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  • Date $5.3 billion invested in 714 companies in the Q3 2005, down from $6.1 billion invested in Q2 2005 But, higher than Q1 2005 of $5.0 billion and Q3 2004 of $4.6 billion. For the first nine months of 2005, investing totaled $16.3 billion compared to $15.9 billion for the first nine months of 2004. On track to break some post-bubble records: Total venture capital investing in calendar 2005 could meet or exceed 2002’s $21.7 billion which is the highest level in the prior three years. Investments in Later stage companies rose to $2.6 billion – a four-year high -- following the upward trend that began in late 2004. Life Sciences continued its dominance with $1.6 billion in Q3, on track to equal or better calendar 2004 which was a three-year high. Within the Telecommunications industry, the Wireless sub-category jumped to $455 million, also a four-year high.
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  • Date Silicon Valley broke the $2 billion mark for the first time in a year and accounted for nearly 40% of all venture capital invested in the U.S. New England was second behind Silicon Valley, capturing $612 million in Q3 The Southeast was third with $461 million going into 59 deals during the quarter Rounding out the top 5 are LA/Orange County with $340 million and NY Metro with $249 million
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  • Date Silicon Valley broke the $2 billion mark for the first time in a year and accounted for nearly 40% of all venture capital invested in the U.S. New England was second behind Silicon Valley, capturing $612 million in Q3 The Southeast was third with $461 million going into 59 deals during the quarter Rounding out the top 5 are LA/Orange County with $340 million and NY Metro with $249 million
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  • Date Life Sciences continues it’s dominance The Life Sciences sector (Biotechnology and Medical Devices industries, together) outpaced the prior quarter with $1.6 billion invested in 155 companies in the third quarter. Although the Telecommunications industry category has languished in recent years, the Wireless sub-category has shown steady growth. Year-to-date, 114 wireless-related companies received $984 million compared to full-year 2004 of 135 companies and $1.1 billion. Notably, the two largest deals of the quarter were wireless-related companies. FiberTower Corporation – received $150 million in Q3 Visto Corporation – received $70 million in Q3 The Software industry dipped in the third quarter, but retained its position as the largest single industry category with 185 companies capturing $1.0 billion. Year-to-date, Software amounted to $3.5 billion in 627 companies, lagging full-year 2004 with 881 companies and $5.2 billion.
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  • Date For the first nine months 2005, Life Sciences accounted for $4.2 billion or 26% of all venture investing. At the current rate, Life Sciences will meet or exceed 2004’s total of $5.8 billion.
  • Date The sustained dominance of Later stage investing over the past 12 months reflects venture capitalists continued support of existing portfolio companies via additional follow-on rounds. In the third quarter, Later stage funding rose slightly to $2.6 billion going into 248 companies. Year-to-date 2005, Later stage amounted to $7.2 billion, approaching full-year 2004 figures of $7.6 billion which was a three-year peak. Funding for Start-Up and Early stage companies fell back in Q3 to $1.0 billion 216 companies, but still above the first quarter. However, the year-to-date 2005 totals of $3.2 billion and 697 deals are on track to match full-year 2004 of $4.3 billion and 1028 deals. Investing in Expansion stage companies fell to its lowest point of the year in the third quarter; $1.6 billion in 250 companies. Year-to-date figures of $6.0 billion and 825 deals point to a full-year 2005 that will be significantly lower than 2004 of $9.7 billion and 1,217 deals.
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  • Date Venture capitalists continued to make new investments at a steady clip in the third quarter. A total of 215 companies got their first-ever round of institutional venture capital which amounted to $1.1 billion. Year-to-date, 653 companies received their first venture capital for a total of $4.0 billion. Full-year 2004 figures of 854 companies and $4.6 billion were both three-year highs, putting 2005 on track to a four-year high.
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  • Date Year-to-date, the most first-time financings, 69%, went to Start-Up and Early stage companies. Expansion stage companies were 26% and Later stage 5%.
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  • Date Average post-money valuations of Early stage companies were essentially flat at $14.4 million for the 12 months ending Q2 2005 compared to $14.2 million for the period ending Q1 2005. (Note that valuation data lags investment data by one quarter.)
