- Venture capital fundraising and investments reached record levels in 2015, with more money coming from non-traditional investors. However, public tech valuations have dropped and private valuations are correcting from unsustainable highs.
- Most venture capitalists expect valuations to decline further in 2016 and are advising portfolio companies to cut costs. Fewer IPO and acquisition exits also have VCs taking a more cautious approach to new investments.
- Limited partner investors in venture funds remain concerned about high investment pacing, valuations, and company burn rates. However, most will maintain rather than decrease their commitments to venture capital over the next three years.
Mapme Investor Deck.
The deck we originally used to raise our seed round of $1M. See the progress we've made at www.mapme.com. Welcome to try it out and create a map.
Any questions? I'm at ben@mapme.com
This impressive pitch deck helped Rewind AI founder Dan Siroker close a $350M Series A with top-tier VC investors in 2023. The deck provides a textbook example of a clear, concise, and compelling pitch deck. Every startup founder working on their pitch deck will learn something from this deck. Kudos to Rewind founder, Dan Siroker. Includes Dan's presentation transcript plus what's to love (and copy) for each slide.
REWIND PITCH DECK HIGHLIGHTS:
> 29 slides
> 7 mins 48s duration
> 443 words (transcript)
> 2nd Grade reading level
REWIND PITCH DECK SLIDES:
> Intro
> Founder Origin Story
> Problem (3 slides)
> Vision
> Team
> Solution (What it is)
> Solution (How it works)
> Demo
> What makes Rewind unique?
> Why now?
> Ideal Customer Profile
> Who uses Rewind?
> How do they use Rewind?
> Go To Market Strategy
> Product-Led Growth
> Pricing
> Metrics: Conversion & Retention
> Huge Market
> Traction
> Unit Economics
> Capital Efficiency
> Roadmap
> Problem Recap
> How to Invest
YOU MIGHT ALSO LIKE THESE PITCH DECK EXAMPLES & TEMPLATES:
> Airbnb pitch deck @ https://pitchdeckcoach.com/airbnb-pitch-deck
> Sequoia Capital pitch deck template @ https://pitchdeckcoach.com/sequoia-capital-pitch-deck
> FREE pitch deck template download @ https://pitchdeckcoach.com/free-pitch-deck-template
> Pitch deck guide with hints, tips, and a worked example @ https://pitchdeckcoach.com/pitch-deck-template
NEED HELP WITH YOUR PITCH DECK?
See how I can help then book a free call @ https://pitchdeckcoach.com/
MORE PITCH DECK RESOURCES @ https://pitchdeckcoach.com/pitch-deck-template#resources
The slide deck we used to raise half a million dollarsBuffer
This is the pitchdeck we used to raise half a million dollars from Angel investors. More here:
http://onstartups.com/tabid/3339/bid/98034/The-Pitch-Deck-We-Used-To-Raise-500-000-For-Our-Startup.aspx
Y Combinator Pitch Deck Template For Startup FoundersAA BB
🔮 Want more VC/investment startup pitch decks? We’ve centralised ALL succesful investor pitch decks at: https://chagency.co.uk/getstartupfunding — check all of them out
🔮 The effort is adhering to the ideology of “The Future Of Freemium” — read more here: https://chagency.co.uk/blog/ceo/the-future-of-freemium-how-to-get-peoples-attention/
🔮 Our library of pitch decks will not have any advertisement, only a signature. We are a design agency that helps SaaS CEOs reduce user churn.
Inilah pitch deck dari raksasa media digital, Buzzfeed. Bagi kamu yang memiliki model bisnis yang serupa dengan BuzzFeed, mungkin kamu dapat terinspirasi dari pitch deck ini.
Mapme Investor Deck.
The deck we originally used to raise our seed round of $1M. See the progress we've made at www.mapme.com. Welcome to try it out and create a map.
