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National Money Tree Full Year Q4 2009 National Money Tree Full Year Q4 2009 Presentation Transcript

  • PricewaterhouseCoopers National Venture Capital Association Report* Data provided by Thomson Financial Q4 2009/Full-year 2009 The Q4 2009 MoneyTree™ results are in! This special, expanded report provides detailed results of Q4 2009 as well as comprehensive findings for full- years 2008 and 2009. More detailed results, including historical data back to 1995, can be found on the MoneyTree™ website at www.pwcmoneytree.com *connectedthinking
  • Total equity investments into venture-backed companies Q1 2002 to Q4 2009 Venture capitalists invested $17.7 billion in 2,795 deals in 2009, marking the Double digit declines in investments were spread across almost every industry lowest level of dollar investment since 1997, according to the MoneyTree Report including Clean Technology, Life Sciences and Software. Investment dollars by PricewaterhouseCoopers and the National Venture Capital Association also fell across every stage of development category, with the exception of a (NVCA), based on data from Thomson Reuters. Venture investments in 2009 2 percent increase in Seed stage investments. First-time financings fell to the represented a 37 percent decrease in dollars and a 30 percent decrease in deal lowest dollar and deal level since the MoneyTree began reporting venture capital volume from 2008. It was the second consecutive year of annual deal and dollar investing in 1995. However, fourth quarter investing did show increases in the declines. Investments in the fourth quarter of 2009 totaled $5.0 billion in 794 number of first-time and Early stage deals completed, potentially marking the deals, a 2 percent decline in dollars but a 15 percent increase in deals from the beginning of an uptick in investment levels for 2010. third quarter of 2009 when $5.1 billion went into 689 deals. $ in millions `02 `03 `04 `05 `06 `07 `08 `09 20 15 10 8,043 7,749 7,405 7,321 7,384 7,118 7,071 6,465 6,278 7,685 5,859 6,103 5,866 5,853 5,821 5,476 6,578 5,101 4,774 4,717 6,313 6,307 5 4,302 4,133 5,775 4,166 5,231 5,048 4,813 5,019 4,351 3,394 0 Quarter 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 Number of deals (845) (856) (696) (728) (708) (743) (724) (792) (731) (865) (699) (853) (737) (839) (802) (830) (881) (980) (920) (965) (875) (1,063) (1,011) (1,078) (1,016) (1,064) (995) (910) (632) (680) (689) (794) Q4 2009/Full-year 2009 US Report www.pwcmoneytree.com 2
  • Investments by industry 2008 to 2009 With the lone exception of Networking and Equipment, which experienced a 5 For the year, Software remained the largest single industry category in terms percent decline in dollars in 2009, every industry category recorded double digit of deal volume and second largest behind Biotechnology in terms of dollars. declines for the year. Despite 2009 investment declines of 19 percent in both Venture capitalists invested $3.1 billion into 619 Software deals, a 40 percent dollars and deals, Biotechnology was the single largest investment sector for the decline in dollars and a 35 percent decline in deals from 2008 when $5.1 billion year with $3.5 billion going into 406 deals. The Medical Device sector finished went into 948 deals. the year as the third largest sector with $2.5 billion going into 309 deals—a 27 The Clean Technology sector experienced a significant decline in 2009 with percent drop in dollars and 19 percent in deals. Overall, the Life Sciences sector $1.9 billion invested in 185 deals. This investment level represents a 52 percent (Biotech and Medical Devices combined) accounted for 34 percent of total