  • Date Average post-money valuations of Early stage companies were essentially flat at $14.4 million for the 12 months ending Q2 2005 compared to $14.2 million for the period ending Q1 2005. (Note that valuation data lags investment data by one quarter.)
  • Date Average post-money valuations of Early stage companies were essentially flat at $14.4 million for the 12 months ending Q2 2005 compared to $14.2 million for the period ending Q1 2005. (Note that valuation data lags investment data by one quarter.)
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  • Date The most recent performance data available is from the 1 st quarter of 2005. Short-term venture capital performance showed signs of fluctuation at the close of the 1 st quarter of 2005 with a decline in the 1 and 5 year investment horizons and an improvement in the 3 year horizon. Despite the short-term swing, the 10 and 20 year horizon returns remained constant for venture capital for the period ending 3/31/05 at 25.4% and 15.6% respectively. For the same time horizon, buyout funds returned 8.7% and 13%. All private equity continued to outperform both the NASDAQ and the S&P 500 for the long-term with a 12.5% ten year return.
  • Date 19 VC-backed companies raised $1.5b through IPOs, and 76 vc-backed companies were acquired in the third quarter of 2005. Q3 marks the first time in 2005 that the total venture-backed IPO offering amount has been over $1 billion. The technology sector led the quarter with 9 venture-backed IPOs raising a total of $759.1 million. In addition to the IPOs completed this quarter, there are currently 30 venture-backed companies in-registration with the SEC. This figure is down from the 38 in-registration at the end of the second quarter.
  • Date The private equity fundraising climate remained robust in Q3 2005 with 45 venture funds raising $5.4 billion and 45 buyout & mezzanine funds fetching $16.8 billion. While the quarterly totals represented a fall off in activity from a strong 2 nd quarter, the average venture fund size continued to remain strong at $119 million. After the 3 quarters of this year, both venture and buyout fundraising levels have already surpassed 2004 levels.
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  • Date Venture capitalists continued to make new investments at a steady clip in the third quarter. A total of 215 companies got their first-ever round of institutional venture capital which amounted to $1.1 billion. Year-to-date, 653 companies received their first venture capital for a total of $4.0 billion. Full-year 2004 figures of 854 companies and $4.6 billion were both three-year highs, putting 2005 on track to a four-year high.
  • Date Venture capitalists continued to make new investments at a steady clip in the third quarter. A total of 215 companies got their first-ever round of institutional venture capital which amounted to $1.1 billion. Year-to-date, 653 companies received their first venture capital for a total of $4.0 billion. Full-year 2004 figures of 854 companies and $4.6 billion were both three-year highs, putting 2005 on track to a four-year high.
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Download pwc_q4_2007_highlights.ppt Download pwc_q4_2007_highlights.ppt Presentation Transcript

  • PricewaterhouseCoopers/ National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial Shaking the MoneyTree ™ Q4/Full-Year 2007 Update February 2008 Raleigh, NC February 2008
  • Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial Today’s program
    • The MoneyTree Report – Q4/Full-Year 2007 Analysis
      • presented by Jeff Barber, PricewaterhouseCoopers LLP
    • Venture Capital Panel
      • Mitch Mumma, Intersouth Partners
      • Sherrill Neff, Quaker BioVentures
    • Question and Answer Session
  • Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial Speaker Bios
  • Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial Jeff Barber Jeff Barber is a partner in the PricewaterhouseCoopers Raleigh office. He is a leader in the PwC Carolinas Technology Industry Group, a team of thirty professionals who provide services and support to over fifty technology-based companies. Jeff has over twenty-five years of experience serving technology companies, including extensive experience working with clients from the organizational stage through the initial public offering and subsequent expansion. Jeff spent two years in the PwC National Office in New York City where he worked in the Firm’s Accounting and SEC Group. His responsibilities there included researching accounting issues, writing various PricewaterhouseCoopers publications and assisting the Firm’s national consulting partners in their consultation on client related matters. Jeff is actively involved in the Triangle area business community. He is currently on the board of directors of the Council for Entrepreneurial Development (“CED”), where he is a past chairman of the board, and the North Carolina Technology Association (“NCTA”), where he has served as Treasurer. In January 2006, Jeff received the NCTA “Volunteer of the Year” award. In June 2000, Jeff received the CED “Outstanding Service” award. Jeff is also actively involved in various civic organizations. He currently serves on the board of directors of the North Carolina Museum of Art Foundation and the Juvenile Diabetes Research Foundation. In the past, he has served as a member of the UNC Accounting Advisory Board and a member of the NCSU College of Management Board of Advisors. In addition, Jeff has served as president of Artspace, Inc., chairman of the board of the Community Learning Centers, Inc., a member of the board of directors of the Greater Raleigh Chamber of Commerce and a member of the board of directors of the United Arts Council. Jeff is a graduate of the Leadership Raleigh and Leadership Lexington (KY) training programs. He holds a B.S. in Accounting from the University of Kentucky.
  • Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial Mitch Mumma Mitch is primarily responsible for Intersouth's information technology portfolio. He joined Intersouth in 1989 at the inception of Fund II. Mitch has full-cycle venture investment experience and has held management positions with various companies throughout his career, including three start-up companies, all of which subsequently went public. Mitch is known for board and syndicate leadership as well as tireless focus on portfolio company success. He has provided early financing and venture leadership for numerous successful companies. He currently serves on the boards of five portfolio companies. He also served as CEO of an Intersouth portfolio company. Prior to joining Intersouth, Mitch worked in finance and operations for a high growth computer hardware and software company. Previously, he worked as a manager in the high growth business practice at Touche Ross & Co. (now Deloitte & Touche). Mitch is a leader in the entrepreneurial community and a sought-after speaker. He is an adjunct professor at the UNC Kenan-Flagler School of Business and has long held leadership roles in the Council for Entrepreneurial Development (CED) and North Carolina Technology Association (NCTA). He also has served as a mentor to the Kauffman Fellows Program. He earned a degree in Management Science from Duke University.
  • Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial Sherrill Neff Sherrill is a founding partner of Quaker BioVentures. He is well regarded in the biopharmaceutical industry, is a previous Chairman of the Greater Philadelphia Venture Group, and previous President of the Pennsylvania Biotechnology Association. He sits on the following boards of directors: Amicus Therapeutics, Biolex Therapeutics, Neuronetics, Optherion, Regado Biosciences, Resource Capital Corporation, University City Science Center, the Biotechnology Institute, and the Policy Board of WXPN at the University of Pennsylvania. Prior to forming Quaker BioVentures, Sherrill was President, Chief Operating Officer, and a Director of Neose Technologies, Inc., a publicly traded life sciences company. Previously, he was Senior Vice President, Corporate Development at U.S. Healthcare, Inc., a leading publicly traded health maintenance organization. Sherrill was formerly a Managing Director in the investment banking division of Alex. Brown & Sons, and formerly an attorney at Morgan, Lewis & Bockius. Sherrill is a graduate of Wesleyan University and the University of Michigan Law School .