Any questions? I'm at ben@mapme.com
This impressive pitch deck helped Rewind AI founder Dan Siroker close a $350M Series A with top-tier VC investors in 2023. The deck provides a textbook example of a clear, concise, and compelling pitch deck. Every startup founder working on their pitch deck will learn something from this deck. Kudos to Rewind founder, Dan Siroker. Includes Dan's presentation transcript plus what's to love (and copy) for each slide.
REWIND PITCH DECK HIGHLIGHTS:
> 29 slides
> 7 mins 48s duration
> 443 words (transcript)
> 2nd Grade reading level
REWIND PITCH DECK SLIDES:
> Intro
> Founder Origin Story
> Problem (3 slides)
> Vision
> Team
> Solution (What it is)
> Solution (How it works)
> Demo
> What makes Rewind unique?
> Why now?
> Ideal Customer Profile
> Who uses Rewind?
> How do they use Rewind?
> Go To Market Strategy
> Product-Led Growth
> Pricing
> Metrics: Conversion & Retention
> Huge Market
> Traction
> Unit Economics
> Capital Efficiency
> Roadmap
> Problem Recap
> How to Invest
YOU MIGHT ALSO LIKE THESE PITCH DECK EXAMPLES & TEMPLATES:
> Airbnb pitch deck @ https://pitchdeckcoach.com/airbnb-pitch-deck
> Sequoia Capital pitch deck template @ https://pitchdeckcoach.com/sequoia-capital-pitch-deck
> FREE pitch deck template download @ https://pitchdeckcoach.com/free-pitch-deck-template
> Pitch deck guide with hints, tips, and a worked example @ https://pitchdeckcoach.com/pitch-deck-template
NEED HELP WITH YOUR PITCH DECK?
See how I can help then book a free call @ https://pitchdeckcoach.com/
MORE PITCH DECK RESOURCES @ https://pitchdeckcoach.com/pitch-deck-template#resources
The slide deck we used to raise half a million dollarsBuffer
This is the pitchdeck we used to raise half a million dollars from Angel investors. More here:
http://onstartups.com/tabid/3339/bid/98034/The-Pitch-Deck-We-Used-To-Raise-500-000-For-Our-Startup.aspx
Y Combinator Pitch Deck Template For Startup FoundersAA BB
🔮 Want more VC/investment startup pitch decks? We’ve centralised ALL succesful investor pitch decks at: https://chagency.co.uk/getstartupfunding — check all of them out
🔮 The effort is adhering to the ideology of “The Future Of Freemium” — read more here: https://chagency.co.uk/blog/ceo/the-future-of-freemium-how-to-get-peoples-attention/
🔮 Our library of pitch decks will not have any advertisement, only a signature. We are a design agency that helps SaaS CEOs reduce user churn.
Inilah pitch deck dari raksasa media digital, Buzzfeed. Bagi kamu yang memiliki model bisnis yang serupa dengan BuzzFeed, mungkin kamu dapat terinspirasi dari pitch deck ini.
Coinbase pitch deck designed by Zlides
Want to create a pitch deck that inspires your audience? Get your FREE presentation kit designed by Zlides: http://bit.ly/slideshare_zlides
Primer on raising seed capital for first time and experienced startup founders and employees. In this slideshare, I provide insight into the following questions:
-What is seed capital?
-Why should I raise?
-What is the current state of the seed market.
-Who invets in startups?
-How do I prepare?
-What is the close process?
-What are some useful resources?
This is a rough draft of our pre-seed pitch deck. We received a lot of great feedback on it, and in hindsight, would have included many more screens of our early product in the deck. Regardless, we were successful in raising $1M in Seed funding and hopefully it's useful to other entrepreneurs as a reference point!
Pitching Ideas: How to sell your ideas to othersJeroen van Geel
Learn how to convince others of your UX ideas by understanding them.
We are good in designing usable and engaging products and services. We understand the user's needs and have a toolkit with dozens of deliverables. But for some reason it remains difficult to sell an idea or concept to team members, managers or clients. After this session that problem will be solved!
