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Stand Up, Start Up

STAND UP, START UP During a grim recession, many fear it's the worst time to start a business. In reality, this may not be the case. Because venture capitalists work on long fundraising timeframes and deal in liquid money, venture capital funds stay safer than other institutions. The following explores the venture capitalist touch and how they use their funding dollars to help grow businesses. The Startup Economy 730 735 How Much Did Venture Capitalists Invest? (First Quarter 2009 to Fourth Quarter 2010) 715 678 687 613 612 483 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 10 04 '10 With $6.5 billion in investments and 735 deals, Q4 tops 2010 and is the highest of the last consecutive 8 quarters. # of Deals Funding (In Billions) What Stage Did They Invest in? The early stage Series A and Series B businesses remain the largest group of recipients of deals and funding, but seed-stage businesses are also beginning to see some growth, with a 10% increase from the beginning of the year. Together, these two types of businesses are taking the share away from mid-to-later stage financing. Venture Capital Investment By State (Fourth Quarter 2009 to Fourth Quarter 2010) % of Funding Q4 2009 a1 2010 I Series E+ Series D I Series CI Series B I Series A I Seed 02 2010 | Shares of Venture Capital Deals 26% 11% 23% 10% 14% 28% 31% 6% Q4 '09 03 2010 23 % Q1 '10 10% 19% 27% 28% 6% 03 2010 12% 18% 24% 33% 9% Q2 '10 10% 8% 15% 24% 33% 11% Q3 '10 I California 7% 18% 22% 36% 11% 04 10 IMassachusetts 12% I New York | Shares of Venture Capital Funding 15% Texas 16% 16% 21% 26% 20% 04 '09 IWashington Q1 '10 19% 15% 19% 34% 14% 12% Other 6% Q2 10 23% 32% 22% 17% 1% The Big Three California, Massachusetts and New York-the states that routinely receive the most venture capital attention-accounted for a combined 69% of funding in the first quarter, but dipped to 15% by the end of this year. 16% 12% 21% 32% 20% 1% Q3 '10 16% 20% 28% 20% 15% 1% 04 '10 |What Sectors Did They Invest In? 1Other Mobile & Telecomm. I Computer Hardware & Services I Software Energy & Utilities I Internet Healthcare Inner Ring: % of Deals Outer Ring: % of Funding 00000 14% 14% 12% 15% 24% 22% 24% 28% 6% 33% 16% 33% 7% 14% 5% 13% 16% 20% 17% 25% 24% 23% 8% 4% 26% 24% 10% 9% 4% 04 "09 4% Q1 10 8% Q2 '10 4% Q3 '10 4% 8%, Q4 '10 3% 6% 8% 7% 10% 8% 7% 33% 30% 4% 38% 7% 33% 6% 8% 6% 4% 37% 8% 5% 21% 7% 17% 28% 9% 23% 27% 15% 39% A Closer Look at the Internet Scene In recent years, the Internet sector has dominated, both in total number of deals as well as total amount of funding. Why? With intangible web-based services and products, tech startups have comparatively low operating costs, and look more attractive to investors. Top Cities for the Internet Industry With Chicago-based company Groupon closing a $950 million round of financing earlier this year, it helped the American city rise as the premier location for local and global investors in the Internet industry. Internet Venture Capital Funding by Industry Over the last quarter, investment in online discount sites made its mark, with 26% of the total funding dollars in the Internet industry. Investments in social-related sites also grew by almost 15% over the last quarter. 13% 24% 18% 1%. 26% 3) New York, NY 38 deals | $244M 11% 1% 2) San Francisco, CA 36 deals | S398M 2% 2% 11% 1) Chicago, IL 7 deals | $540M 24% 4) Washington, DC 3 deals | $204M 8% 3% 5% 3% 6% 6% 5) Austin, TX Q3 '10 Q4 '10 8 deals | $102M IAdvertising, Sales & Marketing I Business Intelligence, Analytics & Performance Mgmt. I Social I Information Providers I Discount I Social IAdvertising Sales & Marketing I Business. Intelligence, Anaytics & Perfromance Mgmt I Video IGaming Data Storage I Data & Document Management I Health & Wellness Conferencing & Communication # of Deals | $ Funding Portals IVideo IHealthcare I Health & Wellness I Content Management Collaboration & Project Management Data Storage IEducation & Training I Data & Document Management Twitter The popular microblogging site received a considerable round of funding in December 2010, to the reported tune of $200 million. This more than triples its valuation from the year before, to reach nearly $4 billion. I Informantion Providers & Portals IeCommerce Enablement IeCommerce Enablement IApparel & Accesosories I Travel (internet) IContent Management All other All other | Notable Internet Deals in 2010 livingsocial twitter WHALE SHARK MEDI A GROUPON zynga Collective Buying Power FleetMatics Sources: CB Insights | TechCrunch.com | CNet.com

Stand Up, Start Up

shared by Angel on Dec 28
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This infographic explores the "venture capitalist touch" and how venture capitalist use their money to help businesses grow. It provides data and graphs to show where venture capitalist invested, in w...

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