Micro-VC slide deck from May 10 Raise conference

1. Member FDIC and Equal Housing Lender
RAISE SUMMIT
May 10, 2017

2. 4
Total Venture Capital
Firms banked
325+
Emerging
Venture Capital
Firms banked
175+
First Republic Bank
Venture Capital Efforts
Meetings
With Emerging Managers
Since 2014
750+

3. Observations/Findings
Twitter @SamirKaji

4. The First and the New Wave of
Emerging Managers
First Wave of Emerging Managers
Pre – 2011
New Wave of Venture Managers
2012 –

5. 6
US Funds $0-$100mn
Only First Time Funds
Source: Preqin May 2017

6. 6
The Rise of Emerging Venture
Capital
Firms - 375+ as of May 2017
0
50
100
150
200
250
300
2009 2010 2011 2012 2013 2014 2015
#ofFirms
No. of Emerging VC Funds
Source: First Republic Private Equity/Venture Capital

7. 6
US Funds $0-$100mn
Only First Time Funds Size
Source: Preqin May 2017

8. The growth of “Nano-funds”
Sub-$15MM funds

9. 6
US Funds $0-$100mn
Only First Time Funds Final
Close
Source: Preqin May 2017

10. 6
US Funds $0-$100mn
Multiple (X) Median
Source: Preqin May 2017
0.92 0.87
1.13 1.12
1.27
1.37
1.81
2.43
1.65
1.26
1.05
0
0.5
1
1.5
2
2.5
3
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Multiple (X) Median

11. 6
US Funds $0-$100mn
Net IRR Median
Source: Preqin May 2017
2014 2013 2012 2011 2010 2009 2008 2007 2006
IRR Median 11.8 16.1 15.6 18.2 0 17.1 12 4.7 11.5
0
2
4
6
8
10
12
14
16
18
20
IRR Median

12. 6
LP Survey on Emerging
Venture Capital Fund
Managers

13. Summary Thoughts and
Forecast
2
 First time funds formed by VC’s with prior experience are getting larger
(generally seed & Post-seed). First time investment managers generally
forced to raise Nano-Funds.
 Expect 2017 to outpace 2016 in terms of new fund formation
 Majority of new funds are vertically or geographically focused
 Contraction won’t happen in 2017, but is coming
 Continued scale of established seed funds