Archive for the ‘VC-PE’ Category

2014 is a year full of tech IPOs & M&As in terms of dollar amount and number of deals. We are so eager to check out how VC market looked like in 2014. The final numbers for all US and regions are not out yet but you can find the latest summary from CB Insights and Pitchbook. Apparently I care more about how Massachusetts / Boston (MA) stacks up against the rest in the US.

2014 Redsox vs. Yankees

$ Invested — NY wins but MA is growing faster in 2014

According to the latest data, MA accounted for US$4.2B,  roughly 5% of the total global VC investment in 2014.  You can also see from the chart I composed below.  Bay Area is 5 to 6 times bigger than other regions in terms of VC investment $. But MA is the 3rd highest (not far behind Bay Area and NYC).

Based on CB Insights’s 9-month data through Oct 2014, we assume that the pace of deals continued till the end of 2014, MA’s deal run rate for 2014 would hit 272 to 300 while NYC would top 451-550. But if the run-rate holds, MA would grow 16.7%-18% YoY higher than NYC at 8.3%-9%.

(disclaimer: I guesstimate the # of deals info of MA based on the CB Insights Q3 2014 number)

2014 VC data across NYC, MA, LA, NW

Number of Exits and Biggest Exits — Massachusetts wins

In terms of total $ of VC-backed company exits, MA ($6.197B) tops NYC ($3.002B).  MA has 5 companies with $500M+ exit valuations.  Tumblr’s acquisition by Yahoo! was a big exit for NYC whereas MA-based Wayfair marked the biggest exit for the state – $3B.

2015-01-14 CB Insights - VC Exits across NYC, MA, LA, NW

2015 IPO Candidates — NYC wins but MA is not far from behind

NYC has brought lots of IPO candidates to 2015 from couple big funding deals happened in Q4 2014.  For example: WeWork (co-sharing space operator, headquarter in NYC) now valued at $5B after securing $355 million in its latest round on Dec 16, 2014. Also, Vice Media valued at $2.5B valuation after locking down $500M funding from AE Networks and other equity investors.

Actifio (B2B Big Data), the most well-funded company in MA/Boston, tops $208M funding at the end of Oct 2014. Although that is half of the funding size raised by WeWork and Vice, Actifio is poised for IPO with above $3-4B valuation in 2015.

CB Insights blog contributor says “This is an instance where quality of companies may not translate well to quantity of funding.”  Sometimes “paper valuations are not etched in stone.”

2015-01-14 CB Insights - VC Ready to Exit across NYC, MA, LA, NW

It’s important to know the difference of industry focus between MA/Boston and NYC. MA/Boston is traditionally known (still is) as the hub for B2B, Enterprise-y startups vs. NYC, a mix of fashion, media, ad tech. In recent years, MA/Boston has successfully proved its popularity and talents in consumer technologies, especially in the travel industry supported by the exits of Wayfair (IPO), (IPO), TripAdvisor (IPO), and (IPO and then bought by Priceline).

Also, over the past three years, 756 different VC firms have invested in the state, encompassing more than 900 deals. During the three-year stretch, Massachusetts’ IT sector has accounted for the largest portion of deal flow (42%); however, the majority of capital invested in the state (49%) has gone to healthcare companies, primarily in pharmaceuticals and biotechnology.

Of all the investors, 244 manage between $100 million and $1 billion of assets, and another 106 manage between $1 billion and $5 billion.

Top investors in Massachusetts over the past three years and their investment counts:

1. Atlas Venture (61)
2. General Catalyst Partners (33)
3. North Bridge Venture Partners (25)
4. Polaris Partners (24)
5. Boston Seed Capital (22)

For more information and a full list of VC in MA, please contact Pitchbook.


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