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Overview of Venture Capital Activity in 2013 by Stage – January 2014

by Gemma Morris

  • 09 Jan 2014
  • PE
  • VC

Preqin’s Venture Deals Analyst shows that there were 1,487 angel and seed financings in 2013 with an aggregate deal value of $1.3bn, contributing to 22% and 2% of the number and value in 2013 respectively.  The largest deal to fall into this category was the $25mn seed funding of San Francisco-based mobile payments solutions developer Clinkle in June. The investment came from Accel Partners, Andreessen Horowitz, Intel Capital and Intuit, Inc., with participation from individual investors too.

In 2013, 1,002 deals took place at the series A stage, making up 15% of all deals during the year, at an aggregate value of $5.9bn, accounting for 11% of total value of VC deals. The average value recorded for such deals this year was $7mn. February welcomed the largest series A funding of the year – the $200mn provided by Insight Venture Partners to AirWatch, a software provider headquartered in Atlanta, Georgia.  This round was also larger than any other series B financing in 2013, as shown by Preqin’s extensive Venture Deals database.

The average financing size recorded for series B stages in 2013 was $12mn, a value 71% higher than the average for series A financings. The highest value series B deal shown in 2013 was the $165mn financing of Vancouver-based HootSuite Media, Inc. led by Insight Venture Partners with participation from OMERS Ventures and Accel Partners.

The series C financing of mobile application provider Uber Technologies, Inc. was the largest of that stage during 2013, at $361mn. This round was led by Google Ventures, with participation from Benchmark Capital and TPG. Deals at this stage contributed to 10% of the aggregate value of deals in 2013, a lower proportion than that of both series A and B deals (11% and 12% respectively) despite the higher average value.

With an average deal value of $37mn for 2013, series D and later deals accounted for 3% of the number and 14% of the aggregate value of venture capital deals in 2013 – 220 deals at $7.8bn took place. 360Buy, the e-commerce company based in Beijing, raised a $400mn series D round in February, whilst two other deals in the cohort each reached a value of $250mn – the series E financing of Indonesian e-commerce company Lazada, and Spotify’s series F funding from Technology Crossover Ventures, both of which occurred in the final quarter of the year.

Although only contributing to 2% of all deals and 3% of the aggregate deal value during 2013, two notable financings that occurred within the growth capital/expansion cohort surpassed the $100mn mark. The largest was that of SevOne in January, whereby Bain Capital provided the IT management software company with $150mn. Also in January, California-based online education company Lynda.com, Inc. raised $103mn, from Accel Partners, Meritech Capital Partners and Spectrum Equity Investors.

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