Selling your ideas and convincing others is one of the most undervalued assets in our field. This ranges from convincing a colleague to use a certain design pattern to selling research to your boss and convincing a client to go for your concept. You can come up with the best ideas in the world, but if it is presented in the wrong way these ideas will die a lonely dead. This is sad, because everybody can learn how to bring a message across. The main thing is that you know what to pay attention to.
In this session I will take you on a journey through the world of presenting ideas. We will move through the heads of clients and your colleagues, learn what their thoughts and needs are. We will move to the core of your idea and into the world of psychology.
This was our final Series A deck. Read more about raising the round in this blog post:
https://medium.com/@DanielleMorrill/welcome-brad-feld-to-the-mattermark-team-announcing-our-6-5m-series-a-dd9532fc1b39
Here's the deck we used for our Seed round. We raised $5M led by Accel.
Even though we didn't necessarily show the appendix slides, we sent them along with the rest of the deck.
See https://airbyte.io
Winners Circle Real Estate Marketing Real Estate Lead GenRoland Frasier
Big Block Realty Winner's Circle presentation on growth mindset for growing my real estate business, how to scale my real estate business, get real estate listings, facebook for real estate, messenger for real estate and more.
🔮 Want more VC/investment startup pitch decks? We’ve centralised ALL succesful investor pitch decks at: https://chagency.co.uk/getstartupfunding — check all of them out
🔮 The effort is adhering to the ideology of “The Future Of Freemium” — read more here: https://chagency.co.uk/blog/ceo/the-future-of-freemium-how-to-get-peoples-attention/
🔮 Our library of pitch decks will not have any advertisement, only a signature. We are a design agency that helps SaaS CEOs reduce user churn.
"What is Different This Time Around" at SaaStr Annual 2016saastr
Mark Suster shares his thoughts on the change in funding climate in 2016, what is the same this time around, and what most certainly isn't at SaaStr Annual 2016 held in San Francisco Feb 9-11th. www.saastrannual.com
Coinbase pitch deck designed by Zlides
Want to create a pitch deck that inspires your audience? Get your FREE presentation kit designed by Zlides: http://bit.ly/slideshare_zlides
Primer on raising seed capital for first time and experienced startup founders and employees. In this slideshare, I provide insight into the following questions:
-What is seed capital?
-Why should I raise?
-What is the current state of the seed market.
-Who invets in startups?
-How do I prepare?
-What is the close process?
-What are some useful resources?
This is a rough draft of our pre-seed pitch deck. We received a lot of great feedback on it, and in hindsight, would have included many more screens of our early product in the deck. Regardless, we were successful in raising $1M in Seed funding and hopefully it's useful to other entrepreneurs as a reference point!
Pitching Ideas: How to sell your ideas to othersJeroen van Geel
Learn how to convince others of your UX ideas by understanding them.
We are good in designing usable and engaging products and services. We understand the user's needs and have a toolkit with dozens of deliverables. But for some reason it remains difficult to sell an idea or concept to team members, managers or clients. After this session that problem will be solved!
Selling your ideas and convincing others is one of the most undervalued assets in our field. This ranges from convincing a colleague to use a certain design pattern to selling research to your boss and convincing a client to go for your concept. You can come up with the best ideas in the world, but if it is presented in the wrong way these ideas will die a lonely dead. This is sad, because everybody can learn how to bring a message across. The main thing is that you know what to pay attention to.
In this session I will take you on a journey through the world of presenting ideas. We will move through the heads of clients and your colleagues, learn what their thoughts and needs are. We will move to the core of your idea and into the world of psychology.
This was our final Series A deck. Read more about raising the round in this blog post:
https://medium.com/@DanielleMorrill/welcome-brad-feld-to-the-mattermark-team-announcing-our-6-5m-series-a-dd9532fc1b39
Here's the deck we used for our Seed round. We raised $5M led by Accel.
