mattermark startup investor benchmarking analysis - november 2013

MATTERMARKSTARTUP INVESTOR PORTFOLIO BENCHMARKING

!NOVEMBER 4, 2013

METHODOLOGY NOTES: THE MATTERMARK SCORE IS CALCULATED BASED ON THE LIFETIME AVERAGE WEEK-OVER-WEEK

GROWTH OF WEB TRAFFIC, MOBILE DOWNLOADS, INBOUND LINKS, TWITTER, FACEBOOK AND LINKEDIN FOLLOWERS.

copyright Mattermark, all rights reserved www.mattermark.com

http://www.mattermark.com

Since we launched in June 2013, one of the most frequently asked questions has been:

!

When will you start scoring investors? !!!

With more than 6 months of data on startups in investors’ portfolios, we are ready to begin experimenting.

!This analysis explores some of the factors that need to

be considered for benchmarking VCs.



The Simplistic Score: Average Mattermark Score of All Active

Portfolio Companies



Rothenberg VenturesFunders Club

Union Square VenturesLerer Ventures

Version One VenturesAndreessen Horowitz

Trinity VenturesDraper Fisher Jurvetson

Correlation VenturesFoundry Group

SV AngelFirst Round Capital

Index VenturesFelicis Ventures

FloodgateY Combinator

MaveronUpfront Ventures

500 StartupsFreestyle CapitalGeneral Catalyst

Accel PartnersRRE Ventures

Greylock PartnersTenaya Capital

SoftTech VCRelay Ventures

TechstarsTrue Ventures

BenchmarkSequoia

Kleiner PerkinsNew Enterprise Associates

Charles River VenturesFlybridge Partners

Kima VenturesRedpoint

Foundation CapitalAugust Capital

Canaan PartnersGGV Capital

US Venture Partners

0 50 100 150 200 250 300 350 400 450 500

AVERAGE MATTERMARK SCORE OF PORTFOLIO



Investment Strategy #1 “Shots Against Goals”



500 StartupsSV Angel

Y CombinatorNew Enterprise Associates

TechstarsAccel PartnersKleiner Perkins

Draper Fisher JurvetsonSequoia

First Round CapitalAndreessen Horowitz

Index VenturesGreylock Partners

Canaan PartnersGeneral Catalyst

US Venture PartnersBenchmark Capital

RedpointLerer VenturesTrue VenturesKima Ventures

Charles River VenturesFelicis Ventures

RRE VenturesSoftTech

Trinity VenturesFoundation Capital

FloodgateFoundry Group

GGV CapitalFlybridge Capital Partners

August CapitalUnion Square Ventures

Tenaya CapitalRelay Ventures

Upfront VenturesCorrelation Ventures

Version One VenturesFunders Club

Rothenberg VenturesMaveron

Freestyle CapitalBaroda Ventures

Number of Companies in the Portfolio

0 50 100 150 200 250 300 350 400 450 500

NUMBER OF NON-EXITED STARTUPSAVAILABLE SHOTS AGAINST GOALS



Mitigating Risk on Large Portfolios: Balancing Downside



500 StartupsY Combinator

SV AngelNew Enterprise Associates

TechstarsAccel PartnersKleiner Perkins

Draper Fisher JurvetsonFirst Round Capital

Andreessen HorowitzSequoia

Index VenturesGreylock Partners

Lerer VenturesGeneral Catalyst

RedpointTrue Ventures

Benchmark CapitalFelicis VenturesKima Ventures

Canaan PartnersCharles River Ventures

RRE VenturesFloodgate

US Venture PartnersSoftTech

Foundation CapitalFoundry GroupTrinity Ventures

Union Square VenturesTenaya Capital

Flybridge Capital PartnersAugust Capital

Correlation VenturesRelay Ventures

GGV CapitalFunders Club

Upfront VenturesRothenberg Ventures

Version One VenturesMaveron

Freestyle CapitalBaroda Ventures

Number of Companies in Portfolio-200 -100 0 100 200 300 400

Below 0 - Not GrowingGrowing - Below AverageGrowing - Above Avearge


DISTRIBUTION OF PORTFOLIO GROWTH


Investment Strategy #2 “Pick Outperformers”



Freestyle CapitalUnion Square Ventures

FloodgateMaveron

Felicis VenturesFirst Round Capital

Lerer VenturesAccel Partners

Upfront VenturesFoundry GroupTenaya CapitalAugust Capital

RedpointRelay VenturesRRE Ventures

BenchmarkVersion One Ventures

SoftTech VCIndex VenturesKima Ventures

Greylock PartnersFoundation Capital

True VenturesFunders Club

TechstarsRothenberg Ventures

Charles River VenturesAndreessen Horowitz

Y Combinator500 Startups

Correlation VenturesDraper Fisher Jurvetson

SV AngelGGV Capital

SequoiaGeneral Catalyst

Flybridge PartnersCanaan PartnersKleiner Perkins

US Venture PartnersNew Enterprise Associates

33 / 33 / 33Trinity Ventures

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Growing - Above Avearge Growing - Below Average Below 0% OF PORTFOLIO BEATING PORTFOLIO AVERAGE



Indexing for a Balanced VC Portfolio Does a larger and more diverse portfolio

produce a higher overall score?



ACTIVE PORTFOLIO SIZE VS. AVERAGE SCOREAv

erag

e M

atte

rmar

k Sc

ore

-150

-75

0

75

150

225

300

375

450

525

600

Number of Companies in Portfolio

0 125 250 375 500

y = 0.3424x + 117.68R² = 0.0287



LEARN MORE & VIEW YOUR PORTFOLIO: WWW.MATTERMARK.COM


http://WWW.MATTERMARK.COM


mattermark startup investor benchmarking analysis - november 2013

Economy & Finance