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Hosted by:
Shaking theMoneyTree
Q2 2009
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AgendaPlease join PricewaterhouseCoopers, CooleyGodward Kronish LLP and a distinguished panel asthey provide insight into Q2 2009 VentureInvestments, including PwC's Shaking theMoneyTree Report.
Q2 2009 MoneyTree
Thursday, September 3, 2009Wilson Sonsini Goodrich & Rosati650 Page Mill RoadPalo Alto, California 94304
6:00 - 7:00 p.m.
Registration and Networking
7:00 - 8:15 p.m.
Presentation and Panel Discussion
Moderator
Steve Bengston, PricewaterhouseCoopers LLP
Event Panelists
Tim Carey, PricewaterhouseCoopers LLPEmmett Cunningham, Clarus VenturesRich Ferrari, De Novo VenturesAllan May, Emergent Medical Parnters
Rich Redelfs, Foundation Capital
PricewaterhouseCoopers/National Venture CapitalAssociation MoneyTree TM Report based on datafrom Thomson Reuters.
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EventPanelists
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Steve BengstonDirectorPricewaterhouseCoopers [email protected]
Steve is Director of Emerging Company Services(ECS) at PricewaterhouseCoopers. ECS acts asmentor capitalists for young, high potential companiesand assists them with a variety of services, including,Review- ing Executive Summaries/Investor
Presentations, Referrals, Raising Money, Partnershipsand Finding People.
Before joining PwC, Steve had 20 years of experiencein a variety of marketing, business development andgeneral management roles at several high techcompanies in the Bay Area. Most recently, he wasPres/ CEO of ynot.com, a leading internationalemarketing and greeting card company. Previously, he
was VP Marketing & Business Development atWorldview Systems, an Internet travel pioneer. AtWorldview, Steve helped launch and market Travelocitywith Sabre Interactive.
Steve has a BA in Economics and MBA from StanfordUniversity. He works closely or sits on the AdvisoryBoard at Churchill Club, SVASE, SDForum, LifeScience Angels, Entrepreneurs Foundation, and theStanford/MIT Venture Lab, has taught classes on startups at UC Berkeley, Santa Clara Law School, HastingsLaw School, and Stanford, and is active in a variety ofother organizations in the Bay Area targetingentrepreneurs and investors. He also hosts thePricewaterhouseCoopers Startup radio show atwww.wsradio.com. He is a frequent moderator/panelistat both university and industry sponsored events.
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Tim CareyPartnerPricewaterhouseCoopers [email protected]
Tim Carey joined PricewaterhouseCoopers' Detroit officein 1992 and was admitted to the partnership in 2000. Hehas spent the past 7 years as a Partner in the San Joseoffice specializing in the semiconductor industry. Tim alsospent two years in our Manchester, England office andhas extensive experience working in both Europe and
Asia.
Tim is the US Leader of the firm's CleanTech practice andhas worked with numerous companies in the renewableenergy and transportation sectors within CleanTech. Heis the firm's liaison to VC CleanTech funds and isresponsible for PwC's thought leadership efforts within thesector.
Tim has extensive SEC experience having served as thelead Engagement Partner on five IPO's and numerousdebt and equity offerings. In addition, he has significantexperience with M&A transactions ranging fromacquisitions, spin-offs and divestitures to complex jointventures, strategic investments and alliances.
In addition to client work, Tim speaks regularly to outsidegroups on a variety of topics including corporategovernance, revenue recognition, accounting for stock-based compensation and initial public offerings. He isalso currently on the board of the Silicon Valley Chapter ofthe National Association of Corporate Directors.
Tim received a Bachelors degree in FinancialAdministration from Michigan State University in 1987 andan MBA with Distinction from the University of Michigan in1992. He is a certified public accountant and a member ofthe American Institute of Certified Public Accountants as
well as the Michigan and California Associations ofCertified Public Accountants.
Tim is also a Board Member of the Silicon Valley Chapterof the National Association of Corporate Directors and isaffiliated with the American Institute of Certified PublicAccountants , California Society of Certified Public
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Emmett Cunningham, Jr., MD,
PhD, MPHPartnerClarus [email protected]
Dr. Cunningham joined Clarus Ventures with more than20 years experience in the biomedical andbiopharmaceutical sectors. Prior to Clarus, Dr.Cunningham was the Senior Vice President, MedicalStrategy at Eyetech Pharmaceuticals, Inc.(NASDAQ:EYET), where he helped build and lead theteam that developed and commercialized Macugen, a
first-in-class product for the treatment of age-relatedmacular degeneration. Prior to Eyetech, Dr.Cunningham was at Pfizer, Inc, where he wasresponsible for the clinical development of early phasecentral nervous system compounds and the in-licensingof early and late-stage therapeutic candidates inophthalmology.
Dr. Cunningham is an internationally recognized
specialist in infectious and inflammatory eye diseasewith over 200 publications. He is an Adjunct ClinicalProfessor of Ophthalmology at Stanford University, wasClinical Professor and Director of the Uveitis service atNYU from 2002 to 2005, and was Director of both theUveitis Service and the Kimura Ocular ImmunologyLaboratory at the University of California at SanFrancisco (UCSF) from 1995 to 2001. Dr. Cunninghamreceived an MD and MPH in epidemiology and statisticsfrom Johns Hopkins University, a PhD in neuroscience
from the University of California at San Diego (UCSD)for work done at The Salk Institute, and completed botha residency in ophthalmology and fellowship training inCorneal Disease and Uveitis at UCSF.
Dr. Cunningham is a member of the Board of Directorsfor SARcode Inc., a member of the Scientific AdvisoryBoards of ESBAtech AG and Comentis Inc., and aBoard observer for Ferrokin Biosciences, Pearl
Therapeutics Inc., Taligen Therapeutics Inc., andZogenix, Inc.