Even though we didn't necessarily show the appendix slides, we sent them along with the rest of the deck.
See https://airbyte.io
Winners Circle Real Estate Marketing Real Estate Lead GenRoland Frasier
Big Block Realty Winner's Circle presentation on growth mindset for growing my real estate business, how to scale my real estate business, get real estate listings, facebook for real estate, messenger for real estate and more.
🔮 Want more VC/investment startup pitch decks? We’ve centralised ALL succesful investor pitch decks at: https://chagency.co.uk/getstartupfunding — check all of them out
🔮 The effort is adhering to the ideology of “The Future Of Freemium” — read more here: https://chagency.co.uk/blog/ceo/the-future-of-freemium-how-to-get-peoples-attention/
🔮 Our library of pitch decks will not have any advertisement, only a signature. We are a design agency that helps SaaS CEOs reduce user churn.
"What is Different This Time Around" at SaaStr Annual 2016saastr
Mark Suster shares his thoughts on the change in funding climate in 2016, what is the same this time around, and what most certainly isn't at SaaStr Annual 2016 held in San Francisco Feb 9-11th. www.saastrannual.com
What does the rest of 2016 hold for the innovation economy? SVB Analytics' State of the Markets Report provides a summary of key market indicators impacting the innovation economy, including venture capital funding and valuation trends, crossover investor activity, and what’s ahead for the second half of 2016.
In its mid-year report on the healthcare industry, Silicon Valley Bank analyzes the fundraising, investment, M&A and IPO activity of private, venture-backed biopharma, medical device and diagnostic/tools companies. Report author Jonathan Norris also provides his view of what's on the horizon for the second half of 2016.
Silicon Valley Bank’s annual Startup Outlook survey provides insight into how startups in China, the US and UK are feeling about the year ahead. The 2016 report finds that while startups across the globe are eternally optimistic, they are preparing for a new reality.
Learn more about the Startup Outlook Report and view the US and UK reports at www.svb.com/IEO.
Every year Upfront Ventures surveys our peer group for their sentiment on the fund raising environment, burn rates, areas of technology interest and the year ahead. This report summarizes the views as of January 2017.
Silicon Valley Bank’s Trends in Healthcare Investments and Exits report analyzes the fundraising, investment, M&A and IPO activity of private, venture-backed biopharma, medical device and diagnostic/tools companies. Report author Jon Norris also gives his annual forecast of what’s likely to happen in 2016.
TRENDS IN PRIVATE COMPANY FINANCING & EXITS IN OPHTHALMOLOGYHealthegy
Presentation by Silicon Valley Bank at OIS@ASRS 2016.
Participant:
Jonathan Norris, Managing Director - Silicon Valley Bank
Powered by:
Healthegy
For more ophthalmology innovation
Visit us at www.ois.net
The State of the Venture Capital Industry is an annual report produced by TrueBridge Capital Partners highlighting the trends in venture fundraising, investing, valuations, exits, and performance.
All data sourced from Thomson Reuters, VentureSource, CB Insights, PitchBook, and Cambridge Associates.
Silicon Valley Bank’s annual Startup Outlook survey provides insight into how startups in the US, UK and China are feeling about the year ahead. The 2016 report finds that while startups across the globe are eternally optimistic, they are preparing for a new reality.
Learn more about the Startup Outlook Report and view the UK and China reports at www.svb.com/IEO.
Stocks from the Gurus, Goldman Sachs and Hedge Funds NowAlpesh Patel
We look at the picks which hedge funds and big banks have in common and our own stringent criteria which narrows down 10k to the top 1%. Part of our www.campaignforamillion.com
Dr. Don Levy of the Siena College Research institute analyzed the results of the Annual Survey of Upstate NY business leaders and what they mean for the Buffalo region.
The seed stage of the venture capital industry went through a boom cycle from 2006-2014 but has lately seen a sharp decline. What's happening? Is it temporary or are their structural problems? This deck answers that question.
