PitchBook 2016 US Venture Ecosystem FactBook

SE AT TLE
NEW YORK
$8.4B VC invested
in Seattle-based startups
$64.4M: 1H 2016 late-stage premoney valuation
CHICAGO
$9.95B: total VC-backed exit
BOSTON
value since 2010
PHILADELPHIA
SAN FRANCISCO
WASHINGTON, DC
$203.8B AUM in SF MSA
AUSTIN
SAN JOSE
LOS ANGELES
SAN DIEGO
Most VC invested in 1st financings

ever in 2015: $324M
ATL ANTA
Credits & Contact

PitchBook Data, Inc.
JOHN GABBERT Founder, CEO
ADLEY BOWDEN Vice President,
Market Development & Analysis
Content
GARRET T JAMES BL ACK Senior Analyst
BRIAN LEE Senior Analyst
J ENNIFER SAM Senior Graphic Designer
NICK LINTON Graphic Designer
MORGAN THEL ANDER Editorial Intern
Contact PitchBook
pitchbook.com
Contents
RESE ARCH
reports@pitchbook.com
EDITORIAL
editorial@pitchbook.com
SALES
sales@pitchbook.com
Introduction & Ecosystem Size Ranking 4-5

San Francisco-Oakland-Fremont
6-8
New York-Northern NJ-Long Island
9-11
San Jose-Sunnyvale-Santa Clara
12-14
Boston-Cambridge-Quincy
15-17
Los Angeles-Long Beach-Santa Ana
18-20
Seattle-Tacoma-Bellevue
21-23
Washington, DC-Arlington-Alexandria
24-26
Austin-Round Rock
27-29
Chicago-Naperville-Joliet
30-32
San Diego-Carlsbad-San Marcos
33-35
Philadelphia-Camden-Wilmington
36-38
Atlanta-Sandy Springs-Marietta
39-41
Sample Use Cases
42-44
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Photos credit: Thomas Moskal, Wikimedia

Commons
3
P I TC H B O O K 201 6 U S V E N T U R E E CO S YS T E M : FAC T B O O K
How do we
analyze a VC
ecosystem?
Introduction
In any opaque investment marketparticularly venture capitalpersonal
networks are crucial, whether for purposes of exchanging capital, sharing
information or collaborating. Venture capital as an industry has been driven by
the evolution of such networks in urban settings, due to the practical benefits of
proximity and access to travel, among other urban-related factors. Accordingly,
its always been a goal for us at PitchBook to provide comprehensive datasets &
accompanying analysis on a regional level, lending greater insight into venture
trends at a more granular level. Quantifying an ecosystem is difficult, but by
breaking down relevant datasets and statistics by metropolitan statistical area
(MSA), its possible to get a better sense of how macro, national trends are
composed of a loose patchwork of local venture environments, not to mention
how those national trends may or may not hold on the micro scale. But where to
start?
M AKE WAY FOR
SMARTER,
ON-THE-FLY
MEETING
PREP
Introducing PitchBook
Mobile. The same
excellent data, technology
and service from the
PitchBook Platform, now
available on a mobile
device.
What made the most sense was to begin with a broad, macro view of VC activity
by MSA. Consequently, we have produced the largest PitchBook report ever:
over 40 pages of key VC and external datasets for the top 12 US MSAs (in terms
Available for
of overall deal flow). Down the road, we will develop frameworks for more inSearch:
PitchBook
depth scrutiny such as composite scores of each ecosystems health, as well as

datasets tailored to each MSAs unique attributes. Those endeavors will take
quite some time, hence why this first installment rather focuses on top-level
statistics with a brief section detailing potential use cases and a ranking of
ecosystems by size alone. Is every single relevant factor included? No, as that is
frankly impossible. This report is intended to serve as an introductory base on
which to build smaller, more analytically rigorous examinations of regional data
and potential correlations or causations between external and internal factors for
the venture industry. In large part, it is also meant as a jumping-off point for your
own analysis, as well as a potential reinforcement for what you already know
and/or have concluded.
As this is the inaugural installment of the series, we welcome your feedback and
questionsreach out to us at reports@pitchbook.com.
US +1 206.623.1986
UK +44 (0)207.190.9809
GARRET T JAMES BL ACK
demo@pitchbook.com
pitchbook.com
Senior Analyst
4
ECOSYSTEM
RANKINGS
7
11
1
2
5
12
9
10
MSA
Size of VC ecosystem,
ranked
Total VC funds raised

since 2006
Total VC invested since

2010
Total # of VC rounds
since 2010
San Francisco
#1
#1
$117.6 billion
#1
$101.4 billion
#1
9,710
#1
$90.8 billion
San Jose
#2
#4
$35.5 billion
#2
$43.3 billion
#3
4,152
#2
$63.5 billion
New York
#3*
#2
$43.6 billion
#3
$33.9 billion
#2
6,174
#4
$17.6 billion
Boston
#4
#3
$41.2 billion
#4
$30.7 billion
#4 3,664
#3
$28.7 billion
Los Angeles
#5
#9
$2.7 billion
#5
$21.3 billion
#5 3,403
#5
$11.2 billion
Seattle
#6
#5
$7.6 billion
#7
$8.4 billion
#6
1,717
#10
$6.7 billion
Chicago
#7
#7
$3.4 billion
#8
$8.3 billion
#9
1,348
#6
$9.95 billion
Washington, DC
#8
#6
$4.8 billion
#9
$8.2 billion
#7
1,416
#9
$7.4 billion
San Diego
#9
#11
$1.5 billion
#6
$9.4 billion
#10 1,317
#7
$8.7 billion
Austin
#10
#10
$1.9 billion
#10
$6.6 billion
#8
1,376
#12
$3.7 billion
Philadelphia
#11
#8
$3.0 billion
#12
$4.8 billion
#11 1,003
#11
$5.4 billion
Atlanta
#12
#12
$1.15 billion
#11
$5.0 billion
#12
#8
$7.8 billion
837
Total exit value since 2010
Source: PitchBook. *As of 6/30/2016. New York and San Jose technically tied but given San Joses exit value and VC invested we gave it second place.
Note: This ranking was generated by weighting capital raised, VC invested, VC activity and venture-backed exit value equally, tallying
up their ranking in each area, then summing and sorting from lowest to highest, with a lower score indicating a larger ecosystem. Is this
definitive? Hardlyyou can quibble over which metric is more representative of an ecosystems size, or point to additional factors that
are not included. But hopefully this table will provide food for thought as you go on to explore each MSA in detail in the pages below.
5
MSA
Total investor
AUM
Total VC funds
raised since
2006
# of current
unicorns
Total VC
invested since
2010
Total # of VC
rounds since
2010
Total exit
value since
2010
$203.8 billion
$117.6 billion
45
$101.4 billion
9,710
$90.8 billion
Source: PitchBook
*As of 6/30/2016
San Francisco MSA VC activity
$30
$25
Select local Fortune 500 companies
Deal value ($B)
# of deals closed
Angel/Seed
Early-stage VC
2,500
2,000
Late-stage VC
$20
1,500
$15
1,000
$10
656
$5
260
$0
146
2010
2011
2012
2013
2014
2015
500
0
2016*
Source: PitchBook
*As of 6/30/2016
Select high-growth startup
Sector
Total VC
raised to date
($M)
Growth rate
percentile
Select active investors
Outcome mgmt
$77.5
100
GE Ventures, Humana Ventures, Norwest

Venture Partners
B2C electronics
$42.9
96
Forward Partners, Temasek Holdings
Database
software
$3.1
99
Giesecke & Devrient, Plug & Play, Comerica