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Rich FerrariManaging DirectorDe Novo [email protected]
Rich has been a successful CEO of several medicaltechnology companies, both prior to and after co-founding De Novo in 2000. Following De Novosinvestment in CryoVascular Systems, Rich becameCEO, growing the initial 5 person start up team to acompany of 20 employees. He was instrumental in
developing the clinical and product strategies and hiringthe executive team. In 2002, Rich led Paracor Medical,another De Novo portfolio company. He grew thecompany from 4 to 22 employees, refined the productstrategy, raised its Series B financing and hired hisreplacement CEO. Prior to co-founding De NovoVentures, he was the co-founder and CEO ofCardioThoracic Systems (CTSI), a company he led toan initial public offering in only 7 months in 1996. CTSI,
the market leader in disposable instruments andsystems for performing minimally invasive beating heartbypass surgery, was ultimately acquired by GuidantCorporation in November 1999. Before that, Rich wasthe CEO of Cardiovascular Imaging Systems (CVIS).As CEO, he orchestrated a successful IPO andultimately sold the company to Boston ScientificCorporation in 1995.
In addition, Rich founded Saratoga Ventures in 1996, a
venture capital partnership that has provided seedfinancing to startup medical technology companies,including Atrionix, Oratec, Enteric Medical, Trivascular,and Endotex. At Saratoga, Rich was Chairman ofOratec, which was sold in 2001 to Smith & NephewPLC. Mr. Ferrari also co-founded The MedicalTechnology Group, which spun out Integrated VascularSystems, an early stage femoral artery closure companywhich was sold to Abbott and Angiosense, a needle-
free, jet injection, local drug delivery company. Early inhis career, Rich held the position of Executive VicePresident and General Manager of ADAC Laboratories.Rich holds a BS degree from Ashland University and anMBA from the University of South Florida.
Rich sits on the boards of BenVenue, CardioMind,
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Allan MayManaging DirectorEmergent Medical [email protected]
Allan has been a founder, board member and/or CEO ofa number of early stage companies in medical deviceand biotechnology including Athenagen (an LSAcompany), MAST Immunosystems, Intella InterventionalSystems, Quanam Medical, ImmuneTech, NuGENTechnologies, AngstroVision, IntegriGen, Imetrx, andVascular Architects.
Previously, Mr. May was Senior Vice President ofDiasonics, Inc., a NYSE-listed medical imagingcompany manufacturing and distributing MRI,ultrasound, fluoroscopic and therapeutic devices, andPresident and COO of Fortune Systems Corporation, aNASDAQ-traded developer of microprocessor based fileservers utilizing the Unix operating system. He also has
extensive experience in negotiating and consummatingmergers and acquisitions, having been involved in over100 transactions.
He co-founded Life Science Angels (LSA) in 2005 andcurrently serves as its Chairman. LSA is the largestangel organization in the United States comprised solelyof life science industry veterans and investing solely inmedical device and life science early stage companies.
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Rich RedelfsGeneral PartnerFoundation [email protected]
Rich joined Foundation Capital in 2004 after more than20 years in networking and communications, amassinga combination of start-up entrepreneurial as well aslarge company intrapreneurial experience. Mostrecently, he was president and CEO of Atheros
Communications, which he helped build into the leadingprovider of Wi-Fi wireless semiconductors; it wassubsequently named "Silicon Valley's Fastest GrowingPrivate Company" by the Silicon Valley/San JoseBusiness Journal and PricewaterhouseCoopers for the20012003 period. In 2003 Rich received Frost &Sullivan's prestigious "Wireless LAN CEO of the Year"award.
Rich currently serves on the boards of Dust Networks,Mobius Microsystems, Prematics, ACCO Semiconductorand Ventiva, and was previously on the boards ofAzimuth Systems and Atheros Communications. He hasan MBA from Harvard Business School and a BSIE fromPurdue.
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Companies
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PricewaterhouseCoopersTen Almaden BoulevardSuite 1600San Jose, CA 95113Phone: 408-817-3700www.pwc.com/us
PricewaterhouseCoopers (PwC) is well placed to help youmeet the challenges and opportunities of the US
marketplace. We offer the perspective of a globalorganization combined with detailed knowledge of local,state and US national issues. Formed in 1998 from a mergerbetween Price Waterhouse and Coopers & Lybrand, PwChas a history in client services that dates back to thenineteenth century. Each accounting practice originated inLondon during the mid-1800s.
Today, PwC serves 29 industries. Our industry-focusedprofessionals in the fields of assurance, tax, humanresources, transactions, performance improvement andcrisis management help to resolve complex client andstakeholder issues worldwide. We also bring our experienceand talents to help educational institutions, the federalgovernment, non-profits, and international relief agenciesaddress their unique business issues.
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Clarus Ventures801 Gateway BoulevardSuite 410South San Francisco, CA 94080Phone: (650) 238-5000www.clarusventures.com/index.html
Clarus Ventures is a life sciences venture capitalfirm founded by a team of accomplishedinvestment professionals with extensive andcomplementary industry backgrounds which haveenabled them to establish a long history of successin creating value. Their deep relationships withworld thought leaders and decision makers allowthis team to identify unique investmentopportunities and shepherd them to maturity.Clarus augments its core expertise of investing in
biopharmaceuticals and medical technologycompanies with the deep and diverse expertise ofthe team in research and development,commercialization, business development andoperations management at the global level. Clarushas $1.2 billion of assets under managementacross two lifesciences dedicated funds. Clarus isheadquartered in Cambridge, MA, and has anoffice in South San Francisco, CA.
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De Novo Ventures400 Hamilton Avenue
Suite 300Palo Alto, CA 94301Phone: (650) 329-1999www.denovovc.com/contact.html
De Novo Ventures was formed in 2000 byseasoned investors and experienced medical
device entrepreneurs who sought to share thelessons learned from a history of successfulinvesting and building successful companies. Theybelieved that their unique combination of skills andperspectives could help entrepreneurs to buildcompanies which would have significant clinicalimpact and generate superior returns. Seven yearslater, this belief continues to hold true,demonstrated by our investment success inselected medical device and biotechnologycompanies.