A look at the Venture Capital industry heading into 2020. Some have questioned whether the industry has a future. This deck does a detailed look at where the industry is and why the future of VC still looks bright.
If you want to understand how decisions are made at a VC firm it is important to understand the staff who work there. Here is a guide but you can also read more at this blog post: https://bothsidesofthetable.com/how-to-improve-your-odds-of-getting-to-yes-with-a-vc-land-and-expand-b46a0a102a07
Upfront Ventures surveys VC firms every year to gauge their views on technology markets. This year we asked people their views about cryptocurrencies & blockchain.
Upfront Ventures blockchain and crypto deckMark Suster
Mark Suster of Upfront Ventures gives a presentation primer on Cryptocurrencies & Blockchain. This is best consumed with a video that will be released and available on Upfront's YouTube page: https://www.youtube.com/user/upfrontventures/videos
Fundstrat Bitcoin & Blockchain presentation for Upfront SummitMark Suster
An equity analyst case for the value in cryptocurrencies. Thomas Lee of Fundstrat was lead equity researcher for JP Morgan before founding Fundstrat. He takes a market approach to valuing Bitcoin and other cryptocurrencies. Here is his presentation for the #UpfrontSummit 2018.
Upfront LP Survey of the Venture Capital & Startup IndustryMark Suster
Upfront Ventures surveyed Limited Partners (LPs) on their outlook on the venture capital markets and the underlying technology startups we back. This presentation created in Q1 2017 shares this outlook.
A 2016 overview of the technology & venture capital industries in Los Angeles presented by Mark Suster, Managing Partner of Upfront Ventures for the Mayor's LP / VC Summit.
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I presented this deck at the 2014 PreMoney Conference. I wrote a blog post here that goes into more detail: http://bit.ly/ChangingVC
The video of the presentation I gave is here: http://youtu.be/5MClCBUjbbE
The VC industry is changing. The press has focused on the wrong story - crowd funding. The bigger story is the shift from public financing to private financing and the bifurcation of the venture industry. This presentation examines the case.
Want to build an online video company? Interested in the YouTube MCN space? Learn some lessons from one of the first and largest investors in this space- Mark Suster of Upfront Ventures. The doc will give you guidance on how to build more profitably.
2. There is Some Stuff We All Know
We all know the funding markets for venture-backed
startups have been strong for 7 straight years
2
3. LP contributions to the VC industry are back to pre-recession levels
and anecdotally 2016 seems likely to increase further
3
US VC fundraising activity
0
75
150
225
300
$0
$15
$30
$45
$60
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Capital raised ($B)
# of funds closed
235
271
209
218
192
176
162
214
235236233
$28
$31
$18
$20$19
$13
$16
$25
$30$31$30
233 236 235
214
162
176
192
218
209
271
235
Source: Dow Jones VentureSource; Upfront analysis.
4. With more money (and new non VC entrants) venture financings have
obviously increased. 2015 was an enormous year (2x pre recession)
4
US VC financing activity
0
2,500
5,000
7,500
10,000
$0
$25
$50
$75
$100
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Capital invested ($B)
# of rounds closed
8,097
9,381
8,563
7,572
6,428
5,193
4,3164,533
4,119
3,145
2,574
$77
$68
$44
$40$42
$30
$26
$36$35
$28
$23
2,574
3,145
4,119
4,533 4,316
5,193
6,428
7,572
8,563
9,381
8,097
Source: PitchBook 2015 Annual U.S. Venture Industry Report; Upfront analysis.