decrease in dollars and a 31 percent decline in deal volume from 2008 when $4.0 venture capital dollars invested in 2009 compared to 28 percent in 2008. billion was invested in 268 deals. Clean Technology investing accounted for 11 percent of all venture capital dollars in 2009 compared to 14 percent in 2008. # of ($ in millions) All results rounded Deals 0 1,000 2,000 3,000 4,000 5,000 6,000 $3,543 Biotechnology 406 501 $4,351 $3,096 Software 619 948 $5,146 $2,502 Medical Devices and Equipment 309 383 $3,408 $2,305 Industrial/Energy 232 353 $4,582 $1,177 Media and Entertainment 251 407 $1,722 $1,077 IT Services 203 272 $1,819 $772 Semiconductors 118 196 $1,645 $716 Networking and Equipment 93 108 $756 $559 Telecommunications 140 249 $1,671 $365 Financial Services 52 73 $501 $362 Consumer Products and Services 81 105 $435 Computers and Peripherals 59 76 $342 $458 Electronics/Instrumentation 60 93 $301 $574 Business Products and Services 81 124 $253 $484 2009 Retailing/Distribution 31 39 $172 $237 2008 Healthcare Services 33 51 $102 $183 Other 27 7 $36 $20 ($ in millions) All results rounded 0 10,000 20,000 30,000 2,795 17,680 Grand Total 3,985 27,992 Definitions of the Industry categories can be found on the MoneyTree™ Web site at www.pwcmoneytree.com Q4 2009/Full-year 2009 US Report www.pwcmoneytree.com 3
  • Investments by industry Q4 2008, Q3 2009 and Q4 2009 Despite annual declines, 11 out of 17 industry sectors experienced fourth quarter Funding for Software companies increased in the fourth quarter of 2009 to that increases in funding. For the fourth quarter, Biotechnology investing increased sector’s highest quarterly deal and dollar level for the year with $959 million 10 percent in dollars and fell 4 percent in the number of deals from the third going into 177 deals. Venture-backed funding going to Clean Technology deals quarter with $1.0 billion going into 108 rounds. Biotechnology was the number in fourth quarter reached $385 million going into 47 deals, a 58 percent drop in one sector for dollars invested in the fourth quarter and the only industry sector dollars and 13 percent drop in deals from the third quarter of 2009 when $926 receiving more than $1 billion for the quarter. Medical Devices saw a fourth million went into 54 deals. For the fourth quarter, Internet-specific investment quarter increase of 13 percent in dollars and 18 percent in deals from the third increased 20 percent in deals and 14 percent in dollars with $908 million going quarter 2009 with $719 million going into 87 deals. into 187 deals compared to $795 million going into 156 deals in the third quarter of 2009. # of ($ in millions) All results rounded Deals 0 250 500 750 1,000 1,250 1,500 108 $1,013 Biotechnology 112 119 $919 $1,094 177 $959 Software 146 228 $788 $1,046 87 $719 Medical Devices and Equipment 74 83 $639 $632 69 $570 Industrial/Energy 57 86 $938 $934 83 $439 Media and Entertainment 63 81 $390 $419 51 $243 IT Services 52 56 $299 $336 38 $227 Semiconductors 27 40 $192 $265 20 $150 Networking and Equipment 25 27 $182 $259 17 $147 Financial Services 8 15 $78 $90 46 $128 Telecommunications 32 58 $123 $410 22 $105 Consumer Products and Services 25 29 $91 $139 14 $80 Computers and Peripherals 13 11 $48 $82 9 $75 Retailing/Distribution 5 5 $46 $34 18 $62 Q4 09 Electronics/Instrumentation 19 26 $141 $184 Q3 09 16 $62 Business Products and Services 21 27 $41 $51 Q4 08 8 $28 Healthcare Services 8 17 $10 $42 11 $11 Other 2 2 $5 $8 ($ in millions) All results rounded 0 2,000 4,000 6,000 8,000 794 $5,019 Grand total 689 910 $5,101 $5,853 Definitions of the Industry categories can be found on the MoneyTree™ Web site at www.pwcmoneytree.com Q4 2009/Full-year 2009 US Report www.pwcmoneytree.com 4