With $650 million under management, De Novo hasmade more than 40 investments in medical devicesand biotechnology across three funds. We invest inall stages of enterprise development and growth from early stage to late stage. Our uniquebackground of leading companies as entrepreneursand operating executives from start to exit enables
us to advise entrepreneurs and management teamsover the full life cycle of the company.
Eight exits have occurred in DNV I -- four IPOs:Favrille (NASDAQ: FVRL), Fox HollowTechnologies (NASDAQ: EVVV), Renovis(NASDAQ: RNVS), and SenoRx (NASDAQ: SENO)and four acquisitions: CryoVascular Systems(Boston Scientific), TriVascular (Boston Scientific),
LuMend (Johnson and Johnson) and Microvention(Terumo). DNV II has had one exit to date Hansen Medical (NASDAQ: HNSN).
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Emergent Medical Partners3282 Alpine Road
Portola Valley, CA 94028Phone: (650) 854-8600www.emvllp.com/index.html
Emergent Medical Partners is a life sciences investmentfirm that focuses on medical device and healthcarecompanies. We have over 50 years of experiencecreating and investing in medical devices and healthcare
companies. Our focus is on early stage companies andour expertise encompasses all areas of medicine,including cardiovascular and general surgery,orthopedic surgery, cardiology, radiology, oncology,obesity, gynecology, oncology, and sleep disorders.
Often, an engineer and a physician come to us with anidea or a prototype, and we work with them to help bringabout a clinical solution. We are able to find managers,engineers, and clinicians to fill any gaps in these teams.This assistance is in addition to the possible investmentin the company by Emergent Medical Ventures. Most ofthe exits of the companies associated with our managingdirectors have been by acquisition.
Emergent Medical Partners network is unparalleled inSilicon Valley, as we have access to the CEOs of largeand small companies throughout the United States,relationships with local hospitals to facilitate
implementation of clinical trials, and relationships withthe major universities in the Bay Area. Combined, theseabilities help entrepreneurs while helping our investorsrealize superior returns.
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Foundation Capital250 Middlefield Road
Menlo Park, CA 94025Phone: (650) 614-0500www.foundationcapital.com/
Foundation Capital was founded in 1995 by BillElmore, Kathryn Gould, and Jim Anderson with asingle purpose: to build great companies.These are companies that rise upward on the
strongest of all foundationsthe power of an idea.And as such, they are organizations that make adifference, not only in the lives of their constituents,but in the impact they have on their markets.We should know: every partner at FoundationCapital has been an entrepreneur before cominghere. We have served as CEOs, as executivemanagers, and as technologists with a compellingidea that ultimately resulted in real-world experiencedirecting a company to success.We continue to run Foundation Capital with thisentrepreneurial spirit, because our true expertise isthe understanding, the perspective, and theenthusiasm we bring to helping promisingcompanies in their formative stages.We are, quite simply, a venture capital firm wherethe venture matters more than the capital. Wherepurpose, and hard work, count.Where people, and beliefs, matter.
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Silicon Valley Bank3005 Tasman Drive
Santa Clara, CA 95054Phone: (408) 654 - 7400www.svb.com/company/
A SVB Financial Group provides diversified financialservices to emerging, growth and establishedtechnology companies and the life science, venturecapital and premium wine markets. Through its
focus on specialized markets and extensiveknowledge of the people and business issuesdriving them, SVB Financial Group provides a levelof service and partnership that measurably impactsits clients' success.
Headquartered in Santa Clara, Calif., the companyoffers its clients commercial, investment, merchantand private banking, as well as value-addedservices using its knowledge and networks.Founded in 1983, SVB Financial Group servesnearly 11,000 clients around the world through 27domestic offices, and international subsidiaries inthe U.K., Israel, India and China, and an extensivenetwork of relationships with venture capitalists inAsia, Australia, Europe, India, and Israel.
With solid understanding of the true risks andrewards faced by companies in dynamic markets,
the company is widely recognized for its ability todevelop innovative approaches to meet the uniquefinancial needs of its clients. SVB Financial Groupbegan serving the technology and life sciencemarkets at a time when they were not well-understood by the financial services industry andwhen many of the leading companies in theseindustries were just getting started. At that time,many of these companies had yet to show profits
and were not considered creditworthy by localcommunity or regional banks.
Over the last two decades, SVB Financial Grouphas become one of the most respected names inthe financial services industry. The company hascreated innovative solutions for some of the world's
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Presentation
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PricewaterhouseCoopers/ National VentureCapital Association MoneyTree Reportbased on data from Thomson Reuters
Shaking the MoneyTreeSteve Bengston650 281 [email protected]
Q2 Update: September 2009
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Slide 2PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
About The Report
PricewaterhouseCoopers and the National Venture Capital Association
produce the MoneyTree Report based on data from Thomson Reuters 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, note term sheets, foreign VCs, qualified privateplacement
Excludes: debt, bridge loans, recaps, roll-ups, IPOs, PIPEs, leasing, etc.