  • 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
    Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial
  • Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial The National Picture Historical Trends
  • MoneyTree Total Investments: Q1 1999 – Q4 2007 Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial # of Deals 1999 2000 2001 2002 2003 2004 2005 2006 2007 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 918 1304 1420 1865 2130 2109 1930 1742 1284 1219 1000 975 887 848 688 719 691 736 712 783 712 847 685 838 724 820 785 809 868 944 900 918 858 1018 974 963
  • MoneyTree Total Investments: 1980 – 2007 Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial Annual Venture Capital Investments 1980 to 2007
  • Investments by Region: Q4 2007 Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial Texas $426.6 45 Deals Silicon Valley $2,399.3 301 Deals New England $860.7 111 Deals Midwest $243.8 62 Deals South Central $58.9 9 Deals Northwest $438.2 54 Deals Sacramento/N. CA $48.9 7 Deals San Diego $423.8 32 Deals Southeast $479.4 55 Deals Southwest $49.8 17 Deals LA/Orange County $253.9 46 Deals DC/Metroplex $403.9 71 Deals NY Metro $471.0 70 Deals Philadelphia Metro $107.7 21 Deals North Central $159.2 28 Deals Q4 2007 Total Investments - $7,011 in 963 Deals Colorado $102.4 20 Deals AK/HI/PR $8.9 2 Deals Upstate NY $74.7 12 Deals
  • Investments by Region: Q4 2007 Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial Q4 2007 Total: $7,011 in 963 Deals Region # of Deals % Change $ from Q3 ‘07 Silicon Valley 301 -9.29% New England 111 -11.34% DC/Metroplex 71 14.95% NY Metro 70 4.20% Midwest 62 -37.65% Southeast 55 22.29% Northwest 54 21.16% LA/Orange County 46 -39.89% Texas 45 8.52% San Diego 32 3.05% North Central 28 40.77% Philadelphia Metro 21 -61.32% Colorado 20 -50.16% SouthWest 17 -67.88% Upstate NY 12 185.64% South Central 9 226.59% Sacramento/N.Cal 7 237.49% AK/HI/PRl 2 118.82% Total 963 -7.82%
  • Investments by Region: Full Year 2007 Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial Texas $1,416.5 166 Deals Silicon Valley $10,066.5 1,184 Deals New England $3,695.3 478 Deals Midwest $1,298.3 236 Deals South Central $92.5 27 Deals Northwest $1,636.4 216 Deals Sacramento/N. CA $99.9 16 Deals San Diego $1,988.8 159 Deals Southeast $1,856.4 243 Deals Southwest $540.9 90 Deals LA/Orange County $1,647.8 205 Deals DC/Metroplex $1,241.8 207 Deals NY Metro $1,715.5 254 Deals Philadelphia Metro $861.5 125 Deals North Central $525.6 80 Deals 2007 Total Investments - $29.4B in 3,813 Deals Colorado $564.2 86 Deals AK/HI/PR $20.5 9 Deals Upstate NY $137.4 32 Deals
  • Investments by Region: Full Year 2007 Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial 2007 Total: $29.4B in 3,813 Deals Region # of Deals % Change $ from 2006 Silicon Valley 1,184 5.65% New England 478 18.56% NY Metro 254 -14.20% Southeast 243 46.42% Midwest 236 32.82% Northwest 216 37.04% DC/Metroplex 207 8.43% LA/Orange County 205 -14.52% Texas 166 -2.28% San Diego 159 52.27% Philadelphia Metro 125 12.64% SouthWest 90 7.79% Colorado 86 -14.61% North Central 80 31.15% Upstate NY 32 -11.84% South Central 27 17.15% Sacramento/N.Cal 16 254.63% AK/HI/PR 9 -56.26% Total 3,813 10.75%
  • Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial Q4 2007 Top 10 States Garnering Venture Funds State Deals Investment Amount 1. California 386 $ 3,125,906,200 2. Massachusetts 104 $ 830,269,700 3. Texas 85 $ 426,608,200 4. New York 57 $ 360,388,500 5. North Carolina 21 $ 353,337,100 6. Washington 44 $ 345,468,300 7. Maryland 38 $ 205,813,100 8. Florida 17 $ 193,025,100 9. Virginia 28 $ 164,865,300 10. New Jersey 19 $ 137,133,500
  • Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial Full-Year 2007 Top 10 States Garnering Venture Funds State Deals Investment Amount 1. California 1,564 $ 13,802,961,100 2. Massachusetts 430 $ 3,489,131,900 3. Texas 166 $ 1,416,470,600 4. Washington 170 $ 1,314,590,200 5. New York 191 $ 1,195,328,800 6. Pennsylvania 150 $ 835,166,500 7. North Carolina 71 $ 812,022,200 8. Maryland 99 $ 635,283,700 9. New Jersey 91 $ 624,906,800 10. Florida 63 $ 608,338,400
