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Q4 2019 MoneyTree™ Report 2 Executive summary Q4 2019 US VC funding falls in 2019 from near-record levels US VC funding fell in Q4’19 and YoY: US VC-backed companies raise $23B in Q4’19, down 16% compared to Q3. YoY funding falls 9% to $108B; third biggest year ever. $100M+ rounds fall for the second-straight quarter: 38 companies raise rounds worth $100M or more in Q4’19, a sharp decline from 58 in Q3’19 and a record 67 in Q2’19. The most $100M+ rounds ever (213) raised $47B in 2019; the second biggest year of mega-round funding. US technology IPOs fall for the second-straight quarter, though YoY exits remain elevated: 20 US VC-backed tech companies exit in IPOs in Q4’19, compared to 22 in Q3’19. YoY IPOs increase, with 90 technology companies exiting in IPOs in 2019, compared to 86 in 2018. At the end of 2019, a record number of unicorn companies remain in the US: As of EoY 2019, there are 199 US VC- backed private companies valued at $1B+; up significantly from 149 at the end of 2018. Geographic Insights US Insights Global deal activity, funding declines in last quarter of 2019 North America, Asia, and Europe see combined funding of $45B in Q4’19: Global VC funding falls 16% in Q4’19 compared to Q3’19. Asia and Europe see increased deal activity, while North American deals fall: North American deal activity declines for the second consecutive quarter in Q4’19, and global financing is down 12% in 2019. Seattle is a bright spot amid quarterly declines in other US Metros: Seattle quarterly funding hits a two-year high at $897M as the region sees a $400M mega-round. Seattle VC- backed startups raised $2.7B in 2019; their second largest funding year ever. Silicon Valley sees multiple $200M+ deals despite quarterly drop in funding and deal activity: Silicon Valley funding falls 21% to $9B in Q3’19. Deals also fall sharply to 380 transactions; a 14% decline compared to Q3’19. Source: PwC / CB Insights MoneyTree™ Report Q4 2019 3 1,648 1,753 1,582 1,469 1,485 1,616 1,481 1,324 $23.5 $25.1 $29.6 $40.0 $26.8 $30.7 $27.4 $23.0 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 US deals and dollars – Quarterly US VC funding and deals fall for the second-straight quarter Investments ($B) # of deals Source: PwC / CB Insights MoneyTree™ Report Q4 2019 4 2000 2005 2010 2015 2019 8,297 5,906 US deals and dollars – Annual 2019 funding falls short of 2018 levels, but remains elevated $119 $108 Record funding (all-time) Investments ($B) # of deals $118 Record funding (this century) Source: PwC / CB Insights MoneyTree™ Report Q4 2019 5 US funding – Quarterly seasonality US annual VC funding remains elevated $8.3 $12.3 $18.9 $16.7 $16.2 $23.5 $26.8 $9.0 $16.9 $20.7 $18.8 $19.9 $25.1 $30.7 $9.2 $13.8 $20.9 $15.9 $21.7 $29.6 $27.4 $10.1 $17.7 $17.7 $12.4 $21.5 $40.0 $23.0 2013 2014 2015 2016 2017 2018 2019 Record annual funding (this century) Q3 Q2 Q1 Q4 Total Investments ($B): $36.6 $118.3 $79.2 $63.7 $78.2 $60.7 $107.8 Source: PwC / CB Insights MoneyTree™ Report Q4 2019 6 Deal activity by round Series B and C deals rose in Q4’19 Note: All deals include additional round types 1,467 All deals 553 115 58 322 SeriesA 208 Series B 128 Series C 39 Series E+ 1,324 315 Seed 286 182 Q1’14 Q1’15 Q1’16 Q1’17 Q1’18 Q1’19 Source: PwC / CB Insights MoneyTree™ Report Q4 2019 7 Q1’14 Q1’15 Q1’16 Q1’17 Q1’18 Q1’19 $30.0M Series D Series A $15.0M $8.0M $2.5M $2.5M Seed Median deal size by round Series E+ median deal size falls sharply after elevated Q3’19 $42.5M Series C $0.7M $21.0M $4.7M $11.3M $9.0M Note: Overall median includes additional round types Series E+ $31.0M Source: PwC / CB Insights MoneyTree™ Report Q4 2019 8 Mega-rounds – Investments and deal counts Mega-rounds fall in Q4’19 from elevated levels throughout 2019 $8.2 $8.5 $14.6 $25.3 $12.3 $13.9 $13.6 $7.3 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Record mega-rounds (all-time) Mega-round investments ($B) # of Mega-rounds Note: Mega-rounds are $100M+ deals 35 50 55 54 50 67 58 38 Source: PwC / CB Insights MoneyTree™ Report Q4 2019 9 35% 34% 49% 63% 46% 45% 49% 32% Mega-rounds – Funding and share of deals Mega-round deal share in Q4’19 drops below 2018 levels $8.2 $8.5 $14.6 $25.3 $12.3 $13.9 $13.6 $7.3 $15.35 $16.67 $14.97 $14.70 $14.48 $16.81 $13.85 $15.70 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Record mega- round share (all-time) Mega-round investments ($B) Non mega-round investments ($B) Mega-round share Note: Mega-rounds are $100M+ deals Source: PwC / CB Insights MoneyTree™ Report Q4 2019 10 Mega-rounds – Quarterly seasonality US mega-rounds fall short of 2018 record, but remain elevated $1.2 $2.9 $6.9 $4.3 $4.3 $8.2 $12.3 $0.9 $4.4 $7.2 $7.4 $7.0 $8.5 $13.9 $0.8 $3.4 $7.8 $4.9 $9.0 $14.6 $13.6 $1.2 $6.9 $6.3 $2.3 $8.7 $25.3 $7.3 2013 2014 2015 2016 2017 2018 2019 Record annual mega-round funding (all-time) $4.1 $56.6 $29.1 $18.9 $28.2 $17.6 $47.0 Note: Mega-rounds are $100M+ deals Q3 Q2 Q1 Q4 Total Investments ($B): Second largest annual mega-round funding (all-time) Source: PwC / CB Insights MoneyTree™ Report Q4 2019 11 Sector # of Deals Funding 1 Internet $10.0B 2 Healthcare $5.1B 3 Software (non-internet/mobile) $1.7B 4 Mobile & Telecommunications $2.7B 5 Consumer Products & Services $0.5B 64 132 135 203 574 Deals and dollars – US sectors Internet startups continue to receive outsized financing 12 Source: PwC / CB Insights MoneyTree™ Report Q4 2019 Top 10 Verticals by deal activity Seven Internet SaaS verticals dominate deal activity in Q4’19 13 Source: PwC / CB Insights MoneyTree™ Report Q4 2019 Top 10 Verticals by investments Investments in two verticals come to life this quarter Source: PwC / CB Insights MoneyTree™ Report Q4 2019 14 Largest US deals of Q4’19 Top 5 deals led by Minnesota startup Company Investment Round Select investors Vertical 1 Bright Health Minneapolis, MN $635M Series D New Enterprise Ventures, Bessemer Venture Partners Healthcare Healthcare Plans 2 Chime San Francisco, CA $500M Series E+ Coatue Management, General Atlantic, ICONIQ Capital Mobile & Communications Mobile Software & Services Accounting & Finance 3 Databricks San Francisco, CA $400M Series E+ Andreessen Horowitz, New Enterprise Associates, Coatue Management Internet Internet Software & Services Data & Document Management 3 Convoy Seattle, WA $400M Series D Greylock Partners, T. Rowe Price, Fidelity Investments Mobile & Telecommunications Mobile Software & Services Supply Chain & Logistics 5 Vacasa Portland, OR $319M Series C Silver Lake Partners, Level Equity, Riverwood Capital Internet eCommerce Travel (internet) Source: PwC / CB Insights MoneyTree™ Report Q4 2019 15 Largest US deals of 2019 Softbank participates in 4 of the top mega-rounds in 2019 Company Investment Round Select investors Vertical 1 Cruise Automation San Francisco, CA $1.2B Other General Motors, Honda Motor Co., Softbank Group Automotive & Transportation Automobile Parts 2 Flexport San Francisco, CA $1.0B Series E+ Founders Fund, SoftBank Group Internet Internet Software & Services Supply Chain & Logistics 2 WeWork New York, NY $1.0B Series E+ Softbank Group Business Products & Services Facilities 2 OpenAI San Francisco, CA $1.0B Other Microsoft