COM CRUNCHBASE.SISENSE.COM BIGDATALANDSCAPE.COM THEBIGDATAGROUP.COM

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Study of 100,000 venture capital investments. Learn about Series B crunch vs Series A crunch. Brought to you by The Big Data Group at http://www.bigdatalandscape.com.

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Page 3: The 100,000 Company Investment Study

THE BIG DATA GROUP 3

Web Browser Market Share

Fewer startups received funding in

2012

Data points to Series B crunch, not Series

A crunch

Web deals have cooled off

Key Findings

1) Enterprise startups raised 40% more in 2012$9.85M per round vs $7.0M in 2011

2) Web startups raised 45% less per round in 2012$5.6M per round vs $10.0M in 2011

3) Series B crunch, not a Series A crunchMore Series A rounds in 2012 and they got done fasterFewer Series B rounds in 2012 and they got done slower

4) The most popular first letter for a startup in 2012 was the letter S

5) Companies with 6 - 10 characters in their name have more acquisitions and IPOs

Page 4: The 100,000 Company Investment Study

THE BIG DATA GROUP 4

Web Browser Market Share Study Goals

1) Study venture capital and startup trends based on CrunchBase, Wikibon, NASDAQ, and other data sources

2) Give entrepreneurs, investors, and limited partners visibility into investment speed, round size, and market dynamics

3) Leverage previously untapped sources of Big Data to provide market insights

Page 5: The 100,000 Company Investment Study

THE BIG DATA GROUP 5

Web Browser Market Share Study Data

1) More than 100,000 companies

2) January, 2000 - February, 2013

3) Data sources: CrunchBase, Wikibon, NASDAQ and others*

Page 6: The 100,000 Company Investment Study

THE BIG DATA GROUP

Investment Volume and Size

Data for all funding rounds

Fewer software startups received funding in 2012, but the ones that did raised more money on average

Page 7: The 100,000 Company Investment Study

Average Number of Days Between Rounds

7THE BIG DATA GROUP

0

200

400

600

800

‘07 ‘08 ‘09 ‘10 ‘11 ‘12

Seed to Series A Series A to BSeries B to C Series C to D

Page 8: The 100,000 Company Investment Study

THE BIG DATA GROUP

Average Time Between Rounds

Series A crunch? Not quite. There were more “Series A” deals in 2012 than in 2011. And these deals got done faster–about 2 months faster.

Series B crunch?Maybe. There were fewer “Series B” deals in 2012 and they took 1 ½ months longer than in 2011.

Page 9: The 100,000 Company Investment Study

THE BIG DATA GROUP 9

Enterprise And Web Investments

In 2012, enterprise companies raised more

money, while web companies raised less

6% more enterprise companies received

funding in 2012 and they raised 40% more capital

than in 2011

13% fewer web companies were funded in 2012 and they raised 45% less capital than in

2011

Showing above data for all funding rounds, all statuses in either in the enterprise or the web category

ENTERPRISE

WEB

Page 10: The 100,000 Company Investment Study

THE BIG DATA GROUP

Investments By Geography

14

Page 11: The 100,000 Company Investment Study

THE BIG DATA GROUP

What’s In a Startup Name?

0

200

400

600

800

0-5 6-10 11-15 16-20 21-30 31-40

0

25

50

75

100

0-5 6-10 11-15 16-20 21-30 31-40

Number of Acquisitions

Name length

Number of IPOs

Startups with 6 - 10 characters in their names had more exits and IPOs

Page 12: The 100,000 Company Investment Study

THE BIG DATA GROUP 12

What’s In A Startup Name? Part II

S, M , and T were the three most popular first letters for companies in

the last 8 years

X: the most unused letter for startup names