private investment in ct, a cvg second thursday, 11/14/13

CVG Upcoming EventsBoardroom Series – Building a Winning Digital Strategy

Wednesday, November 208:30-10:00 AM

Stamford

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4:30-7:00 PMFairfield University

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UConn Stamford

Private Investors in CT

2

Welcome

Scott C. NevinsPrincipal, Senior Investment Advisor

Three Minute Pitches

R. David Campbell

Steve Chainani

Kevin Bradshaw

3


4

MoneyTree ReportQ3 2013 Update

Brian TorchenPartner

Shaking the MoneyTreeTM

Q3 2013 Update

www.pwc.com

PricewaterhouseCoopers/National Venture Capital Association MoneyTreeTM Report based on data from Thomson Reuters

Presented by PwCBrian Torchen, Partner

PwC

About the report

• PricewaterhouseCoopers and the National Venture Capital Association produce the MoneyTree Report™ based on data from Thomson Reuters

• ‘Core’ measure of equity investments in venture-backed companies in the United States

• Companies have received at least one round of financing involving a professional VC firm or equivalent

• Captures: tranches, not term sheets, foreign VCs, qualified private placement

• Excludes: debt, bridge loans, recaps, roll-ups, IPOs, PIPEs, leasing, etc.

• MoneyTree™ Report in its 18th year

• Results online at www.pwcmoneytree.com and www.nvca.org

6

PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report,based on data from Thomson Reuters November 2013

PwC

Shaking the MoneyTreeTM - National

7November 2013

PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters

PwC

MoneyTree™ total investments: Q1 2008 – Q3 2013

8

2008 2009 2010 2011 2012 2013$0.0

$1,000,000,000.0

$2,000,000,000.0

$3,000,000,000.0

$4,000,000,000.0

$5,000,000,000.0

$6,000,000,000.0

$7,000,000,000.0

$8,000,000,000.0

$9,000,000,000.0

$8,087,560,700.0

$3,840,350,100.0

$5,079,748,400.0

$6,509,151,100.0$6,289,563,300.0

$6,004,090,000.0

$8,032,363,000.0

$5,100,191,200.0

$7,115,033,500.0

$8,187,501,200.0

$7,389,141,300.0$6,965,422,600.0

$7,658,284,400.0

$5,405,461,700.0 $5,420,970,500.0

$7,543,753,500.0

$6,630,512,600.0

$7,776,323,900.0

$6,190,988,900.0$5,907,356,000.0

$5,694,433,200.0

$7,404,918,200.0

$6,797,530,000.0

Q1 Q2 Q3 Q4

($ in billions)


2008 2009 2010 2011 2012 2013

# of Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

Deals 1,0581,1081,048 964 681 762 765 941 821 1,023 886 910 904 1,0811,015 991 876 979 937 1,034 906 956 1,005

November 2013

PwC

MoneyTree™ total investments

9

Annual venture capital investments 1982 – Q3 2013 YTD


19

82

19

83

19

84

19

85

19

86

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

YT

D Q

3 2

01

3

$0

$20

$40

$60

$80

$100

$120

$1

.5

$2

.8

$2

.9

$2

.8

$3

.1

$3

.4

$3

.4

$3

.3

$2

.8

$2

.2

$3

.6

$3

.7

$4

.1 $8

.0

$1

1.3

$1

5.0 $2

1.5

$5

4.9

$1

05

.1

$4

1.0

$2

2.2

$1

9.7

$2

3.3

$2

3.6

$2

7.6

$3

2.0

$3

0.0

$2

0.3

$2

3.3

$2

9.6

$2

7.1

$2

0.7

($ in billions)

November 2013

PwC

MoneyTree™ investments by region – Quarterly percent of total U.S. investments

10

Silicon Valley New England NY Metro LA/Orange County DC/Metroplex0%

10%

20%

30%

40%

50%

41%

13%

8% 7%

3%

40%

13% 12%

7%

1%

38%

12%10%

6%5%

42%

12%10%

6% 6%

46%

11%9%

6% 6%

(% of total dollars)

Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13

Top 5 U.S. regions – Q3 2012 – Q3 2013

PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters November 2013

PwC

MoneyTree™ investments by industry – Quarterly percent of total U.S. investments

11

0%

5%

10%

15%

20%

25%

30%

35%

40%

30%

18%

7% 7% 8%

33%

19%

9%

6% 6%

38%

15%

9% 9%

4%

33%

20%

7% 9% 9%

46%

11%

7% 7% 6%

Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '1346%

(% of Total Dollars)

Top 5 Industries – Q3 2012 – Q3 2013


PwC

$146

$2,709

$2,609

$2,313

Seed Early StageExpansion Later Stage

MoneyTree™ investments by stage of development: Q3 2013

12


Q3 2013 Total Investments - $7,776 million in 1,005 deals

Stage of Development# of

Deals

% Change in $ from Q2 2013

Seed 48 -4%

Early Stage 538 7%

Expansion 235 21%

Later Stage 184 9%

Total 1,005

($) in millions

November 2013

PwC

Amount Invested by Stage ($M)

US investments by stage – Quarterly Q3 2011 – Q3 2013

Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '130

2,000,000,000

4,000,000,000

6,000,000,000

8,000,000,000

$228,553,700$207,140,000$185,403,400$284,697,600$182,921,200$166,910,300$206,957,800$151,891,100$145,840,100

