1、1 #Q3VC 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. Venture Pulse Q3 2019 Global analysis of venture funding 10 October 2019 2 #Q3VC 2019 K

2、PMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. Welcome Welcome to the Q319 edition of KPMG Enterprises Venture Pulse a quarterly report highlighting

3、 the key trends, opportunities, and challenges facing the venture capital market globally and in key jurisdictions around the world. Strong investment in the Americas and Europe continued to fuel the global VC market this quarter, while VC investment in Asia remained weak, particularly in comparison

4、 to 2018s record-shattering high. Given the ongoing Brexit challenge in the UK, Europes positive performance was particularly noteworthy in Q319. The region has already achieved a new record of VC investment with a full quarter left to go in the year. The strength of Europe remains its diversity, wi

5、th Germany, the UK, Sweden, Belgium, and Israel all attracting $100 million+ deals in Q319. In the Americas, the US continued to see a diverse mix of companies attracting VC investment, including the quarters top global deal: a $785 million raise by e-cigarette manufacturer Juul. At the same time, o

6、ther jurisdictions also saw significant deals. In Brazil, Nubanks $400 million raise propelled it to deca-unicorn status the first Brazil-based tech company to be valued at more than $10 billion. Meanwhile, business software developer Clio raised $250 million in Canada. At an industry level, numerou

7、s sectors accounted for relatively large deals, with fintech and transportation remaining very hot areas of investment globally. Looking forward, these areas are expected to continue to be attractive to VC investors on a global basis, in addition to industry-spanning solutions like artificial intell

8、igence (AI) and machine learning. In this quarters edition of the Venture Pulse Report, we look at these and a number of other global and regional trends, including: The increasing uncertainty permeating the global VC market The ongoing strength and resilience of Europe The slowdown in fundraising a

9、ctivity, particularly in Asia Concerns about valuations and the post-IPO performance of US unicorns The growing strength of jurisdictions in the Americas outside of the US We hope you find this edition of Venture Pulse insightful. If you would like to discuss any of the results in more detail, pleas

10、e contact a KPMG adviser in your area. message Throughout this document, “we”, “KPMG”, “KPMG Enterprise”, “us” and “our” refer to the network of independent member firms operating under the KPMG name and affiliated with KPMG International or to one or more of these firms or to KPMG International. KP

11、MG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. Unless otherwise noted, all currencies reflec

12、ted throughout this document are US Dollar. 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. Jonathan Lavender Global Chairman, KPMG Enterprise,

13、 KPMG International Conor Moore Co-Leader, KPMG Enterprise Emerging Giants Network, KPMG International and Partner, KPMG in the US Kevin Smith Co-Leader, KPMG Enterprise Emerging Giants Network, KPMG International and Head of Clients and Growth National Markets, Partner, KPMG Enterprise in the UK Yo

14、u know KPMG, you might not know KPMG Enterprise. KPMG Enterprise advisers in member firms around the world are dedicated to working with businesses like yours. Whether youre an entrepreneur looking to get started, an innovative, fast growing company, or an established company looking to an exit, KPM

15、G Enterprise advisers understand what is important to you and can help you navigate your challenges, no matter the size or stage of your business. You gain access to KPMGs global resources through a single point of contact, a trusted adviser to your company. It is a local touch with a global reach.

16、2 Contents 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 4 Global Americas 44 26 US 57 Europe 81 VC-backed companies raise $55.7 billion acro

17、ss 4154 deals Median deal sizes reach new heights Corporate VC participation strengthens Global fundraising well off last years pace Cybersecurity reaches $5.8 billion invested on 388 deals $30.8 billion raised across 2420 deals Record quarter in Canada powered by mega deals Resurgence of VC in Mexi

18、co Another massive quarter in Brazil thanks to Nubank VC-backed companies raise $28.2 billion across 2265 deals Corporate VC participation drops below 7% First time funding volume drops while values surge Fundraising cools after record 2018 Venture funding climbs to $9.8 billion across 777 deals Cor

