TECH CITIES 1.0

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• Top investments by industry in 2016 were software, pharma & biotech, health care devices & supplies,
commercial services, and health care services & systems.
• Regarding funding stages, it was somewhat of a mixed bag:
--The average VC round for the angel/seed category has climbed each year since 2011; the number of deals,
however, did decline from 2015 to 2016.
--The average size of early-stage VC funding climbed in 2016 as well; like the angel/seed category above, though,
the number of deals declined.
--Regarding later stage VC funding, both the average size of the deal and the number of deals declined in 2016.
It was the first year-over-year decline in size since 2013.
• VC-backed exits were down from 2015 to 2016 across all major methods — whether acquisition, IPO, or buyout.
Total exits fell to 1,152 from 1,507 year-over-year.
One or two major
VC transactions can
greatly influence the
activity by quarter –
a lack of major deals
in Q4 2016 resulted
in a sharp decline.
Venture Capital Funding
U.S. HISTORICAL VC FUNDING
Source: PitchBook
$0
$5
$10
$15
$20
$25
Q1 2007Q3 2007Q1 2008Q3 2008Q1 2009Q3 2009Q1 2010Q3 2010Q1 2011Q3 2011Q1 2012Q3 2012Q1 2013Q3 2013Q1 2014Q3 2014Q1 2015Q3 2015Q1 2016Q3 2016Q1 2017
Deal Value ($B)
$9.3B
$16.7B
$14.1B
$6.4B
$19.9B
$23.4B