Startup Funding by the Numbers

STARTUPFONDNG By The Numbers INVESTMENT TIMELINE Startups don't necessarily take each type of funding. In fact, some successful companies have never taken any outside funding. A startup is, however, more likely to raise money from different sources depending on what stage it is in. IISII BOOTSTRAPPING FRIENDS AND ANGEL VENTURE CAPITAL IPO FAMILY ROUND INVESTMENTS Typically a larger sum than raised from The founders fund The first sale of Money from wealthy individuals who usually invest at an early stage in the company. the startup with their A small amount of stock by a private company to the public. angels, and often sourced from multiple investors. Each time the company raises money, it's called a new round or "Series." money that the founders raise from own money EXAMPLES: friends and family as either a loan or in exchange for equity. 37Signals, GitHub EXAMPLES: Linkedin, Pandora EXAMPLES: Forrst, Postling EXAMPLES: Tweetalicous, Of a Kind EXAMPLES: Twitter, Facebook VENTURE CAPITAL OVER TIME 233 NUMBER OF FUNDS 212 153 162 76 2007 2008 2009 2010 2011 VENTURE CAPITAL IN BILLIONS OF $ $30.74 2007 $25.81 2008 $13.35 2010 $16.19 $10.24 2009 2011 SOURCE: THOMSON REUTERS AND THE NATIONAL VENTURE CAPITAL ASSOCIATION (NVCA) NUMBER OF DEALS 8,000 6,000 4,000 2,000 '95 '97 '99 00. '01 '02 '04 '05 '06 '07 '10 '11 96. 80. 86. 60. 0. SOURCE: PRICEWATERHOUSECOOPERS/NATIONAL VENTURE CAPITAL ASSOCIATION MONEYTREE TM REPORT, VENTURE CAPITAL BY REGION* IN MILLIONS OF $ New England $1,817.60 NORTH CENTRAL NORTHWEST Colorado $184.52 $331.71 $277.96 Upstate NY $66.02 Sacramento/ N.Cal $54.86 NY Metro $1,239.74 MIDWEST $729.98 Silicon Valley $5,581.12 Philadelphia Metro Texas $217.41 $511.91 DCI San Diego $357.35 Metroplex $474.63 LAI Orange County $968.17 SOUTH CENTRAL $54.62 Alaska/Hawaii/ SOUTHWEST Puerto Rico $320.62 SOUTHEAST $.60 $659.27 *AS OF JUNE 2010 BIGGEST U.S. IPOS OF ALL TIME* VISA INC • March 18, 2008 $19.65 AT&T WIRELESS GROUP • April 26,2000 $10.62 KRAFT FOODS INC • June 12, 2001 $8.68 UNITED PARCEL SERVICE INC • November 9, 1999 $5.47 KKR PRIVATE EQUITY INVESTORS • May 3, 2006 $5.05 CIT GROUP INC • July 1, 2002 $4.87 BLACKSTONE GROUP LP • June 21, 2007 $4.75 CONOCO INC• October 21, 1998 $4.40 TRAVELERS PROPERTY CASUALTY CORP• March 21, 2002 $4.27 AGERE SYSTEMS INC • March 27, 2001 CHARTER COMMUNICATIONS INC • November 8, 1999 IN BILLIONS OF $** $4.14 $3.71 GOLDMAN SACHS GROUP INC • May 3, 1999 $3.66 PRUDENTIAL FINANCIAL INC • December 12, 2001 $3.48 METLIFE INC• April 4, 2004 $3.25 INFINITY BROADCASTING CORP • December 9, 1998 $3.18 SOURCE: THOMSON REUTERS DATA *AS OF JUNE 2010 ** NOT ADJUSTED FOR INFLATION TECH IPOS IN 2011 Andex Linked in $8.9 zipcar. $174.3 PANDORA $234 $1.3 million billion million billion TECH IPOS ON THE HORIZON GROUPON zynga facebook. Rumored valuation of Rumored valuation of Rumored valuation of $50-$100 billion $10-12 $1.5-2 billion billion SOURCE: THE WALL STREET JOURNAL, peHUB AND REUTERS Mashable Infographics Design by @DFosterGraphics, Research by Sarah Kessler