SVB-2020Q2全球风险投资跟踪报告（英文）-2020.8-35页_16mb

2020 Q2 Venture Monitor Summary

Core Content

The Q2 2020 Venture Monitor report provides an in-depth analysis of venture capital (VC) activity in the United States during the second quarter of 2020, a period marked by the impact of the COVID-19 pandemic on the venture ecosystem. The report highlights both the challenges and resilience of the VC industry, particularly in the context of economic downturn, lockdowns, and shifting investor behaviors.

Main Trends

• Overall VC Activity:
  The second quarter of 2020 saw a significant decline in deal count, especially in seed and early-stage financings, but late-stage VC activity remained relatively strong.

  • Total VC fundraising reached $43 billion, with a large amount of dry powder available to support ongoing investments.
  • Late-stage deals accounted for nearly $47 billion in investment, with the number of exits tracking to the lowest since 2011.

• Deal Count and Value:

  • Early-stage deal count dropped significantly, with a notable decline in seed financings.
  • Late-stage deal count outpaced early-stage, indicating a shift in investor focus toward protecting larger, more mature investments.
  • The median deal size in early-stage VC remained stable, while late-stage deals continued to dominate in value.
  • Mega-deals (over $100 million) in late-stage VC increased, with over 100 such deals closed in 2020, surpassing the 2019 total.

• Sector Performance:

  • B2C technology experienced a deeper slowdown compared to B2B, with a steep decline in seed and early-stage deal share.
  • Biotech and pharma remained strong, with 16 out of the top 25 early-stage deals in Q2 2020 falling into this sector, indicating a continued focus on innovation in healthcare.
  • B2B technology showed more resilience, with deal sizes and valuations trending upward, especially in early-stage activity.

• Regional Activity:

  • The Bay Area saw a resurgence in deal activity, while smaller regions struggled.
  • New England experienced a jump in the proportion of deal value, suggesting a shift in investment focus.

Key Policy Highlights

• NVCA Advocacy:
  The National Venture Capital Association (NVCA) played a crucial role in advocating for policies that support the venture industry, especially during the pandemic.
  • Paycheck Protection Program (PPP): NVCA worked with the Treasury and SBA to help VC-backed companies access PPP funds, which were critical for maintaining operations and staff.
  • Monetizing Tax Assets: NVCA proposed allowing startups to monetize up to $100 million in eligible net operating losses (NOLs), which could help in financial recovery.
  • CFIUS Filings: NVCA cautioned against changes that would impose unnecessary burdens on VC-backed companies due to FIRRMA regulations.
  • Immigration Policy: NVCA opposed the H-1B visa suspension, advocating for policies that attract entrepreneurs and scientists.
  • Volcker Rule: A revised version of the rule was finalized, allowing banks to invest in VC funds again, which is a positive development for the industry.

Investor Behavior and Market Dynamics

• Investor Adaptation:
  Despite the challenges posed by the pandemic, investors adapted by using virtual methods to source deals, meet with founders, and execute investments.

  • Angel investments remained stable, indicating a risk-tolerant investor base.
  • First-time financings dropped to multi-year lows, while follow-on deals continued to dominate, suggesting a focus on existing portfolio companies.

• Valuations and Dry Powder:

  • Early-stage valuations remained high, with the median pre-money valuation reaching $30 million, though at a slower pace than previous years.
  • The availability of dry powder allowed VCs to continue investing, even during the downturn.

• Economic Impact:

  • The economic downturn and uncertainty from the pandemic led to conservative dealmaking and cost-cutting among portfolio companies.
  • The impact of the pandemic was uneven across sectors, with software and biotech performing relatively well.

Outlook

• Short-Term Uncertainty:
  The short-term liquidity drop is a key concern, as it could affect long-term VC commitments.

  • The exit environment remains fragile, with the number of exits likely to remain low for the remainder of the year.

• Future Prospects:

  • Seed deal activity is expected to recover as investors regain confidence and new sourcing programs are implemented.
  • Late-stage activity is likely to continue as companies seek to strengthen balance sheets and prepare for potential exits.
  • The overall VC deal count is expected to contract by 25-30% in 2020, but the value of deals remains robust.

Summary of Key Figures

Conclusion

The Q2 2020 was a challenging quarter for the VC industry, marked by economic uncertainty, lockdowns, and shifts in investor behavior. While early-stage and seed deal activity declined significantly, late-stage and mega-deals continued to thrive, driven by high capital availability and strategic focus on growth. The NVCA and Silicon Valley Bank (SVB) played important roles in supporting the industry through policy advocacy and financial resources, respectively. Certent also contributed insights on venture activity during the COVID-19 era. The future outlook remains cautiously optimistic, with potential for recovery in seed activity and continued strength in late-stage VC.