The Silicon Valley Venture Capital Almanac - Amazon S3

155 Pages·2013·6.84 MB·English

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@svb_financial @orrickta
@glgshare @cbinsights
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We’ve had a front row seat to the rapid pace of growth in the
innovation sector in the Bay Area for 30 years. Working with some of
the most exciting companies and their investors in business today,
we’re thrilled and honored to play a role in strengthening the
environment for dynamic, innovative companies in the Bay Area and
around the world.

Technology and entrepreneurship is in the Bay Area’s DNA and the
region continues to attract talented and innovative startups and
entrepreneurs. The data presented in this report reflects our
experience and what we see on a day to day basis. Silicon Valley
continues to dominate the attention of tech investors and in 2013 is
on pace for a five-year high in venture capital deal and funding
activity.

Q3 2013 was the strongest quarter in Silicon Valley tech investment
since 2009, buoyed by huge deals for Uber, Palantir and Pure
Storage. The Internet sector continues to lead in terms of deal share,
but the mobile sector is on pace for a record high, taking nearly 1 in
every 5 deals in Silicon Valley in 2013 YTD.

We’re seeing an increase in new company formation nationally and
i nnovation and entrepreneurship are responsible for creating new
opportunities, jobs and wealth in every global location where SVB
has an office.

Companies in the Bay Area will still face challenges, such as finding
enough engineers; and there will always be the ups and downs of
business cycles, but we’re confident this is still one of the best areas
in the world to build and grow a company. The global technology
sector is growing, yet the Bay Area continues to be the hub.

Sincerely,
Bob Blee
Silicon Valley Bank, Palo Alto

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Orrick is pleased to co-sponsor CB Insights’ Silicon Valley Tech
Venture Capital Almanac. We are confident that you will find the SV
Tech VC Almanac to be a valuable resource in assessing trends in the
Silicon Valley venture community.

The Almanac contains an array of interesting data points, but there
are a few particular points that we wanted to highlight. First, the third
quarter of 2013 witnessed the highest number of deals and dollars
invested in Silicon Valley-based tech startups since 2009. Second,
both seed and late-stage deal share are growing. Indeed, it is not only
a good time to be forming new companies, but also a good time to be
sustaining and scaling existing businesses. Finally, mobile venture
capital deals continue to grow, accounting for nearly 20% of deals in
Silicon Valley thus far in 2013 and on pace to reach their highest
annual deal total since 2009.

As you will see in the Almanac, the Silicon Valley venture community
is strong and continues to grow. Over $31.5 billion has been invested
into Silicon Valley-based tech startups since 2009, and Silicon Valley
continues to dominate the attention of tech investors. Orrick is
extremely proud to be a part of this community.

Sincerely,
John V. Bautista
Partner, Emerging Companies group, Silicon Valley

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Gerson Lehrman Group (GLG) proudly supports the Silicon Valley
Venture Capital Almanac.

GLG started in 1998 in a one room office in New York and has been
through the ups and downs that most startups face. That is why we
recently launched GLG Share (www.glgshare.com), an easy way for
startups to build relationships with our membership – made up of
over 350,000 academics, executives, and policy experts – covering
every major industry and spanning the globe.

Since we started, our mission has been to transform the way the
world’s leading professionals gather and share expertise. In the
fifteen years since then, we have opened new offices – including
several in Silicon Valley – and facilitated over 1.5 million teaching and
learning projects.

Though our reach is truly global, the CB Insights data supports our
view that the fastest and most innovative growth is coming from
startups. As this report illustrates, since 2009, investors have
pumped more than $31.5B into Silicon Valley-based technology
startups and 2013 (which has been witness to huge deals) is shaping
up to be a five-year high in VC deal and funding activity.

That’s why we partner with numerous venture firms and their
portfolio companies as well as directly with growth companies, via
GLG Share. And that’s why we at GLG endeavor to build the richest
and most collaborative community of expertise for entrepreneurs to
support their growth.

Sincerely,
Alexander Saint-Amand
CEO

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Banking the world's most innovative companies and exclusive wineries, SVB's diverse financial services,
knowledge, global network, and world class service increase our clients' probability of success. With $23
billion in assets and more than 1,600 employees, we provide commercial, international and private
banking through 34 locations worldwide. Forbes Magazine ranks us among America's Best Banks and
Fortune considered SVB one of the best places to work. (Nasdaq: SIVB)

www.svb.com
Orrick’s Emerging Companies group represents more than 1,300 emerging companies worldwide.
Complimentary to our practice group is the TOTAL ACCESS Event Series which provides entrepreneurs
business, tactical, and legal education through complimentary panels and seminars. Presented by
experienced industry CEOs, venture capitalists, and Orrick lawyers, TOTAL ACCESS offers insights on
cutting-edge issues and an opportunity to network with leading professionals in the startup community
www.orrick.com/totalaccess
GLG Share provides startups with access to the Gerson Lehrman Group Councils, a global membership
of 350,000 professionals including senior and recently retired executives, academics, and policy and
regulatory experts – across industries. Startups use Share for advice and partnership on the strategic and
operational questions they face every day. Access to Share is currently by application only.

www.glgshare.com
CB Insights analyzes data on disruptive private companies and emerging industries to provide predictive
intelligence on startup health, corporate strategy, M&A and technology adoption trends.
www.cbinsights.com
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