  • Investments by stage of development 2008 to 2009 Full year 2009 investments into Seed Stage companies increased 2 percent in Expansion Stage companies saw the biggest decrease in funding in 2009 with terms of dollars but fell 37 percent in terms of deals with $1.7 billion going into a 47 percent in dollars and 35 percent in deals when $5.5 billion went into 801 312 companies. Seed Stage companies attracted 9 percent of dollars and 11 deals. Despite the notable decrease, Expansion Stage companies attracted 31 percent of deals in 2009 compared to 6 percent of dollars and 12 percent of percent of dollars and 29 percent of deals in 2009 compared to 37 percent of deals in 2008. dollars and 31 percent of deals in 2008. Early Stage companies attracted 26 percent of dollars and 32 percent of deals In 2009, $5.9 billion was invested into 799 Later Stage deals, a decline of 44 in 2009 compared to 19 percent of dollars and 27 percent of deals in 2008. percent and 33 percent, respectively, for the year. Later Stage companies However, Early Stage investments fell by 13 percent in terms of dollars and 17 attracted 33 percent of dollars and 29 percent of deals in 2009 compared to 38 percent in terms of deals in 2009 to $4.6 billion into 883 deals. percent of dollars and 30 percent of deals in 2008. # of ($ in millions) All results rounded Deals 0 2,500 5,000 7,500 10,000 12,500 15,000 799 $5,919 Later stage 1,199 $10,656 801 $5,484 Expansion 1,225 $10,393 883 $4,627 2009 Early stage 1,068 $5,320 2008 312 $1,650 Startup/seed 493 $1,624 ($ in millions) All results rounded 0 5,000 10,000 15,000 20,000 25,000 30,000 2,795 $17,680 Grand total 3,985 $27,992 Definitions of the Stage of Development categories can be found on the MoneyTree™ Web site at www.pwcmoneytree.com Q4 2009/Full-year 2009 US Report www.pwcmoneytree.com 5
  • Investments by stage of development Q4 2008, Q3 2009 and Q4 2009 For the fourth quarter, venture capitalists invested $390 million into 91 seed Expansion funding declined in terms of dollars in the fourth quarter, dropping stage companies, an 18 percent decrease in dollars and a 2 percent increase in 6 percent from the prior quarter to $1.6 billion. The number of deals, however, deals compared to the third quarter of the year. Conversely, Early Stage deals increased during the quarter, improving 19 percent to 234. Late stage fourth experienced double digit increases with $1.6 billion going into 277 deals, a quarter funding reached $1.5 billion into 192 deals, which represents a 5 percent 32 percent increase in dollars and 26 percent increase in deals from the third increase in terms of deals but a 16 percent decline in terms of dollars from the quarter 2009. third quarter of 2009. # of ($ in millions) All results rounded Deals 0 1,000 2,000 3,000 4,000 192 $1,478 Later stage 183 265 $1,760 $2,192 234 $1,583 Q4 09 Expansion 197 276 $1,681 $2,019 $1,569 Q3 09 277 Early stage 220 $1,185 $1,335 272 Q4 08 91 $390 Startup/seed 89 97 $306 $476 0 2,000 4,000 6,000 8,000 794 $5,019 Grand total 689 910 $5,101 $5,853 Definitions of the Stage of Development categories can be found on the MoneyTree™ Web site at www.pwcmoneytree.com Q4 2009/Full-year 2009 US Report www.pwcmoneytree.com 6