Computer Hardware & Services IT Services 5 Nuro Mountain View, CA $940M Series B Softbank Group Automotive & Transportation Automobile Manufacturing Note: Mega-rounds are $100M+ deals Source: PwC / CB Insights MoneyTree™ Report Q4 2019 16 Top 5 funded US companies – Q4’19 Top funded companies have raised $2B+ each thru 2019 Company Funding Vertical Emerging areas Select investors 1 Juul Labs San Francisco, CA $13.6B Consumer Products & Services Consumer Electronics Consumer Hardware Coatue Management, D1 Capital Partners, Tiger Global Management 2 Airbnb San Francisco, CA $3.6B Internet E-Commerce Travel On-Demand Sequoia Capital, Andreessen Horowitz, Greylock Partners, General Catalyst 3 SpaceX Hawthorne, CA $2.9B Industrial Aerospace & Defense Space Tech Founders Fund, Threshold Ventures, Fidelity Investments, Google 4 Magic Leap Plantation, FL $2.6B Software (non-internet/mobile) Scientific, Engineering Software AR/VR Alibaba Group, Fidelity Investments, Google 5 SoFi San Francisco, CA $2.5B Internet eCommerce Marketplace FinTech BlockFi, Apex Clearing Source: PwC / CB Insights MoneyTree™ Report Q4 2019 17 Unicorns – New US VC-backed unicorns by quarter The US continues to produce new unicorn companies 8 9 19 23 16 20 17 16 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Record new unicorns (all-time) Note: Unicorns are startups valued at $1B or more US VC-backed unicorn births Source: PwC / CB Insights MoneyTree™ Report Q4 2019 18 117 118 132 149 163 174 185 199 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Record population (all-time) US unicorn population The number of US unicorns sets new record high Unicorn population count (US) Note: Unicorns are startups valued at $1B or more Source: PwC / CB Insights MoneyTree™ Report Q4 2019 19 $411.9 $424.5 $486.5 $594.8 $628.4 $593.2 $638.5 $634.7 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Record aggregate unicorn valuation (all-time) Unicorn valuations ($B) Note: Unicorns are startups valued at $1B or more Unicorns – US aggregate unicorn valuation Total value of US unicorns remains near-record highs in Q4’19 Source: PwC / CB Insights MoneyTree™ Report Q4 2019 20 Company Valuation Vertical Emerging areas Select investors 1 Juul Labs San Francisco, CA $50.0B Consumer Products & Services Consumer Electronics Consumer Hardware Coatue Management, D1 Capital Partners, Tiger Global Management 2 Stripe San Francisco, CA $35.3B Internet Software & Services Payments FinTech Khosla Ventures, Lowercase Capital, capital 3 Airbnb San Francisco, CA $35.0B Internet E-Commerce Travel On-Demand Sequoia Capital, Andreessen Horowitz, Greylock Partners, General Catalyst 4 SpaceX Hawthorne, CA $33.3B Industrial Aerospace & Defense Space Tech Founders Fund, Threshold Ventures, Fidelity Investments, Google 5 Palantir Technologies Palo Alto, CA $20.0B Software (non-internet/mobile) Business Intelligence Founders Fund, In-Q-Tel, REV Venture Partners Top 5 highest-valued US unicorns — Q4’19 Most valuable US startup worth $50B Note: Most recently disclosed valuations associated with a funding round are included Source: PwC / CB Insights MoneyTree™ Report Q4 2019 21 640 609 593 610 701 649 2014 2015 2016 2017 2018 2019 US M&A exits — Annual 649 buyouts make 2019 the second busiest M&A year ever Note: Median years to liquidate from first funding Record annual exits (all-time) M&A exits Source: PwC / CB Insights MoneyTree™ Report Q4 2019 22 6.5 6.8 6.1 7.1 6.3 7.5 6.6 6.4 169 177 167 188 164 167 166 152 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 US M&A exits — Quarterly Q4’19 M&A dips below average for recent quarters Note: Median years to liquidate from first funding Record quarterly exits (all-time) M&A exits Median years to liquidation Source: PwC / CB Insights MoneyTree™ Report Q4 2019 23 106 78 51 66 86 90 2014 2015 2016 2017 2018 2019 US IPO exits — Annual IPO activity continues to climb in 2019 Note: Median years to liquidate from first funding IPO Activity Source: PwC / CB Insights MoneyTree™ Report Q4 2019 24 4.5 6.7 7.1 7.0 5.4 7.3 7.5 6.3 13 32 24 17 15 33 22 20 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 IPO activity Years to IPO US IPOs — Quarterly US IPO exits dip in Q4’19 for the second-straight quarter Note: Median years to liquidate from first funding Source: PwC / CB Insights MoneyTree™ Report Q4 2019 25 6.5 6.8 6.1 7.1 6.3 7.5 6.6 6.4 4.5 6.7 7.1 7.0 5.4 7.3 7.5 6.3 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 M&A exits and IPOs — Time-to-exit IPO and M&A time-to-exit fall in Q4’19 Years to IPO Years to M&A Note: Median years to liquidate from first funding Source: PwC / CB Insights MoneyTree™ Report Q4 2019 26 169 177 167 188 164 167 166 152 13 32 24 17 15 33 22 20 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 M&A exits and IPOs — Number of exits IPO and M&A exits fall in Q4’19 IPO exits M&A exits Source: PwC / CB Insights MoneyTree™ Report Q4 2019 27 Top 5 M&A exits of Q4’19 WeWork buyout leads M&A exits in Q4’19 Company Valuation Last round Verticals Select prior investors Buyer 1 WeWork New York, NY $8.0B Series H Business Products & Services Facilities SoftBank Group, Fidelity Investments, Benchmark, Wellington Management SoftBank Group 2 EdgeConneX Herndon, VA $2.5B Series B Mobile & Telecommunications Telecom Services Wireless Comcast Ventures, TDF Ventures, True Ventures EQT 3 Shape Security Santa Clara, CA $1.0B Series F Internet Internet Software & Services Monitoring & Security Baseline Ventures, Google Ventures, Kleiner Perkins Caufield & Byers F5 Networks 3 Rodin Therapeutics Boston, MA $1.0B Series B Healthcare Drug Discovery Atlas Venture, Johnson & Johnson Innovation Alkermes 4 Outbrain New York, NY $900M Series H Internet Internet Software & Services Advertising Network or Exchange GlenRock Israel, Lightspeed-Gemini Internet Lab Taboola Source: PwC / CB Insights MoneyTree™ Report Q4 2019 28 Top 5 IPOs of Q4 2019 Internet SaaS companies dominate top IPOs Company Valuation Last round Verticals Select prior investors 1 Vir Biotechnology San Francisco, CA $2.2B Series B Healthcare Biotechnology ARCH Venture Partners, Alta Partners, Altitude Life Science Ventures 2 Bill.com Palo Alto, CA $1.6B Series H Internet Internet Software & Services Payments DCM Ventures, Emegence Capital Partners, August Capital 3 Progyny New York, NY $1.1B Series B Internet Internet Software & Services Health & Wellness Kleiner Perkins Caufield & Byers, Merk Ventures, SR One 4 Viela Bio Gaithersburg, MD $900M Series B Healthcare Biotechnology Temasek, Hillhouse Capital Management, Boyu Capital 5 Sprout Social Chicago, IL $700M Series D Internet Internet Software & Services Content Management Lightbank, New Enterprise Associates, Goldman Sachs Source: PwC / CB Insights MoneyTree™ Report Q4 2019 29 A few metros surprise amid overall softening in the market 30 Source: PwC / CB Insights MoneyTree™ Report Q4 2019 Top 10 Metros by deal activity Denver beats out Seattle to make it in the top 5 metros of Q4’19 31 Source: PwC / CB Insights MoneyTree™ Report Q4 2019 Top 10 Metros by investments Minneapolis & Portland join top 10 metros with large Q4’19 deals Source: PwC / CB Insights MoneyTree™ Report Q4 2019 32 2,096 2,139 1,938 1,948 1,987 