Source: PitchBook. *As of 6/30/2016
6
M E D I A N E M P LOY E E CO U N T
Median employee # at startups in San Francisco MSA by year of financing
20
15
2010
16
2011
16
2012
23
2013
20
2014
28
2015
2016*
Source: PitchBook
*As of 6/30/2016
Activity has slowed significantly in 2016 thus far

San Francisco MSA first venture financings
Deal value ($M)
Currently, many rounds still skew averages high

SF MSA median & average VC round size ($M)
$30
# of deals closed
683
733
Median
763
Average
$25.0
$25
694
$20
584
$18.4
$15
$10
350
223
$5.5
$5
$3.4
$733
$1,629
$1,404
$1,515
$1,815
$2,072
$743
$0
2010
2011
2012
2013
2014
2015
2016*
2010
2011
2012
2013
2014
2015
2016*
Source: PitchBook
*As of 6/30/2016
Source: PitchBook
*As of 6/30/2016
Select
statistics
Employment
2.3 million
Change in employment
2.9%
Median two-bedroom apartment rent,

San Francisco^
$4,650
Change in rent price, San Francisco*
-1.5%
Office lease median rate,

$ per square foot per year^
$77
Number of listings in the last 90 days^
661
$31.7
Annual mean wage,

computer & mathematical occupations**
$108,960
$6.3
$8.5
Change in pay,
full-time private industry employees***
3.5%
2015
2016*
SF MSA median pre-money valuation ($M) by stage

Angel/Seed
Early-stage VC
$153.4
Late-stage VC
$25.3
2010
2011
2012
2013
2014
$141.3
Source: PitchBook
*As of 6/30/2016
Sources: ApartmentList, BLS, PayScale, 42Floors

*July 2015-July 2016, **May 2015, ^July 2016
May 2016, May 2015-May 2016, ***2Q 2016
7
Select accelerators, incubators, & universities in SF MSA
Investors (#) active by HQ in San Francisco MSA
In MSA
Out of MSA
2,942
2,724
2,173
1,628
1,226
996
818
2015s most active investors by VC deals (#)

in San Francisco MSA
371
490
574
635
712
664
2010
2011
2012
2013
2014
2015
81
Andreessen Horowitz
45
Khosla Ventures
44
New Enterprise Associates
42
2010-2016* San Francisco MSA VC activity (#) by sector
Commercial Services
Kleiner Perkins Caufield & Byers
38
GV
36
Accel Partners
34
SV Angel
32
Greylock Partners
30
Data Collective
30
985
1,415
40
Consumer Goods &

Recreation
Energy
340
198
749
294
Healthcare
Services/Supplies/Systems
IT Hardware
527
Media
462
4,740
Pharmaceuticals and
Biotechnology
Software
Other
Source: PitchBook
Source: PitchBook
*As of 6/30/2016
San Francisco MSA VC-backed exits (#) by type
San Francisco MSA VC-backed exit activity

Exit value ($B)
250
# of exits
Acquisition
213
181
139
2016*
Source: PitchBook
*As of 6/30/2016
500 Startups
First Round Capital
329
188
IPO
Buyout
200
187
145
150
$5.3
$27.0
$10.1
$19.6
$11.3
$13.6
100
$4.0
87
50
2010
2011
2012
2013
2014
2015
2016*
Source: PitchBook
*As of 6/30/2016
2010
2011
2012
8
2013
2014
2015
2016*
Source: PitchBook
*As of 6/30/2016
New York-Northern New Jersey-Long Island

MSA
Total investor
AUM
Total VC funds
raised since
2006
# of current
unicorns
Total VC
invested since
2010
Total # of VC
rounds since
2010
Total exit
value since
2010
$97.8 billion
$43.6 billion
16
$33.9 billion
6,174
$17.6 billion
Source: PitchBook
*As of 6/30/2016
New York MSA VC activity

$10
$8
$6
Deal value ($B)
1,400
# of deals closed
Angel/Seed
1,200
Late-stage VC
1,000
Early-stage VC
800
$4
481
$2
230
600
400
200
164
87
$0
2010
2011
2012
2013
2014
2015
2016*
Source: PitchBook
*As of 6/30/2016
Sector
Total VC
raised to date
($M)
Growth rate
percentile
Educational
software
$2.2
99
Edovate Capital, Techstars, Kaplan EdTech

Accelerator
Business
software
$17.1
91
Bessemer Venture Partners, CrunchFund,

Canaan Partners
9
Select
statistics
Employment
9.52
million
1.5%
Median two-bedroom apartment rent, New York^
$4,600
Change in rent price, New York*
0.2%
Office lease median rate, $ per square foot per year^
$67
2,645
Annual mean wage,

$97,570
Change in pay, full-time private industry employees***
2.3%
Select accelerators, incubators, & universities in NY

MSA

May 2016, May 2015-May 2016, ***2Q 2016
Indicating a dose of caution, first financings are down

NY MSA first venture financings
2010-2016* NY MSA VC activity (#) by sector
Commercial Services
Deal value ($M)
629
# of deals closed
1,049
531
518
478
791
460
59
264
88
357
Consumer Goods &

Recreation
Energy
Healthcare
IT Hardware
Media
571
190
2,701
266
$491
$670
$642
$817
$1,873
$1,314
$408
167
2010
2011
2012
2013
2014
2015
2016*
Source: PitchBook
*As of 6/30/2016
NY MSA median pre-money valuation ($M) by stage
Other
Source: PitchBook
*As of 6/30/2016
Disparity suggests increased vetting of prospects

NY MSA median & average VC round size ($M)
$10
$140
Angel/Seed
Early-stage VC
$120
Median
$9
Late-stage VC
$114.7
Pharmaceuticals and
Biotechnology
Software
$9.5
Average
$8.6
$8
$7
$100
$6
$80
$64.4
$60
$5
$4
$3.0
$3
$40
$23.4
$20
$27.0
2011
2012
2013
2014
$2
$1
$5.6
$6.5
2015
2016*
$0
2010
$2.0
$0
2010
2011
2012
Source: PitchBook
*As of 6/30/2016
10
2013
2014
2015
2016*
Source: PitchBook
*As of 6/30/2016
Median employee # at startups in New York MSA by year of financing
26
16
2010
15
2011
30
2012
18
2013
17
2014
21
2015
2016*
Source: PitchBook
*As of 6/30/2016

in New York MSA
Investors (#) active by year, HQ in NY MSA

In MSA
Out of MSA
1,841
Lerer Hippeau Ventures
29
Social Starts
24
500 Startups
21
General Catalyst Partners
20
Thrive Capital
19
Greycroft Partners
17
RRE Ventures
16
192
Great Oaks Venture Capital
16
2016*
15
New York Angels
15
1,599
1,321
1,041
793
753
531
181
236
276
336
2010
2011
2012
2013
379
362
2014
2015
Source: PitchBook
*As of 6/30/2016.
15
BoxGroup
Source: PitchBook
NY MSA VC-backed exit activity

Exit value ($B)
NY MSA VC-backed exits (#) by type

120
# of exits
107
96
95
Acquisition
IPO
Buyout
100
92
Source: PitchBook
*As of 6/30/2016
80
51
55
45
60
$2.1
$2.4
$3.0
$3.6
$2.5
$2.9
$1.1
40
2010
2011
2012
2013
2014
2015
2016*
Source: PitchBook
*As of 6/30/2016
20
0
2010
2011
11
2012
2013
2014
2015
2016*

