PwC / CB Insights

MoneyTree™
Report
Q1 2019
Executive summary
US VC funding and deal activity fell in Q1’19 from near- Global funding fell 22% in Q1’19 after 2018 surge to near
record levels in 2018 record levels
US VC funding and deal activity fell in Q1’19: US VC funding Global funding and deal activity fell in Q1’19: Funding fell by
fell 36% in Q1’19 to $25B, with 4% fewer deals compared to Q4’18. 22% to $52B, raised over 3,327 transactions. Deal activity fell by 5%.
Q4’18’s $39B and 2018’s $115B were the second largest quarter and Asian funding dropped off: Asia-based private companies raised
year, respectively. $18B in Q1’19, a 12% decrease compared to Q4’18. Deal activity fell
US mega-rounds were down from a record Q4’18, but well 7% to 1,128 transactions, the second-straight quarterly decrease.
above historic levels: US private companies raised 46 $100M+ North America minted 10 new unicorns: North America beat
rounds in Q1’19, down from a record Q4’18 but well above historic out Asia for the third-straight quarter in private companies newly
levels. valued at $1B+. NA saw 10 new $1B+ private company valuations,
Seed-stage deals continued to fall in Q1’19: Seed-stage deals as compared to 5 in Asia.
a percentage of total US deal activity continued to fall in Q1’19. Seed- Silicon Valley funding fell amid declining deal activity:
stage deals began to decline starting in Q3’17, at 36% of all deals, Silicon Valley fell by 19% to $4B, raised over 118 deals. Deal activity
falling to 24% in Q1’19. fell for the third straight quarter.
Artificial Intelligence-related funding fell for the second- NY metro area funding jumped: NY metro-based VC backed
straight quarter: AI-related companies raised $2B in Q1’19, falling companies raised $4.5B in Q1’19, a 110% increase compared to Q4’18.
22% compared to Q4’18, the second straight quarterly decline. New York VC funding rounds included 6 mega-rounds, including one
FinTech funding fell slightly after a record Q4’18: FinTech- $1B round.
related funding remained elevated at $3B in Q1’19, falling only 3%
after a record Q4’18. Deal activity rose 13% in Q1’19, to 170
transactions.
Note: Report includes all rounds to VC-backed companies. For a detailed brief
on methodology, please reference page 94 of this report.
PwC | CB Insights MoneyTree™ Report Q1 2019 2
Table of contents

4 US Overall Trends

12 US Sector Activity

45 US Places

59 US Movers and Shakers

74 Global Trends

PwC | CB Insights MoneyTree™ Report Q1 2019 3

01
US Overall Trends

4
 In Q1 2019

UNITED
STATES
VC-backed companies raised
$24.6B

PwC | CB Insights MoneyTree™ Report Q3 2017 5

8-quarter US financing trend
US funding and deal activity decreased in Q1’19
• Funding was down 36% in Q1’19 as $24.6B was invested across 1,279 deals. Deal activity declined for the third consecutive quarter.
• US-based unicorns brought in noteworthy deals. Flexport, Nuro, and WeWork all raised $900M+ rounds in Q1’19.

1,800
1,639
1,561 1,524
1,473 1,434 1,427
1,600

1,328 1,279 1,400

1,200

1,000

Title
800

600

400

200
$19.6 $20.8 $20.0 $22.8 $24.5 $28.9 $38.7 $24.6
0
Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Investments ($B) Deals

PwC | CB Insights MoneyTree™ Report Q1 2019 6
US financing trends

“ Over the past three quarters, we’ve seen the number of deals
moderate down, while the total amount invested stays relatively
consistent.

— Tom Ciccolella, Partner, US Ventures Leader at PwC

PwC | CB Insights MoneyTree™ Report Q1 2019

” 7
US deal share by stage
US seed-stage deals declined after six consecutive down or flat quarters
• Seed-stage deals declined to 24% of all deals, their lowest in recent quarters.
• Early-stage deals decreased slightly to 26%, their first decrease since Q1’18.

16% 14% 17% 15% 17% 16% 15% 16%

9% 9% 9% 9% 10%
10% 11% 11%

19% 18%
19% 21% 21% 22% 23% 23%

24%
26% 26% 24% 24% 26% 27% 26%

30% 36% 30% 30% 28% 25% 25% 24%

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Seed Stage Early Stage Expansion Stage Later Stage Other

PwC | CB Insights MoneyTree™ Report Q1 2019 8

Median US deal sizes by stage
Later-stage median deal size increased for second consecutive quarter in Q1’19
• Median later-stage deal size increased to $40M in Q1’19, an $8M increase from Q3’18, while median deal size shrank to $32M.
• Expansion-stage median deal size was flat at $20M.

$44.0
$40.0
$36.2 $37.5

$30.9 $31.0 $32.0

$25.0
$20.0 $20.0
$18.0
$15.8 $15.5 $16.0 $15.5 $16.0

$6.0 $6.0 $7.0 $7.0 $7.0 $6.5 $7.4 $7.0

$1.7 $1.1 $2.0 $1.6 $2.0 $1.5 $2.1 $2.0

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Seed Stage Deal Size ($M) Early Stage Deal Size ($M) Expansion Stage Deal Size ($M) Later Stage Deal Size ($M)
PwC | CB Insights MoneyTree™ Report Q1 2019 9
US corporate deal participation
Corporate participation in US deals increased to 30%, its highest level in recent quarters
• Corporate participation in US deals increased in Q1’19 to 30%, its highest level in recent quarters.