1,722 $27.8 $37.1 $27.7 $31.2 $61.0 $47.2 2014 2015 2016 2017 2018 2019 Investments ($B) # of deals Silicon Valley deals and dollars – Annual Despite declines 2019 was Silicon Valley’s second biggest year Record funding (all-time) Second largest funding (all-time) Source: PwC / CB Insights MoneyTree™ Report Q4 2019 33 551 538 455 443 407 491 444 380 $11.1 $10.4 $14.0 $25.6 $12.0 $14.3 $11.7 $9.3 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Investments ($B) # of deals Silicon Valley deals and dollars – Quarterly Silicon Valley financing declines two quarters in a row Record funding (all-time) Source: PwC / CB Insights MoneyTree™ Report Q4 2019 34 Top Silicon Valley deals – Q4’19 Silicon Valley’s top 5 deals are all $200M+ mega-rounds Company Investment Round Select investors Vertical 1 Chime San Francisco, CA $500M Series E+ Access Technology Ventures, Coatue Management, Menlo Ventures Mobile & Communications Mobile Software & Services Accounting & Finance 2 Databricks San Francisco, CA $400M Series E+ Andreessen Horowitz, BlackRock, New Enterprise Associates Internet Internet Software & Services Data & Document Management 3 Automation Anywhere San Jose, CA $290M Series B Goldman Sachs, Salesforce Ventures, SoftBank Group Software (non-internet/mobile) Scientific, Engineering Software 4 Next Insurance Palo Alto, CA $250M Series C Munich Re Ventures Internet eCommerce Marketplace 5 Zoox Foster City, CA $200M Convertible Note Undisclosed Investor(s) Software (non-internet/mobile) Scientific, Engineering Software 5 Ripple San Francisco, CA $200M Series C Route 66 Ventures, SBI Group, Tetragon Financial Group Internet Internet Software & Services Payments Note: Mega-rounds are $100M deals or larger Source: PwC / CB Insights MoneyTree™ Report Q4 2019 35 843 874 861 930 895 883 $6.1 $9.4 $8.7 $13.7 $14.4 $17.2 2014 2015 2016 2017 2018 2019 Investments ($B) # of deals New York Metro deals and dollars – Annual $17.2B invested startups makes 2019 NY’s biggest year ever Source: PwC / CB Insights MoneyTree™ Report Q4 2019 36 238 247 217 193 238 244 212 189 $2.9 $3.1 $6.0 $2.4 $5.0 $4.3 $4.9 $3.0 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Investments ($B) # of deals New York Metro deals and dollars – Quarterly New York Metro deals decline for the second-straight quarter Source: PwC / CB Insights MoneyTree™ Report Q4 2019 37 Top 5 New York Metro deals – Q4’19 Top Healthcare deals raised $360M in Q4’19 Company Investment Round Select investors Vertical 1 Nuvation Bio New York, NY $275M Series A Altitude Life Science Ventures, Fidelity Investments Healthcare Biotechnology 2 Vroom New York, NY $254M Series E+ Durable Capital Partners, L Catterton, T. Rowe Price Internet eCommerce Auto 3 Riskified New York, NY $165M Series E+ Fidelity Investments, General Atlantic, Qumra Capital Internet Internet Software & Services Monitoring & Security 4 Fabric New York, NY $110M Series B Aleph, Corner Ventures, Innovation Endeavors Software (non-internet/mobile) Supply Chain & Logistics Software 5 Zentalis Pharmaceuticals New York, NY $85M Series C Surveyor Capital, Viking Global Investors Healthcare Drug Discovery Source: PwC / CB Insights MoneyTree™ Report Q4 2019 38 488 526 455 484 498 440 $5.1 $6.9 $6.5 $7.2 $10.3 $8.8 2014 2015 2016 2017 2018 2019 Investments ($B) # of deals Boston Metro deals and dollars – Annual Boston funding levels remain near record highs in 2019 Second largest (all-time) Third largest (all-time) Source: PwC / CB Insights MoneyTree™ Report Q4 2019 39 125 122 133 118 125 120 93 102 $2.7 $2.9 $2.2 $2.5 $2.7 $2.3 $1.9 $1.8 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Investments ($B) # of deals Boston Metro deals and dollars – Quarterly Boston deals jump in Q4’19 amid declining funding Source: PwC / CB Insights MoneyTree™ Report Q4 2019 40 Top 5 Boston Metro deals – Q4’19 Three $100M+ mega-rounds lead Boston Metro’s Q4’19 deals Company Investment Round Select investors Vertical 1 Duck Creek Technologies Boston, MA $120M Other Dragoneer Investment Group, Insight Partners, Neuberger Berman Internet Internet Software & Services Asset & Financial Management & Trading 2 eGenesis Cambridge, MA $100M Series B ARCH Venture Partners, Khosla Ventures Healthcare Biotechnology 2 Hometap Boston, MA $100M Series B American Family Ventures, G20 Ventures, ICONIQ Capital Internet Internet Software & Services Asset & Financial Management & Trading 4 Black Diamond Therapeutics Cambridge, MA $85M Series C Deerfield Management, Janus Henderson Investors, New Enterprise Associates Healthcare Drug Development 5 CallMiner Waltham, MA $75M Other Goldman Sachs Internet Internet Software & Services Customer Relationship Management Note: Mega-rounds are $100M deals or larger Source: PwC / CB Insights MoneyTree™ Report Q4 2019 41 343 406 370 445 477 387 $3.8 $5.5 $4.8 $4.4 $6.2 $7.8 2014 2015 2016 2017 2018 2019 Investments ($B) # of deals LA Metro deals and dollars – Annual $7.8B invested makes 2019 LA’s second biggest year ever Second largest (all-time) Source: PwC / CB Insights MoneyTree™ Report Q4 2019 42 126 124 115 112 82 107 105 93 $1.8 $1.8 $0.7 $2.0 $1.6 $2.2 $2.4 $1.5 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Investments ($B) # of deals LA Metro deals and dollars – Quarterly LA funding and deal activity fall in Q4’19 Source: PwC / CB Insights MoneyTree™ Report Q4 2019 43 Top 5 LA Metro deals – Q4’19 Mobile & Telecommunications startups lead funding in LA Metro Company Investment Round Select investors Vertical 1 Bird Rides Santa Monica, CA $275M Series D Caisse de depot et placement du Quebec, Sequoia Capital Mobile & Telecommunications Mobile Software & Services Travel 2 Scopely Culver City, CA $200M Series D Baillie Gifford & Co., Greycroft, Revolution Growth Mobile & Telecommunications Mobile Software & Services Gaming 3 Relativity Space Inglewood, CA $140M Series C Playground Global, Social Capital, Y Combinator Industrial Aerospace & Defense 4 Arcutis Biotherapeutics Westlake Village, CA $95M Series C Bain Capital, BlackRock, Goldman Sachs Healthcare Biotechnology 5 Sonendo Laguna Hills, CA $85M Other Meritech Capital Partners, OrbiMed Advisors Healthcare Dental Products & Services Source: PwC / CB Insights MoneyTree™ Report Q4 2019 44 169 172 172 195 191 196 $1.6 $1.9 $1.2 $1.8 $2.1 $2.7 2014 2015 2016 2017 2018 2019 Investments ($B) # of deals Seattle Metro deals and dollars – Annual $2.7B invested made 2019 Seattle’s second biggest year ever Second largest (all-time) Source: PwC / CB Insights MoneyTree™ Report Q4 2019 45 41 62 48 40 54 47 55 40 $352 $813 $659 $233 $511 $679 $629 $897 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Investments ($M) # of deals Seattle Metro deals and dollars – Quarterly Seattle funding jumps amid falling deal activity in Q4’19 Source: PwC / CB Insights MoneyTree™ Report Q4 2019 46 Top Seattle Metro deals Convoy’s mega-round takes top funding round in Seattle Company Investment Round Select investors Vertical 1 Convoy Seattle, WA $400M Series D Bailie Gifford & Co., capitalG, Fidelity Investments Mobile & Telecommunications Mobile Software & Services Supply Chain & Logistics 2 Highspot Seattle, WA $75M Series D ICONIQ Capital, Salesforce Ventures Internet Internet