This is Quandl's data collection on US startups, entrepreneurship, angel investments and venture capital.
Quandl's startup data includes number of investments, investment size, and valuation data at each stage of the startup financing pipeline: seed and angel investments, early-stage venture capital including Series A, late-stage venture capital and growth equity, and exits including IPOs and acquisitions. The data is organized by time across different sectors, stages and states.
Source for Quandl's data on entrepreneurship, angel investing and venture capital in the USA include the Bureau of Labor Statistics, the National Venture Capital Association, the Center for Venture Research, the Cooley Venture Financing Report, the Kauffman Foundation, and Crunchbase.
Click on any indicator name or graph to see a full, freely-downloadable historical time series of that data. All datasets on Quandl are also available via our free and unrestricted API.
New businesses are an important part of the US economy. According to the Kauffman Foundation, new businesses (0-5 years old) are responsible for almost 20% of gross job creation and nearly all of the net job creation in the United States.
However, not all new businesses are startups in the popular sense of the term. Most new businesses are in the service industry, and are not designed to scale. Startups are differentiated by the fact that scaling is an essential part of their identity. As Paul Graham writes, "startups are defined by growth".
In the USA, and especially in Silicon Valley, there is a well-established template that startups follow in their quest for scale: initial seed funding by angel investors; early-stage and growth funding from venture capital and growth equity firms; followed by IPO or acquisition. This page includes data for each stage of this roadmap.
This page also provides some data on non-startup entrepreneurship and new business creation.
Startup financing is typically done in several rounds, as the startup company grows and its capital needs evolve. The first institutional round is usually called the "Series A round". Later rounds are called Series B, C, D, etc.
A company's pre-money valuation refers to its value before the current round of funding. If a company's value increases from one round to the next, that round is considered to be an "up round". Similarly, if a company's value drops between two funding rounds, it is said to be experiencing a "down round". As can be seen from the table below, we are currently (late 2014) in the midst of a boom in startup valuations.
Valuation data is from the Cooley Venture Financing Report . The Cooley Report aggregates data from ~100 venture capital deals every quarter in which the law firm Cooley LLP acts as counsel to one or more of the transacting parties.
The initial investment in a startup company, also known as seed funding, typically comes from the founders' savings, bank loans, and loans from friends and family. But this money is usually not enough to advance the company to a stage where it can attract large investments. This is where wealthy individuals known as angel investors make significant funding contributions. The Center for Venture Research has been publishing annual data on these angel activities since 2001.
Data published by by Center for Venture Research suggest that the software industry has consistently attracted a significant fraction of angel investments.
Depending on the initial success of the startup firm, there are different outcomes for angel investors.
A good intermediate outcome is to develop the firm to a stage where it can attract larger investments from venture capitalists. A good long-term outcome is for the firm to be acquired by a larger company for a sizeable amount; or for the firm to go public via an IPO.
A bad outcome is, obviously, bankruptcy or receivership.
In recent years, another outcome has gained in frequency: the "acqui-hire". This is an acquisition of a small company by a large company, not for the small company's product, technology or customers, but rather, for the small company's in-house talent. Acqui-hires are essentially a recruitment strategy for large firms to attract qualified teams at reasonable economic values; as such, they classify as in-between outcomes for the investor; neither good nor bad.
The Center for Venture Research publishes annual data on the number of bankruptcies, mergers and acquisitions, and the average rate of return for angel investors.
Venture Capital firms specialize in investing in high-potential startup companies. VC firms are comprised of people who invest into the VC fund, known as the limited partners, and those who invest the fund's money in startup companies, known as the venture capitalists or general partners. The National Venture Capital Association publishes annual reports on the number and size of these funds in the United States.
According to the National Venture Capital Association, as of n.a., there were n.a. active venture capital firms in the US managing a total capital of n.a. billion.
According to data published by the National Venture Capital Association , the software and business services industries have been attracting the largest number of venture capital investments.
According to data published by the National Venture Capital Association , companies at the seed stage are the least likely to receive funding from venture capital firms.
The venture capitalists' return on investment is realized when a portfolio company achieves enough success to either start selling stock to the public through an Initial Public Offering (IPO) or is bought by a larger company (Merger & Acquisition). The data in the table below are from the , the National Venture Capital Association .
Crunchbase maintains a database of startup and investor activities worldwide.
According to the Bureau of Labor Statistics , as of n.a., there were n.a. new businesses created in the US resulting in n.a. new jobs.
The Kauffman Entrepreneurial Index measures the level of entrepreneurial activity across various segments of the population, by estimating the percentage of people in each segment starting new businesses. All of the data in the tables below are from the Kauffman Foundation .