5. And what's interesting is that if you look at the spread between dollars raised by VCs
and dollars invested, you see the huge shift from a decade ago of non-VC capital
5 Source: Upfront analysis.
US VC fundraising vs financing (2006-07, $B)
0
35
70
105
140
175
Funds raised by VCs Funds invested by VCs
6361
1x
US VC fundraising vs financing (2014-15, $B)
0
35
70
105
140
175
Funds raised by VCs Funds invested by VCs
145
59
2.5x
6. Angel & Seed deals have grown fastest but dollars have scaled massively into
a smaller number of later-stage deals (doubling in just 2 years)
6 Source: PitchBook 2015 Annual U.S. Venture Industry Report; Upfront analysis.
US VC # of rounds closed by stage US VC capital invested ($B) by stage
0
10
20
30
40
50
2010 2011 2012 2013 2014 2015
0
1,000
2,000
3,000
4,000
5,000
2010 2011 2012 2013 2014 2015
Early
Stage
CAGR
21%
36%
16%
CAGR
1%
22%
3%
Angel/
Seed
Late
Stage
Early
Stage
Late
Stage
Angel/
Seed
7. And the dollars into late-stage deals has largely been driven by non-
traditional VCs entering the market (up 50% in the last 3 years)
7 Source: CBInsights, VC-backed $20M+ rounds; non-VC defined as Asset Mgmt, Corporate/Corporate VC, Family Office, Hedge & Mutual Funds; Upfront analysis.
Non-VC participation in US $20 million-plus rounds
0%
15%
30%
45%
60%
2012 2013 2014 2015
55%
47%47%
37%
CAGR
’12-’15
15%
8. M&A pace hasn’t matched the increases in funding pace so VC mark-ups
have been good but cash distributions less so
8
US VC-backed M&A activity
300
375
450
525
600
$0
$38
$75
$113
$150
2011 2012 2013 2014 2015
Amount Paid ($B)
Number of M&As
473
510
470
462
542
$54
$81
$42$43$47
542
462
470
510
473
Source: Dow Jones VentureSource Venture Capital Report 4Q’15; Upfront analysis.
9. IPO exits are down 32% in volume and 38% in value
9
US VC-backed IPO activity
0
30
60
90
120
$0
$4
$8
$11
$15
2011 2012 2013 2014 2015
Raised ($B) through IPO
Number of IPOs
66
107
73
50
46
$6
$9
$8
$11
$5
46
50
73
107
66
Source: Dow Jones VentureSource Venture Capital Report 4Q’15; Upfront analysis.
50
10. But there are other truths that people have only
recently begun to speak about
10
11. 11
Public Tech Markets are obviously off dramatically in the past three months
beginning the question of what this means for private valuations
NASDAQ
LinkedIn
Apple
Twitter
(9%)
(18%)
(19%)
(41%)
Source: 3-month valuations November 02, 2015 to January 29, 2016; Upfront analysis.
12. Private market valuations had risen beyond what some believe are sustainable (up 3x in 2 years).
Q4 saw massive correction (we asked VCs if they thought it was an anomaly or a trend).
12
US VC-backed financing median pre-money valuation ($M)
$0
$20
$40
$60
$80
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15
$28
$68
$53
$60
$58
$37
$51
$22$21
$19
$24
$17
Source: Dow Jones VentureSource Venture Capital Report 4Q’15; Upfront analysis.
13. More than 90% of respondents in the Upfront VC Survey expected valuations to go
down in 2016 with a full 1/3rd of investors expecting significant price corrections
13
Do you expect valuations to go up, down or remain about the same as
previous quarters?
0%
25%
50%
75%
100%
Q4'15 1H'16 Proj
30%
5%
61%
61%
8%
28%
6% Increase
About the same
Marginally down
Significantly down
Source: Upfront Survey Jan 2016, 156 VCs for Q4’15, 158 VCs for 1H’16; Upfront analysis.
14. This is coupled with a very visible recalibration of valuations of the pre-IPO
mutual fund cohort at places like Fidelity
14
Fidelity’s holdings: % valuation change since purchase
Blue Bottle
MongoDB Series F
Taboola.com Series E
Turn Inc.
Zenefits Series C
Dataminr Series D
Dropbox Series C
Snapchat Series F
0% 25% 50% 75% 100%
Source: Fortune; Blue Bottle, Dropbox, Snapchat and Benefits data as 11/30/2015, rest as of 9/30/2015; Upfront analysis.