24% 23% 23% 24% 25% 27% 27% 30%

76% 77% 77% 76% 75% 73% 73% 70%

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19
Other Investors Corp / CVC Deal Participation
PwC | CB Insights MoneyTree™ Report Q1 2019 10
US first venture financing share
First venture rounds as a share of total deals were flat in Q1’19
• First venture financings as a share of all US deals remained steady at 35% in Q1’19.

36% 34% 35% 33% 35% 35% 35%

36%

64% 66% 65% 67% 64% 65% 65% 65%

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Other % of Total First VC-Backed Deals
PwC | CB Insights MoneyTree™ Report Q1 2019 11
02
US Sectors
US deals and funding by Top 5 sectors

$10.6B Internet 562 Deals

Invested

$4.2B
175 Deals Healthcare
Invested

$2.8B
148 Deals Mobile & Telecommunications
Invested

$1.4B
141 Deals Software (Non-Internet / Mobile)
Invested

$0.5B
57 Deals Consumer Products & Services
Invested

PwC | CB Insights MoneyTree™ Report Q1 2019 13

US deal share by sector
Deal share for several sectors declined, with software (non-internet/mobile) deals increasing share
• The software (non-internet/mobile) sector increased slightly to 11% of US deals in Q1’19.

15% 14% 18% 17% 15% 18% 16% 15%

5% 4% 4% 5% 5% 4%
8% 6% 3%
7% 8% 9% 8% 10% 11%
8%
13% 15% 13% 15%
15% 15% 14% 14%

15% 13% 12% 12%

11% 12% 12% 12%

44% 46% 42% 46% 44% 44% 45% 44%

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Internet Mobile & Telecommunications Healthcare Software (non-internet/mobile) Consumer Products & Services Other
PwC | CB Insights MoneyTree™ Report Q1 2019 14
Artificial Intelligence

PwC | CB Insights MoneyTree™ Report Q1 2019 15

Artificial Intelligence: US funding over time
Artificial intelligence deal activity increased after three consecutive quarterly declines
• Artificial intelligence deals increased in Q1’19 to 116 deals, up from 104 deals in Q4’18.
• While deals increased, funding dropped to $2B in Q1’19. Close to half of all artificial intelligence funding for Q1’19 was driven by a $940M
investment in Nuro by SoftBank Group.

151 148 112 160

145
104
140
121 120 116 120

100

Title
80

60

40

20
$1,334 $1,475 $1,487 $2,012 $2,384 $2,740 $2,568 $2,000
0
Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19
Investments ($M) Deals
PwC | CB Insights MoneyTree™ Report Q1 2019 16
Artificial Intelligence: US deal share over time
Artificial intelligence seed-stage deals increased for first time in five quarters
• Seed-stage deals rose to 32% in Q1’19, up from 27% in Q4’18, and the first increase since Q3’17.
• Seed-stage deals included investments in artificial intelligence for retail, such as cashier-less store startup AiFi and smart shopping cart
startup Caper.

9% 7% 8% 7% 8% 6% 5%
10%
3% 7% 9%
7% 7% 8% 13% 5%
18%
22% 18% 21%
19%
21% 31% 27%

28%
25% 32%
33% 31%
30% 26%
29%

45%
39% 36%
31% 33% 29% 32%
27%

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Seed Stage Early Stage Expansion Stage Later Stage Other
PwC | CB Insights MoneyTree™ Report Q1 2019 17
Artificial Intelligence: Top states by deals

1. CA 61 deals
$1,473M Invested

2. NY 18 deals
$248M Invested

3. MA 8 deals
$85M Invested

3. TX 8 deals
$58M Invested

PwC | CB Insights MoneyTree™ Report Q1 2019 18

Artificial Intelligence: Largest US deals of Q1’19
Stage of $ Value
Company Location Sector Industry Select Investors
Funding of Deal
Automotive & Automobile
Nuro Mountain View, CA $940M SoftBank Group
Transportation Manufacturing

Internet Software DCM Ventures, DST Global, Morgan Creek

Figure Technologies San Francisco, CA Internet $65M
& Services Capital Management, Nimble Ventures

Mobile & Mobile Software & LiveOak Venture Partners, Royal Bank of
Ojo Labs Austin, TX $45M
Telecommunications Services Canada

Internet Software Adams Street Partners, Canaan Partners,

PerimeterX San Mateo, CA Internet $43M
& Services Data Collective

Software (non- Business

Saama Technologies Campbell, CA $40M Perceptive Advisors
internet/mobile) Intelligence

Internet Software Battery Ventures, Norwest Venture

Gong San Francisco, CA Internet $40M
& Services Partners, Cisco Investments

Seed Early Expansion Later

Stage Stage Stage Stage

PwC | CB Insights MoneyTree™ Report Q1 2019 19

Cybersecurity

PwC | CB Insights MoneyTree™ Report Q1 2019 20

Cybersecurity: US funding over time
Cybersecurity funding was flat in Q1’19 at $1B
• Cybersecurity funding was flat, while deal activity declined slightly to 48 transactions
• The quarter was led by large funding rounds to content delivery network services provider Cloudflare ($150M Series E+) and identity and
access management software OneLogin ($100M Series D).