19、porate VC participation reaches new heights Exit volume sluggish as IPOs and M investors focusing on long-term trends Over the past two to three quarters, a number of high-profile unicorn companies have issued IPOs in the US, including Beyond Meat, Lyft, Peloton, SmileDirectClub, Uber, Zoom, and oth

20、ers. The results of these IPOs have been quite mixed, with several falling well short of expectations and others performing well beyond. WeWork even withdrew its planned IPO expected to be the second largest of the year next to Uber during Q319 amid concerns about corporate governance. Slack became

21、the first major tech company since Spotify to list directly; although its too early to say whether this approach will grow in popularity, its pros of potentially being less volatile upon debut given direct listings tend to be much more gradual as a process could outweigh its cons. Historically, tech

22、nology IPOs have sometimes needed time in order to find their footing. As a result, investors globally will likely be keenly watching the longer-term performance of companies that issued IPOs this year to see whether performance turns around. Trends over the next 12 to 18 months could tell a differe

23、nt story than short-term results. Increasing focus on profitability and governance What has become abundantly clear over Q319 is that investors are becoming more skeptical of companies that are not profitable or that do not have strong business models and a very clear path to achieve profitability.

24、Moving forward, it is very likely that VC investors, particularly when making large late-stage deals, will place more of an emphasis on profitability, governance, and other business model characteristics than they may have in the past. Trends to watch for globally While there continues to be a signi

25、ficant amount of liquidity in the global VC market, it is expected that VC investors will be more cautious when making investments over the next quarter and into 2020, putting greater emphasis on company business models and expectations related to profitability. Fintech, transportation, mobility, he

26、althtech, and biotech are all expected to be hot areas of VC investment on a global level, with AI continuing to be a critical focus at a technology level. B2B solutions, productivity solutions, and solutions with real world impacts are also expected to grow on the radar of investors. Global economi

27、c and geopolitical uncertainty is expected to remain relatively high over the next few quarters given the rapidly approaching Brexit deadline, no signs of a break in the US-China trade war, and the US presidential election slated for late 2020. VC market globally holds steady despite shortage of mas

28、sive deals GlobalUSAmericasEuropeAsia 7 #Q3VC 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. The third quarter of 2019 marked the seventh cons

29、ecutive quarter that global VC invested stayed well above $50 billion, while deal flow moderated to an elevated plateau. Across all stages, counts dipped slightly in the most recent quarter which is primarily attributable to a minor lag in data collection. All in all, the venture cycle remains quite

30、 strong, continuing to record its healthiest period of activity since the dot-com era. As allocations to alternative investments venture included remain strong, the fuel for robust activity is still flowing significantly, which will stoke the elevated levels of investment to continue unabated. Despi

31、te the degree of competition and the potential for overfunding, those factors in and of themselves are unlikely to slow the pace of investment for the time being. Source: Venture Pulse, Q319. Global Analysis of Venture Funding, KPMG Enterprise. Data provided by PitchBook, October 9, 2019. Note: Refe

32、r to the Methodology section on page 101 to understand any possible data discrepancies between this edition and previous editions of Venture Pulse. Venture investment flow stays strong Global venture financing 2012Q319 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 $0 $10 $20 $30 $40 $50 $60 $70 $80 $9

33、0 1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q 2000182019 Capital invested ($B)# of deals closedAngel/SeedEarly VCLater VC GlobalUSAmericasEuropeAsia 8 #Q3VC 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client serv

34、ices and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. Global up, flat or down rounds 2012 2019* Source: Venture Pulse, Q319, Global Analysis of Venture Funding, KPMG Enterprise. *As of 9/30/19. Data provided by PitchBook, October 9, 2019. Medians stay

35、 strong; late-stage evens out Global median deal size ($M) by stage 20122019* $0.5$0.5$0.5 $0.6 $0.7 $0.9 $1.1 $1.9 $2.2 $2.4 $3.0 $3.2 $3.5 $4.0 $5.9 $8.0 $5.8 $5.6 $7.4 $8.0 $7.6 $8.8 $10.3 $10.6 2000182019* Angel/seedEarly stage VCLater stage VC 0% 10% 20% 30% 40% 50% 60% 70