  • Investments by sequence of financing 2008 to 2009 First-time financings fell to the lowest annual levels since the MoneyTree began Forty-seven percent of first-time deals in 2009 were in the Early Stage of reporting in 1995. Just $3.4 billion went into 725 deals in 2009, a 45 percent development followed by the Seed Stage of development at 26 percent, decline in dollars and a 40 percent decline in deals. Expansion Stage companies at 17 percent and Later Stage companies at 10 percent. Industries receiving the most dollars in first-time financings in 2009 were Biotechnology, Industrial/Energy and Software. Industries with the most first-time deals in 2009 were Software, Media/Entertainment, and Biotechnology. # of ($ in millions) All results rounded Deals 0 2,000 4,000 6,000 8,000 10,000 12,000 725 $3,350 First 1,217 $6,052 953 $5,323 Second & Third 1,437 $9,562 711 $5,898 2009 Fourth, Fifth & Sixth 909 $8,629 2008 406 $3,109 Seventh & beyond 422 $3,749 0 5,000 10,000 15,000 20,000 25,000 30,000 2,795 $17,680 Grand total 3,985 $27,992 Q4 2009/Full-year 2009 US Report www.pwcmoneytree.com 7
  • Investments by sequence of financing Q4 2008, Q3 2009 and Q4 2009 The dollar level and number of companies receiving venture capital for the first Companies in the Software, Biotechnology and Industrial/Energy industries time increased in the fourth quarter by 51 and 37 percent, respectively, over the attracted the highest level of first-time dollars in the fourth quarter. Together, the third quarter to $1.1 billion into 230 companies. The fourth quarter was the first in three industry sectors captured nearly 52 percent of total first-time financing 2009 in which first-time financings exceeded one billion dollars. dollars with over $578 million in funding. # of ($ in millions) All results rounded Deals 0 500 1,000 1,500 2,000 2,500 3,000 230 $1,108 First 168 262 $732 $1,167 267 $1,454 Q4 09 Second & Third 230 328 $1,531 $1,813 $1,529 Q3 09 181 Fourth, fifth & Sixth 191 $1,803 210 $1,895 Q4 08 116 $928 Seventh & beyond 100 110 $978 $1,036 ($ in millions) All results rounded 0 2,000 4,000 6,000 8,000 794 $5,019 Grand total 689 910 $5,101 $5,853 Q4 2009/Full-year 2009 US Report www.pwcmoneytree.com 8
  • Investments by Region 2008 to 2009 The decrease in full year 2009 funding was felt in all of the MoneyTree regions. Silicon Valley was the top region for the year attracting 40 percent of total US Of the top ten regions, LA/Orange County reported the greatest drop in 2009 venture capital dollars and 31 percent of total US deals. New England was a investment with a 53 percent decrease in funding followed by Texas with a 50 distant second at 12 percent of total US funding and deals. Taken together, the percent decrease. top three regions—Silicon Valley, New England, and New York Metro—accounted for 59 percent of venture-backed funding and 52 percent of deals reported in 2009. # of ($ in millions) All results rounded Deals 0 2,000 4,000 6,000 8,000 10,000 12,000 863 $6,984 Silicon Valley 1,232 $10,728 348 $2,113 New England 474 $3,307 247 $1,416 NY Metro 319 $1,975 137 $986 Southeast 213 $1,219 159 $954 LA/Orange County 243 $2,010 107 $903 San Diego 132 $1,192 219 $721 Midwest 285 $1,278 132 $705 Northwest 210 $1,076 111 $645 Texas 154 $1,288 117 $540 DC/Metroplex 206 $985 71 $529 Colorado 105 $837 89 $424 Philadelphia Metro 149 $754 58 $369 North Central 81 $618 68 $314 SouthWest 81 $466 2009 37 $24 South Central 42 $79 2008 13 $18 Upstate NY 32 $90 8 $17 Sacramento/N. Cal 19 $69 2 $7 AK/HI/PR 8 $21 ($ in millions) All results rounded 0 5,000 10,000 15,000 20,000 25,000 30,000 $17,680 Grand total 2,795 3,985 $27,992 Unknown region totals not included Definitions of the Region categories can be found on the MoneyTree™ Web site at www.pwcmoneytree.com Q4 2009/Full-year 2009 US Report www.pwcmoneytree.com 9