70 80
71 69
67 70

59
60
53 51
48 50

Title
40

30

20

10
$1,353 $1,083 $847 $599 $1,702 $1,086 $1,050 $1,082
0
Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19
Investments ($M) Deals
PwC | CB Insights MoneyTree™ Report Q1 2019 21
Cybersecurity: US deal share over time
Cybersecurity later-stage deals increased significantly as a percentage of deals
• Later-stage deals increased in Q1’19 to 25% as a share of cybersecurity deals.
• Seed-stage deals declined significantly as a percentage of deals in Q1’19.

6% 7% 8% 6% 6% 10%
13% 12%
16% 14% 10% 12%
21%
16% 16%
25%
18% 22%
30% 34%
26% 24%
36% 27%
23%
31%
20% 27%
27% 30%
19%
29%
38%
30% 27%
21% 17% 17% 22%
8%

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Seed Stage Early Stage Expansion Stage Later Stage Other
PwC | CB Insights MoneyTree™ Report Q1 2019 22
Cybersecurity: Top states by deals

1. CA 25 deals
$733M Invested

2. NY 4 deals
$111M Invested

3. MA 3 deals
$44M Invested

3. FL 3 deals
$5M Invested

3. CO 3 deals
$2M Invested

PwC | CB Insights MoneyTree™ Report Q1 2019 23

Cybersecurity: Largest US deals of Q1’19
Stage of $ Value
Company Location Sector Industry Select Investors
Funding of Deal

Cloudflare San Francisco, CA Internet Software & $150M Franklin Templeton Investments
Internet
Services

Internet Software & CRV, Greenspring Associates, Silver Lake

OneLogin San Francisco, CA Internet $100M
Services Partners, Scale Venture Partners

Keyfactor Independence, OH Computer Hardware & $77M Insight Venture Partners

IT Services
Services

Internet Software & Battery Ventures, General Catalyst,

Contrast Security Los Altos, CA Internet $65M
Services Warburg Pincus

Internet Software & N/A

Illumio Sunnyvale, CA Internet $65M
Services

Seed Early Expansion Later

Stage Stage Stage Stage

PwC | CB Insights MoneyTree™ Report Q1 2019 24

FinTech

PwC | CB Insights MoneyTree™ Report Q1 2019 25

FinTech: US funding over time
FinTech funding decreased slightly in Q1’19, amid a jump in deal activity
• FinTech decreased slightly to $3.3B in Q1’19, down from $3.4B in Q4’18.
• The quarter was led by a large funding round for Clover Health, a data-driven health insurance startup. The company raised a $500M Series
E+ from Greenoaks Capital Management.

250

212 150
178 170
168 200

152 156 155

150

Title
100

50

$2,114 $2,117 $2,438 $2,482 $3,339 $2,989 $3,401 $3,292

0
Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19
Investments ($M) Deals
PwC | CB Insights MoneyTree™ Report Q1 2019 26
FinTech: US deal share over time
FinTech deal share was largely flat in Q1’19
• Despite no significant fluctuations, early-stage and “other” deal shares decreased slightly.
• While later-stage deal share was only 8% of FinTech deals in Q1’19, the category accounted for close to $1.4B in funding during the quarter,
around 42% of total FinTech funding.

9% 9% 10% 10% 13% 10% 12% 11%

8% 12% 8% 9% 10% 8% 8%
11%
17% 20% 18%
21% 21% 23% 25% 25%

28% 25%
20% 26%
29% 32% 29% 28%

38% 38% 35% 37%

26% 26% 27% 27%

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Seed Stage Early Stage Expansion Stage Later Stage Other

PwC | CB Insights MoneyTree™ Report Q1 2019 27
FinTech: Top states by deals

1. CA 51 deals
$1,253M Invested

2. NY 43 deals
$575M Invested

3. MA 14 deals
$399M Invested

PwC | CB Insights MoneyTree™ Report Q1 2019 28

FinTech: Largest US deals of Q1’19
Stage of $ Value
Company Location Sector Industry Select Investors
Funding of Deal

Medical
Clover Health Jersey City, NJ Healthcare Facilities & $500M Greenoaks Capital Management
Services

Internet
Bessemer Venture Partners, T. Rowe Price,
Toast Boston, MA Internet Software & $250M
Technology Crossover Ventures
Services

Internet
States Title San Francisco, CA Internet Software & $240M Undisclosed Investors
Services

Mobile Cathay Innovation, Forerunner Ventures,

Chime San Francisco, CA Mobile & $200M
Software & ICONIQ Capital
Telecommunications
Services

Mobile Bain Capital Ventures, BlackRock, Comcast

Acorns Irvine, CA Mobile & $105M
Software & Ventures
Telecommunications
Services

Seed Early Expansion Later

Stage Stage Stage Stage

PwC | CB Insights MoneyTree™ Report Q1 2019 29

03
US Places
US top five regions of Q1’19 by deals

$7,105M San Francisco (N. Bay Area)

236

$4,455M New York Metro

205

$2,758M New England

131

$4,333M Silicon Valley (S. Bay Area) 118

$664M Midwest 98
PwC | CB Insights MoneyTree™ Report Q1 2019 31
US: Q1’19 funding by region
Upstate
Total US: NY New England
$24.6B $52M $2,758M

Northwest
$608M North
Central
Sacramento/N. Cal New York Metro
$75M Midwest
$52M $4,455M
$664M
SF (N. Bay Area) Southwest CO Philadelphia Metro
$7,105M $210M $313M $321M

Silicon Valley (S. Bay Area)