$2,229,106,800$2,508,311,400$1,938,728,700

$2,167,474,400$1,902,638,600$2,096,752,400

$1,538,569,000$2,530,016,500$2,708,903,500

$2,576,525,300$2,545,666,400

$1,796,951,300

$2,769,592,500

$2,580,082,100$2,308,250,500

$2,050,134,900

$2,152,728,800$2,608,659,300

$2,509,567,700$2,143,800,400

$2,368,479,900

$2,167,376,800

$1,964,870,700$2,225,616,800

$2,208,428,300

$2,130,786,200

$2,312,921,000

Seed Early Stage

November 201313


PwC

US investments by stage – Quarterly Q3 2011 – Q3 2013

Number of Deals by Stage

Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '130

100

200

300

400

500

600

700

800

900

1,000

1,100

115 109 64 88 72 66 52 43 48

404 442

356

443424

493414

498 538

280 244

223

252249

254

236

224235

216 196

233

196192

221

204191

184

November 201314


PwC

Shaking the MoneyTreeTM - Connecticut

15November 2013


PwC

MoneyTree™ total investments

16

CT annual venture capital investments 1995 – Q3 2013 YTD


19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

$100

$1,000

$1

41

.3

$1

46

.0

$2

70

.0 $3

45

.2

$8

89

.2

$1

,55

0.8

$6

08

.1

$1

91

.9

$2

23

.6

$2

51

.6

$2

09

.6

$2

89

.0

$2

71

.0

$2

36

.1

$1

90

.2

$1

33

.2

$1

57

.8

$1

52

.6

$1

29

.0

($ in millions)

November 2013

$1

,55

0.

8

PwC

MoneyTree™ total investments - ConnecticutTotal CT annual venture capital investments 2004 to Q3 2013

17November 2013

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

$0

$50

$100

$150

$200

$250

$300

$2

51

.6

$2

09

.6

$2

89

.0

$2

71

.0

$2

36

.1

$1

90

.2

$1

33

.2 $1

57

.8

$1

52

.6

$1

29

.0

($ in millions)


PwC

MoneyTree™ total investments - ConnecticutTotal CT annual venture capital deals 2004 to Q3 2013

18November 2013

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

0

10

20

30

40

50

60

70

38

34

30

36

42

42

62

57

50

40

# of Deals


PwC

MoneyTree™ total investments - ConnecticutTotal CT annual venture capital deals 2004 to Q3 2013– by region

19November 2013

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013$0

$50

$100

$150

$200

$250

$300

Waterbury, CT

Unknown

Stamford-Norwalk, CT

New London-Norwich, CT-RI

New Haven-Meriden, CT

Hartford, CT

Danbury, CT

Bridgeport, CT

Other

($ in millions)


PwC

MoneyTree™ total investments - ConnecticutTotal CT annual venture capital deals 2004 to Q3 2013– by region

20November 2013

# of deals

2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

10

20

30

40

50

60

70

Waterbury, CTOtherStamford-Norwalk, CTNew London-Norwich, CT-RINew Haven-Meriden, CTHartford, CTDanbury, CTBridgeport, CT


PwC

MoneyTree™ total investments - ConnecticutVenture capital investments by stage of development 2004 to Q3 2013 Total CT- $

21November 2013

2004 2005 2006 2007 2008 2009 2010 2011 2012 20130.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

14

.8%

36

.1%

11

.2%

33

.6%

73

.5%

74

.1%

37

.0%

13

.6%

44

.4%

39

.2%

85

.2%

63

.9%

79.5% 66

.4%

72.9% 74.3% 63

.0%

86

.4%

55

.6%

60

.8%

20.1% 14.8%

39.2%

35.8%

34.3%36.7%

35.7% 31.0%

38.7%

33.6%

Seed + Early Expansion + Later Later only

$ as % of total


PwC

MoneyTree™ total investments - ConnecticutVenture capital investments by stage of development 2004 to Q3 2013Total CT- Deals

22November 2013

2004 2005 2006 2007 2008 2009 2010 2011 2012 20130.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

23

.7%

26

.5%

23

.3%

50

.0%

61

.9%

61

.9%

54

.8%

56

.1%

50

.0%

52

.5%

76

.3%

73

.5%

76

.7%

50

.0%

38

.1%

38

.1%

45

.2%

43

.9%

50

.0%

47

.5%

15.8%

29.4%

33.3%

19.4%19.0%

16.7%

24.2%22.8%

16.0%

27.5%

Seed + Early Expansion + Later Later only

Deals as % of total


PwC

$0.15

$22.0

$25.0

$12.0

Seed Early StageExpansion Later Stage

MoneyTree™ investments by stage of development Q3 2013 - Connecticut

23


Q3 2013 Total CT Investments - $59.1 million in 11 deals

Stage of Development# of

Deals

Seed 1

Early Stage 5

Expansion 1

Later Stage 4

Total 11

($) in millions

November 2013

PwC

MoneyTree™ investments by industry – Quarterly percent of total CT investments

24

Software Biotechnology Medical Devices and Equipment

Industrial/Energy IT Services0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

8%

35% 33%

1%

22%

8%

84%

1%5%

1%

27%

51%

12%

0%

7%

23%

39%

11%6% 5%

13%

28%

0%

7%

42%

Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13(% of Total Dollars)

Top 5 Industries – Q3 2012 – Q3 2013


PwC

MoneyTree™ – Connecticut Q3 2013 investments summary

• 11 Companies funded in Q3’13

• Range of deals $150k to $25.0 million

• 3 Computer Software companies, 3 Med Device/BioTech, 1 Financial Services, 2 Industrial/Energy, 1 Media/Entertainment, 1 IT Services

• 7 Connecticut Innovations investments (3 co-invested)

• CT investments represent 0.76% of national investments in Q3’13 (compared to 0.59% of national 2012 investments)

25November 2013



Moderator

Bruce BlasnikPartner

5

Panelists

Steven WendlerManaging Director of Investment Banking

Ed GoodwinBoard Member


6

Brian Torchen

7


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