1. Startup & Early Stage Financing Trends
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2. Agenda
National Trends
Vermont Trends

3. National VC trends 2015
Fundraising into venture firms is slowing in ‘15 compared to ’14. $22BN so far this year.
Continued concentration in hands of a few big firms (In Q2, 3 firms accounted for 45% of the money raised by the industry)

4. Number of National VC Deals Annually

5. What about the Angels? Q2 ACA Halo Report
Aggregate dollars for angels equal those for venture
Rule of thumb angels invest in 20X as many companies as venture firms.
Round size of “angel only” deals steadily increasing.
Angel money evenly distributed east/west and north/south

6. Alternative Funding Kickstarter (Rewards Crowdfunding)
In 2014 raised $529MM from 3.3MM people
Circle Up (Equity Crowdfunding)
$145MM raised by 126 companies in 19 states since 2011
1 Vermont company raised $600K

7. National Trend Summary
Number of venture investments declined since 2000
Dollars of VC firm fundraising declined since 2000
Venture Dollars concentrated with a few large firms
Number of Angel investing deals ~20X venture deals
Dollars Angels deploy roughly equal to Dollars from venture
Angel investing more spread across the country than venture
Alternative financing methods increasing rapidly
SEC rules for crowdfunding final which should lead to further alternative financing increases

8. Agenda
National Trends
Vermont Trends
Questions

9. What About Vermont?

10. Positive VT VC Trends - no blip in 2000-2001

11. * State Science & Technology Institute - http://www.ssti.org
2014 VT VC Funding vs. Region – No. of Deals
State
# Deals/MM population
U.S. Rank MA 59 1 NY 22 4 VT 20 5 CT 15 7 RI 9 11 ME 14 NH 8 19
* State Science & Technology Institute -

12. * State Science & Technology Institute - http://www.ssti.org
2014 VT VC Funding vs. Region - $s Invested
State
$ capita population
U.S. Rank MA
$693 2 NY
$215 5 CT
$144 9 RI
$117 10 NH
$85 11 VT
$63 16 ME
$14 32
$39MM in VT Venture Investment In ($22MM was Northern Power Systems Deal.)
$9.7MM in VT Venture Investment through Q3 2015
Several more deals expected in Q4 pipeline
* State Science & Technology Institute -

13. Other non venture VT Private Investments (Angel Deals) so far in 2015
2015 (through Oct) Vermont “non-venture” deals not included on previous venture slide:
27 companies > $16.4MM total
From small deal at $25K, to
IPCreate raising $6.1MM
Of note:
10 Tech
5 Food & Beverage
2 Skin Care
Several more deals in process before end of year

14. VSBOE 2015 (VT Small Business Offering Exemption)
Modernization of law during past 2 legislative sessions.
7 VSBOE offering registrations in 2015 so far
Offerings good for a year so no final filings available yet
Total VSBOE filings average 1 per year before recent rule change.

15. “Exits” from Entrepreneurial Companies Help Fuel Private Investment
Three notable local private investment “syndicates” from founders, execs & managers: IDX, GMCR & Dealer
And, North Country Angels Group revitalized and more active in the local market

16. VT Alternative Investors/Lenders
VT Seed Capital Fund (VCET) – 6 cos. so far in 2015
5 “Follow $546K, 1 “new” $100K
The 6 companies round sizes totaled ~$11MM
Flexible Capital Fund (VT Sustainable Jobs Fund) – 4 cos. so far in 2015
1 “Follow $150K, 3 $685K
The 4 companies round sizes totaled ~$1.3MM

17. The Best Funded VT Kickstarter Campaign Ever
Wintersmiths based in Shelburne
1,961 backers pledged $241K

18. Increase in “feeder events” for the ecosystem

19. Vermont Trends Summary
Steady 15 year rise in No. of venture deals done annually
Top 10 nationally deals per capita
Dollars per VT deal smaller than national average
No. of VT angel deals lower than national average
Dollars per VT angel deal equal to or higher than nat’l avg.
Alternative finance playing an increasingly important role
VSBOE offerings up dramatically in 2015 due to regulatory overhaul but no final filings yet.

20. @FreshTracksCap & @VT CairnCross @roadpitch
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