Category: Statistics

2013 review – Growth by City since 2010


Click on the Viz to launch

Click on the Viz to launch

This week we are focusing on the growth at the city level between 2010 and 2013 for placements on or below $1 million offered by companies headquartered in US. The viz allows to drill down at state level, use a combination of states to look at regions, and filter cities by number of offerings or by amount offered. Just click on the image to launch the viz.

 
 

Methodology:
Offering sizes are adjusted to take into account offering decreases or increases reported by the company in follow-on filings. Offering sizes are generally accounted for at the time securities are sold for the first time or if launched at the time of disclosure. Follow-on placements in indefinite offerings are not counted as a new offerings. Variations in amount raised reported in follow-on filings are accounted for at the time of their disclosure. Public companies are not included. Security issuances related to mergers or business consolidation were excluded.

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2013 Review – Growth by State since 2010


State 2013

Over the next few weeks we will be releasing data visualizations leveraging 2013 year end data. Over the year we have seen companies relocating to certain cities after being accepted in an incubator or accelerator program. There has been many initiatives launched over the years by governing bodies to attract seed stage companies, even in other countries such as Chile or Brasil. Worldwide the number of incubators is estimated to reach 7,000. We wanted to analyze the situation and look at growth in terms of total amount offered via an offering on or below $1M. Click on the image to access the interactive data visualization.

According to the National Business Incubation Association there were 1,250 incubators in the US, 93% of which are nonprofit organizations focused on economic development. 47 percent operate in urban areas, 25% in suburban areas, and 28% in rural areas. 32% are sponsored by academic institutions, and 41% are sponsored by a government or an economic development organization.

Methodology:
Offering sizes are adjusted to take into account offering decreases or increases reported by the company in follow-on filings. Offering sizes are generally accounted for at the time securities are sold for the first time or if launched at the time of disclosure. Follow-on placements in indefinite offerings are not counted as a new offerings. Variations in amount raised reported in follow-on filings are accounted for at the time of their disclosure. Public companies are not included. Security issuances related to mergers or business consolidation were excluded.

2013 activity – year in review


January 15th was the deadline for companies to file their fund raising activity initiated in 2013 under regulation D with the SEC. 2013 overall seems to have been a good year for US private companies relying on an exemptions for their private placements. There were 8,372 offerings launched by US based private SMBs in 2013 (25.4% increase vs. 2012) for $64.7 billion. 7,827 events (19.5% increase) were reported raising $36.5 billion (8.17% increase).

The segment for offerings on or below $1 million followed the same pattern with a 22% increase in amount offered ($1.9 billion) via 3,519 placements. It took two years for the amounts offered to rebound and outpace 2010 levels, though amounts raised remained pretty stable from 2010 to 2012. This anomaly is perhaps due to companies having a more conservative approach when capping fund raising events during uncertain times. In 2013, 3,519 events were reported raising $1.15 billion, representing a 25% increase over 2012.

Offerings on or below $1 million while they account only for 3% of the amount offered in 2013 by US based private SMBs, represent 42% of the activity in 2013. Companies behind these offerings are young. 80% of the time they are at most five years old and those founded within two years account for 54% (65% and 37% respectively in other segments). We continue to believe this is the segment with the most potential to unearth up and coming companies and the segment poised for growth once the JOBS Act is fully implemented by the SEC.

Methodology:
Offering sizes are adjusted to take into account offering decreases or increases reported by the company in follow-on filings. Offering sizes are generally accounted for at the time securities are sold for the first time or if launched at the time of disclosure. Variations in amount raised reported in follow-on filings are accounted for at the time of their disclosure. Public companies are not included. Security issuances related to mergers or business consolidation were excluded.

2013 YTD offerings on or below $1 million by states

Weekly offerings on or below $1 million by industry


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The amount offered by companies seeking financing on or below $1 million, increased by 5% in a week. The technology sector (Computers and Other technology) continues to lead the pack with a 24% increase week over week in amount raised.

Weekly offerings on or below $1 million by industry


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Random Research did not publish last week’s statistics on Monday. We decided to do so before the week is over.

The amount offered by companies seeking financing on or below $1 million, increased by 30% in a week. The technology industry has been the most active, fueling the growth by doubling the amount offered to reach $13 million.

Random Research is in the sweet spot


Based on research conducted by Random-Research.org, private placements of $1 million and below account for 2% of the total amount offered since 2009 in the US. It is very low as it amounts to $8 billion, however it represents a staggering 40% of the offerings. Actually, 74% of the private offerings are on or below $5 million and tapped the market some $48 billion.

The healthcare and technology sectors overall represent 25% of the $446 billion offered and 35% of placements since 2009 . 45% of the offerings in these two sectors are on or below $1 million.

42% of the 2 years old companies raising money via private placement offered $1 million or less.

While Random-Research.org is security agnostic, equity private placements are the most covered as they represent 63% of the offerings.