$4,333M Southeast
DC/Metroplex
$412M
LA/Orange County Texas $320M
$1,464M $1,164M
San Diego
$204M

South Central
$23M
AK/HI/PR
$1M

PwC | CB Insights MoneyTree™ Report Q1 2019 32

US: Q1’19 deals by region
Upstate
Total US: NY New England
1,279 Deals 7 Deals 131 Deals

Northwest
63 Deals North
Central
Sacramento/N. Cal New York Metro
24 Deals Midwest
9 Deals 205 Deals
98 Deals
SF (N. Bay Area) Southwest CO Philadelphia Metro
236 Deals 18 Deals 40 Deals 31 Deals

Silicon Valley (S. Bay Area)

118 Deals Southeast
DC/Metroplex
65 Deals
LA/Orange County Texas 48 Deals
72 Deals 66 Deals
San Diego
20 Deals

South Central
5 Deals
AK/HI/PR
3 Deals

PwC | CB Insights MoneyTree™ Report Q1 2019 33

8-quarter financing trend: San Francisco (North Bay Area)
San Francisco funding fell compared to Q4’18, but stayed within its historical range
• San Francisco startups raised $7B over 236 deals in Q1’19.
• Q4’18 funding was pushed up by a $13B corporate minority investment in vape maker JUUL Labs.

318 311
290
277 278 256
263
236

Title
$4,243 $3,855 $5,768 $6,716 $6,034 $8,890 $19,702 $7,105

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Investments ($M) Deals
PwC | CB Insights MoneyTree™ Report Q1 2019 34
8-quarter financing trend: New York Metro
New York Metro funding increased sharply, deals increased
• Funding jumped to $4.5B in the New York Metro area, an increase of 110% over Q4’18.
• Late-stage NYC-based companies raised six $100M+ funding rounds, including a $1B Series H raised by coworking space provider WeWork.

232
224 220 219
207 205
184
169

Title
$2,930 $4,605 $3,001 $2,700 $2,898 $5,888 $2,122 $4,455

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Investments ($M) Deals
PwC | CB Insights MoneyTree™ Report Q1 2019 35
8-quarter financing trend: Silicon Valley (South Bay Area)
Silicon Valley funding and deal activity declined
• Silicon Valley funding fell 19% to $4B amid declining deal activity.
• Deals fell for the third-consecutive quarter to 118 transactions.

187 189
179 177 146
161 152
118

Title
$4,230 $2,653 $2,958 $4,019 $3,952 $4,955 $5,382 $4,333

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Investments ($M) Deals
PwC | CB Insights MoneyTree™ Report Q1 2019 36
8-quarter financing trend: New England
New England funding increased for the second-consecutive quarter
• New England-based companies raised $2.7B in Q1’19, an 8% jump compared to Q4’18.
• Deal activity fell for the third-straight quarter, falling to 131 transactions.

148

137 142 131

135
126
134

Title
130

$1,559 $1,978 $2,227 $2,748 $3,123 $2,475 $2,550 $2,758

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Investments ($M) Deals
PwC | CB Insights MoneyTree™ Report Q1 2019 37
8-quarter financing trend: LA/Orange County
LA funding and deal activity fell in Q1’19
• Deal activity in LA/Orange County declined for the fourth consecutive quarter, as funding dropped 27% to $1.5B.

124 120
112 112 100
105 105

72

Title
$1,069 $1,582 $963 $1,764 $1,778 $849 $2,017 $1,464

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Investments ($M) Deals
PwC | CB Insights MoneyTree™ Report Q1 2019 38
US: Top 10 states of Q1’19 by deals

1. CA 461 deals 6. IL 43 deals

$13,175M $283M

2. NY 201 deals 7. CO 40 deals

$3,882M $313M

3. MA 117 deals 8. PA 34 deals

$2,716M $345M

4. TX 66 deals 9. VA 27 deals
$1,164M $197M

5. WA 45 deals 10. GA 22 deals

$472M $167M

PwC | CB Insights MoneyTree™ Report Q1 2019 39

Q1’19 Regional comparison: Deals CA vs. NY vs. MA
Deals declined in California and Massachusetts, jumped in New York
• New York deal activity rose to 201 in Q1’19, from 164 in Q4’18.

656 670
634
591 585 571
541
461

220 214 218 217 201

195 177 164
114 117 114 121 126 123 123 117

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

California New York Massachusetts
PwC | CB Insights MoneyTree™ Report Q1 2019 40
Q1’19 Regional comparison: Financing CA vs. NY vs. MA
California funding declined sharply in Q1’19
• California-based companies saw funding fall from $28B to $13B in Q1’19, a 53% decrease compared to Q4’18.
• New York funding increased from $2B in Q4’18 to $4B in Q1’19.

$27.9

$15.7
$12.9 $12.6 $13.2
$10.0 $10.0
$8.7
$5.8
$4.4 $3.9
$2.6 $2.9 $2.5$2.7 $2.9 $3.0 $2.4 $2.0 $2.5 $2.7
$1.5 $1.5 $2.2

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

California New York Massachusetts
PwC | CB Insights MoneyTree™ Report Q1 2019 41
04
US Movers & Shakers
Mega-rounds

“ The prevalence of mega deals - characterized as rounds greater than

$100 million - continues to shape the VC landscape.