MoneyTree Report in its 14th year Results online at www.pwcmoneytree.com, www.nvca.org,
www.venturexpert.com
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Slide 3PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
MoneyTree Total Investments: Q1 2001 Q2 2009
($ in billions)
$1
2.5
$
6.6
$4.2
$5.2
$5.0
$6
.3$
7.4
$7.7
$3.2
$10.9
$5.9
$4.8
$6.1
$6
.3 $7.1
$7.4
$7.6$
8.1
$4.4
$4.7
$4.9
$5.8 $
6.6
$7.8
$7.2$
7.8
$4.4
$5.5
$5.8
$5.8 $6
.3
$8.0
$5.7
$3.7
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
2001 2002 2003 2004 2005 2006 2007 2008 2009
Q1
Q2
Q3
Q4
1006
Q1
2008
1059
Q2
980
Q3
884
Q4 Q4Q3
612
Q2
603
Q1
2009
867
Q1
2007
1051
Q2
1002
Q3
1064
Q4
880
Q1
2006
952
Q4
911
Q3
962
Q2
732
Q1
791
Q3
829
Q2
815
Q4
2005#
of
Deals
842
Q4
694
Q3
852
Q2
716
Q1
2004200320022001
787
Q4
719
Q3
742
Q2
704
Q1
722
Q4
692
Q3
850
Q2
841
Q1
982
Q4
1005
Q3
1214
Q2
1282
Q1
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Slide 4PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
MoneyTree Total Investments: 1980 YTD 2009
($ in billions)
$0
.5
$
1.1
$
1.5
$2
.8
$2
.9
$2
.7
$2
.9
$3
.2
$3
.2
$3
.2
$2
.6
$
2.1
$3
.4
$3
.5
$4
.0 $7
.6$10
.8
$14
.4$20
.2
$52.0
$101
.8
$39
.3
$21
.3
$19
.3
$22
.1
$22
.9
$26
.3
$30
.6
$28
.1
$6
.9
$0
$20
$40
$60
$80
$100
$120
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
Annual Venture Capital Investments1980 to YTD 2009
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Slide 5PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
HAWAII
MAUI
KAH O OLAW E
LANAI
MOLOKAI
OAHU
KAU AI
N I I H AU
Investments by Region: Q2 2009
Texas$74.1 M23 Deals
2% of US total
Silicon Valley$1,176.7 M174 Deals
32% of US total
New England$466.9 M76 Deals
13% of US total
Midwest$201.2 M52 Deals
5% of US total
South Central$5.8 M7 Deals
0% of US total
Northwest$126.7 M35 Deals
3% of US totalSacramento/N. CA$7.3 M4 Deals
0% of US total
San Diego$172.2 M22 Deals
5% of US total
Southeast$282.3 M34 Deals
8% of US total
Southwest$157.9 M18 Deals
4% of US total
LA/Orange County
$159.0 M30 Deals
4% of US total
DC/Metroplex$89.8 M26 Deals
2% of US total
NY Metro$276.2 M
54 Deals8% of US total
Philadelphia Metro$161.9 M22 Deals
4% of US total
North Central$100.7 M15 Deals
3% of US total
Q2 2009 Total Investments - $3,674.4 million in 612 deals
Colorado$211.1 M16 Deals
6% of US total
AK/HI/PR
$0 M0 Deals
0% of US total
Upstate NY$2.6 M2 Deals
0% of US total
Unknown region totals are not included in the map
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Slide 6PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
Investments by Region: Q2 2009($ in millions)
$2.6
$89.8
$100.7
$126.7
$157.9
$159.0
$161.9
$172.2
$201.2$211.1
$276.2
$282.3
$466.9
$5.8
$7.3
$74.1
$1,176.7
$0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 $1,100 $1,200
AK/HI/PR
Upstate NY
South Central
Sacramento/N.Cal
Texas
DC/Metroplex
North Central
Northwest
SouthWest
LA/Orange County
Philadelphia Metro
San Diego
Midwest
Colorado
NY Metro
Southeast
New England
Silicon Valley
-44%7South Central
4%4Sacramento/N.Cal
280%18SouthWest
-4%35Northwest
66%15North Central
90%22San Diego
418%22Philadelphia Metro
-24%30LA/Orange County
53%52Midwest
-18%54NY Metro
-58%23Texas
15%612Total
AK/HI/PRUpstate NY
DC/Metroplex
Colorado
Southeast
New England
Silicon Valley
Region
-100%057%2
13%26
158%16
149%34
15%76
-8%174
% Change $
from Q1 09# of
Deals
Q2 2009 Total: $3,674.4 million in 612 dealsUnknown region totals are not included in the chart
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Slide 7PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
Investments by Region Quarterly Percent of Total U.S. Investments
Top U.S. Regions Q2 08 Q2 09
(% of Total Dollars )
40
.34%
10
.93%
4.3
0%
5.3
0%
2.4
7%
38
.74%
11
.92%
3.4
4% 7
.36%
2.9
1%
35
.93%
13
.58%
4.8
6%
6.9
2%
2.8
7%
39
.98%
12
.70%
3.5
6%
10
.54%
2.5
6%
32
.03%
12
.71%
7.6
8%
7.5
2%
5.7
5%
0%
10%
20%
30%
40%
50%
Silicon Valley New England Southeast NY Metro Colorado
Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09
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Slide 8PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
Silicon Valley Market Share of US VC $: 1995-2009
05
10
15
20
25
30
35
40
'95 '97 '99 '01 '03 '05 '07 Q1'09
SV %
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Slide 9PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
All Deals ($M): Silicon Valley
0
2000
4000
6000
8000
10000
12000
Q1'95
Q3'95
Q1'96
Q3'96
Q1'97
Q3'97
Q1'98
Q3'98
Q1'99
Q3'99
Q1'00
Q3'00
Q1'01
Q3'01
Q1'02
Q3'02
Q1'03
Q3'03
Q1'04
Q3'04
Q1'05
Q3'05
Q1'06
Q3'06
Q1'07
Q3'07
Q1'08
Q3'08
Q1'09
$M Deals
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Slide 10PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
All Deals (#): Silicon Valley
0
100
200
300
400
500
600
700
Q1'95
Q3'95
Q1'96
Q3'96
Q1'97
Q3'97
Q1'98
Q3'98
Q1'99
Q3'99
Q1'00
Q3'00
Q1'01
Q3'01
Q1'02
Q3'02
Q1'03
Q3'03
Q1'04
Q3'04
Q1'05
Q3'05
Q1'06
Q3'06
Q1'07
Q3'07
Q1'08
Q3'08
Q1'09