Software & Services Customer Relationship Management 3 Icosavax Seattle, WA $51M Series A Adams Street Partners, Sanofi Ventures Healthcare Biotechnology 4 Spaceflight Seattle, WA $39M Series C Mithril Capital Management, Razors Edge Ventures, RRE Ventures Industrial Aerospace & Defense Parts Manufacturing & Distribution 5 CorneaGen Seattle, WA $37M Series B Falcon Vision, Flying L Partners Healthcare Medical Devices & Equipment Surgical Devices Note: Mega-rounds are $100M deals or larger Source: PwC / CB Insights MoneyTree™ Report Q4 2019 47 150 183 166 201 196 195 $914.1 $1,041.9 $708.0 $1,194.1 $1,403.5 $1,694.6 2014 2015 2016 2017 2018 2019 Investments ($M) # of deals Denver Metro deals and dollars – Annual Denver funding rises for the third-straight year in 2019 Source: PwC / CB Insights MoneyTree™ Report Q4 2019 48 49 44 60 43 54 49 50 42 $361.4 $331.7 $451.5 $258.9 $333.8 $428.8 $291.0 $641.0 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Investments ($M) # of deals Denver Metro deals and dollars – Quarterly Denver funding levels jump amid declining deals in Q4’19 Source: PwC / CB Insights MoneyTree™ Report Q4 2019 49 Top Denver Metro deals Two $100M+ mega-rounds lead Denver Q4’19 deals Company Investment Round Select investors Vertical 1 Guide Education Denver, CO $157M Series D Bessemer Venture Partners, Emerson Collective, Felicis Ventures Internet Internet Software & Services HR & Workforce Management 2 Inscripta Boulder, CO $125M Series D JS Capital Management, Oak HC/FT, Paladin Capital Group Healthcare Biotechnology 3 ArcherDx Boulder, CO $55M Series C ArrowMark Partners, Soleus Capital Management, Boulder Ventures Software (non-internet/mobile) Healthcare Software 4 CyberGRX Denver, CO $40M Series D Bessemer Venture Partners, Blackstone, Google Ventures Internet Internet Software & Services Monitoring & Security 5 Havenly Denver, CO $32M Series C BN Capital, Foundry Group, Lerer Hippeau Ventures Internet eCommerce Marketplace Note: Mega-rounds are $100M deals or larger Source: PwC / CB Insights MoneyTree™ Report Q4 2019 50 48 43 49 61 76 52 $618.8 $415.2 $419.7 $566.4 $733.1 $878.3 2014 2015 2016 2017 2018 2019 Investments ($M) # of deals Minneapolis Metro deals and dollars – Annual Minneapolis funding rises for the fourth-straight year in 2019 Source: PwC / CB Insights MoneyTree™ Report Q4 2019 51 16 19 27 14 13 15 9 15 $85 $202 $157 $289 $41 $48 $37 $751 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Investments ($M) # of deals Minneapolis Metro deals and dollars – Quarterly $635M Bright Health deal pushes Minneapolis Q4’19 funding up Source: PwC / CB Insights MoneyTree™ Report Q4 2019 52 Top Minneapolis Metro deals Healthcare startups dominate Minneapolis top deals Company Investment Round Select investors Vertical 1 Bright Health Minneapolis, MN $635M Series D Bessemer Venture Partners, Cross Creek, New Enterprise Associates Healthcare Healthcare Plans HR & Workforce Management 2 Total Expert Minneapolis, MN $52M Series C Emergence Capital Partners, Georgian Partners, Rally Ventures Internet Internet Software & Services Advertising, Sales & Marketing 3 ShiraTronics Minneapolis, MN $33M Series A Amzak Capital Management, Aperture Venture Partners Healthcare Medical Devices & Equipment 4 4C Medical Maple Grove, MN $8.2M Series B SightLine Partners Healthcare Medical Devices & Equipment Surgical Devices 5 Spineology Saint Paul, MN $7.0M Other Affinity Capital Management, River Cities Capital Fund Healthcare Medical Devices & Equipment Surgical Devices Note: Mega-rounds are $100M deals or larger Source: PwC / CB Insights MoneyTree™ Report Q4 2019 53 69 66 54 59 71 38 $280.8 $260.6 $225.9 $436.3 $662.1 $679.1 2014 2015 2016 2017 2018 2019 Investments ($M) # of deals Portland Metro deals and dollars – Annual Portland Metro deal activity drops sharply in 2019 Source: PwC / CB Insights MoneyTree™ Report Q4 2019 54 15 22 9 25 9 4 14 11 $53 $406 $76 $127 $90 $44 $92 $455 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Investments ($M) # of deals Portland Metro deals and dollars – Quarterly $319M Series C raised by Vacasa pushes Portland Q4’19 funding up Source: PwC / CB Insights MoneyTree™ Report Q4 2019 55 Top Portland Metro deals Vacasa raises the top deal in Portland in Q4’19 Company Investment Round Select investors Vertical 1 Vacasa Portland, OR $319.0M Series C Silver Lake Level Equity, NewSpring Capital Mobile & Telecommunications Mobile Software & Services HR Travel 2 SheerID Portland, OR $64.0M Series C Centana Growth Partners, CVC Capital Partners, Voyager Capital Internet Internet Software & Services Advertising, Sales & Marketing 3 Energy Storage Systems Wilsonville, OR $30.0M Series C BASF Venture Capital, Breakthrough Energy Ventures, Cycle Capital Electronics Electrical Product Distribution Power Generation & Storage 4 CrowdStreet Portland, OR $12.0M Series D Grotech Ventures, Rally Ventures, Seven Peaks Ventures Internet eCommerce Marketplace 5 Boulder Care Portland, OR $10.5M Series A First Round Capital, Tusk Ventures Software (non-internet/mobile) Healthcare Software Note: Mega-rounds are $100M deals or larger Source: PwC / CB Insights MoneyTree™ Report Q4 2019 56 Together, startups in the top 3 states raised what percentage of US investments in 2019? California New York Massachusetts Source: PwC / CB Insights MoneyTree™ Report Q4 2019 57 Together, startups in the top 3 states raised 77% of US funding 58 Source: PwC / CB Insights MoneyTree™ Report Q4 2019 Top 10 States by deal activity Texas and New Jersey get more deals amid overall slowdown 59 Source: PwC / CB Insights MoneyTree™ Report Q4 2019 Top 10 States by investments Four states more than double investments while most decline Source: PwC / CB Insights MoneyTree™ Report Q4 2019 60 $1.8 $2.3 $2.1 $1.5 $1.8 $2.3 $3.0 2013 2014 2015 2016 2017 2018 2019 253 258 256 251 238 275 267 Investments ($B) # of deals Texas deals and dollars – Annual Funding and deal activity remain at healthy levels Source: PwC / CB Insights MoneyTree™ Report Q4 2019 61 72 83 54 66 73 78 50 66 $743 $721 $374 $481 $1,065 $738 $671 $499 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Investments ($M) # of deals Texas deals and dollars – Quarterly Texas deal activity climbs 32% QoQ in 2019 despite less funding Source: PwC / CB Insights MoneyTree™ Report Q4 2019 62 Top 5 Texas deals – Q4’19 Texas sees one $100M mega-round in Q4’19 Company Investment Round Select investors Vertical 1 SparkCognition Austin, TX $100M Series C Boeing HorizonX, Temasek Internet Internet Software & Services Manufacturing, Warehousing & Industrial 2 The Zebra Austin, TX $39M Series C Accel, Ballast Point Ventures Internet eCommerce Comparison Shopping 3 Shipwell Austin, TX $35M Series B Aspect Ventures, First Round Capital Internet Internet Software & Services Supply Chain & Logistics 4 Expedi Houston, TX $25M Series B Bowery Capital, Crosslink Capital Internet eCommerce Marketplace 5 Airstrip Technologies San Antonio, TX $21M Series D Undisclosed Investor(s) Mobile & Telecommunications Mobile Software & Services Healthcare Note: Mega-rounds are $100M+ deals Source: PwC / CB Insights MoneyTree™ Report Q4 2019 63 53 54 49 43 52 51 58 $544 $585 $1,200 $468 $697 $714 $1,191 