— Tom Ciccolella, Partner, US Ventures Leader at PwC

PwC | CB Insights MoneyTree™ Report Q1 2019

” 43
Largest US deals of Q1’19
Stage of $ Value
Company Location Sector Industry Select Investors
Funding of Deal
Business Products &
WeWork New York, NY Facilities $1,000M SoftBank Group
Services

Internet Software SoftBank Group, Founders Fund, Cherubic

Flexport San Francisco, CA Internet $1,000M
& Services Ventures

Automotive & Automobile

Nuro Mountain View, CA $940M SoftBank Group
Transportation Manufacturing

Automotive & Automobile Amazon, Greylock Partners, Lightspeed

Aurora Palo Alto, CA $530M
Transportation Manufacturing Venture Partners, Sequoia Capital

Medical Facilities
Clover Health Jersey City, NJ Healthcare $500M Greenoaks Capital Management
& Services

$400M Sequoia Capital, SoftBank Group, Y

DoorDash San Francisco, CA Internet eCommerce
Combinator

Seed Early Expansion Later

Stage Stage Stage Stage

PwC | CB Insights MoneyTree™ Report Q1 2019 44

US mega-round activity
US $100M+ rounds fell, but remained at elevated levels
• US-based companies saw another big quarter for mega-rounds, raising 46 $100M+ rounds, down from the Q3’18 record but still elevated.
• Later-stage companies raised several massive funding rounds in Q1’19, including two $1B rounds by coworking provider WeWork and freight
forwarding startup Flexport.

60.0

50.0

40.0

30.0

20.0

10.0

34 32 35 33 48 56 51 46
0.0

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Mega-rounds Into US VC-Backed Companies
PwC | CB Insights MoneyTree™ Report Q1 2019 45
8-quarter US mega-round trend
Mega-rounds fell from record percentage of total US funding
• Mega-rounds accounted for 45% of all US VC funding, down from a record 64% in Q4’18.
• Mega-rounds were largely raised by late-stage companies, though there were three early stage $100M+ rounds in Q1’19.

64%

51%
45%
41% $13.9
36% 38% 34%
35%

$14.2
$13.5
$12.3 $12.4 $14.9 $16.3
$12.6

$7.0 $8.5 $7.6 $7.9 $8.2 $14.8 $24.7 $11.1

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Mega-round funding ($B) Non Mega-round funding ($B) % Mega-rounds funding
PwC | CB Insights MoneyTree™ Report Q1 2019 46
US new unicorn births
10 new unicorns were created in Q1’19
• 10 US companies saw their valuations rise to $1B+ in Q1’19.
• New $1B+ valuations included mattress startup Casper and direct-to-consumer beauty company Glossier.

21

17

10 10
8 8
7 7

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

US New VC-backed Unicorns
PwC | CB Insights MoneyTree™ Report Q1 2019 47
Unicorn population counts
A record number of US companies were valued at $1B+ in Q1'19
• At 147, the number of US private companies with $1B+ valuations has never been higher.

147
139
123
109 112 112
102 106

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

US VC backed unicorn population

PwC | CB Insights MoneyTree™ Report Q1 2019 48
Aggregate unicorn valuation by period
Q1’19 set a new record for aggregate unicorn valuation
• Private companies worth $1B+ reached a combined value of $582B in Q1’19, the highest aggregate valuation on record.

$353.6 $374.7 $376.6 $400.6 $410.0 $469.0 $566.4 $582.4

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Unicorn Valuation ($B)

PwC | CB Insights MoneyTree™ Report Q1 2019 49

M&A and median years to exit
M&A activity declined in Q1’19 but stayed within the historical range
• M&A activity declined to 154 deals in Q1’19, compared to 183 in Q4’18.
• Median years to exit from first financing declined to 5 years, from 6.5 in Q4’18.

6.5 7
6.1 5.1
5.8 5.6 5.6 6
5.1
4.9
5

Title
3

1
135 148 156 165 175 159 183 154
0
Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

M&A Median Years

PwC | CB Insights MoneyTree™ Report Q1 2019 50
Top 5 valued US unicorn companies as of Q1’19
Valuation
Company Location Industry Select Investors
(as of 3/31/2019)

Lowercase Capital,
1. Uber San Francisco, CA On-Demand $72B Benchmark Capital, Google
Ventures

SoftBank Group, Benchmark

2. WeWork New York, NY Facilities $47B
Capital, T. Rowe Price

Altria Group, M13, Tiger

3. JUUL Labs San Francisco, CA Consumer Electronics $38B
Global Management

General Catalyst Partners,

4. Airbnb San Francisco, CA eCommerce/Marketplace $29B Andreessen Horowitz, ENIAC
Ventures

Khosla Ventures, Lowercase

5. Stripe San Francisco, CA Fintech $23B
Capital, capitalG

PwC | CB Insights MoneyTree™ Report Q1 2019 51

IPO and median years to exit
IPO activity declined slightly in Q1’19
• 15 companies had IPOs in Q1'19, down from 16 in Q4’18.
• Median years to IPO from first financing, among newly public companies fell to 5 years in Q1’19.