  • Investments by Region Q4 2008, Q3 2009 and Q4 2009 In the fourth quarter, six of the top ten regions saw an increase in funding New England deals were up 9 percent compared to third quarter 2009, but down compared to third quarter 2009. In direct contrast, six of the top ten regions seven percent from the fourth quarter 2008. Silicon Valley, New England and New reported a decrease in funding compared to investment the same time last year. York Metro were the top regions for the quarter and accounted for 60 percent of Investment in Silicon Valley was down 18 percent from the third quarter and five dollars and 53 percent of the deals reported in the fourth quarter 2009. percent compared to the fourth quarter 2008. # of ($ in millions) All results rounded Deals 0 500 1,000 1,500 2,000 2,500 3,000 252 $1,923 Silicon Valley 217 250 $2,032 $2,349 101 $635 New England 93 109 $552 $798 66 $466 NY Metro 55 86 $259 $464 30 $300 San Diego 35 26 $197 $259 40 $288 LA/Orange County 39 52 $248 $311 30 $189 Texas 25 35 $205 $398 31 $189 Southeast 38 53 $330 $300 33 $185 Northwest 31 50 $124 $243 20 $172 Colorado 14 24 $51 $163 40 $163 DC/Metroplex 20 54 $158 $324 63 $160 Midwest 53 72 $186 $336 28 $142 Philadelphia Metro 25 37 $94 $126 21 $118 North Central 14 18 $104 $84 22 $67 Q4 09 SouthWest 14 14 $48 $137 4 $6 Q3 09 Upstate NY 1 6 $8 $6 Q4 08 1 $3 Sacramento/N. Ca 2 3 $2 $40 9 $2 South Central 12 17 $5 $12 - 0 AK/HI/PR - 4 0 $1 ($ in millions) All results rounded 0 1,000 2,000 3,000 4,000 5,000 6,000 794 $5,019 Grand total 689 910 $5,101 $5,853 Unknown region totals not included Definitions of the Region categories can be found on the MoneyTree™ Web site at www.pwcmoneytree.com Q4 2009/Full-year 2009 US Report www.pwcmoneytree.com 10
  • Investments by State 2008 to 2009 California was the top state to receive funding in 2009—picking up 50 percent of total US venture-backed investment for the second consecutive year. Massachusetts was in second place, capturing 11 percent of total US dollars. New York and Texas attracted 5 percent and 4 percent of total dollars, respectively. Only nine of the 50 states recorded an increase in 2009 funding when compared to full year 2008. ($ in millions) All results rounded # of Deals 0 3,000 6,000 9,000 12,000 15,000 1,137 $8,858 California 1,626 $13,999 303 $1,985 Massachusetts 422 $3,046 173 $855 New York 248 $1,392 111 $645 Texas 154 $1,288 108 $574 Washington 163 $875 74 $560 New Jersey 90 $719 71 $529 Colorado 105 $837 123 $403 Pennsylvania 190 $695 2009 44 $302 Georgia 80 $417 2008 30 $295 Florida 37 $236 ($ in millions) All results rounded 0 5,000 10,000 15,000 20,000 25,000 2,174 $15,005 Top 10 total 3,115 $23,503 Q4 2009/Full-year 2009 US Report www.pwcmoneytree.com 11
  • Most active venture investors Full-Year 2009 The most active US venture firms closed 18 or more deals in 2009. New Enterprise Associates topped the list of most active venture firms for the full year, completing a total of 70 deals in 2009. Kleiner Perkins Caufield & Byers and Polaris Venture Partners rounded out the top three firms. For the year, the top 10 firms invested in 8 percent of all total deals completed in 2009. Firm Location # of deals Firm Location # of deals New Enterprise Associates, Inc. Timonium, MD 70 Sigma Partners Menlo Park, CA 25 Kleiner Perkins Caufield & Byers Menlo Park, CA 63 Atlas Venture, Ltd. Waltham, MA 23 Polaris Venture Partners Waltham, MA 58 CMEA Capital San Francisco, CA 23 Draper Fisher Jurvetson Menlo Park, CA 54 DCM Menlo Park, CA 23 First Round Capital West Conshohocken, PA 51 Lightspeed Venture Partners Menlo Park, CA 23 Venrock Associates Palo Alto, CA 50 Morgenthaler Ventures Menlo Park, CA 23 U.S. Venture Partners Menlo Park, CA 41 Alta Partners San Francisco, CA 22 Sequoia Capital Menlo Park, CA 38 August Capital Management Menlo Park, CA 22 Canaan Partners Westport, CT 36 Charles River Ventures Waltham, MA 22 Highland Capital Partners LLC Lexington, MA 34 De Novo Ventures Palo Alto, CA 22 Innovation