2013 2014 2015 2016 2017 2018 2019 Investments ($M) # of deals New Jersey deals and dollars – Annual 2019 funding exceeds $1B and deal activity rises in New Jersey Source: PwC / CB Insights MoneyTree™ Report Q4 2019 64 15 11 15 10 15 13 11 19 $318 $45 $112 $239 $634 $87 $273 $197 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Investments ($M) # of deals New Jersey deals and dollars – Quarterly Q4’19 funding falls while deal activity increases in New Jersey Source: PwC / CB Insights MoneyTree™ Report Q4 2019 65 Top 5 New Jersey deals – Q4’19 Q4’19 sees New Jersey Healthcare startup raise top funding Company Investment Round Select investors Vertical 1 PMW Pharmaceuticals Cranbury, NJ $62M Series C Euclidean Capital, InterWest Partners Healthcare Drug Development 2 Flow Hoboken, NJ $37M Series B American Express Ventures, New Enterprise Associates Internet eCommerce eCommerce Enablement 3 Cross River Bank Fort Lee, NJ $27M Other Battery Ventures Financial Retail Banking 4 OpenLegacy Princeton, NJ $20M Other Silverhorn Investment Partners Internet Internet & Software Services Networking & Connectivity 5 Duality Technologies Maplewood, NJ $16M Series A Hearst Ventures, Innovation Endeavors Software (non-internet/mobile) Data & Document Management Software Source: PwC / CB Insights MoneyTree™ Report Q4 2019 66 49 49 44 51 65 79 57 $305 $618 $416 $421 $573 $736 $908 2013 2014 2015 2016 2017 2018 2019 Investments ($M) # of deals Minnesota deals and dollars – Annual 2019 funding climbs 23% while deals drop in Minnesota Second largest (all-time) Source: PwC / CB Insights MoneyTree™ Report Q4 2019 67 $85 $205 $157 $289 $41 $49 $42 $775 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 16 21 28 14 13 17 11 16 Investments ($M) # of deals Minnesota deals and dollars – Quarterly Quarterly funding in Minnesota jumps after $635M Series D raise Record funding (all-time) Source: PwC / CB Insights MoneyTree™ Report Q4 2019 68 Top 5 Minnesota deals – Q4’19 Healthcare startups dominate top deals in Minnesota Company Investment Round Select investors Vertical 1 Bright Health Minneapolis, MN $635M Series D Bessemer Venture Partners, New Enterprise Associates, Redpoint Ventures Healthcare Healthcare Plans 2 Total Expert Minneapolis, MN $52M Series C Emergence Capital Partners, Georgian Partners Internet Internet & Software Services Advertising, Sales & Marketing 3 ShiraTronics Minneapolis, MN $33M Series A Strategic Healthcare Investment Partners Healthcare Medical Devices & Equipment 4 Vryiad Rochester, MN $24M Series A Flagship Pioneering, Regeneron Pharmaceuticals Healthcare Biotechnology 5 4C Medical Maple Grove, MN $8M Series B Sightline Partners Healthcare Medical Devices & Equipment Surgical Devices Source: PwC / CB Insights MoneyTree™ Report Q4 2019 69 156 194 183 212 213 208 $0.9 $1.1 $0.9 $1.3 $1.7 $1.8 2014 2015 2016 2017 2018 2019 Investments ($M) # of deals Colorado deals and dollars – Annual Colorado funding rises for the third-straight year Third largest (all-time) Record deals (all-time) Second highest deals (all-time) Source: PwC / CB Insights MoneyTree™ Report Q4 2019 70 53 51 63 46 56 51 57 44 $377 $522 $487 $276 $344 $433 $324 $656 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Investments ($M) # of deals Colorado deals and dollars – Quarterly Colorado quarterly funding doubles to two-year high in Q4’19 Source: PwC / CB Insights MoneyTree™ Report Q4 2019 71 Top 5 Colorado deals – Q4’19 Expansion and late-stage startups win funding in Colorado Company Investment Round Select investors Vertical 1 Guild Education Denver, CO $157M Other SC30 Internet Internet Software & Services HR & Workforce Management 2 Inscripta Boulder, CO $125M Series D JS Capital Management, Paladin Capital Group Healthcare Biotechnology 3 ArcherDx Boulder, CO $55M Series C Boulder Ventures, Sands Capital Ventures Software (non-internet/mobile) Healthcare Software 4 CyberGRX Denver, CO $40M Series D Bessemer Venture Partners, Google Ventures, ICONIQ Capital Internet Internet Software & Services Monitoring & Security 5 Havenly Denver, CO $32M Series C Foundry Group, Lerer Hippeau Ventures Internet eCommerce Marketplace Source: PwC / CB Insights MoneyTree™ Report Q4 2019 72 72 96 94 94 84 72 $415 $972 $674 $937 $2,327 $1,056 2014 2015 2016 2017 2018 2019 Investments ($M) # of deals North Carolina deals and dollars – Annual North Carolina funding at record levels despite declines Third largest (all-time) Record funding (all-time) Source: PwC / CB Insights MoneyTree™ Report Q4 2019 73 16 21 28 14 13 17 11 16 $211 $463 $234 $1,419 $82 $389 $48 $537 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Investments ($M) # of deals North Carolina deals and dollars – Quarterly North Carolina investments rebound in Q4’19 Third largest (all-time) Record funding (all-time) Source: PwC / CB Insights MoneyTree™ Report Q4 2019 74 Top 5 North Carolina Metro deals Accounting and payments software dominate top NC deals Company Investment Round Select investors Vertical 1 AvidXchange Charlotte, NC $150M Other Undisclosed Investor(s) Internet Internet Software & Services Billing 2 Pendo Raleigh, NC $100M Series E Battery Ventures, FirstMark Capital, Sapphire Ventures Internet Internet Software & Services Application & Data Integration 3 nCino Wilmington, NC $80M Series F Insight Partners, Salesforce Ventures, T. Rowe Price Internet Internet Software & Services Accounting & Finance 4 Spreedly Durham, NC $75M Growth Equity Spectrum Equity Internet Internet Software & Services Payments 5 Passport Charlotte, NC $65M Series D Bain Capital, Rho Ventures, Grotech Ventures Mobile & Telecommunications Mobile Software & Services Travel Source: PwC / CB Insights MoneyTree™ Report Q4 2019 75 74 73 58 64 74 43 $297 $322 $229 $412 $652 $698 2014 2015 2016 2017 2018 2019 Investments ($M) # of deals Oregon deals and dollars – Annual Oregon funding sets record in 2019 despite fewer deals Record deals (all-time) Record funding (all-time) Source: PwC / CB Insights MoneyTree™ Report Q4 2019 76 15 23 13 23 12 6 13 12 $52 $395 $84 $121 $97 $49 $102 $450 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Investments ($M) # of deals Oregon deals and dollars – Quarterly Oregon funding sets record in Q4’19 Third highest deals (all-time) Third highest deals (all-time) Record funding (all-time) Source: PwC / CB Insights MoneyTree™ Report Q4 2019 77 Top 5 Oregon Metro deals Vacasa raises the top deal in Oregon in Q4’19 Company Investment Round Select investors Vertical 1 Vacasa Portland, OR $319.0M Series C Silver Lake Level Equity, NewSpring Capital Mobile & Telecommunications Mobile Software & Services HR Travel 2 SheerID Portland, OR $64.0M Series C Centana Growth Partners, CVC Capital Partners, Voyager Capital Internet Internet Software & Services Advertising, Sales & Marketing 3 Energy Storage Systems Wilsonville, OR $30.0M Series C BASF Venture Capital, Breakthrough Energy Ventures, Cycle Capital Electronics Electrical Product Distribution Power Generation & Storage 4 CrowdStreet Portland, OR $12.0M Series D Grotech Ventures, Rally Ventures, Seven Peaks Ventures Internet eCommerce Marketplace 5 Boulder Care Portland, OR $10.5M Series A First Round Capital, Tusk Ventures