# Deals
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Slide 11PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
Series A Deals ($M): Silicon Valley
0
500
1000
1500
2000
2500
Q1'95
Q3'95
Q1'96
Q3'96
Q1'97
Q3'97
Q1'98
Q3'98
Q1'99
Q3'99
Q1'00
Q3'00
Q1'01
Q3'01
Q1'02
Q3'02
Q1'03
Q3'03
Q1'04
Q3'04
Q1'05
Q3'05
Q1'06
Q3'06
Q1'07
Q3'07
Q1'08
Q3'08
Q1'09
$M Deals
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Slide 12PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
Series A Deals (#): Silicon Valley
0
50
100
150
200
250
300
Q1'95
Q3'95
Q1'96
Q3'96
Q1'97
Q3'97
Q1'98
Q3'98
Q1'99
Q3'99
Q1'00
Q3'00
Q1'01
Q3'01
Q1'02
Q3'02
Q1'03
Q3'03
Q1'04
Q3'04
Q1'05
Q3'05
Q1'06
Q3'06
Q1'07
Q3'07
Q1'08
Q3'08
Q1'09
# Deals
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Slide 13PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
Silicon Valley Inv. By Round: Q1 2009
0
50
100
150
200
250
A B C D E F G H I J K L M N O P
$ M
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Slide 14PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
Silicon Valley Inv. By Round: Q2 2009
0
50
100
150
200
250
300
A B C D E F G H I J K L M N O
$ M
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Slide 15PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
Investments by Industry: Q2 2009($ in millions)
$5.7
$15.7
$49.5
$84.6$94.9
$115.8
$131.5
$170.2
$180.3
$286.5
$295.1
$628.4
$644.1
$43.5
$22.8
$17.7
$888.1
$0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000
Other
Financial Services
Retailing/Distribution
Healthcare Services
Consumer Products and Services
Business Products and Services
Electronics/Instrumentation
Telecommunications
Media and Entertainment
Computers and Peripherals
Semiconductors
Networking and Equipment
Industrial/Energy
IT Services
Medical Devices and Equipment
Software
Biotechnology
-42.94%7Healthcare Services
-37.41%5Retailing/Distribution
-30.32%15Consumer Products and Services
-18.77%15Business Products and Services
205.71%14Electronics/Instrumentation
-13.17%26Telecommunications
-47.92%52Media and Entertainment
-5.15%27Semiconductors
112.43%27Networking and Equipment
38.80%75Medical Devices and Equipment
-85.27%11Financial Services
261.79%15Computers and Peripherals
-10.52%53Industrial/Energy
28.22%44IT Services
0.98%135Software
54.01%85Biotechnology
15.14%612TOTAL
Other
Industry
-64.24%6
% Change $
from Q1 09
# of
Deals
Q2 2009 Total: $3,674.4 million in 612 dealsVisit www.pwcmoneytree.com for Industry definitions
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Slide 16PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
(% of Total Dollars)
14.05%
16.29%
12.11%
7.89%
15.51%
17.21%
18.82%
12.89%
6.00%
17.65%
18.44%
18.75%
10.34%
4.71%
16.49%
18.07%
19.99%
14.19%
7.21%
10.03%
24.17%
17.53%
17.10%
8.03%
7.80%
0%
5%
10%
15%
20%
25%
30%
Biotechnology Software Medical Devices andEquipment
IT Services Industrial/Energy
Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09
Investments by Industry Quarterly Percent of Total U.S. Investments
Top 5 Industries Q2 08 to Q2 09
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Slide 17PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
Life Science Investments Percent of Total U.S. Investments
(% of Total Dollars)
14.05%
12.11%
26.17%
17
.20%
12.8
9%
30.1
0%
1
8.4
4%
10.3
4%
28.7
9%
18.0
7%
14.1
9%
32.2
6%
24.1
7%
17.1
0%
41.2
7%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Biotechnology Medical Devices and Equipment Life Sciences
Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09
Life Science Sectors Q2 08 to Q2 09
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Slide 18PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
Life Science $ Invested as % Total: 1995-2009 YTD
0
5
10
1520
25
30
35
40
95 97 99 '01 '03 '05 '07 '09
YTD
LS % Tot
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Slide 19PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
MoneyTree Cleantech Investments: Q1 2004 Q2 2009($ in millions)
$460.4
$1,0
89.8
$402.3
$586.5
$910.8
$274.4
$892.5 $
1,0
45.4
$716.6
$977.3
$238.3
$41.9
$157.9 $
287
.7
$128.0
$136.5
$75.7
$116.4
$522.9
$120. 6 $
245.5
$186.3
$0
$200
$400
$600
$800
$1,000
$1,200
2004 2005 2006 2007 2008 2009
Q1
Q2
Q3
Q4
Q4Q3
42
Q2
68
Q1
2008
71
Q2
79
Q3
68
Q4
41
Q1
2009
45
Q1
2007
63
Q4
73
Q3
58
Q2
28
Q1
39
Q3
40
Q2
37
Q4
2006#
of
Deals
20
Q4
22
Q3
25
Q2
25
Q1
20052004
23
Q4
18
Q3
23
Q2
16
Q1
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Slide 20PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
($ in millions)
$
430
.0
$271
.2
$39
.0
$43
.8$
95
.1
$26
.1
$420
.1
$162
.3
$26
.4
$10
.7
$141.8
$13
.2
$446
.9
$129
.9
$43
.7 $71
.5$
125
.6
$69
.3
$460
.0
$87
.8
$96
.8
$15
.6 $43
.9
$7
.0
$81
.1
$33
.6
$13
.3
$18
.3
$31
.6
$4
.450
.6
50
.5
30
.2
3.0
1.1
0.1
$0
$100
$200
$300
$400
$500
Solar Energy Alternative Fuels(includes biofuels)
Energy Storage(includes vehicular
battery technology)
Transportation(includes electric
vehicles)
Pollution andRecycling (includes
water technology)
Wind andGeothermal Energy