Works, Inc. Pittsburgh, PA 33 Greylock Partners Cambridge, MA 22 Versant Ventures Menlo Park, CA 33 Redpoint Ventures Menlo Park, CA 22 North Bridge Venture Partners San Mateo, CA 32 Intersouth Partners Durham, NC 21 Domain Associates LLC Princeton, NJ 30 Battery Ventures, L.P. Waltham, MA 20 Duff Ackerman & Goodrich LLC San Francisco, CA 30 Flybridge Capital Partners Boston, MA 20 Menlo Ventures Menlo Park, CA 30 Khosla Ventures Menlo Park, CA 20 Accel Partners Palo Alto, CA 29 Rho Capital Partners New York, NY 20 Foundation Capital Menlo Park, CA 29 Ben Franklin Technology Partners Southeastern PA Philadelphia, PA 19 InterWest Partners Menlo Park, CA 28 Ignition Partners Bellevue, WA 19 ARCH Venture Partners Chicago, IL 27 Maryland Technology Development Corporation Columbia, MD 19 Benchmark Capital Menlo Park, CA 27 Norwest Venture Partners Palo Alto, CA 19 Bessemer Venture Partners Larchmont, NY 27 Novak Biddle Venture Partners, L.P. Bethesda, MD 19 Intel Capital Santa Clara, CA 27 Sanderling Ventures San Mateo, CA 19 Mohr Davidow Ventures Menlo Park, CA 27 Thomas, McNerney & Partners LLC Minneapolis, MN 19 SV Life Sciences Advisers Boston, MA 27 JAFCO Ventures Palo Alto, CA 18 Advantage Capital Partners New Orleans, LA 26 OVP Venture Partners Kirkland, WA 18 Flagship Ventures Cambridge, MA 26 Oxford Bioscience Partners Boston, MA 18 Oak Investment Partners Westport, CT 26 VantagePoint Venture Partners San Bruno, CA 18 True Ventures Palo Alto, CA 26 Warburg Pincus LLC New York, NY 18 Q4 2009/Full-year 2009 US Report www.pwcmoneytree.com 12
  • Most active venture investors Q4 2009 The most active venture firms in the fourth quarter closed five or more deals each. New Enterprise Associates topped the fourth quarter’s most active list with a total off 27 deals, followed by Kleiner Perkins Caufield & Byers, which participated in 23 investments during the quarter. Firm Location # of deals Firm Location # of deals New Enterprise Associates, Inc. Timonium, MD 27 Accel Partners Palo Alto, CA 6 Kleiner Perkins Caufield & Byers Menlo Park, CA 23 ARCH Venture Partners Chicago, IL 6 First Round Capital West Conshohocken, PA 20 Austin Ventures, L.P. Austin, TX 6 Draper Fisher Jurvetson Menlo Park, CA 18 Band of Angels Menlo Park, CA 6 Polaris Venture Partners Waltham, MA 18 Clarus Ventures Cambridge, MA 6 Venrock Associates Palo Alto, CA 18 Flagship Ventures Cambridge, MA 6 Versant Ventures Menlo Park, CA 14 Greylock Partners Cambridge, MA 6 Advantage Capital Partners New Orleans, LA 12 Highland Capital Partners LLC Lexington, MA 6 Flybridge Capital Partners Boston, MA 12 Ignition Partners Bellevue, WA 6 North Bridge Venture Partners San Mateo, CA 12 Morgenthaler Ventures Menlo Park, CA 6 Domain Associates LLC Princeton, NJ 11 Scale Venture Partners Foster City, CA 6 Bessemer Venture Partners Larchmont, NY 10 Shasta Ventures Management LLC Menlo Park, CA 6 Canaan Partners Westport, CT 10 Sigma Partners Menlo Park, CA 6 Sequoia Capital Menlo Park, CA 10 Thomas, McNerney & Partners LLC Minneapolis, MN 6 Benchmark Capital Menlo Park, CA 9 Adams Street Partners LLC Chicago, IL 5 Intel Capital Santa Clara, CA 9 August Capital Management Menlo Park, CA 5 Mohr Davidow Ventures Menlo Park, CA 9 Ben Franklin Technology Partners Southeastern PA Philadelphia, PA 5 True Ventures Palo Alto, CA 9 Charles River Ventures Waltham, MA 5 Atlas Venture, Ltd. Waltham, MA 8 DFJ Frontier Sherman Oaks, CA 5 Essex Woodlands Health Ventures New York, NY 8 General Catalyst Partners Cambridge, MA 5 Founders Fund, The San Francisco, CA 8 Horizon Ventures Los Altos, CA 5 Innovation Works, Inc. Pittsburgh, PA 8 In-Q-Tel, Inc. Arlington, VA 5 InterWest Partners Menlo Park, CA 8 Kansas Technology Enterprise