MSA
Total investor
AUM
Total VC funds
raised since
2006
# of current
unicorns
Total VC
invested since
2010
Total # of VC
rounds since
2010
Total exit
value since
2010
$89.7 billion
$35.5 billion
14
$43.3 billion
4,152
$63.5 billion
Source: PitchBook
*As of 6/30/2016
San Jose MSA VC activity
$12
$10
Deal value ($B)
# of deals closed
Angel/Seed
Early-stage VC
1,000
800
Late-stage VC
$8
600
$6
400
$4
247
$2
106
74
67
$0
2010
2011
2012
2013
2014
2015
200
0
2016*
Source: PitchBook
*As of 6/30/2016
Sector
Total VC
raised to date
($M)
Growth rate
percentile
QuantumScape
Energy storage
$146.3
98
Khosla Ventures, KPCB, Lightspeed Venture

Partners
Application
software
$29.9
97
Walden International, Alloy Ventures, HighBAR

Partners
12
Median employee # at startups in San Jose MSA by year of financing
22
20
2010
35
2011
21
2012
2013
25
22
2014
34
2015
2016*
Source: PitchBook
*As of 6/30/2016
Select
statistics
Employment
1.1 million
3.7%
Median two-bedroom apartment rent, San Jose^
$2,670
Change in rent price, San Jose*
0.3%
$48
768
Annual mean wage,

$128,850
N/A

May 2016, May 2015-May 2016, ***2Q 2016
Select accelerators, incubators, & universities in San

Jose MSA
2010-2016* San Jose MSA VC activity (#) by sector
Commercial Services
527
San Jose MSA first venture financings

# of deals closed
305
328
288 53
116
369
Deal value ($M)
283
479
Healthcare
IT Hardware
Media
237
231
Consumer Goods &

Recreation
Energy
2,080
164
154
86
Pharmaceuticals and
Biotechnology
Software
Other
$549
$610
$732
$762
$770
$556
$212
61
2010
2011
2012
2013
2014
2015
2016*
Source: PitchBook
*As of 6/30/2016
13
Source: PitchBook
*As of 6/30/2016
Even the median round in San Jose is still quite high

San Jose MSA median & average VC round size ($M)
San Jose MSA median pre-money valuation ($M) by

stage
$18
$100
Median
$16
$16.9
Average
Angel/Seed
$90
$13.7
$14
Early-stage VC
$84.8
Late-stage VC
$80
$89.8
$70
$12
$60
$10
$50
$8
$7.0
$6
$30
$4.2
$4
$40
$28.5
$26.5
$20
$2
$10
$0
$9.1
$7.0
$0
2010
2011
2012
2013
2014
2015
2016*
2010
2011
2012
2013
2014
Source: PitchBook
*As of 6/30/2016
Out of MSA
1,324
22
Formation 8
16
Lightspeed Venture Partners
15
AME Cloud Ventures
15
Andreessen Horowitz
14
500 Startups
14
447
Accel Partners
14
Intel Capital
13
1,464
1,114
880
848
611
99
120
123
137
143
119
60
2010
2011
2012
2013
2014
2015
2016*
Source: PitchBook
*As of 6/30/2016.
San Jose MSA VC-backed exits (#) by type

140
Acquisition
IPO
2016*

in San Jose MSA
Investors (#) active by HQ in San Jose MSA

In MSA
2015
Source: PitchBook
*As of 6/30/2016
12
Sequoia Capital
Source: PitchBook
San Jose MSA VC-backed exit activity

Exit value ($B)
Buyout
120
106
122
107
97
100
80
# of exits
100
95
Source: PitchBook
*As of 6/30/2016
60
36
2010
2011
2012
2013
2014
2015
$4.7
$4.9
$33.4
$6.2
$6.8
20
$5.4
40
2010
2011
2012
2013
2014
2015
2016*
Source: PitchBook
*As of 6/30/2016
14
2016*
MSA
Total investor
AUM
Total VC funds
raised since
2006
# of current
unicorns
Total VC
invested since
2010
Total # of VC
rounds since
2010
Total exit
value since
2010
$80.9 billion
$41.2 billion
$30.7 billion
3,664
$28.7 billion
Source: PitchBook
*As of 6/30/2016
Boston MSA VC activity
$10
$8
Deal value ($B)
# of deals closed
Angel/Seed
Early-stage VC
800
Late-stage VC
600
$6
400
$4
238
200
$2
89
81
68
$0
2010
2011
2012
2013
2014
2015
2016*
Source: PitchBook
*As of 6/30/2016
Behavioral Technologies
Sector
Total VC
raised to date
($M)
Growth rate
percentile
Social/platform
software
$5.0
95
Clean Energy Group, Launchpad Venture

Group
B2C electronics
$0.6
97
Mass Challenge, IncWell, Bolt Innovation Group

15
Median employee # at startups in Boston MSA by year of financing
20
17
2010
20
2011
22
2012
24
2013
20
2014
22
2015
2016*
Source: PitchBook
*As of 6/30/2016
Late-stage valuations remain high

Boston MSA median pre-money valuation ($M) by stage
In value, first financings are roughly on pace with 2015

Boston MSA first venture financings
$70
Angel/Seed
Early-stage VC
Late-stage VC
$60
231
$50.8
$50
# of deals closed
Deal value ($M)

$60.6
244
222
237
183
$40
157
$30
$20
$17.0
$10
$14.3
78
$6.2
$511
2015
$1,071
2014
$662
2013
$630
2012
$642
2011
$777
2010
$881
$5.9
$0
2010
2011
2012
2013
2014
2015
2016*
2016*
Source: PitchBook
*As of 6/30/2016
Source: PitchBook
*As of 6/30/2016
Select accelerators, incubators, & universities in Boston

MSA
The past 1.5 years exhibit distinct skewing

Boston MSA median & average VC round size ($M)
$14
Median
Average
$12.3
$12
$11.7
$10
$8
$6
$4
$3.2
$3.0
2015
2016*
$2
$0
2010
2011
2012
2013
2014
Source: PitchBook
*As of 6/30/2016
16

in Boston MSA
2010-2016* Boston MSA VC activity (#) by sector

Commercial Services
290
588
Consumer Goods &

Recreation
Energy
113
84
Healthcare
IT Hardware
545
Media
141
1,235
Pharmaceuticals and
Biotechnology
Software
132
536
Other
Atlas Venture
23
Launchpad Venture Group
22
Converge Venture Partners
18
Polaris Partners
15
General Catalyst Partners
14
13
Accomplice VC
13
Source: PitchBook
Source: PitchBook
*As of 6/30/2016
Boston MSA VC-backed exit activity

1H 2016 has seen quite a slump in outside interest
Investors (#) active by year, HQ in Boston MSA
In MSA
Exit value ($B)
# of exits
99
85
84
Out of MSA
80
66
882
65
904
32
792
613
$3.2
$8.0
$4.0
$2.6
$5.2
$3.4
$2.3
422
493
2010
2011
2012
2013
2014
2015
2016*
306
123
144
161
155
186
2010
2011
2012
2013
2014
183
2015
72
Source: PitchBook
*As of 6/30/2016
2016*
Source: PitchBook
*As of 6/30/2016
Boston MSA VC-backed exits (#) by type

Select
statistics
120
Employment
2.7
million
100
1.2%
Median two-bedroom apartment rent, Boston^
$2,950
Change in rent price, Boston*
0.3%
$50
196
Annual mean wage,

$97,480
2.3%

May 2016, May 2015-May 2016, ***2Q 2016
Acquisition
IPO
Buyout
80
60
40
20
0
2010
2011
17
2012
2013
2014
2015
2016*
Source: PitchBook
*As of 6/30/2016