9
8.1 5.0 7.9
7.7 8
7.1
7

6
5.1
3.9 4.4 5

Title
4

1
18 11 23 13 31 25 16 15
0
Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

IPO Median Years

PwC | CB Insights MoneyTree™ Report Q1 2019 52
Largest US IPOs of Q1’19
Company Location Sector Industry $ Valuation at IPO

Mobile &
Lyft San Francisco, CA Mobile Commerce $24.3B
Telecommunications

Alector South San Francisco, CA Healthcare Biotechnology $1.2B

Gossamer Bio San Diego, CA Healthcare Drug Discovery $966M

Precision BioSciences Durham, NC Healthcare Biotechnology $784M

Kaleido Biosciences Bedford, MA Healthcare Biotechnology $441M

PwC | CB Insights MoneyTree™ Report Q1 2019 53

Most active VC firms of Q1’19 in the US
No. of US
Investor Location Select Q1’19 Investments
Companies

1. New Enterprise Associates Chevy Chase, MD 27 OpenDoor Labs, Databricks, Desktop Metal

2. Google Ventures Mountain View, CA 24 Lime, OpenDoor Labs, Clutter

2. Norwest Venture Partners Palo Alto, CA 24 OpenDoor Labs, Casper, Influx Data

3. Sequoia Capital Menlo Park, CA 20 Aurora, DoorDash, reddit

4. Bessemer Venture Partners Menlo Park, CA 18 Toast, Vlocity, CS Disco

PwC | CB Insights MoneyTree™ Report Q1 2019 54

Q1’19 investor locations
California investor presence most prominent across all stages
• California and New York investors dominated the later-stage deals that have driven US funding to record levels.
• Funding was more geographically diverse at earlier stages, with other US states and international investors accounting for more deals.

Stage of Location of investors

funding California New York Illinois Other US International
Seed Total number of seed stage deals: 221
26% 13% 3% 26% 33%

Early Total number of early stage deals: 324

32% 11% 3% 28% 25%

Expansion Total number of expansion stage deals: 385

36% 12% 3% 25% 25%

Later Total number of later stage deals: 177

38% 13% 1% 27% 22%

PwC | CB Insights MoneyTree™ Report Q1 2019 55

Top VC firms in the US by funds raised
Year $ Value of Funds Raised
Investor Location Select Recent Investments
Founded (2015 – Q1’19)

Glossier, Percolate Industries,

1. Sequoia Capital Menlo Park, CA 1972 $17.6B
Comprehend Systems

2. Insight Venture Partners New York, NY 1995 $11.1B Aqua Security, ezCater, Augury

3. Summit Partners Boston, MA 1984 $9.1B Red Points, Markforged, OnRobot

4. New Enterprise Associates Menlo Park, CA 2000 $6.5B Casper, Cleo, Movius, OpenDoor Labs

5. Technology Crossover Ventures Palo Alto, CA 1995 $5.6B Toast, Newsela, RELEX Solutions

PwC | CB Insights MoneyTree™ Report Q1 2019 56

05
Global Trends
Q1’19 Global regional comparison

Deals

Deals 1,128
$18.4B
724
1,375 $7.7B
$25.6B

3,327 Deals
$52.2B Invested
Globally
PwC | CB Insights MoneyTree™ Report Q1 2019 58
8-quarter global financing trend
Global funding and deal activity fell in Q1’19
• Global funding fell 22% in Q1’19 to $52B.
• Deals declined compared to Q4, falling to 3,327 from 3,508.

4,168
3,873
3,601 3,508
3,483 3,475
3,278 3,327

$45.2 $48.0 $48.7 $49.4 $54.1 $55.3 $67.0 $52.2

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Investments ($B) Deals
PwC | CB Insights MoneyTree™ Report Q1 2019 59
Global corporate deal participation
Corporate participation increased slightly
• Corporations (and/or their venture arms) participated in 32% of all deals to VC-backed companies in Q1’19, up from 30% in Q4.

26% 25% 27% 26% 29% 30% 30% 32%

74% 75% 73% 74% 71% 70% 70% 68%

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Other Investors Corp / CVC Deal Participation
PwC | CB Insights MoneyTree™ Report Q1 2019 60
8-quarter financing trend: North America
North American funding and deal activity fell in Q1’19
• VC-backed companies in North America raised $26B in Q1’19, down 36% compared to Q4’18.
• Deal activity declined slightly compared to Q4’18, falling to 1,375.

1,760
1,663 1,646
1,561 1,517 1,536
1,424 1,375

$20.1 $21.7 $20.6 $23.6 $25.5 $29.4 $39.7 $25.6

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Investments ($B) Deals
PwC | CB Insights MoneyTree™ Report Q1 2019 61
North American corporate deal participation
Corporate participation increases in North America
• Corporations (and/or their venture arms) participated in 30% of Q1’19 deals in North America.

24% 23% 23% 24% 24% 27% 27% 30%

76% 77% 77% 76% 76% 73% 73% 70%

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Other Investors Corp / CVC Deal Participation
PwC | CB Insights MoneyTree™ Report Q1 2019 62
8-quarter financing trend: Europe
European funding jumped amid a drop in deal activity
• Europe-based startups raised $8B in Q1’19, a 48% jump compared to Q4’18.
• Deal activity fell 4% to 724 transactions.

766

751

728
729 725
724

704 699

$4.8 $5.6 $5.1 $5.2 $5.9 $5.1 $5.2 $7.7

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Investments ($B) Deals
PwC | CB Insights MoneyTree™ Report Q1 2019 63
European corporate deal participation
Corporate participation increased slightly
• Corporations (and/or their venture arms) participated in 27% of Q1’19 deals in Europe, up slightly compared to Q4’18.

