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VC investors have had a heightened focus on liquidity events in recent years. Capital exited increased for a fourth consecutive year in 2012, hitting $38.2 billion, which was the second highest total ever.
Capital Exited has Jumped 68% from 2010 to 2012 while Exit Volume has been Virtually Unchanged U.S. VC Annual Exit Flow
VC Exit Activity has Held Fairly Steady From Quarter-to-Quarter Over the Last Three Years U.S. VC Quarterly Exit Activity
Unlike Their PE Counterparts, VC Investors Did Not Make a Push to Exit in 4Q Ahead of the Fiscal Cliff Percent Change in Exits from 3Q to 4Q, PE vs. VC
Capital Raised Prior to Exit has Been Steadily Declining Since 2007, Helping to Increase Exit Multiples Exit Size/Total Capital Raised Prior to Exit
Exits by Type Analysis
IPOs Have Regained Some of the Prominence Lost in the Financial Crisis VC-Backed Exits by Type
Corporate Acquisitions Continue to Represent More than 70% of VC-Backed Exits Percent of Exits by Type
Strategic Acquirers Tend to Acquire Younger Companies Median Hold Time by Exit Type
IPOs were the Source of More than Half of the Capital Exited from VC-Backed Companies in 2012 Capital Exited ($B) by Type
IPOs Have Consistently Returned More Capital to Investors than Both Acquisitions and Buyouts Median Exit Size ($M) by Exit Type
More than 10% of Strategic Acquisitions in 2012 were for Companies that had Only Raised a Seed/Angel Round Last Financing Round Prior to Exit (2012)
IPOs have Historically Required Significantly More Financing Prior to Liquidity than Other Exit Options Median VC Capital Raised ($M) Prior to Exit
Exits by Size Analysis
Liquidity Events Over $100M Have Steadily Increased Their Share of Exits Since 2008 Percentage of Exits (#) by Exit Size
The $50M to $100M Size Bucket was the Only Range Where Acquisitions were Not the Preferred Exit Strategy Percentage of Exits (#) by Exit Size and Type
Exits by Sector Analysis
Software Expanded to More than 50% of Exits for the First Time in 2012 Percentage of Exits (#) by Sector
Software Represented an Even Larger Proportion of Exits in Terms of Capital Exited Percentage of Exits ($) by Sector
Software Exits have been Consistently Increasing, with Capital Exited More than Doubling from 2011 to 2012 Software Exits by Year
Software Made Up a Significant 47% of Corporate Acquisitions in 2012 Corporate Acquisitions (#) by Sector
Pharmaceutical & Biotech Investors Lean Heavily on Public Markets for Liquidity IPOs (#) by Sector
Private Equity Firms Seem to Favor Less Traditional VC Sectors, Like Commercial Services Secondary Buyouts (#,%) by Industry Sector
Exits by Region Analysis
Exits by Region Remained Fairly Unchanged from 2011 to 2012 Percentage of Exits (#) by Region
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