PricewaterhouseCoopers/ National PricewaterhouseCoopers/ National Venture Capital Association Venture Capital Association MoneyTree™ Report MoneyTree™ Report based on data from Thomson based on data from Thomson Financial Financial Shaking the MoneyTree ™ ™ Q1 2007 Update May 2007
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PricewaterhouseCoopers/ National Venture PricewaterhouseCoopers/ National Venture Capital Association MoneyTree™ ReportCapital Association MoneyTree™ Reportbased on data from Thomson Financialbased on data from Thomson Financial
Shaking the MoneyTree™™
Q1 2007 UpdateMay 2007
Page 2PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial
The MoneyTree Report – Q1 ’07
Presented by Wes Getman, PwC
Discussion Panel- Allen Moseley, Noro-Moseley Partners- Stephen Fleming, Georgia Tech
VentureLab
Q&A
Page 3PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
Wes Getman, PricewaterhouseCoopers
Wes Getman is a senior manager as part of the assurance practice in the Technology Industry for PricewaterhouseCoopers LLP. Wes has been with PwC since 1998 and has been part of the Atlanta practice throughout his career. His focus is on introducing emerging technology companies to PricewaterhouseCoopers and its vast resources in order to help the companies grow and succeed. As part of his responsibilities, Wes is actively involved as a client service audit professional. His current audit clients include some of Atlanta’s most promising young companies, including Servigistics, Comverge, Nexidia, Procuri, and CardioMEMS. Wes has also held positions at Xerox as a financial analyst and with Thomas’ Publishing in marketing. Wes is actively involved in several Atlanta-based technology groups.
Page 4PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
Allen Moseley, General Partner, Noro-Moseley Partners
Allen is a General Partner at Noro-Moseley Partners where he focuses on healthcare investments, primarily in the healthcare services and healthcare information technology areas, as well as technology enabled business services. He serves on the board of a number of Noro-Moseley portfolio companies, including Apex Analytix, Bloodhound Software, Neospine, Senior Whole Health, and Valor Healthcare.
Allen is currently Chairman of the Technology Association of Georgia (TAG) and has previously served on the Board of Directors of the Council for Entrepreneurial Development (CED) in the Research Triangle Park, NC. He is also a member of the Nashville Healthcare Council.
Before joining NMP in 1998, Allen was employed as an Associate in the Corporate Finance group at The Robinson-Humphrey Company. While at Robinson-Humphrey, he worked on a number of initial public offerings, mergers and acquisitions, and private placements in the healthcare and technology industries. Allen also worked on private equity investments for R-H Capital Partners, a private equity fund affiliated with Robinson-Humphrey.
Page 5PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
Stephen Fleming, Chief Commercialization Officer, Georgia Tech
Stephen Fleming is an Atlanta native, a graduate of Georgia Tech, and a successful Atlanta investor and entrepreneur. After technical and management positions at AT&T Bell Laboratories and Northern Telecom, Stephen has been a partner in two Atlanta-based venture capital firms; he has managed investments in more than 20 start-up companies. In his role as Chief Commercialization Officer, he is responsible for streamlining the handling of Georgia Tech's intellectual property, accelerating the licensing of technology, and making the Institute’s resources more readily accessible to business and industry.
Page 6PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
About The Report
• PricewaterhouseCoopers and the National Venture Capital Association produce the MoneyTree Report™ based on data from Thomson Financial
• ‘Core’ measure of equity investments in venture-backed companies in the United States
• Companies have received at least one round of financing involving a professional VC firm or equivalent
• Captures: tranches, not term sheets, foreign VCs, qualified private placement
• Excludes: debt, bridge loans, recaps, roll-ups, IPOs, PIPEs, leasing, etc.• MoneyTree™ Report in its 13th year• Results online at www.pwcmoneytree.com, www.nvca.org,
www.venturexpert.com
Page 7PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
Page 27PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
Q1 2007 – Most Active Venture Investors
Venture Capital Firm LocationTotal Deals
Alta Partners San Francisco, California 18
New Enterprise Associates Baltimore, Maryland 18
Draper Fisher Jurvetson Menlo Park, California 17
Canaan Partners Westport, Connecticut 16
Intel Capital Santa Clara, California 15
Menlo Ventures Menlo Park, California 15
Sequoia Capital Menlo Park, California 15
ARCH Venture Partners Chicago, Illinois 14
Venrock Associates New York, New York 14
Page 28PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
Thomson FinancialU.S. Private Equity Performance Index (PEPI)
Fund Type 1 Year 3 Year 5 Year 10 Year 20 Year
Early/Seed VC 9.9 6.5 -3.0 36.4 20.5
Balanced VC 20.5 11.7 4.1 17.6 14.6
Later Stage VC 25.2 9.4 3.7 9.0 14.0
All Venture 16.4 9.1 1.0 20.3 16.6
All Buyouts 24.5 14.6 10.4 8.5 12.9
Mezzanine 12.6 5.0 4.1 6.1 8.5
All Private Equity 23.3 12.7 7.5 11.0 13.9
NASDAQ 4.7 6.2 4.3 6.4 10.1
S&P 500 10.8 8.2 4.2 6.6 9.2
(Investment Horizon Performance as of 12/31/2006)
Source: Thomson Financial/National Venture Capital Association *Data as of 4/13/2007--The Private Equity Performance Index (PEPI) is based on the latest quarterly statistics from the Thomson Financial Private Equity Performance Database analyzing the cashflows and returns for over 1860 US venture capital and private equity partnerships with a capitalization of $679 billion. Sources are financial documents and schedules from Limited Partners investors and General Partners. All returns are calculated by Thomson Financial from the underlying financial cashflows. Returns are net to investors after management fees and carried interest.