0% -25% -50% -75% -100%
-61%
-54%
-45%
-44%
-35%
-29%
-15%
-47%
15. 15
This has swung sentiment for many experienced VC firms firmly toward
controlling burn over rapid growth
16. This was clearly borne out in the Upfront VC Survey where 62% of firms are
advising companies to cut costs / burn as markets tighten
16
4%
35%
62%
Source: Upfront Survey Jan 2016, 156 VCs.
Which statement best describes the spending behavior at most
of the companies in which you are on the board or observe?
Generally cutting costs expecting
markets to tighten
Don’t see much change from a year ago
Generally not too worried about burn rates
100%
19. And with fewer VC exits many partners are more overloaded with boards and
financings and feel less pressure to do new deals quickly. FOMO is on the decline.
19
Average number of board / observer seats
0
2
4
6
8
10
Years of investment experience
0-3 years 3-6 years 6-10 years 10-15 years 15+ years
8
7
5
4
3
Source: Upfront Investor Survey, sample size of 76 early to late stage VCs, excluding angel/seed and corporate VCs; Upfront analysis.
20. There is a clear feeling that fund raising cycles are taking longer and 77% felt
this pace is likely to slow down even further in 2016
20
Do you expect deals to take longer in the process than previous funding
quarters, the same or shorter?
0%
25%
50%
75%
100%
Q4'15 1H'16 Proj
77%45%
22%
51%
1%4% Shorter than normal
About the same as normal
Getting longer
Source: Upfront Survey Jan 2016, 159 VCs for Q4’15 and 158 VCs for 1H’16.
21. 50% of respondents indicate they may slow down their pace, 35% thought it
would be the same pace as 2015 and only 16% expect 2016 to be robust
21
1%4%
43%
35%
16%
Source: Upfront Survey Jan 2016, 158 VCs.
How would you generally describe your investment
mindset heading into 2016?
“Seeing tons of great deal flow and expect this to be
a solid year”
“Unless a deal is amazing I’m likely to slow my pace a bit”
“I don’t feel compelled to do deals”
“2016 about the same pace as my last
several years”
“I’d rather fund when the dust settles
22. With the sentiment of the markets it’s no surprise that a full 82% of VCs
expressed caution or concern going into 2016
22
2%
30%
50%
9%
9%
Source: Upfront Survey Jan 2016, 155 VCs.
Hugely bullish
I’m very concerned
Things are bad & getting worse
Generally cautious
Generally optimistic
Which of the following statements best describes
your mood heading into 2016
100%
23. And how does the growth in funding, valuations and
anxiety play in the minds of LPs who fund the VC
industry ultimately?
23
24. The good news is that only 7% of LPs believe they will cut back on venture
programs with 26% of funds looking to increase exposure
24
4%
22%
67%
7%
Source: Upfront Survey Jan 2016, 73 LPs.
How would you describe your fund’s current
allocation to VC?
About the right allocation
Aggressively growing venture Too much allocated to venture
Trying to grow our venture program
25. But LPs expressed caution, too. Nearly 75% of LPs have concerns about
investment pace, valuation levels and burn rates of underlying companies.
25
6%
68%
26%
Source: Upfront Survey Jan 2016, 72 LPs.
How would you describe your fund’s outlook on your
existing (VC) managers activities?
Very happy with investment activities of
our existing managers
Deeply concerned about the market behavior
A bit concerned by pace, valuation
creep and burn rates
100%
26. 61% of LPs believe that VCs are coming back to market to raise money at too
quick of a pace - a reflection of anxieties of the over-funding of portfolios
26
61% 15%
24%
Source: Upfront Survey Jan 2016, 72 LPs.
How would you describe your fund’s outlook in your
existing (VC) managers funding (and fund raising) pace?
