Organizing the world’s business information.

The State of Venture Capital

Fundraising

© 2016 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587

The 10 Year Perspective

yearly funded startups +3x

yearly capital deployed +6x

SOURCES: MATTERMARK RESEARCH, CRUNCHBASE, ANGELLIST

MATTERMARK 2015 US STARTUP FUNDING REPORT

2016: Strongest Start of the Past 10 Years

3

Yearly Cumulative Capital Deployed (All Stages): Last 10 Years

Capi

tal D

eplo

yed

(in b

illion

s US

D)

$0

$10

$20

$30

$40

$50

$60

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

$7.3 B

20062007200820092010201120122013201420152016

SOURCES: MATTERMARK RESEARCH, CRUNCHBASE, ANGELLIST

MATTERMARK 2015 US STARTUP FUNDING REPORT

Historical Startup Capital Deployment vs. S&P 500

4

S&P

500

Inde

x (^

SPX

)

0

500

1,000

1,500

2,000

2,500

Capi

tal D

eplo

yed

(in B

illion

s $ U

SD)

$0

$5

$10

$15

$20

$25

Q1

'06

Q2

'06

Q3

'06

Q4

'06

Q1

'07

Q2

'07

Q3

'07

Q4

'07

Q1

'08

Q2

'08

Q3

'08

Q4

'08

Q1

'09

Q2

'09

Q3

'09

Q4

'09

Q1

'10

Q2

'10

Q3

'10

Q4

'10

Q1

'11

Q2

'11

Q3

'11

Q4

'11

Q1

'12

Q2

'12

Q3

'12

Q4

'12

Q1

'13

Q2

'13

Q3

'13

Q4

'13

Q1

'14

Q2

'14

Q3

'14

Q4

'14

Q1

'15

Q2

'15

Q3

'15

Q4

'15

Q1

'16

Pace

Quarterly Startup Investment Startup Investment 10 Year Trend Quarter-End S&P 500 S&P 500 10 Year Trend

SOURCES: MATTERMARK RESEARCH, CRUNCHBASE, ANGELLIST 5

10 Year History of Startup Capital Deployment, by Quarter

Dol

lars I

nves

ted

(in B

illion

s USD

)

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

Qua

rter

-End

S&P

500

600

800

1000

1200

1400

1600

1800

2000

2200

Q1 '06Q2 '

06Q3 '

06Q4 '

06Q1 '

07Q2 '

07Q3 '

07Q4 '

07Q1 '

08Q2 '

08Q3 '

08Q4 '

08Q1 '

09Q2 '

09Q3 '

09Q4 '

09Q1 '

10Q2 '

10Q3 '

10Q4 '

10Q1 '

11Q2 '

11Q3 '

11Q4 '

11Q1 '

12Q2 '

12Q3 '

12Q4 '

12Q1 '

13Q2 '

13Q3 '

13Q4 '

13Q1 '

14Q2 '

14Q3 '

14Q4 '

14Q1 '

15Q2 '

15Q3 '

15Q4 '

15

Q1 '16

Pace

Q1 2016 Capital Deployment Pace* is Down 23% from the Q3 2015 Peak

*excluding Uber & Lyft deals

© 2016 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587

Key Takeaway: Private funding levels reacted strongly to

public markets, funding announcements lag 1-3 months. Raise now.

SOURCES: MATTERMARK RESEARCH, CRUNCHBASE, ANGELLIST 7

Num

ber o

f Rou

nds

by S

tage

0

200

400

600

800

1000

1200

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Seed/Angel +1516% Series A +137% Series B +99%Series C +112% Series D +132% Series E, F, G & H +348%

Mon

thly

Capi

tal

Depl

oyed

(b

illion

s US

D)

$0

$2

$3

$5

$7

$8

$10

MATTERMARK 2015 US STARTUP FUNDING REPORT

Historical Overall Deal Volume Trend: Last 10 Years

SOURCES: MATTERMARK RESEARCH, CRUNCHBASE, ANGELLIST 8

Num

ber o

f Rou

nds

by S

tage

0

200

400

600

800

1000

1200

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Pace

Seed/Angel -27% Series A -22% Series B +18%Series C +57% Series D +56% Series E, F, G & H -1%

Mon

thly

Capi

tal

Depl

oyed

(b

illion

s US

D)

$0

$2

$3

$5

$7

$8

$10

MATTERMARK 2015 US STARTUP FUNDING REPORT

2016 Pace: Deal Compression at Seed & Series A

SOURCES: MATTERMARK RESEARCH, CRUNCHBASE, ANGELLIST 9

10 Year Trends in Seed Stage Capital DeploymentMATTERMARK 2015 US STARTUP FUNDING REPORT

Mon

thly

Deal

Volum

e

0

30

60

90

120

1.200

61.2

007

1.200

81.2

009

1.201

01.2

011

1.201

21.2

013

1.201

41.2

015

1.201

6

Deals 6 Month Moving Average

Aver

age

Deal

Size

(milli

ons

USD)

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

1.200

61.2

007

1.200

81.2

009

1.201

01.2

011

1.201

21.2

013

1.201

41.2

015

1.201

6

$1.1M

© 2016 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587

Key Takeaway: Seed stage companies with

high cap (> $6 million) convertible notes are almost

out of time to convert at/above the cap. Raise now.

SOURCES: MATTERMARK RESEARCH, CRUNCHBASE, ANGELLIST 11

10 Year Trends in Series A Capital DeploymentMATTERMARK 2015 US STARTUP FUNDING REPORT

Aver

age

Deal

Size

(milli

ons

USD)

$0

$2

$4

$6

$8

$10

$12

$14

$16

1.200

61.2

007

1.200

81.2

009

1.201

01.2

011

1.201

21.2

013

1.201

41.2

015

1.201

6

Mon

thly

Deal

Volum

e

0

30

60

90

120

1.200

61.2

007

1.200

81.2

009

1.201

01.2

011

1.201

21.2

013

1.201

41.2

015

1.201

6

Deals 6 Month Moving Average

$9.8M

© 2016 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587

Key Takeaway: Series A deals are

getting done at decent prices, but there is more

competition than ever before. Raise now.

SOURCES: MATTERMARK RESEARCH, CRUNCHBASE, ANGELLIST 13

10 Year Trends in Series B Capital DeploymentMATTERMARK 2015 US STARTUP FUNDING REPORT

Aver

age

Deal

Size

(milli

ons

USD)

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

$50

1.200

61.2

007

1.200

81.2

009

1.201

01.2

011

1.201

21.2

013

1.201

41.2

015

1.201

6

Mon

thly

Deal

Volum

e

0

15

30

45

60

1.200

61.2

007

1.200

81.2

009

1.201

01.2

011

1.201

21.2

013

1.201

41.2

015

1.201

6

Deals 6 Month Moving Average

$24M

© 2016 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587

Key Takeaway: Early stage investors are doing inside rounds with their hottest

companies. Multiple compression is just beginning to

reach Series B and beyond. Raise now!

Plan B: Cut Burn, Get Profitable

Organizing the world’s business information.

Keep calm. Read SaaStr. Raise now!