Page 29PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
Analysis of Venture-Backed IPO and M&A Activity*
Date Number of IPOs**
Total Venture-Backed Offering Size ($M)
Average Venture-Backed Offering Size ($M)
Number of Venture-backed M&A deals
Average M&A deal size***
2003 29 2,022.7 69.8 291 62.8
2004 93 11,014.9 118.4 339 83.0
2005 56 4,461.0 79.7 347 95.8
2006 Q1 10 540.8 54.1 104 112.2
2006 Q2 19 2,011.0 105.8 92 101.3
2006 Q3 8 934.2 116.8 87 95.6
2006 Q4 20 1,631.1 81.6 57 165.3
2006 57 5,117.1 89.8 340 113.3
2007 Q1 17 2,091.9 123.1 62 161.2
2007 17 2,091.9 123.1 62 161.2
* Q1 2007 M&A data, current as of April 2, 2007, is preliminary and subject to change** Includes all companies with at least one U.S. VC investor that trade on U.S. exchanges, regardless of domicile***Only accounts for deals with disclosed valuesSource: Thomson Financial/ National Venture Capital Association
Page 30PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
Venture Capital Fundraising*
Year First Time Funds
Follow-On Funds
Total Number of Funds
VC Raised ($M)
2002 57 115 172 3,767.4
2003 50 97 147 10,622.3
2004 56 149 205 18,566.0
2005 55 163 218 27,957.3
2006 44 168 212 30,260.4
2007 YTD 13 43 56 4,939.8
Quarter
Q1 ‘06 17 55 72 6,640.1
Q2 ‘06 13 59 72 14,050.9
Q3 ‘06 13 52 65 5,426.0
Q4 ‘06 14 42 56 4,143.4
Q1 ‘07 13 43 56 4,939.8
Source: Thomson Financial/National Venture Capital Association
*These figures take into account the subtractive effect of downsized funds Date current as of 4/16/07
Page 31PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
Georgia - Quarter by QuarterGeorgia - Quarter by Quarter2001 – 20072001 – 2007
Page 38PricewaterhouseCoopers/National Venture Capital Association MoneyTree ™ ReportBased on data from Thomson Financial
Entrepreneurs’ and Venture Capitalists’ On-Line Resource GuideEntrepreneurs’ and Venture Capitalists’ On-Line Resource Guide
www.pwc.com - The PricewaterhouseCoopers’ Global website.
www.pwcmoneytree.com - The PricewaterhouseCoopers Money Tree Survey is a quarterly study of equity investments made by the venture capital community in private companies in the U.S. The survey identifies regional and national trends, entrepreneurial developments and promising industry segments.
www.pwcv2r.com (formerly www.pwcerc.com) - The Entrepreneur Resource Center (ERC) site offers proven business plan templates, financial models, technology-specific ratios, benchmarks and more.
www.pwcvc.com - The VC BestPractices site serves to provide an aggregate, comparative view of key issues and activities impacting the venture capital community, and to identify best practices.
www.pwcnextwave.com - NextWave provides news and ideas for private equity investors and entrepreneurs in the technology industry. Check out who’s who in venture capital by taking a glance at the Most Active VC Firms.
www.barometersurveys.com - The Trendsetter and Technology Barometer surveys report on the opinions and business innovations of America’s fastest-growing companies and track developments in the rapidly-changing technology industry.
www.telecomdirect.pwc.com - Telecom Direct offers telecommunications news and information specifically designed for industry professionals. The service broadcasts every business day over the Internet directly to users’ PCs.
www.tagonline.org (Technology Association of Georgia)
www.techlinks.net (News and Events for the Georgia Technology Community)
www.innovationspublishing.com - subscription-based electronic service providing detailed analysis of privately-funded technology ventures in the state of Georgia.
www.atdc.org/erc/ - Resources on starting up and building a company