24% 21% 22% 23% 25% 28% 26% 27%

76% 79% 78% 77% 75% 72% 74% 73%

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Other Investors Corp / CVC Deal Participation
PwC | CB Insights MoneyTree™ Report Q1 2019 64
8-quarter financing trend: Asia
Funding and deal activity fell in Asia
• Asia funding dropped 13% in Q1’19, falling to $18B.
• Deal activity fell to 1,128, down from 1,212 in Q4’18.

1,495 1,497

1,212
1,110 1,124 1,128
1,002
884

$19.8 $20.4 $22.5 $19.8 $22.4 $20.1 $21.1 $18.4

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Investments ($B) Deals
PwC | CB Insights MoneyTree™ Report Q1 2019 65
Asia corporate deal participation
Corporate participation increased slightly
• Corporations (and/or their venture arms) participated in 40% of Asia VC deals, up from 38% in Q4’18.

32% 31% 33%

35% 35% 34%
38% 40%

68% 69% 65% 67% 65% 66% 62% 60%

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Other Investors Corp / CVC Deal Participation
PwC | CB Insights MoneyTree™ Report Q1 2019 66
Largest global deals of Q1’19
Stage of $ Value
Company Location Sector Industry Select Investors
Funding of Deal

Chehaoduo Beijing, China Internet eCommerce $1,500M SoftBank Group

Mobile &
Grab Singapore Mobile Commerce $1,460M SoftBank Group
Telecommunications

Mobile & Airbus Ventures, Qualcomm Ventures,

OneWeb London, UK Telecom Services $1,250M
Telecommunications SoftBank Group, Virgin Group

Internet Software & Supply Chain & SoftBank Group, Founders Fund, Cherubic
Flexport San Francisco, US $1000M
Services Logistics Ventures

Business Products &

WeWork New York, US Facilities $1000M SoftBank Group
Services

Seed Early Expansion Later

Stage Stage Stage Stage

PwC | CB Insights MoneyTree™ Report Q1 2019 67

Most active VC firms of Q1’19 globally
No. of US
Investor Location Select Q1’19 Investments
Companies

1. New Enterprise Associates Chevy Chase, MD 29 OpenDoor Labs, Databricks, Desktop Metal

2. Google Ventures Mountain View, CA 26 Lime, OpenDoor Labs, Clutter

3. Norwest Venture Partners Palo Alto, CA 24 OpenDoor Labs, Casper, Influx Data

Doctolib, GoCardless, Acko General

3. Accel Palo Alto, CA 24
Insurance

JUSDA, Shuidihuzhu, Medbanks Network

5. IDG Capital New York, NY 23
Technology

PwC | CB Insights MoneyTree™ Report Q1 2019 68

Global mega-round activity
Mega-rounds fell in North America and Asia
• North America and Asia saw $100M+ deals fall in Q1’19 from record levels in Q3’18 and near-record levels in Q4’18.
• Mega-rounds increased to 10 $100M+ rounds in Europe, up from 6 in Q4’18.

60.0

56 54
49 49 48
50.0
47
41
38 38
36
40.0

35 34 34
31 31 32
30.0

20.0

10
10.0
7 7 7 7 6
5 4
0.0

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

North America Asia Europe
PwC | CB Insights MoneyTree™ Report Q1 2019 69
Global new unicorn births
North America minted more unicorns than Asia for the third-straight quarter
• North America saw 10 private companies hit $1B+ valuations in Q1’19, compared to 5 in Asia
• New unicorns in Q1’19 were down compared to Q4’18 in North America, Europe, and Asia.

21

17

16
11
10 10
8 8 8 8
7 7
6
5 5
7 7 4
3 3
2 2
1
0

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Asia North America Europe

PwC | CB Insights MoneyTree™ Report Q1 2019 70

Global seed-stage median deal size
Median seed-stage deal sizes were flat in North America, Europe, and Asia
• Median seed-stage deal size was flat across regions in Q1’19.

$2.0 $2.0 $2.0 $2.0

$1.6 $1.5 $1.5

$1.4 $1.3
$1.1 $1.1 $1.1 $1.2
$1.0 $1.1
$1.0
$1.1 $1.2 $1.2 $1.1
$1.0 $1.0 $1.0
$0.9

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

North America ($M) Asia ($M) Europe ($M)
PwC | CB Insights MoneyTree™ Report Q1 2019 71
Global early-stage median deal size
Median early-stage deal size jumped in Europe
• Early-stage median deal size increased to $5.2M in Europe, up from $4.6M in Q4’18.

$7.3 $7.2
$7.0 $7.2
$6.8
$6.3 $6.5
$6.0 $6.0
$5.8 $5.7 $6.4
$6.0 $5.0 $5.2
$5.9
$5.0 $5.2 $5.3
$4.7 $4.6 $4.6 $4.4
$4.2

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

North America ($M) Asia ($M) Europe ($M)
PwC | CB Insights MoneyTree™ Report Q1 2019 72
Global expansion-stage median deal size
Expansion-stage median deal size increased in Asia
• Median expansion-stage deal size in Asia increased to $15.6M in Q1’19, up from $14.5M in Q4’18.

$17.3 $20.0
$18.7
$17.8 $18.1 $17.4 $20.0 $19.6
$16.0 $16.0
$15.0 $14.5 $15.6
$14.7 $15.0 $15.1 $15.0 $15.5 $13.6
$14.0
$10.9 $11.9 $12.3
$11.0

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

North America ($M) Asia ($M) Europe ($M)
PwC | CB Insights MoneyTree™ Report Q1 2019 73
Global later-stage median deal size
Median later-stage deal size rose across the board
• Median later-stage deal size increased in North America, Europe, and Asia.
• Asia saw median later-stage deal size increase to $56M, up from $50M in Q4’18.