MSA
Total investor
AUM
Total VC funds
raised since
2006
# of current
unicorns
Total VC
invested since
2010
Total # of VC
rounds since
2010
Total exit
value since
2010
$26.1 billion
$2.7 billion
$21.3 billion
3,403
$11.2 billion
Source: PitchBook
*As of 6/30/2016
LA MSA VC activity
$5
$4
Deal value ($B)
# of deals closed
Angel/Seed
Early-stage VC
800
Late-stage VC
600
$3
400
$2
269
149
$1
200
76
44
$0
2010
2011
2012
2013
2014
2015
2016*
Source: PitchBook
*As of 6/30/2016
Sector
Total VC
raised to date
($M)
Growth rate
percentile
Happier Camper
Recreational
goods
$1.2
100
Scott Greenburg
Automation
software
$3.5
98
Microsoft Accelerator
18
First financings are slowing

LA MSA first venture financings
Select accelerators, incubators, & universities in LA

MSA
Deal value ($M)

345
# of deals closed
308
288
275
202
138
$259
$343
$555
$521
$742
$862
$249
106
2010
2011
2012
2013
2014
2015
2016*
Source: PitchBook
*As of 6/30/2016
The disparity in size suggests lots of cautious capital

LA MSA median & average VC round size ($M)
$16
Median
$14.8
Average
$14
LA MSA median pre-money valuation ($M) by stage
$12
$80
$10
Angel/Seed
$75.0
Early-stage VC
$66.7
$70
Late-stage VC
$8.0
$8
$60
$6
$50
$4
$40
$2
$2.0
$2.2
2015
2016*
$0
$30
$21.7
$20
$10
2010
2011
2012
2013
2014
$18.0
$6.0
$6.7
2015
2016*
Source: PitchBook
*As of 6/30/2016
$0
2010
2011
2012
2013
Select
statistics
Employment
6.0 million
2.7%

Los Angeles^
$2,630
Commercial Services
Change in rent price, Los Angeles*
3.3%
Consumer Goods &

Recreation
Energy

$40
1,182
Annual mean wage,

$91,150
Change in pay,
2.7%
2014
Source: PitchBook
*As of 6/30/2016
2010-2016* LA MSA VC activity (#) by sector
701
377
224
65
330
63
352
1,189
102
Healthcare
IT Hardware
Media
Pharmaceuticals and
Biotechnology
Software
Other

May 2016, May 2015-May 2016, ***2Q 2016
Source: PitchBook
*As of 6/30/2016
19
Median employee # at startups in Los Angeles MSA by year of financing
26
20
2010
18
2011
12
2012
23
2013
16
2014
20
2015
2016*
Source: PitchBook
*As of 6/30/2016

in Los Angeles MSA
Investors (#) active by HQ in Los Angeles MSA

In MSA
Out of MSA
950
961
801
658
492
389
352
58
85
117
123
133
144
2010
2011
2012
2013
2014
2015
50
2016*
Source: PitchBook
*As of 6/30/2016
# of exits
22
Tech Coast Angels
22
Upfront Ventures
18
Bam Ventures
15
Greycroft Partners
13
Third Wave Digital
12
Pasadena Angels
11
Frost Data Capital
11
Allen DeBevoise
11
Crosscut Ventures
11
Source: PitchBook
LA MSA VC-backed exits (#) by type
LA MSA VC-backed exit activity
Exit value ($B)
Wavemaker Partners
80
71
Acquisition
IPO
Buyout
70
52
60
49
48
50
34
34
40
30
$1.2
$1.6
$2.0
$1.3
$2.7
$1.3
$1.1
14
2010
2011
2012
2013
2014
2015
2016*
Source: PitchBook
*As of 6/30/2016
20
10
0
2010
2011
2012
2013
2014
2015
2016*
Source: PitchBook
*As of 6/30/2016
20
MSA
Total investor
AUM
Total VC funds
raised since
2006
# of current
unicorns
Total VC
invested since
2010
Total # of VC
rounds since
2010
Total exit
value since
2010
$16.0 billion
$7.6 billion
$8.4 billion
1,717
$6.7 billion
Source: PitchBook
*As of 6/30/2016
Seattle MSA VC activity

$2,500
$2,000
Deal value ($M)
400
# of deals closed
Angel/Seed
Late-stage VC
300
Early-stage VC
$1,500
200
$1,000
121
$500
68
$0
22
100
31
2010
2011
2012
2013
2014
2015
2016*
Source: PitchBook
*As of 6/30/2016
Sector
Total VC
raised to date
($M)
Growth rate
percentile
Boatbound
Marine
$9.5
97
Atlas Venture, 500 Startups, BoxGroup
Energy
transportation
$12.7
98
Maveron, Madrona Venture Group,

Conversion Capital
21
Median employee # at startups in Seattle MSA by year of financing
16
14
2010
20
2011
20
2012
21
2013
15
2014
12
2015
2016*
Source: PitchBook
*As of 6/30/2016
Seattle MSA median pre-money valuation ($M) by stage
Seattle MSA median & average VC round size ($M)
$60
$9
Early-stage VC
Late-stage VC
$54.0
$50
Median
$8
$46.6
Average
$7
$6.5
$6
$40
$5.0
$5
$30
$4
$18.7
$20
$21.0
$3
$2
$10
$1.9
$1.5
$1
$0
$0
2010
2011
2012
2013
2014
2015
2010
2011
2012
2013
2014
Unsurprisingly, software dominates Seattle

2010-2016* Seattle MSA VC activity (#) by sector
2015
2016*
Source: PitchBook
*As of 6/30/2016
Source: PitchBook
Select
statistics
Employment
1.95 million
3.6%
Median two-bedroom apartment rent, Seattle^
$2,250
Change in rent price, Seattle*
6.5%

$40
551
Annual mean wage,

$107,290
Change in pay,
3.4%
Commercial Services
314
188
Consumer Goods &

Recreation
Energy
49
23
160
53
81
109
740
Healthcare
IT Hardware
Media
Pharmaceuticals and
Biotechnology
Software
Other
Source: PitchBook
*As of 6/30/2016

May 2016, May 2015-May 2016, ***2Q 2016
22
Seattle MSA first venture financings

Deal value ($M)
# of deals closed
134

in Seattle MSA
139
124
112
93
84
$147
$143
$316
$228
$190
$327
$86
54
2010
2011
2012
2013
2014
2015
2016*
Source: PitchBook
*As of 6/30/2016
Alliance of Angels
23
Madrona Venture Group
14
Keiretsu Forum
12
Vulcan Capital
11
Rudy Gadre
WRF Capital
Gary Rubens
Founder's Co-Op
The W Fund
Voyager Capital
Trilogy Equity Partners
6
Source: PitchBook
Investors (#) active by year, HQ in Seattle MSA

In MSA
Out of MSA
Select accelerators, incubators, & universities in Seattle

MSA
430
379
223
395
260
157
155
42
48
53
70
56
64
37
2010
2011
2012
2013
2014
2015
2016*
Source: PitchBook
*As of 6/30/2016
Seattle MSA VC-backed exits (#) by type

45
Acquisition
IPO
Buyout
40
Seattle MSA VC-backed exit activity

Exit value ($B)
41
35
# of exits
39
30
25
33
20
15
28
27
10
22
$0.1
2012
$0.5
2011
$1.7
$1.6
2010
$1.2
$1.5
2013
2014
2015
2016*
0
2010
2011
2012
Source: PitchBook
*As of 6/30/2016
23
2013
2014
2015
2016*
Source: PitchBook
*As of 6/30/2016
MSA
Total investor
AUM
Total VC funds
raised since
2006
# of current
unicorns
Total VC
invested since
2010
Total # of VC
rounds since
2010
Total exit
value since
2010
$19.2 billion
$4.8 billion
$8.2 billion
1,416
$7.4 billion
Source: PitchBook
*As of 6/30/2016
DC MSA VC activity
$2.5
$2.0
Deal value($B)
# of deals closed
Angel/Seed
Early-stage VC
Late-stage VC
350
300
250
$1.5
200
150
$1.0
102
$0.5
50
31
21
$0
2010
2011
2012
2013
2014
2015
100
50
0
2016*
Source: PitchBook
*As of 6/30/2016
Sector
Total VC
raised to date
($M)
PitchBook
growth rate
percentile
Rooam
Financial
services
$1.2
100
N/A
Hardware
$3.0
99
Irish Angels, Baltimore Angels, Blue Venture

