David Titus, President
SDVG
Venture Status Update
SDVG
Managing Director
Windward Ventures
250
300
25
30
35
$ Raised # of Funds
Venture Fundraising 2005-13
0
50
100
150
200
0
5
10
15
20
2005 2006 2007 2008 2009 2010 2011 2012 2013
# o
f F
un
ds
$ B
illio
ns
• Top 20 raise 55% of all Dollars– Average Fund Size of $400M
– Everyone else averages $41M
Consolidation of the VC Industry
– Everyone else averages $41M
• Active funds down 20% in 5 years– 1H 2013 data shows same trend
• Secondary Markets hardest hit
25
30
35
$B Raised $B Invested
Venture Investing 2005-13
0
5
10
15
20
25
2005 2006 2007 2008 2009 2010 2011 2012 2013
• Imprecise Data
• Non-traditional “funds”– Family Offices
VC Deficit Spending
– Family Offices
– Foreign Investors
– Hedge Funds
• Corporate Venture Capital– Leading growth segment – Up 50% in 3 years
– But leveling off
• Financings will be harder– Plan for that reality
– Practice Your Pitch (Repeat 3 times!)
Implications - Entrepreneurs
– Practice Your Pitch (Repeat 3 times!)
– Be ready to travel
• Go Big or Go Small
• You must be exceptional– Add management talent that has done it
• Exits are up!
– 21 venture IPOS in Q2 2013
– 11 Biotech IPOs
The Good News
– 11 Biotech IPOs
• M&A is the key to F500 growth
• Hard things are popular again
4.50%
5.00%
1100
1200
1300
$ Raised % of Total
San Diego Investing
2.50%
3.00%
3.50%
4.00%
500
600
700
800
900
1000
2008 2009 2010 2011 2012 2013
• Acutus $21M
• Colorscience $10M
• eFFECTOR $45M
• EcoATM $40M
• Tealium $15.6M
• Sotera Wireless $15M
Notable Deals 2013
• eFFECTOR $45M
• Lumena $23M
• Topera $25M
• Viacyte $10.6M
• Sotera Wireless $15M
• Takelessons.com $4M
• DB Networks $4.5
• One Roof Energy $30M
Exits & IPOs
www.sdvg.org
900 @SDVG
1,400SDVG
300
Predictions