Software (non-internet/mobile) Healthcare Software Source: PwC / CB Insights MoneyTree™ Report Q4 2019 78 How much are Emerging Areas disrupting venture financing? Source: PwC / CB Insights MoneyTree™ Report Q4 2019 79 0% 50% 100% 1995 2000 2005 2010 2015 2019 Top 20 Emerging Areas – Financing Share Emerging Areas now get majority of venture funding Share of deals Share of investments Source: PwC / CB Insights MoneyTree™ Report Q4 2019 80 Three Emerging Areas dominate deal activity among the Top 20 0 250 FinTech AI Digital Health Medical Devices Cybersecurity E-Commerce IoT Real Estate Tech Capital Markets Tech Payments InsurTech Blockchain RegTech Supply Chain & Logistics Tech Smart Cities Advanced Manufacturing In-Store Retail Tech Wealth Tech Auto Tech Augmented Reality/Virtual Reality Q1’14 Q4’19 81 Source: PwC / CB Insights MoneyTree™ Report Q4 2019 Top 10 Emerging Areas by deal activity Three emerging areas materially increase deals amid softening 82 Source: PwC / CB Insights MoneyTree™ Report Q4 2019 Top 10 Emerging Areas by investments Six emerging areas materially increase investments in Q4’19 Source: PwC / CB Insights MoneyTree™ Report Q4 2019 83 444 563 631 629 687 794 722 $2.5 $5.8 $9.0 $6.0 $8.4 $12.6 $17.6 2013 2014 2015 2016 2017 2018 2019 Investments ($B) # of deals FinTech deals and dollars – Annual 2019 FinTech funding rises 40% compared to 2018 Source: PwC / CB Insights MoneyTree™ Report Q4 2019 84 232 192 197 173 198 175 175 174 $2.5 $3.4 $3.2 $3.5 $3.8 $5.3 $3.9 $4.6 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Investments ($B) # of deals FinTech deals and dollars – Quarterly FinTech sees funding increase in Q4’19 Source: PwC / CB Insights MoneyTree™ Report Q4 2019 85 Top FinTech deals – Q4’19 Top 5 deals raise $1.75B, 38% of FinTech’s Q4’19 funding Company Investment Round Select investors Vertical 1 Bright Health Minneapolis, MN $635M Series D Bessemer Venture Partners, New Enterprise Associates, Redpoint Ventures Healthcare Healthcare Plans 2 Chime San Francisco, CA $500M Series E+ Access Technology Ventures, Coatue Management, Menlo Ventures Mobile & Communications Mobile Software & Services Accounting & Finance 3 Next Insurance Palo Alto, CA $250M Series C Munich Re Ventures Internet eCommerce Marketplace 4 Ripple San Francisco, CA $200M Series C Route 66 Ventures, SBI Group, Tetragon Financial Group Internet Internet Software & Services Payments 5 Riskified New York, NY $165M Series E+ Fidelity Investments, General Atlantic, Qumra Capital Internet Internet Software & Services Monitoring & Security Note: Mega-rounds are $100M+ deals Source: PwC / CB Insights MoneyTree™ Report Q4 2019 86 387 507 585 563 566 585 546 $2.0 $4.7 $4.6 $5.7 $7.6 $9.1 $8.4 2013 2014 2015 2016 2017 2018 2019 Investments ($B) # of deals Digital Health deals and dollars – Annual Annual financing declines despite strong activity in Q4’19 Source: PwC / CB Insights MoneyTree™ Report Q4 2019 87 134 195 141 115 129 157 127 133 $2.1 $2.1 $2.9 $2.1 $1.6 $2.7 $1.7 $2.5 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Investments ($B) # of deals Digital Health deals and dollars – Quarterly Digital Health financing rises in Q4’19 Source: PwC / CB Insights MoneyTree™ Report Q4 2019 88 Top Digital Health deals – Q4’19 Late-stage Digital Health startups raise $830M+ Company Investment Round Select investors Vertical 1 Bright Health Minneapolis, MN $635M Series D Bessemer Venture Partners, New Enterprise Associates, Redpoint Ventures Healthcare Healthcare Plans 2 GRAIL Menlo Park, CA $125M Series D ARCH Venture Partners, Decheng Capital Healthcare Disease Diagnosis 3 GenapSys Redwood City, CA $90M Series C Foresite Capital Healthcare Biotechnology 4 ArsenalBio South San Francisco, CA $85M Series A Euclidean Capital, Kleiner Perkins Caufield & Byers Healthcare Biotechnology 5 Weave Lehi, UT $70M Series D Bessemer Venture Partners, Catalyst Investors, Tiger Global Management Internet Internet & Software Services Customer Relationship Management Source: PwC / CB Insights MoneyTree™ Report Q4 2019 89 241 276 281 243 257 254 206 $1.8 $2.5 $4.2 $1.9 $3.9 $4.7 $4.6 2013 2014 2015 2016 2017 2018 2019 Investments ($B) # of deals E-Commerce deals and dollars – Annual 2019 E-Commerce funding remains elevated Source: PwC / CB Insights MoneyTree™ Report Q4 2019 90 $0.9 $1.1 $1.7 $1.0 $1.2 $1.1 $1.5 $0.9 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 71 72 65 46 53 56 45 52 Investments ($B) # of deals E-Commerce deals and dollars – Quarterly E-Commerce deal activity climbs in Q4’19 Source: PwC / CB Insights MoneyTree™ Report Q4 2019 91 Top E-Commerce deals – Q4’19 Expansion-stage startups dominate top deals in E-Commerce Company Investment Round Select investors Vertical 1 Vroom New York, NY $254M Series E+ L Catterton, T. Rowe Price Internet eCommerce Auto 2 ACV Auctions Buffalo, NY $150M Series E+ Bain Capital Ventures, Bessemer Venture Partners, Fidelity Investments Mobile & Telecommunications Mobile Commerce Auction & Classifieds 3 Zeus San Francisco, CA $55M Series B Airbnb, Comcast Ventures Internet eCommerce Marketplace 4 Eight Sleep New York, NY $41M Series C Founders Fund, Khosla Ventures Consumer Products & Services Consumer Electronics 5 Dolls Kill San Francisco, CA $37M Series B Sequoia Capital Internet eCommerce Apparel & Accessories Source: PwC / CB Insights MoneyTree™ Report Q4 2019 92 47 63 71 94 125 133 139 $0.2 $0.7 $1.4 $1.4 $1.2 $2.5 $4.6 2013 2014 2015 2016 2017 2018 2019 Investments ($B) # of deals InsurTech deals and dollars – Annual InsurTech financing continues to climb in 2019 Source: PwC / CB Insights MoneyTree™ Report Q4 2019 93 42 31 31 29 37 33 38 31 $0.6 $0.2 $1.1 $0.7 $1.1 $0.9 $1.1 $1.5 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Investments ($B) # of deals InsurTech deals and dollars – Quarterly Q4’19 InsurTech deals decline while funding rises Source: PwC / CB Insights MoneyTree™ Report Q4 2019 94 Top InsurTech deals – Q4’19 Internet SaaS companies raise majority of InsurTech top 5 deals Company Investment Round Select investors Vertical 1 Bright Health Minneapolis, USA $635M Series D Bessemer Venture Partners, New Enterprise Associates, Redpoint Ventures Healthcare Healthcare Plans 2 Next Insurance Palo Alto, CA $250M Series C Munich Re Ventures Internet eCommerce Marketplace 3 Duck Creek Technologies Boston, MA $120M Other Dragoneer Investment Group, Insight Partners, Neuberger Berman Internet Internet Software & Services Asset & Financial Management & Trading 4 Unqork New York, NY $80M Series B BlackRock, capitalG Internet Internet Software & Services Accounting & Finance 5 Qualia San Francisco, CA $55M Series C Menlo Ventures, Tiger Global Management Internet Internet Software & Services Real Estate Source: PwC / CB Insights MoneyTree™ Report Q4 2019 95 84 138 138 146 155 156 154 0.6 1.4 1.6 1.7 2.4 4.9 4.8 2013 2014 2015 2016 2017 2018 2019 Investments ($B) # of deals Capital Markets Tech deals and dollars – Annual Overall funding and deal activity remain at healthy levels in 2019 Source: PwC / CB Insights MoneyTree™ Report Q4 2019 96 48 37 31 40 47 39 32 36 $0.9 $1.6 $0.9 $1.4 $0.8 $1.6 $1.1 $1.4 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Investments ($B) # of deals Capital