Investors, Middleburg Capital Development
24
Median employee # at startups in DC MSA by year of financing
26
30
2010
12
2011
20
2012 (est.)
24
2013
21 19
2014
2015
2016*
Source: PitchBook
*As of 6/30/2016
DC is seeing 1st financings of considerable size in 1H

DC MSA first venture financings
Deal value ($M)
# of deals closed
136
$14
Median
Average
$12
116
103
DC MSA median & average VC round size ($M)
$10
107
$8
81
$5.9
$6
71
$6.4
$4
$2.5
2010
2011
2012
2013
2014
2015
$151
$223
$319
$109
$274
$302
$167
31
$2
$1.5
$0
2010
2011
2012
2013
2014
2015
2016*
Source: PitchBook
*As of 6/30/2016
2016*
Source: PitchBook
*As of 6/30/2016
Select
statistics
Employment
3.2 million
1.9%

Washington, DC^
$3,120
Change in rent price, Washington, DC*
3.6%

$33
$10
1,287
$5
Annual mean wage,

$102,010
Change in pay,
2.3%
DC MSA median pre-money valuation ($M) by stage

$45
$40
$35
$32.8
$30
$29.3
$25
Early-stage VC
$20
Late-stage VC
$16.2
$15
$14.5
$0
2010
2011
2012
2013
2014
2015
Source: PitchBook

May 2016, May 2015-May 2016, ***2Q 2016
25
Select accelerators, incubators, & universities in DC

MSA

in DC MSA
Blu Venture Investors
10
Center for Innovative Technology Gap Funds
Grotech Ventures
NextGen Venture Partners
Baltimore Angels
4
4
Hammerstone Capital
Source: PitchBook
Outside investment peaked in 2014

Investors (#) active by HQ in DC MSA
In MSA
2010-2016* DC MSA VC activity (#) by sector
Out of MSA
Commercial Services
161
223
Consumer Goods &

Recreation
Energy
47
33
359
223
240
252
143
Healthcare
IT Hardware
42
Media
66
174
130
128
24
39
46
52
54
2010
2011
2012
2013
2014
45
28
2015
2016*
614
87
Pharmaceuticals and
Biotechnology
Software
Other
Source: PitchBook
*As of 6/30/2016
Source: PitchBook
*As of 6/30/2016
Strategic buyers led to last years surge

DC MSA VC-backed exits (#) by type
DC MSA VC-backed exit activity

Exit value ($B)
# of exits
45
39
Buyout
2013
2014
30
25
22
18
20
$0.5
$0.7
$2.9
$1.2
$1.8
2010
IPO
Source: PitchBook
*As of 6/30/2016
35
31
27
26
Acquisition
40
2011
2012
2013
2014
2015
15
10
5
2016*
Source: PitchBook
*As of 6/30/2016
0
2010
2011
2012
26
2015
2016*
Austin-Round Rock
MSA
Total investor
AUM
Total VC funds
raised since
2006
# of current
unicorns
Total VC
invested since
2010
Total # of VC
rounds since
2010
Total exit
value since
2010
Austin-Round Rock
$3.4 billion
$1.9 billion
$6.6 billion
1,376
$3.7 billion
Source: PitchBook
*As of 6/30/2016
Austin MSA VC activity

$1,500
Deal value ($M)

Angel/Seed
Select accelerators, incubators, &

universities in Austin MSA
300
# of deals
closed
250
Late-stage VC
$1,000
200
Early-stage VC
150
$500
$0
2010
2011
2012
2013
2014
2015
95
100
49
27
50
19
2016*
Source: PitchBook
*As of 6/30/2016
Sector
Total VC
raised to date
($M)
Growth rate
percentile
Real estate
services
$20.1
99
Altos Ventures, Silverton Partners
27
Austin-Round Rock
Select
statistics
Employment
994,000
3.9%
Median two-bedroom apartment rent, Austin^
$1,500
Change in rent price, Austin*
3.6%

$30
430
Annual mean wage,

$84,660
Change in pay,
2.7%
After an elevated plateau, Austin sees a slowdown

Austin MSA first venture financings
# of deals closed
Deal value ($M)

117
110
109

May 2016, May 2015-May 2016, ***2Q 2016, Dallas
78
68
56
Austin MSA median & average VC round size ($M)

33
$8
2011
2012
2013
2014
2015
$45
2010
$324
$211
$5.3
$5
$120
$6.1
$6
$482
$7
$140
Average
$152
Median
2016*
Source: PitchBook
*As of 6/30/2016
$4
$3
$2
$1.7
$2.0
$1
Austin boasts considerable diversity

2010-2016* Austin MSA VC activity (#) by sector
$0
2010
2011
2012
2013
2014
2015
Commercial Services
2016*
Source: PitchBook
*As of 6/30/2016
141
50
347
Interestingly, late-stage numbers have trended

downward in Austin for some time
Austin MSA median pre-money valuation ($M) by stage
Consumer Goods &

Recreation
Energy
39
127
53
51
39
$35
$30
529
$27.5
Healthcare
IT Hardware
Media
Pharmaceuticals and
Biotechnology
Software
Other
$25
Early-stage VC
Late-stage VC
$22.9
$20
$14.5
$15
$10
$9.1
$5
$0
2010
2011
2012
2013
2014
2015
Source: PitchBook
28
Source: PitchBook
*As of 6/30/2016
Median employee # at startups in Austin MSA by year of financing
14
15
2010
34
2011
23
2012
17
2013
15
2014
15
2015
2016*
Source: PitchBook
*As of 6/30/2016
Outside investment soared between 2014 and 2015

Investors (#) active by HQ in Austin MSA
In MSA
Out of MSA
396
370
276
195
129
135
24
33
33
37
40
39
2010
2011
2012
2013
2014
2015
100
14
2016*
Source: PitchBook
*As of 6/30/2016

in Austin MSA
Central Texas Angel Network
29
Capital Factory
15
Houston Angel Network
11
Silverton Partners
10
Wild Basin Investments
ATX Seed Ventures
Sante Ventures
S3 Ventures
Austin Ventures
UT Horizon Fund
LiveOak Venture Partners
Geekdom Fund
5
Source: PitchBook
Exits have been relatively healthy in 2016 so far

Austin MSA VC-backed exit activity
Exit value ($M)
Austin MSA VC-backed exits (#) by type

30
# of exits
24
22
19
19
19
Acquisition
IPO
Buyout
2012
2013
2014
25
20
19
10
15
$859
$622
$470
$664
$254
$530
$290
10
2010
2011
2012
2013
2014
2015
2016*
Source: PitchBook
*As of 6/30/2016
0
2010
2011
2015
2016*
Source: PitchBook
*As of 6/30/2016
29
MSA
Total investor
AUM
Total VC funds
raised since
2006
# of current
unicorns
Total VC
invested since
2010
Total # of VC
rounds since
2010
Total exit
value since
2010
$11.7 billion
$3.4 billion
$8.3 billion
1,348
$9.95 billion
Source: PitchBook
*As of 6/30/2016
Chicago MSA VC activity
$2.5
Early-stage VC
Angel/Seed
Late-stage VC
300
250
$2.0
Deal value ($B)
$1.5
# of deals
closed
$1.0
200
115
70
$0.5
27
18
$0.0
2010
2011
2012
2013
2014
2015
150
100
50
0
2016*
Source: PitchBook
*As of 6/30/2016
Sector
Total VC
raised to date
($M)
Growth rate
percentile
RxBar
Food products
$0.8
95
N/A
Open Airplane
Platform
software
$0.6
99
The Bunker Incubator
30
1st financings stayed remarkably steady since 2012