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009
Cleantech Investments by Sub-sector
Top cleantech sub-sectors Q1 2008-Q2 2009
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Slide 21PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
Investments by Cleantech Sub-SectorPercent of Total Cleantech Investments
Top cleantech sub-sectors Q1 2008-Q2 2009
(% of Total Cleantech Dollars)
39%
25%
4%
4%
9%
2%
46%
18%
3%
1%
16%
1%
43%
12%
4%
7%
12%
7%
47%
9% 1
0%
2% 4
%
1%
34%
14%
6% 8
%
13%
2%
18%
18%
11%
1%
0%
0%
0%
10%
20%
30%
40%
50%
Solar Energy Alternative Fuels(includes biofuels)
Energy Storage(includes vehicular
battery technology)
Transportation(includes electric
vehicles)
Pollution andRecycling (includes
water technology)
Wind andGeothermal Energy
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009
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Slide 22PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009Visit www.pwcmoneytree.com for Region definitions
Cleantech investments by Region: Second Quarter 2009($ in millions)
$0.1
$0.2
$6.5
$10.1
$13.9
$20.1
$20.7
$26.6
$28.6
$30.0
$112.1
$0.2
$1.4
$4.0
$0 $15 $30 $45 $60 $75 $90 $105
SouthWest
Midwest
Sacramento/N.Cal
South Central
Philadelphia Metro
New England
DC/Metroplex
North Central
NY Metro
Southeast
Colorado
Northwest
LA/Orange County
Silicon Valley
55%3Colorado
NA3Southeast
NA2Sacramento/N.Cal
-98%2Midwest
15%42Total
SouthWest
South Central
Philadelphia Metro
New England
DC/Metroplex
North CentralNY Metro
Northwest
LA/Orange County
Silicon Valley
Region
-99%1
NA1
433%2
-79%2
76%1
13791%3
3674%2
64%5
8%1
26%14
% Change $
from Q1 2009
# of
Deals
Q2 2009 Total: $274.4 million in 42 deals
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Slide 23PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009Visit www.pwcmoneytree.com for Region definitions
Cleantech investments by Region: 1H 2008 vs 1H 2009(% of total Cleantech investment)
3%
0%
4%
7%
12%
6%
8%
41%
1%
2%
2%
2%
3%
3%
4%
4%
7%
9%
9%
11%
39%
3%
2%
1%
8%
2%
3%
4%
0% 10% 20% 30% 40% 50%
Philadelphia Metro
DC/Metroplex
SouthWest
Texas
Midwest
San Diego
North Central
NY Metro
Southeast
New England
Colorado
Northwest
LA/Orange County
Silicon Valley
1H 2008 1H 2009
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Slide 24PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
Investments by Stage of Development: Q2 2009($ in millions)
$474.6
$1,015.9
$1,155.2
$1,028.8
$0 $500 $1,000 $1,500 $2,000
Startup/Seed
Early Stage
Expansion
Later Stage
19.44%172Expansion Stage
43.83%183Early Stage
15.14%612Total
Startup/Seed
Later Stage
Stage of Development
154.50%50
-19.62%207
% Change in$ Amount
from Q1 2009
# of
Deals
Q2 2009 Total: $3674.4 million in 612 deals
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Slide 25PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
Investments by Sequence of Financing: Q2 2009
($ in millions)
$542.2
$553.5
$1,149.8
$750.6
$678.2
$0 $500 $1,000 $1,500
Fourth
Third
First
Second
5th and Beyond
22.56%98Third
9.03%141First
62.05%117Second
-0.66%1825th and Beyond
15.14%612Total
Fourth
Financing
9.10%74
% Change in
$ Amount from
Q1 2009
# of
Deals
Q2 2009 Total: $3,674.4 million in 612 deals
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Slide 26PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
First Sequence Financing
Number of Deals
384
22
6
177 1
95 2
34
275
263
329
324
185
251
252
364
333
22
3
318
329
256
295
149
237
331
141
183
184
258
275 2
86
187 21
8
284
360
254
2
34
0
100
200
300
400
500
2001 2002 2003 2004 2005 2006 2007 2008 2009
Q1 Q2 Q3 Q4
First Sequence Deals
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Slide 28PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
First Sequence Financing
Percent of Total U.S. Investments
20.5%
18.2%18.0%
21.6%
24.3%24.4% 23.9%22.9%
23.8%
20.5%19.5%
18.5%
25.9%25.1%
29.5% 30.4%
32.6%
34.9% 34.9%
31.0%
34.6%
31.4%
28.7%
24.7%23.0%
19.5%
22.4%
22.3%22.1%
20.2%
22.4%20.3%20.0%20.9%
25.1%28.4%
23.8% 22.0%
23.9%
22.1%
25.3% 26.1%
21.6%26.9%
32.7%
27.9%26.5%
24.9%25.6%
27.7%27.2%
32.1%
32.0%30.4%31.3%
34.4%
30.3%
32.8%
33.8%
29.2%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
Q12002
Q22002
Q32002
Q42002
Q12003
Q22003
Q32003
Q42003
Q12004
Q22004
Q32004
Q42004
Q12005
Q22005
Q32005
Q42005
Q12006
Q22006
Q32006
Q42006
Q12007
Q22007
Q32007
Q42007
Q12008
Q22008
Q32008
Q42008
Q12009
Q22009
% of Total Dollars % of Total Deals
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Slide 29PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
Stage of Development
Quarterly Percent of Total First Sequence Dollars
(% of first sequence dollars)
17.6
2%
40.0
2%
27.8
5%
35.9
4%
26
.42%
19.2
2%
19.5
9%
42.0
9%
21.9
0%
16.4
2%
20.1
6%
38.3
7%
23.3
9%
18.0
9%
30.2
2%
22.36
%
4.5
2%
14.5
2%
18.4
2%
42.9
0%
0%
10%
20%
30%
40%
50%
60%
Startup/Seed Early Stage Expansion Later Stage
Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09
Stage Development Q2 2008 to Q2 2009
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Slide 30PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