Corporation Topeka, KS 5 Lightspeed Venture Partners Menlo Park, CA 8 Kepha Partners North Waltham, MA 5 SV Life Sciences Advisers Boston, MA 8 Maryland Technology Development Corporation Columbia, MD 5 Advanced Technology Ventures Waltham, MA 7 Menlo Ventures Menlo Park, CA 5 Alta Partners San Francisco, CA 7 Novak Biddle Venture Partners, L.P. Bethesda, MD 5 Battery Ventures, L.P. Waltham, MA 7 ONSET Ventures Menlo Park, CA 5 De Novo Ventures Palo Alto, CA 7 ProQuest Investments Princeton, NJ 5 Duff Ackerman & Goodrich LLC San Francisco, CA 7 Rand Capital Corporation Buffalo, NY 5 Foundation Capital Menlo Park, CA 7 Rho Capital Partners New York, NY 5 Foundry Group Boulder, CO 7 Sutter Hill Ventures Palo Alto, CA 5 Frazier Healthcare and Technology Ventures Seattle, WA 7 Tenaya Capital New York, NY 5 Norwest Venture Partners Palo Alto, CA 7 Three Arch Partners Portola Valley, CA 5 U.S. Venture Partners Menlo Park, CA 7 Valhalla Partners Vienna, VA 5 Village Ventures Williamstown, MA 7 VantagePoint Venture Partners San Bruno, CA 5 Q4 2009/Full-year 2009 US Report www.pwcmoneytree.com 13
  • Venture-backed merger and acquisitions exits Venture-backed initial public offerings 2007 to 2009 2007 to 2009 The 2009 venture-backed exit market was well below historical norms. Mergers The tally of venture-backed IPOs completed in 2009 was more than double the and Acquisitions (M&A) dipped to 262 with a total disclosed value of $12.3 number reported in 2008. However, activity was still slow with 13 exits valued billion. In 2007, by comparison, there were 378 M&A transactions with a total at $1.9 billion. Contrastingly, in 2007 eighty-six companies floated newly issued disclosed value of $29.3 billion. stock, raising more than $10 billion dollars. `07 `08 `09 `07 `08 `09 $ in millions $ in millions 15,000 5,000 $4,147 $11,114 3,750 $9,646 10,000 $3,044 $7,765 2,500 $2,191 $4,640 5,000 $4,885 1,250 $3,080 $3,912 $2,570 $2,391 $721 $3,321 $649 $945 $657 $188 $572 $0 $0 $0 $0 $1,262 $283 0 0 Quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Number of M&A (88) (90) (107) (93) (108) (87) (89) (64) (63) (64) (68) (67) Number of IPOs (18) (25) (12) (31) (5) (0) (1) (0) (0) (5) (3) (5) Source: Thomson Reuters & National Venture Capital Association. Includes all companies with at least one U.S. VC investor that trade on U.S. exchanges, regardless of domicile. Data is current as of January 04, 2010. Q4 2009/Full-year 2009 US Report www.pwcmoneytree.com 14
  • pwcmoneytree.com Contact Tracy T. Lefteroff Global Managing Partner Venture Capital Practice tracy.t.lefteroff@us.pwc.com David Silverman Emerging Company Services Practice Leader—East david.silverman@us.pwc.com Danny Wallace Emerging Company Services Practice Leader—West danny.wallace@us.pwc.com Deborah Volpe MoneyTree Project Manager deborah.volpe@us.pwc.com PricewaterhouseCoopers and the National Venture Capital Association have taken responsible steps to ensure that the information contained in the MoneyTreeTM Report has been obtained from reliable sources. However, neither of the parties nor Thomson Reuters can warrant the ultimate validity of the data obtained in this manner. Results are updated periodically. Therefore, all data is subject to change at any time. Before making any decision or taking any action, you should consult a competent professional adviser. pwc.com © 2010 PricewaterhouseCoopers LLP. All rights reserved. “PricewaterhouseCoopers” refers to PricewaterhouseCoopers LLP (a Delaware limited liability partnership) or, as the context requires, the PricewaterhouseCoopers global network or other member firms of the network, each of which is a separate and independent legal entity. BS-10-0372