Markets Tech deals and dollars – Quarterly Capital Markets Tech financing ticks upward in Q4’19 Source: PwC / CB Insights MoneyTree™ Report Q4 2019 97 Top Capital Markets Tech deals – Q4’19 Capital Markets Tech sees two $200M mega-rounds in Q4’19 Company Investment Round Select investors Vertical 1 Automation Anywhere San Jose, CA $290M Series B Goldman Sachs, Salesforce Ventures, SoftBank Group Software (non-internet/mobile) Scientific, Engineering Software 2 Ripple San Francisco, CA $200M Series C Route 66 Ventures, SBI Group, Tetragon Financial Group Internet Internet Software & Services Payments 3 nCino Wilmington, NC $80M Series E+ Insight Partners, Salesforce Ventures, T. Rowe Price Internet Internet Software & Services Accounting & Finance 3 Unqork New York, NY $80M Series B BlackRock, capitalG Internet Internet Software & Services Accounting & Finance 4 Galileo Financial Technologies Salt Lake City, UT $77M Growth Equity Accel Internet Internet & Software Services Payments Note: Mega-rounds are $100M+ deals Source: PwC / CB Insights MoneyTree™ Report Q4 2019 98 69 91 138 149 132 153 162 $0.4 $0.5 $0.8 $1.3 $1.7 $2.8 $4.0 2013 2014 2015 2016 2017 2018 2019 Investments ($B) # of deals Real Estate Tech deals and dollars – Annual Funding and deals hit new seven-year high in 2019 Source: PwC / CB Insights MoneyTree™ Report Q4 2019 99 45 49 31 28 48 38 37 39 $0.4 $0.9 $1.2 $0.3 $1.1 $0.9 $0.9 $1.1 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Investments ($B) # of deals Real Estate Tech deals and dollars – Quarterly Q4’19 Real Estate Tech investment and deals increase Source: PwC / CB Insights MoneyTree™ Report Q4 2019 100 Top Real Estate Tech deals – Q4’19 Expansion Real Estate Tech startups win majority of top deals Company Investment Round Select investors Vertical 1 Figure Technologies San Francisco, CA $103M Series C DST Global, RPM Ventures Internet Internet Software & Services Asset & Financial Management & Trading 2 Hometap Boston, MA $100M Series B American Family Ventures, G20 Ventures, ICONIQ Capital Internet Internet Software & Services Asset & Financial Management & Trading 3 Juniper Square San Francisco, CA $75M Series C Redpoint Ventures, Ribbit Capital Internet Internet Software & Services Accounting & Finance 4 HomeLight San Francisco, CA $63M Series C Menlo Ventures, Stereo Capital Internet Internet Software & Services Real Estate 5 Reonomy New York, NY $60M Series D Citi Ventures, Wells Fargo Strategic Capital Internet Internet & Software Services Real Estate 5 PeerStreet Los Angeles, CA $60M Series C Andreessen Horowitz, World Innovation Lab Internet eCommerce Marketplace Source: PwC / CB Insights MoneyTree™ Report Q4 2019 101 75 88 97 112 116 133 104 $0.5 $1.9 $1.2 $1.4 $2.3 $2.8 $4.0 2013 2014 2015 2016 2017 2018 2019 Investments ($B) # of deals Payments deals and dollars – Annual Payments sees larger deals in 2019 as annual funding hits $4B Source: PwC / CB Insights MoneyTree™ Report Q4 2019 102 38 30 35 30 30 21 19 34 $418 $880 $879 $623 $752 $1,160 $1,000 $1,100 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Investments ($M) # of deals Payments deals and dollars – Quarterly Payments deal activity jumps as quarterly funding crosses $1B Source: PwC / CB Insights MoneyTree™ Report Q4 2019 103 Top Payments deals – Q4’19 North Carolina-based startups rise in top Payments deals Company Investment Round Select investors Vertical 1 Ripple San Francisco, CA $200M Series C Route 66 Ventures, SBI Group, Tetragon Financial Group Internet Internet Software & Services Payments 2 Riskified New York, NY $165M Series E+ Fidelity Investments, General Atlantic, Qumra Capital Internet Internet Software & Services Monitoring & Security 3 AvidXchange Charlotte, NC $150M Other Undisclosed Investor(s) Internet Internet Software & Services Billing, Expense Management and Procurement 4 Galileo Financial Technologies Salt Lake City, UT $77M Growth Equity Accel Internet Internet & Software Services Payments 5 Spreedly Durham, NC $75M Growth Equity Spectrum Equity Internet Internet Software & Services Payments Source: PwC / CB Insights MoneyTree™ Report Q4 2019 104 Is less capital being raised to invest in startups? Source: PwC / CB Insights MoneyTree™ Report Q4 2019 105 $269B $402B $482B $544B $983B 2015 2016 2017 2018 2019 No…Investor fundraising nearly doubled in 2019 US startup investors – Aggregate funds raised Source: PwC / CB Insights MoneyTree™ Report Q4 2019 106 2015 2016 2017 2018 2019 After outpacing VCs in 2018, SoftBank raises only $4B in 2019 US startup investors – Funds raised $51B $136B VCs $4B SoftBank $0 Source: PwC / CB Insights MoneyTree™ Report Q4 2019 107 Top VCs by amount raised The top 5 VCs have raised over $27B in 2019 Note: includes all funds under the Sequoia Capital umbrella Investor Funds raised (2019) Year founded Select investments Location 1 Sequoia Capital* $7.4B 1972 Clari, Freshworks, Thumbtack Menlo Park, CA 2 Andreessen Horowitz $6.5B 2009 Forward Networks, RigUp, Tenfold Menlo Park, CA 3 General Atlantic $5.2B 1980 Benevity, Immunocore, NoBroker Greenwich, CT 4 Summit Partners $4.9B 1984 Immersive Labs, Odoo, Zenoss Boston, MA 5 Adams Street Partners $3.4B 1972 Epirium, Punchh, VillageMD Chicago, IL Source: PwC / CB Insights MoneyTree™ Report Q4 2019 108 Most active VCs in 2019 New Enterprise Associates tops most active VCs in 2019 Investor Deals Select investments Location 1 New Enterprise Associates 87 Bright Health, Databricks, Robinhood Menlo Park, CA 2 Plug and Play Ventures 76 Click Diagnostics, Beyond Pricing, Credit Sesame Sunnyvale, CA 3 Andreessen Horowitz 71 Databricks, Lime, Samsara Networks Menlo Park, CA 4 Founders Fund 68 Flexport, SpaceX, RigUp San Francisco, CA 5 SOSV 66 Clara Foods, Particle, Prellis Biologics Princeton, NJ 5 Google Ventures 66 Lime, Lemonade, Impossible Foods Mountain View, CA Source: PwC / CB Insights MoneyTree™ Report Q4 2019 109 Most active VCs in Q4 2019 Founders Fund takes the lead in Q4’19 Investor Deals Select investments Location 1 Founders Fund 22 Faire, Tmunity Therapeutics, Ghost Locomotion San Francisco, CA 2 Andreessen Horowitz 17 Databricks, Instabase, Tmunity Therapeutics Menlo Park, CA 2 Accel 17 Freshworks, Algolia, Galileo Financial Technologies Palo Alto, CA 4 Sequoia Capital 15 Bird Rides, Cerebras, Gong Menlo Park, CA 5 Plug and Play Ventures 14 Truebill, ZecOps, MediView XR Sunnyvale, CA 5 Lightspeed Venture Partners 14 Faire, Pensando Systems, BlueVine Menlo Park, CA 5 New Enterprise Associates 14 Bright Health, Databricks, Instabase Menlo Park, CA Source: PwC / CB Insights MoneyTree™ Report Q4 2019 110 Global regional comparison - 2019 Deals 6,366 $113B North America 5,295 $63B Asia 3,345 $32B Europe 15,564 Deals $213B Invested Globally Source: PwC / CB Insights MoneyTree™ Report Q4 2019 111 Global regional comparison – Q4’19 Deals 1,432 $24.2B North America 1,381 $13.5B Asia 842 $7.1B Europe 3,803 Deals $46.1B Invested Globally Source: PwC / CB Insights MoneyTree™ Report Q4 2019 112 Global deal activity: North America, Asia, and Europe Europe & Asia deals rise, North America sees decline in activity # of deals: North America Asia Europe 1,781 1,888 1,694 1,564 1,598 1,734 1,602 1,432 1,318 1,657 1,672 1,366 