Stage of Development
Quarterly Percent of Total First Sequence Deals
(% of first sequence deals)
26.43%
45.95%
17.12%
10.51%
31.47%
41.26%
14.69%
12.59%
26.38%
44.49%
17.32%
11.81%
25
.50%
43.62%
16.11%
14.77%
22.70
%
48.94%
20.57%
7.80%
0%
10%
20%
30%
40%
50%
60%
Startup/Seed Early Stage Expansion Later Stage
Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09
Stage Development Q2 2008 to Q2 2009
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Slide 31PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
First Sequence Deals in Startup & Early Stage Companies
727 8
14 9
46
908
596
586 6
93
1,76
5
851
536 7
24
2,4
97
865 9
50
204
70.8%72.2%71.0%70.4%
74.9%76.7%
71.6%
74.6%74.2%
72.4%
66.9%63.3%
60.5%
63.6%70.3%
0
1000
2000
3000
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
YTD
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Seq 1 Deals in Startup/Early Stage% of Total Seq 1 Deals
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Slide 32PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
Median Deal Size vs. Mean Deal Size
Quarterly Total U.S. Investments
$3.4 $3.8 $3.6
$4.0$4.5
$4.2$4.5 $4.5
$4.2 $4.3$3.9
$4.5$4.2 $4.0 $4.0
$3.5
$4.1 $4.2
$3.8
$4.0 $4.0
$3.5 $3.5
$2.5
$3.0
$2.2
$6.0
$6.5 $6.6$7.0 $6.9
$7.6 $7.4 $7.4$7.2
$6.7
$7.8$7.5 $7.6
$7.1 $7.3
$6.4
$5.3
$6.0
$7.1$7.3 $7.2 $6.9$7.1 $7.2
$8.6
$7.0
$0
$2
$4
$6
$8
$10
Q12003
Q22003
Q32003
Q42003
Q12004
Q22004
Q32004
Q42004
Q12005
Q22005
Q32005
Q42005
Q12006
Q22006
Q32006
Q42006
Q12007
Q22007
Q32007
Q42007
Q12008
Q22008
Q32008
Q42008
Q12009
Q22009
Median Deal Size Mean Deal Size
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Slide 33PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
Top 10 Deals : Q4 2008 ($ Millions)
Solyndra Silicon Valley Cleantech $219
Pocket Communications San Antonio Telco 100Silver Spring Networks Silicon Valley Cleantech 75
Biolex Therapeutics North Carolina Biotech 60
i/o Data Centers Phoenix IT Services 56
Boston Power Boston Cleantech 55
Pacira Pharma New Jersey Biotech 55
Bayhill Therapeutics Silicon Valley Biotech 54
Kosmos Energy Dallas Cleantech 54
Calisolar Silicon Valley Cleantech 52
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Slide 34PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
Top 10 Deals : Q1 2009 ($ Millions)
Anacor Pharmaceuticals Silicon Valley Biotech $ 50
Ardian Silicon Valley Med Device 47SFJ Pharma Silicon Valley Biotech 45
Pathway Medical Seattle Med Device 40
BioVex Boston Biotech 40
Green Bullions Miami Industrial/Energy 40
Kosmos Energy Dallas Cleantech 39
Obopay Silicon Valley Financial Services 35
Twitter Silicon Valley Software 35
Quadriserv NY Software 34
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Slide 35PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
Top 10 Deals : Q2 2009 ($ Millions)
Clovis Oncology Boulder Biotech $146
Workday Silicon Valley Software 75
ExactTarget Indianapolis IT Services 70
Hyperion Therapeutics Silicon Valley Biotech 60
PhotoThera Carlsbad Med Device 50
Phoenix Services Unionville, PA Cleantech 50
Fusion-io Salt Lake City Comp & Peripherals 48
Cempra Pharma Chapel Hill, NC Biotech 46
Revolution Money Saint Petersburg Software 42LifeLock Tempe IT Services 40
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Slide 36PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
Q2 2009 Most Active Venture Investors
8Menlo Park, CaliforniaRedpoint Ventures
9Chicago, IllinoisARCH Venture Partners
9San Fransisco, CaliforniaAlta Partners
10Menlo Park, CaliforniaDraper Fisher Jurvetson11Menlo Park, CaliforniaU.S. Venture Partners
11West Conshokocken, PennslyvaniaFirst Round Capital
11San Fransisco, CaliforniaDuff Ackerman & Goodrich LLC
13Waltham, MassachusettsPolaris Venture Partners
17Pittsburgh, PennslyvaniaInnovation Works, Inc.
18Westport, ConnecticutCanaan Partners
9Palo Alto, CaliforniaVenrock Associates
9Lexington, MassachusettsHighland Capital Partners LLC
9Bethesda, MarylandNovak Biddle Venture Partners, L.P.
8Kirkland, WashingtonOVP Venture Partners
16Baltimore, MarylandNew Enterprise Associates
16Menlo Park, CaliforniaKleiner Perkins Caufield & Byers
Total DealsLocationVenture Capital Firm
Q V C i l P f
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Slide 37PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
Q1 2009 Venture Capital Performance
-3.0
-4.7
-0.4
32.8
35.0
26.2
10 Years
5.9
4.9
7.4
32.9
33.7
34.2
15 Years
6.8-5.2-13.2-32.9-3.1SDAQ Composite
22.55.81.3-17.5-2.9March 31, 2009
7.4-4.8-13.1-38.1-11.0S&P 500
8.8-3.6-9.5-35.9-12.5DIJA
Other indices at March 31, 2009
21.8
22.3
20 Years
11.6
7.1
5 Years
14.1
4.1
3 Years
11.7
-16.5
1 Year
-1.8March 31, 2009
-12.5December 31, 2008
1st Qtr.For the period ending
US Venture Capital Index Returns for the Periods ending3/31/2009, 12/21/2008 and 3/31/2008
Source: Cambridge Associates LLCNote: Because the US Venture Capital index is cap weighted, the largest vintage years mainly drive the indexs performance.
