Key Trends Shaping the Rapid Growth of the Venture Capital Industry.ppt

1、,VC in the OC Venture Capital Industry Update and Outlook September 17, 2008 Mark G. Heesen President,Venture Capital Barely a macroeconomics rounding error in the world of US finance.,US Venture Capital Investment in Perspective,US GDP $12.5 trillion annually Hedge fund intake $1.5 trillion over la

2、st 3 years estimated Buyout equity intake $168 billion in 2007 Mutual fund intake $92 billion in 2007 Venture capital intake $37 billion in 2007 Venture capital fundraising Recently 20-23% of Peak; Recent Steady Increases,Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree

3、Report, Data: Thomson Reuters,Most Recent Quarters Have Been Consistent What is the “Right” Level?Some Recent Growth,Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree Report, Data: Thomson Reuters,In 1H 2008, Life Sciences drew 28% of Funding but Medical Devices comprises

4、 an ever-growing proportion,Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree Report, Data: Thomson Reuters,Clean Technology grows significantly:In First Half 2008, $1.8B in 125 Deals,Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree Report, Da

5、ta: Thomson Reuters,Average Clean Tech Deal Size is Increasing,Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree Report, Data: Thomson Reuters,Number of First Time Fundings (New Projects) is At Post-Bubble High!,Source: PricewaterhouseCoopers/National Venture Capital Asso

6、ciation MoneyTree Report, Data: Thomson Reuters,California and the OCStats and Sectors ,Combined LA+OC Tracks Well to National Trends, 2008 on Pace for Highest Post Bubble Year,Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree Report, Data: Thomson Reuters,Investment in C

7、A by County(By $ Invested Most Recent 8 Qtrs),Southern Cal Sector Splits:Bio LA+OC Very Strong in 2Q 2008!,Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree Report, Data: Thomson Reuters,The Exit Scene - the importance of acquisitions has become clear over the past severa

8、l years,IPO Levels Were Good in 2004 and Okay in 2007; Awful Now,Source: Thomson Reuters/National Venture Capital Association,The Most IPOs Were in 1996 2008 is Awful,Source: Thomson Reuters/National Venture Capital Association,IPOs YTD 2008: Bleak!,Only 5 IPOs in Q1 and 0 in Q2! Last zero IPO quart

9、er was in 1978 30 years ago! IPO in context: Approached 90/quarter in 1999 25/quarter is typical 35/quarter suggested by historical levels 1,000 new port cos/year x 14% historical IPO rate = 140/year,Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree Report, Data: Thomson

10、Reuters,Whats in the IPO Pipeline?IPOs During Period and Registration Counts at Period End,Source: Thomson Reuters/National Venture Capital Association,VB Acquisition Counts had been Steady; Low in 2008,Source: Thomson Reuters/National Venture Capital Association,M Now low,Source: Thomson Reuters/Na

11、tional Venture Capital Association,Venture Exit Counts- IPOs and M&A by Year - 2008 is Dismal!,Source: Thomson Reuters/National Venture Capital Association,Public PolicyBig Wins and Bigger Challenges,No one has repealed the business cycle or the nature of failure ,Key US VC building blocks .,Capital

12、 formation Prudent man rule enabled pension investment LP laws Capital gains tax reduction Empowered entrepreneurs Capital gains tax reductions Stock options/team building tools Reasonable bankruptcy laws Protect companies IP laws Abundant customers willing to do business with SMEs Exit markets the NASDAQ Face-to-face investing/proximity Cultural acceptance,For First Fundings From 1991 to 2000, Approximatel