$100.0
$90.0 $88.0
$73.1
$70.0 $68.0
$56.1
$50.0
$44.5
$40.0
$32.0 $35.0
$34.2 $30.9 $30.0
$26.6

$24.9 $27.9
$18.5
$13.8 $12.0 $13.9 $11.2 $13.0
Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19
North America ($M) Asia ($M) Europe ($M)
PwC | CB Insights MoneyTree™ Report Q1 2019 74
Appendix
US States: Full listing
No. of No. of No. of No. of
State $M State $M State $M State $M
Deals Deals Deals Deals

Alabama - 1 Idaho $26.2 3 Minnesota $41.1 10 Pennsylvania $344.8 34

Arizona $55.5 4 Illinois $283.0 43 Missouri $109.6 9 Rhode Island $7.2 1

Arkansas $13.2 1 Indiana $35.0 7 Montana $13.2 4 South Carolina $8.9 2

California $13,175.3 461 Iowa $3.7 5 Nebraska $4.5 3 South Dakota $3.0 1

Colorado $313.2 40 Kansas $8.5 3 Nevada $26.0 2 Tennessee $54.9 8

Connecticut $87.2 14 Kentucky $1.8 1 New Hampshire $4.1 2 Texas $1,163.9 66

DC $46.1 3 Louisiana $1.1 1 New Jersey $623.5 14 Utah $128.1 12

Delaware $14.7 5 Maine $3.1 3 New York $3,881.7 201 Virginia $197.1 27

Florida $107.1 20 Maryland $77.0 18 North Carolina $73.9 12 Washington $472.0 45

Georgia $167.0 22 Massachusetts $2,716.4 117 Ohio $141.2 16 Wisconsin $22.6 5

Hawaii $0.7 2 Michigan $55.4 14 Oregon $96.3 11

No disclosed quarterly activity: AK, MS, NM, ND, OK, VT, WV, WY
PwC | CB Insights MoneyTree™ Report Q1 2019 76
Notes on methodology
PwC (pwcmoneytree.com) and CB Insights (cbinsights.com) encourage you to review the methodology and definitions employed to better understand the
numbers presented in this report. If you have any questions about the definitions or methodological principles used, we encourage you to reach out to CB
Insights directly. Additionally, if you feel your firm has been underrepresented, please send an email to info@cbinsights.com and we can work together to ensure
your firm’s investment data is up-to-date.
Rankings, e.g., top states and top sectors, are done by quarterly deal activity (that is, deal count for the given quarter).

What is included: What is excluded:

- Equity financings into emerging companies. Fundings must be to VC-backed - No contingent funding. If a company receives a commitment for $20M subject to
companies, which are defined as companies that have received funding at any hitting certain milestones but first gets $8M, only the $8M is included in our data.
point from either: venture capital firms, corporate venture arms, or super
- No business development / R&D arrangements whether transferable into equity now,
angel investors.
later or never. If a company signs a $300M R&D partnership with a larger
- Fundings of private companies only. Funding rounds raised by public companies corporation, this is not equity financing nor is it from venture capital firms.
of any kind on any exchange (including Pink Sheets) are excluded from our As a result, it is not included.
numbers, even if they received investment by a venture firm(s).
- No buyouts, consolidations or recapitalizations. All three of these transaction types are
- Only includes the investment made in the quarter for tranched investments. If a commonly employed by private equity firms and are tracked by CB Insights. However,
company does a second closing of its Series B round for $5M and previously had they are excluded for the purposes of this report.
closed $2M in a prior quarter, only the $5M is reflected in our results.
- No private placements. These investments, also known as PIPEs (Private Investment
- Round numbers reflect what has closed – not what is intended. If a company in Public Equities), are not included even if made by a venture capital firm(s).
indicates the closing of $5M out of a desired raise of $15M, our numbers reflect
- No debt/loans of any kind (except convertible notes). Venture debt or any kind of
only the amount which has closed.
debt/loan issued to emerging, startup companies, even if included as an additional
- Only verifiable fundings are included. Fundings are verified via (1) various federal part of an equity financing, is not included. If a company receives $3M with $2M from
and state regulatory filings; (2) direct confirmation with firm or investor; (3) venture investors and $1M in debt, only the $2M is included in these statistics.
press release; or (4) credible media sources.
- No non-equity government funding. Grants or loans by the federal government,
- Equity fundings to joint ventures and spinoffs/spinouts are included, given that state agencies, or public-private partnerships to emerging, startup companies are
they meet the VC-backed criteria. not included.
- Geography note: Israel funding figures are classified in Asia. - No fundings to subsidiaries of a larger parent corporation.

PwC | CB Insights MoneyTree™ Report Q1 2019 77

This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. Data is current as of April 1, 2019. PricewaterhouseCoopers and CB Insights have taken
responsible steps to ensure that the information contained in the MoneyTree™ Report has been obtained from reliable sources. However, neither PwC nor CB Insights can warrant the ultimate validity of the data obtained in
this manner. Results are updated periodically. Therefore, all data is subject to change at any time.

© 2019 PwC. All rights reserved. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see
www.pwc.com/structure for further details.