1,280 1,254 1,380 1,381 801 828 749 817 827 875 801 842 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Source: PwC / CB Insights MoneyTree™ Report Q4 2019 113 $24 $26 $30 $41 $28 $32 $29 $24 $21 $24 $22 $22 $19 $14 $16 $14 $6 $6 $5 $5 $8 $9 $8 $7 Q1’18 Q2’18 Q3’18 Q4’18 Q1’19 Q2’19 Q3’19 Q4’19 Global dollar funding: North America, Asia, and Europe Overall financing declines around the world Investments ($B): Europe Asia North America Source: PwC / CB Insights MoneyTree™ Report Q4 2019 114 Largest global deals of 2019 SoftBank Group invests in 4 out of the 5 top deals in 2019 Company Investment Round Select investors Vertical 1 Chehaoduo Beijing, China $1.5B Series D SoftBank Group Internet eCommerce Auto 2 Grab Mumbai, India $1.45B Series E+ Softbank Group Internet Internet Software & Services Supply Chain & Logistics 3 OneWeb London, UK $1.3B Series D Airbus Ventures, Qualcomm Ventures, SoftBank Group Mobile & Telecommunications Telecom Services Cable & Satellite 4 Beike Zhaofang Beijing, China $1.2B Series D New Horizon Capital, Tencent Holdings Internet Internet Software & Services Real Estate 5 Cruise Automation San Francisco, USA $1.15B Other General Motors, Honda Motor Co., Softbank Group Automotive & Transportation Automobile Parts Note: Mega-rounds are $100M deals or larger Source: PwC / CB Insights MoneyTree™ Report Q4 2019 115 Largest global deals of Q4 2019 Q4’19 sees one $1B mega-round Company Investment Round Select investors Vertical 1 One97 Communication Noida, India $1.0B Series E+ Ant Financial Services Group, Discovery Capital, SoftBank Group Mobile & Telecommunications Mobile Software & Services Payments 2 Greensill London, UK $655M Other Softbank Group Financial Lending Commercial 3 Bright Health Minneapolis, USA $635M Series D Bessemer Venture Partners, New Enterprise Associates, Redpoint Ventures Healthcare Healthcare Plans 4 Chime San Francisco, USA $500M Series E+ Access Technology Ventures, Coatue Management, Menlo Ventures Mobile & Telecommunications Mobile Software & Services Accounting & Finance 5 ironSource Tel Aviv, Israel $430M Private Equity CVC Capital Partners Internet Internet Software & Services Application & Data Integration Note: Mega-rounds are $100M deals or larger Appendix PwC / CB Insights MoneyTree™ Report Q4 2019 Source: PwC / CB Insights MoneyTree™ Report Q4 2019 117 US States: Full listing of 2019 deals and investments State $M Deals State $M Deals State $M Deals State $M Deals Alabama 15 7 Indiana 183 54 Nebraska 54 21 Rhode Island 56 7 Arizona 308 46 Iowa 12 10 Nevada 40 11 South Carolina 57 19 Arkansas 20 4 Kansas 265 9 New Hampshire 95 10 Tennessee 388 49 California 58,146 2,311 Kentucky 120 11 New Jersey 1,191 58 Texas 2,973 267 Colorado 1,757 208 Louisiana 101 9 New Mexico 264 15 Utah 1,077 71 Connecticut 406 48 Maine 110 11 New York 16,052 842 Vermont 67 8 DC 311 27 Maryland 607 72 North Carolina 1,056 72 Virginia 694 100 Delaware 136 14 Massachusetts 9,170 464 North Dakota 37 2 Washington 2,800 211 Florida 1,226 95 Michigan 506 48 Ohio 802 78 Wisconsin 165 33 Georgia 1,113 88 Minnesota 908 57 Oklahoma 11 2 Wyoming 20 3 Hawaii 32 8 Mississippi 3 1 Oregon 698 43 Idaho 51 5 Missouri 357 46 Pennsylvania 1,561 127 Illinois 1,707 175 Montana 76 8 Puerto Rico 1 3 Source: PwC / CB Insights MoneyTree™ Report Q4 2019 118 US States: Full listing of Q4 2019 deals and investments State $M Deals State $M Deals State $M Deals State $M Deals Alabama - 1 Illinois 297 38 Montana 40 2 Pennsylvania 386 29 Arizona 23 12 Indiana 36 13 Nebraska 30 8 Rhode Island 24 3 Arkansas 7 2 Iowa 3 1 Nevada 4 2 South Carolina 24 7 California 11,610 525 Kansas 7 1 New Hampshire 21 5 Tennessee 31 11 Colorado 656 44 Louisiana 77 2 New Jersey 197 19 Texas 499 66 Connecticut 67 9 Maine 2 3 New Mexico 57 3 Utah 235 15 DC 154 10 Maryland 115 17 New York 2,998 176 Vermont 28 3 Delaware 32 3 Massachusetts 1,946 102 North Carolina 537 16 Virginia 126 18 Florida 146 20 Michigan 80 9 North Dakota 20 1 Washington 912 43 Georgia 74 15 Minnesota 775 16 Ohio 80 16 Wisconsin 86 10 Hawaii 4 2 Mississippi 3 1 Oklahoma 7 1 Idaho 5 1 Missouri 68 11 Oregon 450 12 119 What is included: • Equity financings into private companies. Fundings must be to VC-backed companies, which are defined as companies that have received funding at any point from: venture capital firms, corporate venture arms, or super angel investors. • Fundings of private companies only. Funding rounds raised by public companies of any kind on any exchange (including Pink Sheets) are excluded from our numbers, even if they received investment from a venture firm. • Only includes the investment made in the quarter for tranched investments. If a company does a second closing of its Series B round for $5M and previously had closed $2M in a prior quarter, only the $5M is reflected in our results. • Round numbers reflect what has closed, not what is intended. If a company indicates the closing of $5M out of a desired raise of $15M, our numbers reflect only the amount which has closed. • Only verifiable fundings are included. Fundings are verified via (1) various federal and state regulatory filings; (2) direct confirmation with firm or investor; (3) press release; or (4) credible media sources. • Equity fundings to joint ventures and spinoffs/spinouts are included, given that they meet the VC-backed criteria. • Geography note: Israel funding figures are classified in Asia. What is excluded: • No contingent funding. If a company receives a commitment for $20M subject to hitting certain milestones but first gets $8M, only the $8M is included in our data. • No business development/R&D arrangements, whether transferable into equity now, later, or never. If a company signs a $300M R&D partnership with a larger corporation, this is not equity financing nor is it from venture capital firms. As a result, it is not included. • No buyouts, consolidations, or recapitalizations. All three of these transaction types are commonly employed by private equity firms and are tracked by CB Insights. However, they are excluded for the purposes of this report. • No private placements. These investments, also known as PIPEs (Private Investment in Public Equities), are not included even if made by a venture capital firm. • No debt/loans of any kind (except convertible notes). Venture debt or any kind of debt/loan issued to emerging, startup companies, even if included as an additional part of an equity financing, is not included. If a company receives $3M with $2M from venture investors and $1M in debt, only the $2M is included in these statistics. • No non-equity government funding. Grants or loans by the federal government, state agencies, or public-private partnerships to emerging, startup companies are not included. • No fundings to subsidiaries of a larger parent corporation. PwC (pwc.com/moneytree) 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). Methodology MoneyTree definitions 120 Disclaimer 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 January 3, 2020. 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. © 2020 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. Q4 2019 Shaking the MoneyTree™ Appendix PwC / CB Insights MoneyTree™ Report Q4 2019