  • Investments by Industry: Full Year 2007 Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial 2007 Total: $29.4B in 3,813 Deals Visit www.pwcmoneytree.com for Industry definitions Industry # of Deals % Change $ from 2006 Software 905 2.72% Biotechnology 477 9.51% Medical Devices and Equipment 385 39.55% Media and Entertainment 340 10.31% Telecommunications 290 -17.37% Industrial/Energy 286 44.15% Semiconductors 210 -13.77% IT Services 202 19.40% Business Products and Services 129 34.19% Networking and Equipment 124 17.49% Consumer Products and Services 102 -6.36% Electronics/Instrumentation 91 -4.86% Financial Services 88 29.38% Computers and Peripherals 66 16.62% Retailing/Distribution 58 91.38% Healthcare Services 49 -13.48% Other 11 57.33% TOTAL 3813 10.75%
  • Investments by Industry – Quarterly Percent of Total U.S. Investments Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial Top 5 Industries – Q4 ‘06 to Q4 ‘07
  • Life Science Investments – Percent of Total U.S. Investments* Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial Life Science Sectors – Q4 ’06 to Q4 ‘07
  • Investments by Stage of Development: Full Year 2007 Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial 2007 Totals: $29.4B in 3,813 Deals Stage of Development # of Deals % Change in $ Amount from 2006 Expansion Stage 1,235 -5.65% Later Stage 1,168 24.68% Early Stage 995 26.58% Startup/Seed 415 -0.28% Total 3,813 10.75%
  • Investments by Sequence of Financing: Full Year 2007 Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial 2007 Totals: $29.4B in 3,813 Deals Financing # of Deals % Change in $ Amount from 2006 First 1,267 19.61% 5 th and Beyond 911 23.56% Second 733 0.79% Third 500 2.11% Fourth 402 -2.92% Total 3,813 10.75%
  • First Sequence Financing – Investment Amount Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial First Sequence Investments
  • Stage of Development – Quarterly Percent of Total First Sequence Dollars Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial Stage Development – Q4 2006 to Q4 2007
  • First Sequence Deals in Startup & Early Stage Companies Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial
  • First Sequence Financing – Percent of Total U.S. Investments Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial
  • Median Deal Size vs. Mean Deal Size – Quarterly Total U.S. Investments Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial In Millions ($)
  • Post-Money Valuations – Early Stage Companies Q3 2000 to Q3 2007 Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial 12 Month Average
  • Post-Money Valuations – Expansion Stage Companies Q3 2000 to Q3 2007 Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial 12 Month Average
  • Post-Money Valuations – Later Stage Companies Q3 2000 to Q3 2007 Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial 12 Month Average
  • Full Year 2007 – Most Active Venture Investors Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial Venture Capital Firm Location Total Deals Draper Fisher Jurvetson Menlo Park, California 100 New Enterprise Associates Baltimore, Maryland 87 Intel Capital Santa Clara, California 70 Polaris Venture Partners Waltham, Massachusetts 61 Kleiner Perkins Caufield & Byers Menlo Park, California 56 Sequoia Capital Menlo Park, California 55 Menlo Ventures Menlo Park, California 54 Canaan Partners Westport, Connecticut 50 U.S. Venture Partners Menlo Park, California 49 Accel Partners Palo Alto, California 48 Foundation Capital Menlo Park, California 48 Venrock Associates New York, New York 47 InterWest Partners Menlo Park, California 47 Highland Capital Partners LLC Lexington, Massachusetts 47
