StateoftheMarketsInsideViewsontheHealthandProductivityoftheGlobalInnovationEconomyFirstQuarter20192StateoftheMarkets:FirstQuarter2019AsGoodasitGets?Withallthedireheadlines,let’snotforgettheepicrunthatventurehasbeenon.We’renowapproachingafulldecadeofcompoundingtailwinds,withlowratesandabundantcapitalbringinginrisk-incentivizedassetmanagersfromaroundtheglobe.We’veonlyjustbegunharvestingthisdecadeofinnovationinvesting.Yetsomeinvestorsareleftpondering:Isthisasgoodasitgets?Forstarters,itappearswehaveenteredintoaneweraofhighervolatilityinpublicmarkets.Tradeturmoil,anti-globalizationrhetoricandfearsofaslowingglobaleconomyarealsogivinginvestorspause.AndtheUSisnolongeraloneinshapingthefutureoftechnologyorregulatingitschanginglandscape.Butmuchofwhatgotusherewilltakeusfurther.Afteradecadeofsupportfromprivatemarkets,thecaliberofIPOcandidatesapproaching2019isunmatched.Theunicornsoftodayhaveraisednearly4xthehistoricalaverageforventure-backedtechcompaniesatIPO.Andnewopportunitiescontinuetoopenforentrepreneurs,astechnologytakesholdinlong-unaffectedindustries.Sowhileacknowledgingtheriskscomingintofocus,wealsoknowthatchangeanddisruptionareinherenttotheventureeconomy.It’swhatwedo.Nomatterwhatthefutureholds,it’sunlikelythatinnovationwillbestifled.BobBleeHeadofCorporateFinanceSiliconValleyBankStateoftheMarkets:FirstQuarter20193StateoftheMarkets:FirstQuarter20194Predictions:SVB’s2019OutlookforVenture5USVenture:ADecadeofCapital9IPOConditions:AmpleOpportunities,FewTakers14ExitReadiness:TheUnicornGeneration19EmergingSectors:DisruptingtheOldGuard23GlobalVenture:InternationalExitsShine27GeopoliticalTensions:TechnologyintheCrosshairsStateoftheMarkets:FirstQuarter20194SVB’sOutlookforVenturein20192018ThemesCategory2019PredictionDealcountsattheearlystagesfellforanotheryearfromtheir2015highs.Capitalremainedrobust,however;themedianSeeddealsizereached$2Mforthefirsttime.EarlyStageWithouttherobustpoolofSeed-fundedcompaniesfromyearspast,SVBanticipatesanotheryearofsteadycapitalintheearlystages...