Chicago MSA first venture financings
Deal value ($M)
115
# of deals closed
124
111
Chicago MSA median & average VC round size ($M)

$16
Average
119
$14
Median
$12
$10
84
$8
62
45
$7.2
$6.5
$6
$4
$1.8
$2
$1.5
$113
$303
$226
$98
$268
$166
$74
$0
2010
2011
2012
2013
2014
2015
2016*
Source: PitchBook
*As of 6/30/2016
2010
2011
2012
2013
Commercial Services
191
Late-stage VC
81
$70
21
$60
119
$47.5
$50
21
57
$40
$30
$28.9
48
526
$10
Consumer Goods &

Recreation
Energy
Healthcare
IT Hardware
Media
Pharmaceuticals and
Biotechnology
Software
Other
$20
$12.7
2016*
2010-2016* Chicago MSA VC activity (#) by sector
284
Early-stage VC
2015
Source: PitchBook
*As of 6/30/2016
Chicago MSA median pre-money valuation ($M) by stage

$80
2014
$12.2
Source: PitchBook
*As of 6/30/2016
$0
2010
2011
2012
2013
2014
2015
Source: PitchBook
Select accelerators, incubators, & universities in

Chicago MSA
Chicago-Napierville-Joliet
Select
statistics
Employment
4.7 million
1.3%
Median two-bedroom apartment rent, Chicago^
$1,800
Change in rent price, Chicago*
-1.2%

$37
679
Annual mean wage,

$83,250
Change in pay,
2.3%

May 2016, May 2015-May 2016, ***2Q 2016
31
Median employee # at startups in Chicago MSA by year of financing
38
13
2010
50
2011
23
2012
22
2013
22
2014
17
2015
2016*
Source: PitchBook
*As of 6/30/2016

in Chicago MSA
Investors (#) active by HQ in Chicago MSA

In MSA
Out of MSA
403
209
228
130
44
58
2010
2011
2012
62
2013
14
Hyde Park Angels
11
Chicago Ventures
Jumpstart Ventures
KGC Capital
OCA Ventures
Tribal Ventures
270
263
106
34
Pritzker Group Venture Capital
73
2014
68
2015
45
Hyde Park Venture Partners
Source: PitchBook
2016*
Source: PitchBook
*As of 6/30/2016
Chicago MSA VC-backed exits (#) by type
A few huge deals skewed 2015 numbers

Chicago MSA VC-backed exit activity
Exit value ($B)
30
IPO
Buyout
2012
2013
2014
25
26
# of exits
Acquisition
21
20
18
18
15
14
12
10
11
$1.2
$1.1
$1.6
$0.7
$4.3
2010
2011
2012
2013
2014
2015
$0.4
$0.7
2016*
0
2010
2011
Source: PitchBook
*As of 6/30/2016
32
2015
2016*
Source: PitchBook
*As of 6/30/2016

MSA
Total investor
AUM
Total VC funds
raised since
2006
# of current
unicorns
Total VC
invested since
2010
Total # of VC
rounds since
2010
Total exit
value since
2010
$4.8 billion
$1.5 billion
$9.4 billion
1,317
$8.7 billion
Source: PitchBook
*As of 6/30/2016
San Diego MSA VC activity
$2.0
$1.5
Deal value ($M)
# of deals closed
Angel/Seed
300
Early-stage VC
250
Late-stage VC
200
$1.0
150
100
$0.5
56
24
20
$0.0
2010
2011
2012
2013
2014
2015
100
50
0
2016*
Source: PitchBook
*As of 6/30/2016
BioNano Genomics
Sector
Total VC
raised to date
($M)
Growth rate
percentile
Electronic
equipment
$10.5
100
Apsara Capital, Alpina Partners, Sandbox

Industries
Healthcare
discovery tools
$108.9
95
Legend Capital, Domain Associates
33
Last year saw a boom in first-time financings for SD

San Diego MSA first venture financings
San Diego MSA median & average VC round size ($M)

$12
Deal value ($M)
Median
# of deals closed
108
115
Average
$10
$9.4
$7.9
$8
90
$6
70
67
Source: PitchBook
*As of 6/30/2016
$4
55
39
$2
$2.0
$2.0
2015
2016*
$182
$190
$157
$222
$284
$394
$146
$0
2010
2011
2012
2013
2014
2015
2016*
Source: PitchBook
*As of 6/30/2016
2010
2011
2012
2013
2014
2010-2016* San Diego MSA VC activity (#) by sector
Commercial Services
75
San Diego MSA median pre-money valuation ($M) by

stage
36
264
Consumer Goods &

Recreation
Energy
41
$60
Early-stage VC
213
Healthcare
IT Hardware
53
23
Media
$54.3
Late-stage VC
$49.3
$50
330
$40
282
$30
Pharmaceuticals and
Biotechnology
Software
Other
$20
Source: PitchBook
*As of 6/30/2016
$14.3
$10
$10.6
$0
2010
2011
2012
2013
2014
2015
Source: PitchBook
*As of 6/30/2016
Select accelerators, incubators, & universities in San

Diego MSA
Select
statistics
Employment
1.4 million
2.3%
Median two-bedroom apartment rent, San Diego^
$2,020
Change in rent price, San Diego*
3.0%

$36
846
Annual mean wage,

$92,460
Change in pay,
3.1%

May 2016, May 2015-May 2016, ***2Q 2016
34
Median employee # at startups in San Diego MSA by year of financing
21
11
2010
45
2011
19
2012 (est.)
21
2013
12
2014
12
2015
2016*
Source: PitchBook
*As of 6/30/2016
In the past year and a half, outside investment has slid

Investors (#) active by HQ in San Diego MSA
In MSA
Out of MSA
329
196
265
232
229
183
90
21
2010
19
27
30
30
24
15
2011
2012
2013
2014
2015
2016*

in Austin MSA
Biobrit
10
Tech Coast Angels
Avalon Ventures
ARCH Venture Partners
Crosslink Capital
Vertical Venture Partners
Keshif Ventures
Correlation Ventures
4
4
Versant Ventures
Source: PitchBook
Source: PitchBook
*As of 6/30/2016
San Diego MSA VC-backed exits (#) by type

35
San Diego MSA VC-backed exit activity
Acquisition
IPO
Buyout
2012
2013
2014
30
Exit value ($B)
# of exits
29
28
25
26
20
22
17
15
16
10
$1.0
$0.8
$1.2
$1.9
$2.5
$1.2
2010
2011
2012
2013
2014
2015
0
2010
2011
Source: PitchBook
35
2015
2016*
Source: PitchBook
*As of 6/30/2016
MSA
Total investor
AUM
Total VC funds
raised since
2006
# of current
unicorns
Total VC
invested since
2010
Total # of VC
rounds since
2010
Total exit
value since
2010
$7.1 billion
$3.0 billion
$4.8 billion
1,003
$5.4 billion
Source: PitchBook
*As of 6/30/2016
Philadelphia MSA VC activity
$1.2
$1.0
200
Angel/Seed
Deal value ($M)

Early-stage VC
Late-stage VC
$0.8
150
# of deals closed
$0.6
91
$0.4
47
30
14
$0.2
100
50
$0
2010
2011
2012
2013
2014
2015
2016*
Source: PitchBook
*As of 6/30/2016
Sector
Total VC
raised to date
($M)
Growth rate
percentile
ChargeItSpot
B2C electronics
$4.7
100
Start Capital, Wharton Venture Initiation