36、% 80% 90% 100% 2000182019* Up Flat Down GlobalUSAmericasEuropeAsia 9 #Q3VC 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

37、. Relative to prior highs, the current levels of median deal sizes by series could strike some as inflationary, but the reality is more complicated than that. Rather, they are the product of the convergence of an abundance of capital, greater access to markets and consequent need for more capital to

38、 grow rapidly, companies staying private longr, and significant competition for the best deals. Granted, such levels do necessitate the need for caution around overspending, which is being discussed more and more often nowadays. Source: Venture Pulse, Q319, Global Analysis of Venture Funding, KPMG E

39、nterprise. *As of 9/30/19. Data provided by PitchBook, October 9, 2019. New highs for nearly all stages Global median deal size ($M) by series 20122019* $0.5$0.5$0.5 $0.8 $1.0 $1.3 $1.5 $1.8 $2.7 $3.0 $3.5 $4.1 $5.0 $5.5 $7.0 $7.9 $7.0$6.9 $10.0 $12.0$12.0 $14.5 $16.0 $19.2 200

40、0182019* SeedSeries ASeries B $11.6 $12.0 $15.0 $19.0 $22.7 $25.0 $30.0$30.0 $16.1$15.9 $27.2 $35.0 $27.5 $38.1 $50.0 $60.0 2000182019* Series CSeries D+ GlobalUSAmericasEuropeAsia 10 #Q3VC 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides

41、no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. The late-stage hits a new stratosphere Source: Venture Pulse, Q319, Global Analysis of Venture Funding, KPMG Enterprise. *As of 9/30/19. Data provided by PitchBook, October 9, 2019. G

42、lobal median pre-money valuation ($M) by series 20122019* $3.4$3.6 $4.0 $4.7$5.0 $5.2 $6.3 $6.8 $7.7 $8.3 $10.3 $12.3 $14.0 $15.0 $19.7 $21.9 $20.8 $24.3 $30.6 $37.7 $36.1 $41.5 $56.0 $67.5 2000182019* SeedSeries ASeries B $48.9 $53.6$55.6 $73.8 $80.7 $90.0 $115.0 $140.0 $91.9

43、$98.3 $144.5 $200.0 $150.0 $250.0 $349.5 $440.0 2000182019* Series CSeries D+ GlobalUSAmericasEuropeAsia 11 #Q3VC 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member f

44、irms of the KPMG network are affiliated. Global deal share by series 20122019*, VC invested ($B) Its dangerous to try and interpret too much from series-specific flows of capital. That said, with capital even more concentrated in the late-stages of Series D or later, it is important for investors to

45、 consider the diversity of their venture portfolios and over-exposure to massive yet still unprofitable companies, such as The We Company. Source: Venture Pulse, Q319, Global Analysis of Venture Funding, KPMG Enterprise. *As of 9/30/19. Data provided by PitchBook, October 9, 2019. Capital stays conc

46、entrated at the late-stage Global deal share by series 20122019*, number of closed deals 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 2012 2013 2014 2015 2016 2017 20182019* Series D+Series CSeries B Series AAngel/seed $0 $50 $100 $150 $200 $250 2012 2013 2014 2015 2016 2017 2018 201

47、9* Series D+ Series C Series B Series A Angel/seed GlobalUSAmericasEuropeAsia 12 #Q3VC 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. Global f

48、inancing trends to VC-backed companies by sector 20132019*, VC invested ($B) Source: Venture Pulse, Q319, Global Analysis of Venture Funding, KPMG Enterprise. *As of 9/30/19. Data provided by PitchBook, October 9, 2019. Healthcare unicorns are now finally going public and reaping hefty valuations. J

49、onathan Lavender Global Chairman, KPMG Enterprise, KPMG International 2019 yields additional liquidity for unicorns Global venture-backed exit activity 2012Q319 0 100 200 300 400 500 600 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q 2000182019 Exit value ($B)Exit count GlobalUSAmericasEuropeAsia 19 #Q3VC 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the in