Managers come back at a normal
cadence and it hasn’t changed much
Managers have been coming back more quickly
than in the past and we’re fine with this
Managers have been coming back more
quickly than in the past and it concerns us
100%
27. But a full 82% of LPs are likely to maintain their existing investment pace
27
10%
82%
8%
Source: Upfront Survey Jan 2016, 73 LPs.
How would you describe your likely investment pace
in venture over the next 3 years?
We’re likely to increase our investment pace
We’re likely to keep the same investment pace
We’re likely to slow down our investment pace
100%
28. While the market for Seed Funds grew enormously in the past 7 years, many
LPs still express some concerns about capacity and market crowding
28
23%
66%
11%
Source: Upfront Survey Jan 2016, 70 LPs.
What is your fund’s outlook on the seed market?
Seed delivers the highest potential returns and we’ll
continue to invest heavilyThere are too many seed funds and we’re worried they
won’t have enough capacity
We fund seed VCs but we’re very
discerning on which ones we’ll fund
29. Also it’s not too surprising that LPs are most cautious about growth stage
funds - in particular concerns about late-stage valuations
29
68%
32%
Source: Upfront Survey Jan 2016, 71 LPs.
What is your fund’s outlook on later stage venture
capital / growth equity?
We like growth stage but want a healthy balance of
seed, A/B and growth
We’re worried that the growth stage is
the most over-valued part of the market
100%
30. What to make of all of the uncertainty and potential
change in the VC markets?
30
31. 31
Expect loss ratios to go up. But ultimately the creative destruction
of these storms can be good. New startup cohorts will sprout where
others get cleared out.
32. 32
A slowing pace should be
healthy for startups and for
VC returns. We believe the
next 3 years will value
patience over speed at all
costs.
33. 33
And despite market concerns in the short-term, as an asset class we see so
many industries ripe for innovation and disruption
Aerial & Space-techVR & ARTransportation Computational Biology Food & Agriculture
35. 159 VCs surveyed
35
Fund type
0
20
40
60
Angel Seed VC (Early) VC (Mid) VC (Late) PE Corp (blank)
11
96
19
47
60
7
Source: Upfront Survey Jan 2016.
Fund size ($ million)
0
20
40
60
$1-20 $20-100 $300-999 $100-300 $1000+ Evergreen Personal
779
2833
47
19
Survey respondent geography
0
40
80
Norcal SoCal NE US Other US ROW (blank)
178
24
31
79
Position
0
47
93
140
Partner / MD Analyst to Principal Sole proprietor/personal investor
79
134
How long has your firm existed (years)
0
35
70
0-3 3-10 10-20 20+
22
36
61
31
Personal investment experience (years)
0
40
80
0-3 3-6 6-10 10-15 15+
41
23
43
30
13
36. 73 LPs surveyed, part 1
36
Fund type
0
10
20
30
9
445
23
28
Fund size
0
10
20
$0-250M $250-750M $750M-1.5B $1.5-5B $5-10B $10B+ Blank
4
16
7
18
3
11
14
Which of the following best describes your focus on VC?
0
25
50
Only VC Mostly VC Very diverse Not much VC
2
42
10
19
Foundation or
Endowment
Fund of
Funds
Family
Office
Discretionary
Advisor
Insurance
Company
Other
Survey respondent geography
0
15
30
NorCal SoCal NE US Other US ROW Blank
2
4
28
11
6
22
Source: Upfront Survey Jan 2016.
37. 73 LPs surveyed, part 2
37
Position
0
20
40
60
Partner / MD Analyst to Principal Blank
1
18
54
How long has your firm been investing in VC (years)
0
20
40
0-3 3-10 10-20 20+
1
23
30
16
3
How long has your firm existed (years)
0
20
40
0-3 3-10 10-20 20+
38
1614
5
Personal investment experience (years)
0
20
40
0-3 3-6 6-10 10-15 15+
27
23
15
44
Haven’t invested
much in VC
Source: Upfront Survey Jan 2016.