Program
B2C electronics
$0.9
100
Ben Franklin Technology Partners, Investors

Circle, DreamIt Ventures
36
Median employee # at startups in Philadelphia MSA by year of financing
25
16
2010
11
2011
14
2012 (est.)
23
2013
15
2014
12
2015
2016*
Source: PitchBook
*As of 6/30/2016
2016 is unlikely to match last years peak

Philadelphia MSA first venture financings
Round sizes are regressing to the mean

Philadelphia MSA median & average VC round size ($M)
$8
# of deals closed
86
Median
89
80
$6
$6.1
$5.3
$5
60
$4
59
$3
Deal value ($M)
41
Average
$7
29
$2
$1
$1.0
$1.1
2015
2016*
$104
$114
$52
$482
$333
2010
2011
2012
2013
2014
2015
2010
2011
2012
2013
2014
$41
$62
$0
Source: PitchBook
*As of 6/30/2016
2016*
Source: PitchBook
*As of 6/30/2016
Philadelphia MSA median pre-money valuation ($M) by

stage
Select
statistics
Employment
2.9 million
2.1%

Philadelphia^
$1,580
Change in rent price, Philadelphia*
2.0%

$30
297
Annual mean wage,

$86,620
Change in pay,
1.5%
$60
Early-stage VC
Late-stage VC
$50
$47.7
$40
$30
$19.7
$20
$10
$25.1
$10.0
$0
2010
2011
2012
2013
2014
2015
Source: PitchBook
*As of 6/30/2016

May 2016, May 2015-May 2016, ***2Q 2016
37
Philadelphia MSA VC activity (#) by sector
Select accelerators, incubators, & universities in

Philadelphia MSA
Commercial Services
109
182
Consumer Goods &

Recreation
Energy
19
27
Healthcare
IT Hardware
196
Media
298
Pharmaceuticals and
Biotechnology
Software
10
33
129

in Philadelphia MSA
Other
Source: PitchBook
*As of 6/30/2016
Philly is actually on pace to see even more outside

investment interest in 2016
Investors (#) active by HQ in Philadelphia MSA
In MSA
Out of MSA
Ben Franklin Technology Partners of Southeastern

Pennsylvania
33
Robin Hood Ventures
12
DreamIt Ventures
Osage Partners
Investors' Circle
Keiretsu Forum
Safeguard Scientifics
Wharton Venture Initiation Program
3
Source: PitchBook
179
126
103
157
136
129
82
M&A helped bump exit totals considerably last year

Philadelphia MSA VC-backed exits (#) by type
30
25
31
22
24
29
30
19
2010
2011
2012
2013
2014
2015
2016*
Acquisition
IPO
Buyout
2012
2013
2014
25
Source: PitchBook
*As of 6/30/2016
20
Philadelphia MSA VC-backed exit activity
Exit value ($B)
15
# of exits
10
24
5
17
14
18
17
0
15
2010
2011
2015
2016*
$0.8
$0.7
$0.4
$0.6
$1.1
$1.9
Source: PitchBook
*As of 6/30/2016
2010
2011
2012
2013
2014
2015
Source: PitchBook
38
MSA
Total investor
AUM
Total VC funds
raised since
2006
# of current
unicorns
Total VC
invested since
2010
Total # of VC
rounds since
2010
Total exit
value since
2010
$6.1 billion
$1.15 billion
$5.0 billion
837
$7.8 billion
Source: PitchBook
*As of 6/30/2016
Select accelerators, incubators, & universities in Atlanta MSA
Atlanta MSA VC activity
$2.0
200
# of deals closed
Angel/Seed
Late-stage VC
$1.5
150
Early-stage VC
Deal value ($B)
100
$1.0
54
$0.5
29
16
9
$0
2010
2011
2012
2013
2014
2015
50
2016*
Source: PitchBook
*As of 6/30/2016
39
Median employee # at startups in Atlanta MSA by year of financing
20
15
2010
23
2011
43
2012 (est.)
36
2013 (est.)
19
2014
28
2015
2016*
Source: PitchBook
*As of 6/30/2016
Since 2014, first-time startups have had diminishing

luck in attracting VC
Atlanta MSA first venture financings
2015 experienced a serious spread in round sizes

Atlanta MSA median & average VC round size ($M)
$16
Median
Deal value ($M)

# of deals closed
66
Average
$14
80
$13.4
$12
67
$10
63
$8.7
$8
50
$6
$4
40
$2
$68
$45
$155
$318
$87
$181
$47
15
2010
2011
2012
2013
2014
2015
2016*
$2.5
$2.3
2015
2016*
$0
2010
2011
2012
2013
2014
Source: PitchBook
*As of 6/30/2016
Source: PitchBook
*As of 6/30/2016
Select
statistics
Employment
2.7 million
Atlanta MSA VC activity (#) by sector
Commercial Services
3.0%
Median two-bedroom apartment rent, Atlanta^
$1,650
Change in rent price, Atlanta*
4.6%

$36
448
Annual mean wage,

$83,580
Change in pay,
2.4%
142
121
30
6
116
Consumer Goods &

Recreation
Energy
Healthcare
IT Hardware
Media
26
337
18

May 2016, May 2015-May 2016, ***2Q 2016
40
41
Pharmaceuticals and
Biotechnology
Software
Other
Source: PitchBook
*As of 6/30/2016
Sector
Total VC
raised to date
($M)
Growth rate
percentile
Allconnect
Real estate
services
$80.1
95
New Cycle Capital, Escalate Capital Partners,

Maveron
Network mgmt
software
$122.5
100
Google Capital, GV, Andreessen Horowitz
Atlanta has attracted a steady stream of outside

investors over the past few years
Investors (#) active by HQ in Atlanta MSA
In MSA
BIP Capital
Mosley Ventures
Advanced Technology Development Center
Thomas Noonan
Southeast Investor Group
Atlanta Technology Angels
TechOperators
59
BLH Venture Partners
15
UPS Strategic Enterprise Fund
GV
Webb Investment Network
Tech Square Venture Partners
Alerion Ventures
Hallett Capital
Out of MSA
138
86

in Atlanta MSA
149
168
199
99
20
22
32
27
31
28
2010
2011
2012
2013
2014
2015
2016*
Source: PitchBook
*As of 6/30/2016
Exits are down from a 2014 high

Atlanta MSA VC-backed exit activity
17
15
16
Source: PitchBook
17
Atlanta MSA VC-backed exits (#) by type

# of exits
18
12
Exit value ($B)
Acquisition
IPO
Buyout
16
14
12
$1.9
$0.8
$1.1
$0.3
$2.5
$0.9
$0.4
10
8
2010
2011
2012
2013
2014
2015
2016*
Source: PitchBook
*As of 6/30/2016
4
2
0
2010
2011
2012
2013
2014
2015
2016*
Source: PitchBook
*As of 6/30/2016
41
Sample use cases