Analysis of Venture-Backed IPO and M&A Activity
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Slide 38PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
Analysis of Venture Backed IPO and M&A Activity
47.0620.00.002009 Q1
116.634278.4470.262008
197.759144.1720.752009 Q2
140.4620.00.002008 Q4
96.388187.5187.512008 Q3
116.310856.6282.752008 Q1
126.7840.00.002008 Q2
176.5375120.110,326.3862007
116.637189.85,117.1572006
85.3346121.011,378.0942004
105.835078.74,485.0572005
AverageM&A dealsize**
Number ofVenture-backedM&A deals
Average Venture-Backed OfferingSize ($M)
Total Venture-Backed OfferingSize ($M)
Number ofIPOs*
Date
Source: Thomson Reuters and National Venture Capital Association
* Includes all companies with at least one U.S. VC investor that trade on U.S. exchanges, regardless of domicile**Only accounts for deals with disclosed values
Venture Backed Exits: #M&A vs #IPO 1992-2008
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Slide 39PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
Venture Backed Exits: #M&A vs #IPO 1992-2008
0
50
100
150200
250
300
350
400
92 94 96 98 2000 '02 '04 '06 '08
M&AIPO
Venture Capital Fundraising
F ll O VC R i dT t l N b
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Slide 40PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
4,610.949463Q1 09
1,701.925178Q2 09
3,594.7493712Q4 08
8,393.3624913Q3 08
8,661.1866917Q2 07
8,595.8776215Q3 07
12,322.5865927Q4 07
28,395.9221173482008
31,925.0241185562006
23
10
62
64
55
First Time Funds
59
62
189
175
156
Follow-OnFunds
9,284.582Q2 08
7,123.472Q1 08
36,064.92512007
Quarter
28,767.42392005
19,156.02112004
VC Raised($M)
Total Numberof Funds
Year
Source: Thomson Reuters & National Venture Capital Association
Data current as of July 13, 2009
Summary: Good News$
Cisco acquiring again
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Slide 41PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
y
Full Year 2008 $28 B, 5th biggest ever
Worldwide Cleantech Investments (Innovas Solutions)
- US 21%, China 14%, Japan & India 6%,
Advertising $ to Internet/Mobile just begun (7%)
- Worldwide Ad Spending $600B
- 21% media time Internet/Mobile
Big Trends still exist-Cleantech-Cloud Computing-Virtualization-Demographic/Geographic shifts
-Analytics: Extracting signal from noise-Advertising to Internet/Mobile
6900mScientific Atlanta
590MPure Digital
330mNavini Networks
44mMeetinghouse
128mNetSolve
500mLinksys
215mPost path
135mReactivity
65mProtego Networks
105mTidal Software
97MSheer Networks
200mP-Cube
250MTopspin
14mSignalWorks
100mSecurent
120mPure Networks
74mPerfigo
31mOrative
830mIronPort Systems
70mFineGround Networks
55mDynamicsoft
92MArroyo Video Solutions
450mAirespace
$ 82mActona
Summary: Not So Good News
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Slide 42PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
Summary: Not So Good News
IPO mkt weak- 6 vc backed IPOs in US in 08, lowest since 1977, raised $0.5B vs $10.3B in 07- 5 vc backed IPOs 1st half 09- 1990-2000: 1776 IPOs, 56% all exits- 2001-2008: 392 IPOs, 13% all exits
$3.0B invested in Q109 lowest since Q197, 62% drop vs Q108, 44% drop vs Q408
M&A weak- Q109: 56 deals, down 47% vs Q108, lowest # in decade- Q209: 67 deals for $2.8 B, down 60% vs Q208, 80% vs Q207- Median M&A about $22M in Q109 & Q209, $16M in ave. Q2 deal- $4 Trillion mkt cap lost on US exchanges in last 12 months, e.g.- Citigroup: $130B gone, AIG: $150B, Fannie Mae/Freddie Mac: $105B ($1B left)
US Homeowners lost $6 Trillion equity last 3 years- 12 Million homes worth less than mortgage
Employment down 2 million jobs in 08, US unemployment at 26 year high
- Silicon Valley unemployment 11.8% June 09 vs. 6% June 08
US household net worth shrank to $50 trillion in 09 vs $62 trillion in 07
US government recently borrowed 10% of budget, 45% of budget in 09
S /P di i VC M k M B h i B dl
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Slide 43PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
Summary/Predictions VC Market: Men Behaving Badly
VCs stop funding many portfolio companies, major triage
More layoffs/cost cutting, unemployment up
New Deals must be perfect
All Deals Series A, lots of down rounds
Fewer Deals per fund, higher reserves
VC syndicate quality more important, lots inside rounds (57% Q1)
VCs fear capital calls produce LP defaults
VC Fundraising problematic: $6.3B in 1st half 09, 62% drop vs 08
More Government regulation
Globalization Marches On
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Slide 44PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters
Q2 2009
Globalization Marches On
China VC$ : 4.2B 08, 2.5B 07, 1.3B 04
China VC$ raised $7.3B 08
India VC$: $3.0B 08 , 0.6B 04
Japan VC$: $1.9B 08, 1.5B 04
Israel VC$: $1.4B 08, $1.2B in 07 & 06
% Intl: 70% PC, 86% Internet, 92% Mobile
China surpass US for most Internet users in 08, 67% under 29
Asia 43% of Internet users by 2013
China as new IMF for US- Balanced budget, devalued currency, higher interest rates, relaxed- Regulation, tax cuts
Australian commentator: Need Communists to save Capitalism
China 2nd largest economy by 2025
India population surpass China by 2020
Steve Bengston
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