Inauspicious exit levels
Exits overview
After a strong year, a slow start in 2016
U.S. venture-backed exit activity
At 155 completed U.S. venturebacked exits in 1Q, selling hasn’t been
this slow since early 2011. The total
value of exits was definitely lower than
all but two other quarters since 2010,
so that and the slowing pace should
definitely be of some concern. It’s not
just the drought of tech IPOs, it’s more
the potential for formerly M&A-hungry
strategics to dial back for a sustained
period on startup acquisitions, which
would be a heavy blow. Given how
active corporate buyers have been as
of late, a period of digestion may be in
order. With exit levels were subduing
in the back half of 2015, the sudden
drop from 4Q 2015 to 1Q 2016 is a clear
inflection point. But the level of selling
should be depressed well below what
was seen in 2014 and 2015, staying
more in line with what 2010 recorded.
Exit value ($B)
1,007
# of exits closed
865 883
687
923
726
607
501
458
475
$7
$49
$89
$37
$53
$37
$30
$14
$24
$42
$24
155
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*
Source: PitchBook
*As of 3/31/2016
Although the slow start was presaged by a steady slide over the past few quarters
U.S. venture-backed exit activity
Exit value ($B)
267
244 247 255 237
227
204
202 203
$7.3
$15.5
$14.9
$10.7
$8.3
$37.3
$23.5
$12.9
$15.0
$14.1
$10.3
$8.3
$4.2
$12.1
$10.9
$23.6
155
$6.7
$9.0
$8.0
$11.3
$9.1
$9.6
$7.1
$4.9
202 205
249
174
160
148
$8.5
186
163
238 240
237
221
206 206
170
# of exits closed
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
2010
2011
2012
2013
2014
11
P I TC H B O O K 1 Q 201 6 U. S . V E N T U R E I N D U S T RY R E P O R T
2015
2016
Source: PitchBook