First financings/overall deal activity by select MSA
0.60
Atlanta MSA
Chicago MSA
Los Angeles MSA
New York MSA
Washington, DC MSA
0.58
0.56
0.54
0.52
0.50
0.48
0.46
0.44
0.42
0.40
2009
2010
2011
2012
2013
2014
2015
2016*
Source: PitchBook
*As of 6/30/2016
The differences between the MSAs

covered in this report could lead
one to suppose that comparing and
contrasting would be foolhardy. But as
long as we employ similar metrics and
bear in mind that any comparisons are
rough approximations, not completely
factual, then it can be useful to analyze
certain MSAs. For example, to produce
the chart above, we calculated the
ratio of first venture financings of local
startups to overall venture financing by
year, thereby normalizing the figures.
Then we removed the seven MSAs that
had either highly variable or sub-0.40
ratios of first-time financings to overall
VC activity.
As we already cautioned, we cannot
draw conclusions with a high degree
of confidence from this data. But we
can certainly use them to inform what
we already know as well as reinforce

existing hypotheses. The fact that
every single MSA saw a sharp spike in
that ratio in 2012 correlates strongly
with the first significant stirrings of
the venture boom of the past few
years. Investors both domestic and
foreign began funding fledgling
businesses across such MSAs as
Atlanta or Washington, DCwhich
may not normally be thought of as
hotbeds of venture capitalat a rate
that produced a significant uptick in
the numerator of that ratio. Increases
in capital committed to smaller funds
as well as the development of angel
syndicates and dedicated seed-stage
firms doubtless contributed. Since
weve seen that venture activity
across every MSA in this report was
quite healthy in 2012, which leads
to the conclusion that it was first-
time financings that rose. This is an

explanation after the fact, but the
same analysis of more recent data
suggests VC in LA, NY and ATL MSAs
is flowing more across all financing
stages, while first-time VC fundings
have also slid. These are just a few of
the conclusions that can be drawn
from these datasets.
Delving deeper into the data, there are
plenty more heuristics to generate.
A recent PitchBook piece examining
multiples on invested capital (MOIC)
by US city illustrates one such way, but
to remain focused on contextualizing
our existing, broader knowledge of
VC trends with specific datasets in
this report, lets examine how median
financing sizes and employee counts
are correlated. To keep things simple,
weve broken out median employee
42
count by year over median financing

size below by select top MSAs. As
this ratio declined in recent years, its
clear that the typical financing within
a given MSA grew larger in size or
employee counts dwindled; in light of
national venture trends, with median
valuations & financing sizes rising by
and large over the past few years,
its more reasonable to suppose that
the former was the case. Looking at
this aggregation and certain MSAspecific statistics from above is also
instructive. Chicago MSA employee
counts were skewed considerably in
2010 and 2012, with a median of 38
and 50, respectively, even though its
median financing hovered around $1
million in size. This disparity suggests
that in those years there existed
a population of mature Chicagobased companies, already boasting
a considerable roster of employees,
that received venture financing. At the

same time, most startups garnering
VC backing in the Chicago MSA during
those years were still pulling in smaller
sumsthey still are, as a matter of fact,
with the median financing in 1H 2016
at $1.8 million. We must also bear in
mind that living costs, which certainly
factor into startup run rates when it
comes to matters of payroll, also tend
to be lower in Chicago MSA than, say,
San Francisco. In addition, the fact
that certain key costs for starting up
a business have plummeted over the
past several years, given the rise in
outsourcing or crowdsourcing basic
duties and infrastructure.
many avenues of analysis, whether on

your own or in subsequent installments
of this US Venture Ecosystem series.
On the next page we sketch out
various other comparisons between
select regional numbers, along with
commentary, to further enrich your
lines of reasoning.
The number of variables and their

interactions that must be considered
are complex, but as mentioned
previously, these datasets will
hopefully serve as a starting point for
Median employee count/median financing size by select MSA
60.0
Atlanta MSA
Austin MSA
Chicago MSA
Los Angeles MSA
New York MSA
Seattle MSA
50.0
40.0
30.0
Source: PitchBook
20.0
10.0
0.0
2010
2011
2012
2013
2014
43
2015
2016*
New York media has typically outpaced LA in drawing

interest from investors
VC activity (#) in media
LA MSA media
NY MSA media
Interestingly, of all MSAs that have over 1,000 total

late-stage rounds since 2010, Boston has the most
equitable breakdown between stages by count
Boston MSA VC activity (#) by stage
100%
90%
80%
104
94
94
70%
97
60%
85
50%
61
40%
66
38
2010
66
46
36
57
20%
56
23
2011
2012
2013
2014
2015
30%
2016*
10%
0%
2010
2011
Late-stage VC
Source: PitchBook
*As of 6/30/2016
When it comes to a research-intensive, often

expensive field such as pharma & biotech, the
confluence of traditional VC and a nexus of vaunted
research universities is hard to beat
Pharma & biotech VC activity breakdown
Boston MSA
San Diego MSA
41
21
96
15
16
19
52
59
74
2010
39
70
2011
34
70
2012
Los Angeles has a whopping 6.9x disparity between

its average and median VC financing sizes for the first
half of the year
Spread between avg. & median round sizes by MSA
Average financing size/median financing size
in 1H 2016
Atlanta
3.9
Austin
3.0
Boston
3.9
Chicago
4.0
Los Angeles
6.9
New York
3.2
Philadelphia
4.8
San Diego
4.7
San Francisco
4.6
San Jose
2.4
Seattle
2.7
Washington, DC
2.6
89
89
56
43
49
2015
2016*
Angel/Seed
Source: PitchBook
*As of 6/30/2016
MSA
19
San Francisco MSA
14
Seattle MSA
2012
2013
2014
Early-stage VC
41
75
36
93
111
20
43
2013
2014
2015
2016*
Source: PitchBook
*As of 6/30/2016
Source: PitchBook
44

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SE AT TLE

$64.4M: 1H 2016 late-stage premoney valuation

value since 2010

$203.8B AUM in SF MSA

Most VC invested in 1st financings

Credits & Contact

Introduction & Ecosystem Size Ranking 4-5

New York-Northern NJ-Long Island

San Jose-Sunnyvale-Santa Clara

Los Angeles-Long Beach-Santa Ana

San Diego-Carlsbad-San Marcos

Sample Use Cases

COPYRIGHT 2016 by PitchBook Data,

Photos credit: Thomas Moskal, Wikimedia

M AKE WAY FOR

depth scrutiny such as composite scores of each ecosystems health, as well as

Total VC funds raised

Total VC invested since

Total exit value since 2010

San Francisco MSA VC activity

Select local Fortune 500 companies

Deal value ($B)

Select high-growth startup

Select active investors

GE Ventures, Humana Ventures, Norwest

Forward Partners, Temasek Holdings

Giesecke & Devrient, Plug & Play, Comerica

Activity has slowed significantly in 2016 thus far

Currently, many rounds still skew averages high

Median two-bedroom apartment rent,

Change in rent price, San Francisco*

Office lease median rate,

Number of listings in the last 90 days^

Annual mean wage,

SF MSA median pre-money valuation ($M) by stage

Sources: ApartmentList, BLS, PayScale, 42Floors

Select accelerators, incubators, & universities in SF MSA

Investors (#) active by HQ in San Francisco MSA

2015s most active investors by VC deals (#)

New Enterprise Associates

2010-2016* San Francisco MSA VC activity (#) by sector

Kleiner Perkins Caufield & Byers

Consumer Goods &

San Francisco MSA VC-backed exits (#) by type

San Francisco MSA VC-backed exit activity

First Round Capital

New York-Northern New Jersey-Long Island

New York-Northern New Jersey-Long Island

Select local Fortune 500 companies

New York MSA VC activity

Deal value ($B)

Select high-growth startup

Select active investors

Edovate Capital, Techstars, Kaplan EdTech

Bessemer Venture Partners, CrunchFund,

New York-Northern New Jersey-Long Island

Median two-bedroom apartment rent, New York^

Change in rent price, New York*

Office lease median rate, $ per square foot per year^

Number of listings in the last 90 days^

Annual mean wage,

Change in pay, full-time private industry employees***

Select accelerators, incubators, & universities in NY

Sources: ApartmentList, BLS, PayScale, 42Floors