  • Thomson Financial U.S. Private Equity Performance Index (PEPI) Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial (Investment Horizon Performance as of 9/30/2007) Source: Thomson Financial/National Venture Capital Association *The Private Equity Performance Index is based on the latest quarterly statistics from Thomson Financials' Private Equity Performance Database analyzing the cashflows and returns for over 1860 US venture capital and private equity partnerships with a capitalization of $678 billion. Sources are financial documents and schedules from Limited Partner investors and General Partners. All returns are calculated by Thomson Financial from the underlying financial cashflows. Returns are net to investor after management fees and carried interest. Fund Type 1 Year 3 Year 5 Year 10 Year 20 Year Early/Seed VC 23.6 6.8 .3.1 34.5 20.8 Balanced VC 38.0 14.4 9.9 15.1 14.3 Later Stage VC 41.4 10.5 8.4 8.3 13.8 All Venture (through 6/30/07) 23.5 10.5 4.8 19.3 16.4 All Venture (through 9/30/06) 8.2 9.3 -1.0 20.8 16.6 NASDAQ 14.2 12.2 17.9 4.8 9.4 S&P 500 10.8 10.7 13.1 4.9 8.1
  • Analysis of Venture-Backed IPO and M&A Activity Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial * Includes all companies with at least one U.S. VC investor that trade on U.S. exchanges, regardless of domicile **Only accounts for deals with disclosed values Source: Thomson Financial/ National Venture Capital Association Date # of IPOs* Total Venture-Backed Offer Size ($M) Average Venture-Backed Offer Size ($M) Number of Venture-backed M&A deals Average M&A deal size** 2003 29 2,022.7 69.8 291 62.8 2004 93 11,014.9 118.4 339 83.0 2005 56 4,461.0 79.7 347 95.8 2006 Q1 10 540.8 54.1 105 111.2 2006 Q2 19 2,011.0 105.8 104 100.9 2006 Q3 8 934.2 116.8 93 92.7 2006 Q4 20 1,631.1 81.6 61 154.7 2006 57 5,117.1 89.8 363 110.6 2007 Q1 18 2,190.6 121.7 82 156.6 2007 Q2 25 4,146.8 165.9 82 114.0 2007 Q3 12 945.2 78.8 95 206.0 2007 Q4 31 3,043.8 98.2 45 228.4 2007 86 10,326.3 120.1 304 175.9
  • Venture Capital Fundraising* Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial Source: Thomson Financial/National Venture Capital Association *These figures take into account the subtractive effect of downsized funds Date current as of 1/14/08 Year First Time Funds Follow-On Funds Total Funds VC Raised ($M) 2002 22 157 179 3936.9 2003 38 114 152 10606.1 2004 51 157 208 19057.6 2005 58 170 228 28282.6 2006 46 183 229 31698.1 2007 55 180 235 34675.9 Quarter Q1 ‘06 19 56 75 6544.5 Q2 ’06 12 65 77 14185.5 Q3 ’06 12 55 67 5375.3 Q4 ’06 15 50 65 5592.8 Q1 ’07 21 59 80 5754.2 Q2 ’07 17 68 85 9141.8 Q3’ 07 15 62 77 8763.7 Q4’ 07 16 47 63 11016.2
  • North Carolina Picture Historical Trends Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial
  • 2000 2001 2002 2003 2004 # of Deals 2005 2006 2007 42 37 28 14 20 41 34 32 22 22 14 20 23 22 20 14 9 15 17 13 18 11 15 11 20 19 ($ in millions) 16 15 18 17 15 MoneyTree Total North Carolina Investments 2000 – 2007 21 Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial
  • # of Deals 154 90 85 77 56 71 53 70 MoneyTree Total North Carolina Investments – 2000 – 2007 ($ in millions) Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial
  • Amount Invested (in millions) $1,826 $584 $553 $358 $338 $812 $433 $510 MoneyTree Total North Carolina Deals– 2000 – 2007 ($ in millions) Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial
  • North Carolina Investments by MSA 2000 - 2007 Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial
  • North Carolina Investment % by MSA 2000 - 2007 Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial
  • Total Deals 2007 % Change in $ Amount from 2006 ($ in millions) Industry Definitions @ www.pwcmoneytree.com Q3 2003 Total: $98.5 25 4 2 (41.2%) Total North Carolina Investments by Industry – Full-Year 2007 2007 Total: $812.0 8 1 4 3 $13.0 1 1 5 13 2 4 120.2% 13.1% 41.3% 900.0% (18.3%) 394.0% (65.6%) 10.1% 242.7% 47.7% 75.1% 152% Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial
  • Total North Carolina Amount $812.0 million Total U.S. Amount $29.4 billion Software $5.3 Industrial/ Energy $2.7 Others $6.4 Telecom $2.1 Medical Devices & Equipment $3.9 Media & Entertainment $1.9 Medical Devices & Equipment $99.0 3% Others $87.6 Electronics & Instrumentation $27.6 Biotechnology $237.2 Business Products & Services $30.0 Telecommunications $254.8 (in billions) (in millions) Biotechnology $5.2 Total North Carolina vs. U.S. Investments by Industry – Full-Year 2007 Software $42.7 Semiconductors $1.8 Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial Media & Entertainment $33.0
  • ($ in millions) Amount Invested (in millions) $272 $367 $822 $1,877 $641 $44 $622 $368 Biotechnology Investments in NC vs. U.S. 2000 – 2007 21 17 17 17 18 25 14 16 # of Deals 4.8% Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial
  • ($ in millions) Amount Invested (in millions) $272 $367 $822 $1,877 $641 $44 $622 $368 Software Investments in NC vs. U.S. 2000 – 2007 36 25 24 22 19 13 8 12 # of Deals 0.5% $42 Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial
  • Average Deal Size – NC vs. U.S. 2000 – 2007 ($ in millions) Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial
  • Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial 6 th Sense Analytics, Inc. Software $ 5,000,000 AlphaVax, Inc. Biotechnology $ 12,650,000 Chimerix, Inc. Biotechnology $ 23,099,900 HyperBranch Medical Technology, Inc. Medical Devices & Equipment $ 2,000,000 INI Power Systems, Inc. Electronics/Instrumentation $ 883,000 InnerPulse, Inc. Medical Devices & Equipment $ 50,000,500 Liquidia Technologies, Inc. Industrial/Energy $ 15,999,900 Motricity Telecommunications $ 50,000,000 Nextreme Thermal Solutions, Inc. Electronics/Instrumentation $ 5,292,000 Phase Bioscience, Inc. Biotechnology $ 1,250,100 Regado Biosciences, Inc. Biotechnology $ 23,000,200 rPath, Inc. Software $ 1,749,900 Serenex, Inc. Biotechnology $ 13,999,800 StrikeIron, Inc. IT Services $ 5,000,000 Tranzyme Pharma, Inc. Biotechnology $ 11,000,000 Unit Dose Solutions, Inc. Biotechnology $ 2,500,000 XDS, Inc. IT Services $ 2,274,000 $ 225,699,300 North Carolina Companies Funded in Q1 2007 Company Name Amount Industry
  • Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial Biolex, Inc. Biotechnology $ 29,999,600 Brightdoor Systems, Inc. Software $ 2,000,000 Cetero Research Biotechnology $ 15,448,000 ChannelAdvisor Corporation Business Products and Services $ 29,999,900 CoLucid Pharmaceuticals, Inc. Biotechnology $ 8,250,000 Datacraft Solutions, Inc. Software $ 4,000,000 Digitalsmiths Corporation Computers and Peripherals $ 6,000,000 iContact Corporation Software $ 5,350,000 INI Power Systems, Inc. Electronics/Instrumentation $ 4,000,000 Integrated Oncology Solutions, Inc. Biotechnology $ 500,000 Micell Technologies, Inc. Industrial/Energy $ 5,555,000 NephroGenex, Inc. Biotechnology $ 3,314,100 Nomacorc LLC Industrial/Energy $ undisclosed RadarFind Corporation Medical Devices and Equipment $ 3,000,000 Semprius, Inc. Semiconductors $ 4,100,000 Serenex, Inc. Biotechnology $ 11,999,900 Viamet Pharmaceuticals, Inc. Biotechnology $ 999,900 Visitar, Inc. Software $ 1,330,000 $ 135,846,400 North Carolina Companies Funded in Q2 2007 Company Name Amount Industry
  • Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial Aerie Pharmaceuticals, Inc. Biotechnology $ 10,000,000 Aldagen, Inc. Biotechnology $ 9,000,000 Batanga.com Media and Entertainment $ 30,000,000 Cempra Pharmaceuticals Biotechnology $ 8,297,000 CeNeRx BioPharma, Inc. Biotechnology $ 2,027,000 Hatteras Networks, Inc. Networking and Equipment $ 8,000,000 Hyperbranch Medical Technology, Inc. Medical Devices & Equipment $ undisclosed Immaculate Baking Company Retailing/Distribution $ 2,044,000 M3 Technology Group Telecommunications $ 7,499,000 Micell Technologies, Inc. Industrial/Energy $ 1,500,000 NCSRT, Inc. Electroinics/Instrumentation $ 1,000,000 Overture Networks, Inc. Telecommunications $ 12,272,200 Semprius, Inc. Semiconductors $ 550,000 Viamet Pharmaceuticals Biotechnology $ 1,200,000 CONFIDENTIAL Biotechnology $ 3,750,000 $ 97,139,200 North Carolina Companies Funded in Q3 2007 Company Name Amount Industry
  • Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial Artus Labs, Inc. Software $ 579,000 BlueStripe Software, Inc. Software $ 5,000,000 Cempra Pharmaceuticals, Inc. Biotechnology $ 10,000,000 Centice Corporation Semiconductors $ 11,365,200 Clinipace, Inc. Software $ 2,600,000 Inlet Technologies, Inc. Media and Entertainment $ 3,000,000 LED Lighting Fixtures, Inc. Electronics/Instrumentation $ 16,500,000 Motricity Telecommunications $ 185,000,000 nContact Surgical, Inc. Medical Devices and Equipment $ 8,500,000 Nitronex Corporation Semiconductors $ 7,500,000 Oriel Therapeutics, Inc. Medical Devices and Equipment $ 11,500,000 Phase Bioscience, Inc. Biotechmology $ 5,370,000 Piedmont Pharmaceuticals LLC Biotechnology $ 8,500,000 Primo Water Corporation Consumer Products and Services $ 20,000,000 Proventys, Inc. Software $ 4,550,100 Rx Medic Systems, Inc. Software $ 2,000,100 North Carolina Companies Funded in Q4 2007 Company Name Amount Industry
  • Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial Rx Medic Systems, Inc. Software $ 2,000,100 TransEntrix Medical Devices and Equipment $ 21,000,000 Transyme Pharma, Inc. Biotechnology $ 19,999,900 Viamet Pharmaceuticals, Inc. Biotechnology $ 1,025,000 VMI, LLC Medical Devices and Equipment $ 3,000,000 XDS, Inc. Software $ 6,348,000 $ 353,337,100 North Carolina Companies Funded in Q4 2007 Company Name Amount Industry (continued)
  • Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial VC Funds Active in North Carolina BancAmerica Capital Investors BB&T Capital Partners CapitalSouth Partners LLC Carousel Capital Partners Centura SBIC Inc. Chrysallis Ventures Core Capital Dogwood Equity Frontier Capital LLC Golden Pine Ventures Grotech Capital Group Hatteras BioCapital H.I.G. Ventures Intel Capital Intersouth Partners Kodiak Venture Partners Lovett Miller & Company, Inc. NC IDEA New Enterprise Associates Noro-Moseley Partners Novak Biddle Venture Partners Pappas Ventures Piedmont Angel Network Polaris Venture Partners Quaker BioVentures River Cities Capital Funds SJF Ventures Southern Capitol Ventures The Atlantis Group The Aurora Funds Trinity Ventures TriState Investment Group Wachovia Capital Partners Wakefield Group WWC Capital Group
  • Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial Entrepreneurs and Venture Capital On-Line Resource List www.pwc.com - The PricewaterhouseCoopers Global website. www.pwcmoneytree.com, www.nvca.org, www.venturexpert.com - The PricewaterhouseCoopers/National Venture Capital Association MoneyTree TM Report based on data from Thomson Financial 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.pwcnextwave.com - PricewaterhouseCoopers’ thought leadership articles for the world of private equity. www.cfodirect.com - CFOdirect Network – PricewaterhouseCoopers’ online accounting, finance and business resource for senior financial executives. www.pwcV2R.com - The Vision to Reality Entrepreneur Resource Center 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.barometersurveys.com - PricewaterhouseCoopers’ Trendsetter and Technology Barometers site – result & analysis of the quarterly survey of fast-growth and large company CEO’s. www.cednc.org - The Council for Entrepreneurial Development www.nctechnology.org - North Carolina Technologies Association
  • Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial For more information, contact: Jeff Barber or Terry Bowling Carolinas Technology Industry Group Phone 919 755-3000 [email_address] [email_address] Slide PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial