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  • 1. Venture Capital Activity Report | Q4 2010TABLE OF CONTENTSQUARTER SUMMARY 2QUARTERLY TRENDS 3SECTOR REVIEW 111 INTERNET 112 HEALTHCARE 183 GREEN / CLEAN TECH 25GEOGRAPHIC REVIEW1 CALIFORNIA 322 MASSACHUSETTS 383 NEW YORK 434 WASHINGTON 495 TEXAS 54DEFINITIONS & DATA INTEGRITY 59 © 2011, CB Insights. All rights reserved. For more information about CB Insights, please email info@cbinsights.com.www.cbinsights.com
  • 2. 2 Venture Capital Activity Report | Q4 2010Q4 2010 – This Quarter in Venture CapitalQuarter sees highest dealflow and funding of last eight quarters. Internet saw Year-over-Year deal count up 21%, Green Tech up 7% and Healthcare up 2%.At $6.5B of venture capital funding over 735 deals, Q4 2010’s venture capital stats have something for everyone. Forthose of you looking for a data point that suggests VC is back and on the road to recovery after 2009’s tough sledding, theeight quarter high on deals and dollars gives you something to hang your hat on. For those of you who think VC isoverheated and we’re headed for a bubble, the eight quarter high on deals and dollars gives you something to hang yourhat on. Yes – it’s all a matter of perspective.Overall, 2010 saw $23.7B of funding into 2792 deals which represented 14% growth in funding and 13% growth in dealsover 2009’s VC nadir.Say Bye Bye Massachusetts – NY is #2 for Tech VC Healthcare VC – A Mixed Bag Over the last five quarters, NY has seen 208 tech deals Deals in the Healthcare space were up modestly YoY but vs. 207 for Massachusetts. Funding to NY tech funding was down almost 16%. The growth in funding companies came in at $1.22B vs. $1.21B for and deals seen over the last 2 quarters ceased as well. Massachusetts. The margin of victory for NY is ever so Mass and Cali took over 50% of Healthcare funding but slight, but most striking is the trend for both states which Mass’ share of Healthcare VC fell to a five-quarter low. are going in very different directions. (Trend can be Early stage activity in Healthcare hit a five quarter high. seen here: http://bit.ly/dLmLYG) Calis Number of VC Deals Grows, Funding DownSeed VC Retains Its Share | Early Stage Grows California retained its belt as uncontested venture capital Q3 2010 saw 11% of deals going to Seed VC deals and heavyweight champion. Relative to 2009, California saw that share stayed consistent in Q4 2010. The share of 3% growth in deals and a 2% drop in VC funding. The Series A deals increased over Q3 2010. Early stage state saw 14% growth in deals on a sequential basis over deal activity was nearly 50% of total deals representing Q3 2010. 60% of the states funding went to Internet and the highest level seen in five quarters. Healthcare companies. Mobile also took its largest share of deals in the last five quarters.VCs Connecting With Internet Deals Often Colorado - The New Green Tech Hub? The growth in the quarter was driven largely by a red- hot internet sector which hit a five quarter high (by a lot) Three of the top 10 green tech deals in the quarter were on both deals and dollars. Early stage activity remained in Colorado. The state which is usually 3-4% of green strong as did NY on the internet deal and dollar front. tech deals jumped to 10%.Green Tech / Clean Tech Investments Stay Flat Texas Gets the Early Stage Bug After two quarters of VC funding to Green Tech/Clean In aggregate, Texas stayed within its recent historical Tech investments declining, the space saw deals and range, but it did see growth in early-stage deals with 6 of dollars hold vs. the prior quarter. On a year-over-year 10 deals in the quarter being into early stage deals. basis, investment funding was up 40%. Early stage investment on a deals basis into Green Tech fell to a Washington At Five Quarter Low in VC Funding five-quarter low. Renewables and Energy Efficiency maintained their positions as the top 2 areas for Green Over 50% of Washington deals were in early-stage Tech investment and in aggregate, they garnered their companies and almost 60% of deals were to Internet largest share of deals of the last five quarters. firms. The smaller checks to less capital-hungry web companies helped to drive Washington to a five quarter low on VC funding.It is worth noting what we included and what we didn’t as this quarter had some mega-deals which can and did greatlyimpact results. For example, Groupon’s funding was included as there was VC participation although we only included theportion of their funding that closed in 2010, i.e. $500M. We’d recommend you also review our definitions and methodologyon p. 59 for details on our approach to VC data.www.cbinsights.com
  • 3. 3 Venture Capital Activity Report | Q4 2010$6.5B over 735 Deals – Highest Totals of Last 8 QuartersContinued strength in seed VC funding led to a two-year high in number of deals.Total VC funding hit high on back of mega-deals which buoyed funding total. Quarterly VC Investment and Deal Volume Trend Q1 09 to Q4 10 730 715 735 678 687 613 612 $6.5 483 $6.1 $5.9 $5.9 $5.3 $5.5 $5.4 $3.9 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Funding ($B) # of Deals www.cbinsights.comwww.cbinsights.com
  • 4. 4 Venture Capital Activity Report | Q4 2010Cali Maintains, NY Gains and Mass Wanes in Deal ShareBig Three (NY, Mass, Cali) bounced back from Q3 2010 lows based on strength ofCali and NY. Mass and Washington share of deals dipped. Share of Venture Capital by State - Number of Deals Five Quarter Trend 28% 31% 26% 29% 33% 4% 4% 4% 5% 4% 6% 5% 5% 5% 6% 8% 5% 8% 9% 7% 13% 14% 11% 12% 12% 44% 41% 43% 42% 38% Q409 Q110 Q210 Q310 Q410 California Massachusetts New York Texas Washington Other www.cbinsights.comwww.cbinsights.com
  • 5. 5 Venture Capital Activity Report | Q4 2010The Big Three’s Share of VC Funding Falls to 5 Quarter LowNY gained in terms of dollars as did Mass. Cali, Texas and Washington all fell. Impactof a mega-deal (Groupon) is clearly evident given the large Other category. Share of Venture Capital by State - Dollars of Funding Five Quarter Trend 26% 23% 23% 27% 36% 2% 4% 3% 4% 4% 4% 4% 5% 6% 7% 5% 2% 12% 5% 5% 12% 15% 9% 7% 10% 49% 49% 52% 49% 40% Q409 Q110 Q210 Q310 Q410 California Massachusetts New York Texas Washington Other www.cbinsights.comwww.cbinsights.com
  • 6. 6 Venture Capital Activity Report | Q4 2010CB Insights is the Premiere VentureCapital and Angel Investment Database.With CB Insights you can access deep private company info that was once exclusivelyavailable behind prohibitively expensive paywalls.CB Insights is accessible for free by visiting http://www.cbinsights.com 82,000+ Private Company Profiles. Coverage Universe Over 82,000 high value private company profiles across industries and • Venture Capital – 1999 to present sectors. Medical devices to • Angel Investment mobile. Industrial to internet. • Private Equity • Federal SBIR Grants – 3 years • State Grant Programs From Angel to Private Equity. • Incubators – Over 300 Angel investment to venture capital to • Middle Market Private Companies private equity to government funding to under the radar mid-market private Sector Coverage companies. • Green/clean tech • Internet Company & Investor Updates via Email. • Mobile & Telecom • Software Add companies and investors of • Energy & Utilities interest to your CBI Watchlist and get • Computer Hardware & Services notified of changes and updates • Healthcare automatically. • Industrial • Automotive & Transportation Management & Board Information • Business Products & Services • Consumer Products & Services Find out about the people behind the • Electronics companies including management and • Environmental Services & board of directors profiles. Equipment • Financial Services • Food & Beverages • Leisure Analytics & Reporting • Media • Metals & Mining Downloadable reports and analytics • Retail which allow you to manipulate data • Risk & Security when and how you want to.www.cbinsights.com
  • 7. 7 Venture Capital Activity Report | Q4 20102010 Ends with a Bang – VCs Scurry to Get Deals DoneQ4 2010 started flat but ended with a flurry of activity. December 2010 saw the 2ndhighest deal flow and the highest venture funding of the last 15 months. Monthly VC Investment and Deal Volume Trend October 2009 to December 2010 298 275 283 259 237 244 $3.2 230 223 232 220 205 212 190 193 178 $2.5 $2.3 $2.1 $1.9 $1.9 $2.0 $1.8 $1.6 $1.7 $1.7 $1.6 $1.7 $1.7 $1.5 Funding ($B) # of Deals www.cbinsights.comwww.cbinsights.com
  • 8. 8 Venture Capital Activity Report | Q4 2010Seed VC Stays Strong. Early Stage Continues ClimbQ4 saw seed deals retain share of deals and also saw Series A deals climb. Laterstage deals garnered an increased share of venture funding. Share of Venture Capital by Series - Number of Deals Five Quarter Trend 4% 7% 11% 10% 10% 12% 7% 10% 9% 8% 18% 15% 18% 14% 19% 24% 22% 24% 28% 27% 33% 36% 33% 31% 28% 6% 6% 9% 11% 11% Q409 Q110 Q210 Q310 Q410 Seed Series A Series B Series C Series D Series E + www.cbinsights.com Share of Venture Capital by Series - Dollars of Funding Five Quarter Trend 6% 16% 19% 16% 16% 23% 16% 12% 15% 20% 20% 21% 19% 32% 28% 26% 30% 34% 22% 20% 20% 17% 20% 14% 15% 0% 0% 1% 1% 1% Q409 Q110 Q210 Q310 Q410 Seed Series A Series B Series C Series D Series E + www.cbinsights.comwww.cbinsights.com
  • 9. 9 Venture Capital Activity Report | Q4 2010Internet Climbs & Healthcare Dips; Energy VC Stays FlatPerennial top 2 sectors retain their positions with internet gaining. Mobile also seeshighest share of deals of last 5 quarters. Energy & utilities stagnant. Share of Venture Capital by Sector - Number of Deals Five Quarter Trend 16% 14% 17% 13% 20% 8% 7% 10% 9% 8% 4% 4% 3% 4% 7% 8% 3% 8% 10% 8% 7% 6% 6% 4% 7% 33% 38% 33% 37% 30% 25% 24% 23% 26% 24% Q409 Q110 Q210 Q310 Q410 Healthcare Internet Energy & Utilities Software (non-internet/mobile) Computer Hardware & Services Mobile & Telecommunications Other www.cbinsights.com Share of Venture Capital by Sector - Dollars of Funding Five Quarter Trend 14% 12% 15% 14% 22% 6% 6% 7% 4% 5% 4% 8% 3% 8% 6% 7% 9% 4% 8% 17% 8% 5% 7% 9% 15% 27% 23% 28% 39% 21% 33% 28% 33% 24% 24% Q409 Q110 Q210 Q310 Q410 Healthcare Internet Energy & Utilities Software (non-internet/mobile) Computer Hardware & Services Mobile & Telecommunications Other www.cbinsights.comwww.cbinsights.com
  • 10. 10 Venture Capital Activity Report | Q4 2010Get Started for Free with CB InsightsBasic membership to CB Insights venture capital and angel investor database is free.Just visit http://www.cbinsights.com. And also connect with us via any of the following. Twitter Newsletter Follow us @cbinsights Click here to receive our dealflow newsletter. Email Telephone 212-292-3148 info@cbinsights.comwww.cbinsights.com
  • 11. 11 Venture Capital Activity Report | Q4 2010 Q4 2010 Venture Capital INTERNETwww.cbinsights.com
  • 12. 12 Venture Capital Activity Report | Q4 2010Internet VC Hits 5 Quarter HighOptimism around internet deals didn’t abate with both deals and dollars way up. VC Internetdeals and funding even after excluding Groupon stands at 5 quarter high. Internet VC Investment and Deal Volume Trend Last Five Quarters 272 224 233 233 221 $2,543 $1,618 $1,483 $1,265 $1,253 Q409 Q110 Q210 Q310 Q410 $ Funding # of Deals www.cbinsights.comwww.cbinsights.com
  • 13. 13 Venture Capital Activity Report | Q4 2010NY Takes Hold of #2 Spot for Internet VC Deals and DollarsCalifornia continued to dominate internet VC followed by New York on deals. InternetExcluding Groupon, NY would be #2 on funding as well. Quarter Highlights VC Deal Volume (#) in Internet by State, Q410 272 deals | $2,543M2% California2% Illinois Top Five Deals 13% 1% New York Groupon DC Twitter 6% Massachusetts LivingSocial 47% Whale Shark Media3% Texas FleetMatics Washington 8% North Carolina Top Cities Georgia Chicago, IL 1% 14% Maryland 7 deals | $540M All Other San Francisco, CA 36 deals | $398M 3% www.cbinsights.com New York, NY 38 deals | $244M Washington, DC 3 deals | $204M VC Investment ($) in Internet by State, Q410 Austin, TX 8 deals | $102M 2% 1% 1% Mountain View, CA4% California 9 deals | $98M 2% 4% Illinois Arlington Heights, IL 1 deals | $68M New York Los Angeles, CA 5% DC 8 deals | $66M 39% Redwood City, CA Massachusetts 8% 5 deals | $62M Texas Seattle, WA Washington 9 deals | $49M 10% North Carolina Georgia Maryland 24% All Other www.cbinsights.comwww.cbinsights.com
  • 14. 14 Venture Capital Activity Report | Q4 2010~70% of Internet Deals Go To Big Three StatesInternet VC deals maintained similar geographic pattern as prior quarters. Mass Internetinternet share dropped to five quarter low. Share of Internet VC by State - Number of Deals Last Five Quarters 26% 24% 23% 21% 29% 5% 3% 6% 6% 5% 10% 8% 11% 10% 9% 2% 3% 1% 1% 1% 12% 15% 15% 14% 13% 46% 43% 47% 44% 47% Q409 Q110 Q210 Q310 Q410 California New York Illinois Massachusetts Washington Other www.cbinsights.com Share of Internet VC by State - Dollars of Funding Last Five Quarters 12% 21% 17% 21% 1% 25% 7% 4% 7% 9% 5% 7% 7% 5% 2% 1% 8% 15% 0% 9% 16% 24% 12% 10% 56% 52% 56% 50% 39% Q409 Q110 Q210 Q310 Q410 California New York Illinois Massachusetts Washington Other www.cbinsights.comwww.cbinsights.com
  • 15. 15 Venture Capital Activity Report | Q4 2010Early Stage Internet Investing Represented 50+% of DealsEarly stage (Seed / Series A) dealflow dipped slightly from last quarter but still over Internet50%. Series C, D and E+ deals increased share of funding. Share of Internet VC by Series - Number of Deals Last Five Quarters 4% 6% 1% 4% 6% 7% 8% 6% 5% 5% 13% 18% 15% 17% 19% 23% 20% 27% 18% 28% 40% 42% 38% 38% 33% 11% 11% 12% 13% 13% Q409 Q110 Q210 Q310 Q410 Seed Series A Series B Series C Series D Series E + www.cbinsights.com Share of Internet VC by Series - Dollars of Funding Last Five Quarters 5% 1% 13% 10% 16% 19% 25% 7% 10% 23% 28% 24% 40% 27% 27% 28% 33% 19% 19% 16% 31% 22% 19% 20% 12% 1% 1% 2% 1% 1% Q409 Q110 Q210 Q310 Q410 Seed Series A Series B Series C Series D Series E + www.cbinsights.comwww.cbinsights.com
  • 16. 16 Venture Capital Activity Report | Q4 2010VC Internet Investment Remains Diverse Across IndustriesSocial and Advertising remained strong. Gaming made a come back from Q3 2010. Internet VC Deal Volume (#) in Internet by Sub-Industry, Q410 2% Discount 11% Social Advertising, Sales & Marketing Bus. Intelligence, Analytics & Performance Mgmt 12% Video 44% Gaming 4% Data Storage Data & Document Management 4% Health & Wellness 8% Conferencing & Communication Information Providers & Portals eCommerce enablement 3% 1% Travel (internet) 2% 3% 2% Content Management 2% 1% All Other 1% www.cbinsights.com VC Investment ($) in Internet by Sub-Industry, Q410 Discount 1% Social 18% Advertising, Sales & Marketing 2% 26% Bus. Intelligence, Analytics & Performance Mgmt 1% Video Gaming 2% 2% Data Storage 2% Data & Document Management 2% Health & Wellness 3% Conferencing & Communication 24% Information Providers & Portals 3% 5% eCommerce enablement 3% 6% Travel (internet) Content Management All Other www.cbinsights.comwww.cbinsights.com
  • 17. 17 Venture Capital Activity Report | Q4 2010Early Stage Medians Fall. Late Stage Medians Up Big.Seed, Series A and Series C median deal sizes all were smaller. Series B up with InternetSeries D and Series E+ were up big on back of many larger late stage web deals. Internet Median Deal Size by Quarter ($ Million) $20.0 $19.0 $9.0 $7.0 $2.4 $0.6 Seed Series A Series B Series C Series D Series E + Q409 Q110 Q210 Q310 Q410 www.cbinsights.comwww.cbinsights.com
  • 18. 18 Venture Capital Activity Report | Q4 2010 Q4 2010 Venture Capital HEALTHCAREwww.cbinsights.com
  • 19. 19 Venture Capital Activity Report | Q4 2010Healthcare Investment Dips After 2 Qtrs of Funding Growth HealthcareHealthcare deals were up modestly YoY but funding levels down almost 16% vs. yearago. Deals down vs. prior quarter and funding down over 12% qoq. Healthcare VC Investment and Deal Volume Trend Last Five Quarters 184 169 173 173 138 $1,830 $1,753 $1,639 $1,541 $1,405 Q409 Q110 Q210 Q310 Q410 $ Funding # of Deals www.cbinsights.comwww.cbinsights.com
  • 20. 20 Venture Capital Activity Report | Q4 2010 Mass and Cali Attract Over 50% of Healthcare VC Funding Healthcare Cali increased over Q3 2010 while Mass declined on # of deals basis. Pennsylvania and Texas continue to hold strong. Quarter Highlights VC Deal Volume (#) in Healthcare by State, Q410 173 deals | $1,541M California Massachusetts Top Five Deals 23% Pennsylvania Pearl Therapeutics 33% Texas Moksha81% New Jersey IDev Technologies Sutro Biopharma New York 3% Genocea Biosciences North Carolina 3% Colorado3% Minnesota Top Cities 13% 4% 7% Michigan 4% 6% Cambridge, MA All Other 9 deals | $143M Redwood City, CA www.cbinsights.com 4 deals | $135M San Diego, CA 11 deals | $104M Palo Alto, CA VC Investment ($) in Healthcare by State, Q410 3 deals | $70M South San Francisco, CA 2 deals | $67M 2% California Wayne, PA 11% Massachusetts 1 deals | $61M 2% 3% Pennsylvania New York, NY 5 deals | $59M 3% Texas Malvern, PA 39% New Jersey 2 deals | $48M 4% Webster, TX New York 5% 1 deals | $46M North Carolina Pleasanton, CA 6% Colorado 2 deals | $34M Minnesota 9% Michigan 16% All Other www.cbinsights.com www.cbinsights.com
  • 21. 21 Venture Capital Activity Report | Q4 2010Cali Stays on Top. Mass Share of Deals Falls to 5 Qtr Low. HealthcareMassachusetts share of deals continued downward trend. Healthcare sector is mostgeographically diverse with 4 of 10 deals occurring outside of top states. Share of Healthcare VC by State - Number of Deals Last Five Quarters 36% 30% 38% 37% 42% 6% 3% 3% 4% 3% 5% 5% 4% 4% 2% 6% 3% 4% 8% 6% 17% 23% 18% 13% 17% 32% 34% 33% 33% 28% Q409 Q110 Q210 Q310 Q410 California Massachusetts Pennsylvania New Jersey Washington Other www.cbinsights.com Share of Healthcare VC by State - Dollars of Funding Last Five Quarters 22% 31% 33% 29% 29% 7% 4% 4% 1% 0% 7% 5% 5% 4% 4% 8% 4% 10% 6% 4% 23% 13% 17% 18% 27% 40% 42% 39% 35% 31% Q409 Q110 Q210 Q310 Q410 California Massachusetts Pennsylvania New Jersey Washington Other www.cbinsights.comwww.cbinsights.com
  • 22. 22 Venture Capital Activity Report | Q4 2010Early Stage Healthcare Hits Five-Quarter High HealthcareSeed and Series A healthcare grew to 45% of total healthcare funding. Later stagehealthcare companies took 57% of total funding. Share of Healthcare VC by Series - Number of Deals Last Five Quarters 8% 6% 6% 11% 13% 7% 10% 9% 12% 10% 21% 16% 13% 21% 16% 23% 24% 30% 30% 26% 36% 39% 27% 30% 29% 6% 9% 6% 3% 3% Q409 Q110 Q210 Q310 Q410 Seed Series A Series B Series C Series D Series E + www.cbinsights.com Share of Healthcare VC by Series - Dollars of Funding Last Five Quarters 10% 11% 9% 6% 16% 7% 16% 11% 19% 14% 19% 36% 15% 35% 22% 31% 36% 23% 30% 19% 24% 22% 25% 24% 17% 0% 0% 0% 1% 1% Q409 Q110 Q210 Q310 Q410 Seed Series A Series B Series C Series D Series E + www.cbinsights.comwww.cbinsights.com
  • 23. 23 Venture Capital Activity Report | Q4 2010Medical Device Investment Remains Strong HealthcareMedical Devices continued their dominance of the Healthcare sector followed byPharmaceuticals, Biotech, Medical Facilities & Services and Drug Development. VC Deal Volume (#) in Healthcare by Industry, Q410 2% 2% Medical Devices & Equipment 1% Pharmaceuticals / Drugs 1% 7% Biotechnology Drug Development 11% 37% Medical Facilities & Services Drug Manufacturing 8% Disease Diagnosis Drug Discovery 14% NULL 17% All Other www.cbinsights.com VC Investment ($) in Healthcare by Industry, Q410 2% 2% 2% 2% Medical Devices & Equipment 4% Pharmaceuticals / Drugs Biotechnology 5% Drug Development 37% Medical Facilities & Services 12% Drug Manufacturing Disease Diagnosis Drug Discovery 14% NULL 20% All Other www.cbinsights.comwww.cbinsights.com
  • 24. 24 Venture Capital Activity Report | Q4 2010More Small Series A Healthcare Deals HealthcareThe increased # of Series A deals (p. 22) also saw smaller amounts of funding. SeedVC, Series C and D medians all climbed. Healthcare Median Deal Size by Quarter ($ Million) $24.0 $16.0 $13.0 $7.3 $2.6 $1.3 Seed Series A Series B Series C Series D Series E + Q409 Q110 Q210 Q310 Q410 www.cbinsights.comwww.cbinsights.com
  • 25. 25 Venture Capital Activity Report | Q4 2010 Q4 2010 Venture Capital GREEN & CLEAN TECHwww.cbinsights.com
  • 26. 26 Venture Capital Activity Report | Q4 2010Green Tech Performance In-Line with Last QuarterGreen Tech figures consistent with Q3 – Funding steadied at $790M, while deal count Greenfell slightly. Investment dollars were up 40% year-over-year. Green VC Investment and Deal Volume Trend Last Five Quarters 85 61 59 55 $1,322 55 $1,046 $790 $790 $565 Q409 Q110 Q210 Q310 Q410 $ Funding # of Deals www.cbinsights.comwww.cbinsights.com
  • 27. 27 Venture Capital Activity Report | Q4 2010Colorado Shows Its Greener SideColorado emerged as a serious destination for Green Tech investment, taking 3 of the Greentop 10 Green deals in Q4. As usual, California was the overall leader. Quarter Highlights VC Deal Volume (#) in Green by State, Q410 California 59 deals | $790M Colorado 15% Top Five Deals 3% Illinois Abound Solar2% Massachusetts Elevance Renewable Sciences 2% 41% Michigan Solopower Soladigm 5% Arizona LS9 2% New York 5% Oregon Top Cities Ohio 13% Loveland, CO 10% Texas 1 deals | $110M All Other Bolingbrook, IL 2% 1 deals | $100M www.cbinsights.com San Jose, CA 2 deals | $57M Milpitas, CA 2 deals | $43M VC Investment ($) in Green by State, Q410 Cambridge, MA 1% 1% 3 deals | $38M 1% 1% 2% Fremont, CA2% California 2 deals | $37M Colorado Lansing, MI 2 deals | $37M 5% Illinois South San Francisco, CA Massachusetts 1 deals | $30M 39% Michigan North Lexington, MA 11% 2 deals | $26M Arizona Windsor, CO New York 1 deals | $24M 13% Oregon Ohio Texas 24% All Other www.cbinsights.com www.cbinsights.com
  • 28. 28 Venture Capital Activity Report | Q4 2010California Loses Green Share for Fourth Straight QuarterThe downward trend for California continued, as Texas, Colorado, Massachusetts and GreenIllinois ate into The Golden State’s Green Tech dominance. Share of Green VC by State - Number of Deals Last Five Quarters 25% 28% 27% 28% 31% 2% 4% 4% 4% 3% 2% 5% 2% 7% 7% 15% 10% 9% 8% 13% 3% 8% 14% 53% 55% 47% 46% 41% Q409 Q110 Q210 Q310 Q410 California Massachusetts Texas Colorado Illinois Other www.cbinsights.com Share of Green VC by State - Dollars of Funding Last Five Quarters 13% 15% 12% 12% 25% 1% 1% 3% 6% 4% 1% 13% 1% 9% 21% 2% 5% 4% 10% 4% 24% 1% 11% 79% 64% 62% 59% 39% Q409 Q110 Q210 Q310 Q410 California Massachusetts Texas Colorado Illinois Other www.cbinsights.comwww.cbinsights.com
  • 29. 29 Venture Capital Activity Report | Q4 2010Green Tech Seed Investment Disappears in Q4 2010Early stage Green Tech investment share crept back to Q2 2010 levels. Investors Greenfavored Series C and later in Q4. Share of Green VC by Series - Number of Deals Last Five Quarters 3% 7% 2% 8% 9% 3% 11% 10% 7% 12% 18% 10% 19% 23% 19% 32% 39% 29% 38% 25% 32% 27% 33% 31% 31% 8% 10% 2% 3% Q409 Q110 Q210 Q310 Q410 Seed Series A Series B Series C Series D Series E + www.cbinsights.com Share of Green VC by Series - Dollars of Funding Last Five Quarters 7% 6% 4% 16% 26% 19% 22% 28% 3% 18% 12% 25% 14% 41% 27% 44% 27% 44% 27% 29% 19% 16% 8% 10% 8% Q409 Q110 Q210 Q310 Q410 Seed Series A Series B Series C Series D Series E + www.cbinsights.comwww.cbinsights.com
  • 30. 30 Venture Capital Activity Report | Q4 2010Renewables and Energy Efficiency See an Uptick in ShareGreen Tech Software yielded to Renewable and Energy Efficiency investments. GreenEnergy Storage investments held steady. Share of Green VC by Industry - Number of Deals Last Five Quarters 29% 31% 29% 42% 40% 5% 7% 8% 5% 11% 4% 11% 15% 5% 7% 4% 2% 2% 3% 4% 2% 7% 6% 3% 49% 46% 44% 40% 39% Q409 Q110 Q210 Q310 Q410 Renewables Automobile Manufacturing Green/Environmental Software Energy Efficiency Energy Storage Other www.cbinsights.com Share of Green VC by Industry - Dollars of Funding Last Five Quarters 13% 19% 7% 28% 37% 4% 38% 2% 6% 3% 6% 19% 7% 3% 5% 3% 15% 7% 18% 1% 1% 68% 55% 49% 38% 42% Q409 Q110 Q210 Q310 Q410 Renewables Automobile Manufacturing Green/Environmental Software Energy Efficiency Energy Storage Other www.cbinsights.comwww.cbinsights.com
  • 31. 31 Venture Capital Activity Report | Q4 2010Late Stage Green Tech Deals See Uptick in SizeWith investment share shifting from Green Tech Software to Renewables, late stage Greenmedian deal values climbed higher. Overall median stayed flat at $6.2 million. Green Median Deal Size by Quarter ($ Million) $26.0 $24.0 $21.5 $7.4 $6.2 $2.8 $0.0 Seed Series A Series B Series C Series D Series E + Overall Q409 Q110 Q210 Q310 Q410 www.cbinsights.comwww.cbinsights.com
  • 32. 32 Venture Capital Activity Report | Q4 2010 Q4 2010 Venture Capital CALIFORNIAwww.cbinsights.com
  • 33. 33 Venture Capital Activity Report | Q4 2010CB Insights is the Premiere VentureCapital and Angel Investment Database.With CB Insights you can access deep private company info that was once exclusivelyavailable behind prohibitively expensive paywalls.CB Insights is accessible for free by visiting http://www.cbinsights.com 82,000+ Private Company Profiles. Coverage Universe Over 82,000 high value private company profiles across industries and • Venture Capital – 1999 to present sectors. Medical devices to • Angel Investment mobile. Industrial to internet. • Private Equity • Federal SBIR Grants – 3 years • State Grant Programs From Angel to Private Equity. • Incubators – Over 300 Angel investment to venture capital to • Middle Market Private Companies private equity to government funding to under the radar mid-market private Sector Coverage companies. • Green/clean tech • Internet Company & Investor Updates via Email. • Mobile & Telecom • Software Add companies and investors of • Energy & Utilities interest to your CBI Watchlist and get • Computer Hardware & Services notified of changes and updates • Healthcare automatically. • Industrial • Automotive & Transportation Management & Board Information • Business Products & Services • Consumer Products & Services Find out about the people behind the • Electronics companies including management and • Environmental Services & board of directors profiles. Equipment • Financial Services • Food & Beverages • Leisure Analytics & Reporting • Media • Metals & Mining Downloadable reports and analytics • Retail which allow you to manipulate data • Risk & Security when and how you want to.www.cbinsights.com
  • 34. 34 Venture Capital Activity Report | Q4 2010California Deal Volume Experiences Five Quarter HighFunding levels in California remained relatively flat from last quarter, but deal count Californiasaw a 14% uptick from Q3, and 3% year-over-year growth. California VC Investment and Deal Volume Trend Last Five Quarters 300 310 297 264 271 $3,062 $2,929 $2,685 $2,607 $2,630 Q409 Q110 Q210 Q310 Q410 $ Funding # of Deals www.cbinsights.comwww.cbinsights.com
  • 35. 35 Venture Capital Activity Report | Q4 2010Internet & Healthcare Continue Dominance in Cali CaliforniaInternet and Healthcare combined for more than 60% of overall VC investment inCalifornia; Mobile continued its growth. Quarter Highlights VC Deal Volume (#) in California by Sector, Q410 4% 0% 2% Healthcare 310 deals | $2,630M 3% 4% Internet 18% Top Sector Energy & Utilities # of Deals – Internet Software (non-internet/mobile) $ of Funding – Internet 12% Computer Hardware & Services Mobile & Telecommunications Top Five Deals 3% Twitter Industrial Pearl Therapeutics 8% Electronics Solopower Business Products & Services Space Exploration Technologies 5% 41% Fallbrook Technologies Consumer Products & Services All Other Top Cities www.cbinsights.com San Francisco 64 deals | $517M Redwood City VC Investment ($) in California by Sector, Q410 13 deals | $237M Mountain View 0% 1% 19 deals | $216M 2% Healthcare San Diego 3% 6% 20 deals | $185M Internet San Jose 23% Energy & Utilities 13 deals | $152M 9% Software (non-internet/mobile) Palo Alto 21 deals | $141M2% Computer Hardware & Services Sunnyvale Mobile & Telecommunications 11 deals | $106M 7% Los Angeles Industrial 14 deals | $97M Electronics South San Francisco 9% Business Products & Services 3 deals | $97M 38% San Mateo Consumer Products & Services 9 deals | $67M All Other www.cbinsights.comwww.cbinsights.com
  • 36. 36 Venture Capital Activity Report | Q4 2010Internet Investment Expands in CaliforniaInternet saw its most dominant position of the last 5 quarters and grew its share of Californiainvestment by 14% versus Q3. Healthcare and Energy lost ground. Share of VC in California by Sector - Number of Deals Last Five Quarters 27% 23% 24% 24% 30% 5% 5% 3% 6% 6% 8% 5% 7% 9% 4% 7% 7% 5% 5% 8% 41% 38% 41% 34% 32% 18% 20% 17% 19% 18% Q409 Q110 Q210 Q310 Q410 Healthcare Internet Energy & Utilities Software (non-internet/mobile) Computer Hardware & Services Other www.cbinsights.com Share of VC in California by Sector - Dollars of Funding Last Five Quarters 22% 19% 21% 21% 34% 5% 2% 7% 6% 8% 7% 10% 9% 9% 6% 19% 6% 3% 11% 20% 31% 24% 38% 30% 23% 24% 28% 23% 21% 15% Q409 Q110 Q210 Q310 Q410 Healthcare Internet Energy & Utilities Software (non-internet/mobile) Computer Hardware & Services Other www.cbinsights.comwww.cbinsights.com
  • 37. 37 Venture Capital Activity Report | Q4 2010Early Stage Deal Volume Remains Strong in CaliforniaEarly stage deal volume increased share by 5% as Seed and Series A both continued Californiatheir upward trend in California. Series C took larger portion of investment dollars. Share of VC in California by Series - Number of Deals Last Five Quarters 9% 4% 6% 11% 11% 14% 8% 15% 13% 10% 21% 23% 18% 16% 23% 23% 23% 24% 25% 28% 31% 28% 27% 25% 22% 7% 8% 11% 12% 4% Q409 Q110 Q210 Q310 Q410 Seed Series A Series B Series C Series D Series E + www.cbinsights.com Share of VC in California by Series - Dollars of Funding Last Five Quarters 4% 14% 13% 14% 17% 29% 20% 16% 12% 24% 21% 22% 35% 32% 28% 31% 33% 21% 20% 21% 13% 13% 16% 15% 11% 0% 0% 1% 1% 1% Q409 Q110 Q210 Q310 Q410 Seed Series A Series B Series C Series D Series E + www.cbinsights.comwww.cbinsights.com
  • 38. 38 Venture Capital Activity Report | Q4 2010 Q4 2010 Venture Capital MASSACHUSETTSwww.cbinsights.com
  • 39. 39 Venture Capital Activity Report | Q4 2010 MassachusettsMassachusetts Recovers, but Levels Still Down Versus Q2VC funding in Massachusetts jumped 35% versus Q3, but still was down 4% year-over-year. Mass’ deal count hit its lowest point in five quarters. Massachusetts VC Investment and Deal Volume Trend Last Five Quarters 88 87 87 84 $898 78 $689 $653 $630 $466 Q409 Q110 Q210 Q310 Q410 $ Funding # of Deals www.cbinsights.comwww.cbinsights.com
  • 40. 40 Venture Capital Activity Report | Q4 2010 MassachusettsHealthcare & Internet Remain Atop the Rest in MassHealthcare and Internet combined for 68% of investment dollars and 61% of dealvolume. Mobile doubled its share in terms of deals and investment dollars versus Q3. Quarter Highlights VC Deal Volume (#) in Massachusetts by Sector, Q410 78 deals | $630M 4% 1% Healthcare 4% Top Sector 0% Internet # of Deals – Healthcare / 6% Software (non-internet/mobile) Internet (tie) 29% $ of Funding - Healthcare Energy & Utilities 10% Mobile & Telecommunications Top Five Deals Computer Hardware & Services Genocea Biosciences 6% Industrial NinePoint Medical Rive Technology 9% Business Products & Services Cerulean Pharma 29% Electronics Aspen Aerogels All Other Top Cities www.cbinsights.com Cambridge 18 deals | $258M Waltham VC Investment ($) in Massachusetts by Sector, Q410 8 deals | $45M Newton 2% 2% 3 deals | $44M Boston Healthcare 11 deals | $41M 4% Internet North Lexington 2 deals | $26M 12% Software (non-internet/mobile) Burlington 0% 41% Energy & Utilities 2 deals | $22M Northborough 6% Mobile & Telecommunications 1 deals | $22M Computer Hardware & Services Woburn 6% 4 deals | $19M Industrial Beverly 8% Business Products & Services 3 deals | $17M Boxborough Electronics 1 deals | $16M 20% All Other www.cbinsights.comwww.cbinsights.com
  • 41. 41 Venture Capital Activity Report | Q4 2010 MassachusettsHealthcare Investment Share Down SharplyShare of investment in Internet held steady in terms of both deals and dollars.Healthcare retained top spot, but lost share to Industrial and Mobile investments. Share of VC in Massachusetts by Sector - Number of Deals Last Five Quarters 17% 17% 13% 22% 19% 4% 8% 6% 5% 3% 6% 3% 5% 10% 10% 10% 6% 10% 9% 11% 27% 29% 26% 22% 29% 34% 33% 38% 37% 29% Q409 Q110 Q210 Q310 Q410 Healthcare Internet Software (non-internet/mobile) Energy & Utilities Industrial Other www.cbinsights.com Share of VC in Massachusetts by Sector - Dollars of Funding Last Five Quarters 12% 8% 13% 17% 2% 14% 1% 3% 2% 14% 2% 12% 4% 12% 11% 5% 9% 6% 22% 16% 8% 16% 21% 20% 10% 51% 56% 49% 42% 41% Q409 Q110 Q210 Q310 Q410 Healthcare Internet Software (non-internet/mobile) Energy & Utilities Industrial Other www.cbinsights.comwww.cbinsights.com
  • 42. 42 Venture Capital Activity Report | Q4 2010 MassachusettsSeed Share Balloons in Mass, but Early Stage Down OverallSeed deal volume grew its share in Mass threefold versus last quarter, but early stageinvesting (Seed + Series A) lost significant ground overall. Share of VC in Massachusetts by Series - Number of Deals Last Five Quarters 2% 2% 11% 13% 5% 11% 11% 6% 16% 7% 9% 16% 15% 15% 19% 28% 36% 28% 33% 28% 33% 36% 38% 25% 27% 7% 4% 7% 9% 3% Q409 Q110 Q210 Q310 Q410 Seed Series A Series B Series C Series D Series E + www.cbinsights.com Share of VC in Massachusetts by Series - Dollars of Funding Last Five Quarters 2% 4% 10% 13% 23% 15% 33% 11% 10% 5% 12% 19% 9% 30% 46% 9% 29% 35% 24% 31% 31% 33% 24% 23% 18% 1% 0% 0% 0% 1% Q409 Q110 Q210 Q310 Q410 Seed Series A Series B Series C Series D Series E + www.cbinsights.comwww.cbinsights.com
  • 43. 43 Venture Capital Activity Report | Q4 2010 Q4 2010 Venture Capital NEW YORKwww.cbinsights.com
  • 44. 44 Venture Capital Activity Report | Q4 2010New York VC Activity Explodes – Deals and Dollars Way Up New YorkNew York saw a 5-quarter high in terms of both investment and deal volume – up 90%and 29%, respectively, since last quarter; funding was up 63% year-over-year. New York VC Investment and Deal Volume Trend Last Five Quarters 66 55 48 51 $466 41 $355 $319 $286 $245 Q409 Q110 Q210 Q310 Q410 $ Funding # of Deals www.cbinsights.comwww.cbinsights.com
  • 45. 45 Venture Capital Activity Report | Q4 2010Get Started for Free with CB InsightsBasic membership to CB Insights venture capital and angel investor database is free.Just visit http://www.cbinsights.com. And also connect with us via any of the following. Twitter Newsletter Follow us @cbinsights Click here to receive our dealflow newsletter. Email Telephone 212-292-3148 info@cbinsights.comwww.cbinsights.com
  • 46. 46 Venture Capital Activity Report | Q4 2010Internet Still Dominates the Empire State New YorkInternet’s dominance of NY continued as 60% of VC funding went to web companies.Healthcare and Mobile combined for over 20% of deal volume. Quarter Highlights VC Deal Volume (#) in New York by Sector, Q410 3% 0% 2% 66 deals | $466M Internet 5% Top Sector Healthcare # of Deals – Internet $ of Funding - Internet 11% Mobile & Telecommunications Top Five Deals Computer Hardware & Services AppNexus 9% Vostu Business Products & Services Tumblr 59% TxVia Electronics Touchstone Health Software (non-internet/mobile) Top Cities New York www.cbinsights.com 63 deals | $457M Brooklyn 1 deal | $7M Long Island City VC Investment ($) in New York by Sector, Q410 1 deal | $2M Sea Cliff 0% 1 deal | <$1M 4% Internet 5% Healthcare 13% Mobile & Telecommunications 4% Computer Hardware & Services 60% Business Products & Services 14% Electronics Software (non-internet/mobile) www.cbinsights.comwww.cbinsights.com
  • 47. 47 Venture Capital Activity Report | Q4 2010Internet and Mobile Capture 70% of NY Deal Volume New YorkInternet share dropped while Mobile and Healthcare held their ground. For the secondquarter in a row, Computer Hardware & Services took a double digit share of dollars. Share of VC in New York by Sector - Number of Deals Last Five Quarters 6% 6% 12% 20% 22% 13% 14% 11% 5% 8% 2% 2% 9% 8% 5% 10% 5% 5% 9% 11% 73% 71% 63% 59% 53% Q409 Q110 Q210 Q310 Q410 Internet Healthcare Financial Computer Hardware & Services Mobile & Telecommunications Other www.cbinsights.com Share of VC in New York by Sector - Dollars of Funding Last Five Quarters 9% 6% 5% 9% 13% 24% 2% 9% 8% 3% 15% 16% 12% 4% 19% 8% 6% 18% 13% 7% 70% 63% 63% 48% 53% Q409 Q110 Q210 Q310 Q410 Internet Healthcare Financial Computer Hardware & Services Mobile & Telecommunications Other www.cbinsights.comwww.cbinsights.com
  • 48. 48 Venture Capital Activity Report | Q4 2010It’s Not All About Early Stage in New York New YorkShare of early stage investing dropped in terms of deals and dollars on back of sizableSeries C and Series D deals. Seed VC retained strong presence overall. Share of VC in New York by Series - Number of Deals Last Five Quarters 7% 2% 2% 7% 12% 5% 5% 5% 5% 4% 6% 11% 14% 15% 24% 25% 20% 30% 13% 30% 45% 46% 39% 39% 30% 16% 17% 13% 6% 7% Q409 Q110 Q210 Q310 Q410 Seed Series A Series B Series C Series D Series E + www.cbinsights.com Share of VC in New York by Series - Dollars of Funding Last Five Quarters 4% 9% 16% 16% 17% 3% 28% 6% 10% 13% 2% 12% 25% 24% 34% 44% 51% 23% 31% 41% 12% 30% 15% 15% 13% 0% 0% 1% 2% 2% Q409 Q110 Q210 Q310 Q410 Seed Series A Series B Series C Series D Series E + www.cbinsights.comwww.cbinsights.com
  • 49. 49 Venture Capital Activity Report | Q4 2010 Q4 2010 Venture Capital WASHINGTONwww.cbinsights.com
  • 50. 50 Venture Capital Activity Report | Q4 2010Washington Venture Funding Sees Five-Quarter Low WashingtonWashington’s venture resurgence stalled with investment dollars falling 46% from lastquarter and down 28% year-over-year. Deal volume also saw weakness. Washington VC Investment and Deal Volume Trend Last Five Quarters 34 29 28 26 25 $211 $222 $165 $138 $119 Q409 Q110 Q210 Q310 Q410 $ Funding # of Deals www.cbinsights.comwww.cbinsights.com
  • 51. 51 Venture Capital Activity Report | Q4 2010Internet Swallows Over 50% of Washington Deal Volume WashingtonInternet owned the Washington investment scene commanding 57% and 46% of dealsand dollars, respectively. Healthcare and Software rounded out the top 3. Quarter Highlights VC Deal Volume (#) in Washington by Sector, Q410 4% 0% 28 deals | $119M 3% Healthcare 4% 14% Internet Top Sector # of Deals – Internet Energy & Utilities $ of Funding - Internet 11% Mobile & Telecommunications Top Five Deals 7% Software (non-internet/mobile) Docusign0% Computer Hardware & Services Xenon Arc Coronado Biosciences Environmental Services & Equipment Skytap Business Products & Services Cardiac Dimensions 57% All Other Top Cities Seattle www.cbinsights.com 12 deals | $69M Redmond 3 deals | $16M Bellevue VC Investment ($) in Washington by Sector, Q410 4 deals | $10M Kirkland 2% 0% 2 deals | $7M Healthcare Tukwila 4% 1 deals | $5M 18% Internet Gig Harbor 8% Energy & Utilities 1 deals | $4M Mobile & Telecommunications Software (non-internet/mobile) 20% Computer Hardware & Services Environmental Services & Equipment 46% Business Products & Services 1% All Other 0% www.cbinsights.comwww.cbinsights.com
  • 52. 52 Venture Capital Activity Report | Q4 2010Internet Eclipses Healthcare in VC Share WashingtonHealthcare lost share to both Web and Software in Q4.. Share of VC in Washington by Sector - Number of Deals Last Five Quarters 8% 11% 14% 15% 20% 15% 6% 11% 14% 8% 6% 7% 8% 3% 6% 7% 12% 42% 28% 38% 41% 57% 27% 32% 29% 21% 14% Q409 Q110 Q210 Q310 Q410 Healthcare Internet Energy & Utilities Mobile & Telecommunications Software (non-internet/mobile) Other www.cbinsights.com Share of VC in Washington by Sector - Dollars of Funding Last Five Quarters 3% 7% 12% 13% 15% 16% 6% 7% 9% 5% 4% 1% 10% 20% 18% 26% 1% 36% 9% 46% 66% 51% 56% 41% 18% 4% Q409 Q110 Q210 Q310 Q410 Healthcare Internet Energy & Utilities Mobile & Telecommunications Software (non-internet/mobile) Other www.cbinsights.comwww.cbinsights.com
  • 53. 53 Venture Capital Activity Report | Q4 2010Trend of Early Stage Investment Emerges in Washington WashingtonOverall investment was down in Wash, but absolute figures don’t tell the whole story –For the third straight quarter, share of early stage (Seed + A) volume was up. Share of VC in Washington by Series - Number of Deals Last Five Quarters 5% 9% 5% 15% 12% 5% 10% 9% 4% 5% 16% 10% 20% 16% 43% 21% 20% 24% 40% 42% 50% 36% 35% 25% 8% 11% 0% 0% 4% Q409 Q110 Q210 Q310 Q410 Seed Series A Series B Series C Series D Series E + www.cbinsights.com Share of VC in Washington by Series - Dollars of Funding Last Five Quarters 4% 7% 6% 20% 13% 27% 22% 7% 1% 1% 47% 12% 48% 23% 40% 18% 32% 60% 22% 30% 27% 13% 17% 0% 0% 0% 0% 1% Q409 Q110 Q210 Q310 Q410 Seed Series A Series B Series C Series D Series E + www.cbinsights.comwww.cbinsights.com
  • 54. 54 Venture Capital Activity Report | Q4 2010 Q4 2010 Venture Capital TEXASwww.cbinsights.com
  • 55. 55 Venture Capital Activity Report | Q4 2010VC Funding in Texas Falls, but Remains Strong Overall TexasTexas funding fell 16% versus last quarter while deal volume was up. Funding wasstill up 27% year-over-year. Texas VC Investment and Deal Volume Trend Last Five Quarters 39 38 36 33 33 $357 $300 $264 $238 $212 Q409 Q110 Q210 Q310 Q410 $ Funding # of Deals www.cbinsights.comwww.cbinsights.com
  • 56. 56 Venture Capital Activity Report | Q4 2010Internet and Healthcare Win Top Honors in Texas TexasWeb took over one-third of overall investment in the Lone Star State, with Healthcarenot far behind. Mobile & Telecom also were strong in Q4. Quarter Highlights VC Deal Volume (#) in Texas by Sector, Q410 36 deals | $300M 0% Healthcare 8% Top Sector Energy & Utilities 6% # of Deals – Healthcare Internet $ of Funding - Internet 0% 6% 33% Mobile & Telecommunications Top Five Deals Computer Hardware & Services 14% Whale Shark Media Software (non-internet/mobile) IDev Technologies Dachis Group Business Products & Services New Century Hospice 8% Automotive & Transportation Silverback Acquisitions 25% All Other Top Cities Austin www.cbinsights.com 20 deals | $186M Webster 1 deals | $46M Dallas VC Investment ($) in Texas by Sector, Q410 3 deals | $27M Houston 4 deals | $12M 0% Healthcare San Antonio 6% 3 deals | $10M Energy & Utilities Richardson 16% Internet 1 deals | $10M 30% Addison Mobile & Telecommunications 2 deals | $6M3% Computer Hardware & Services Allen 1 deals | $3M0% 5% Software (non-internet/mobile) Business Products & Services Automotive & Transportation 36% 4% All Other www.cbinsights.comwww.cbinsights.com
  • 57. 57 Venture Capital Activity Report | Q4 2010Energy Loses Ground to Healthcare and Internet TexasEnergy, which is a mainstay of the Texas venture scene, fell on both deals and dollars.Energy’s lost share was reaped by Web and Healthcare companies. Share of VC in Texas by Sector - Number of Deals Last Five Quarters 15% 19% 27% 33% 45% 9% 14% 6% 18% 13% 9% 8% 5% 5% 12% 3% 24% 25% 16% 15% 8% 33% 12% 16% 33% 31% 21% 11% 12% Q409 Q110 Q210 Q310 Q410 Healthcare Internet Energy & Utilities Mobile & Telecommunications Computer Hardware & Services Other www.cbinsights.com Share of VC in Texas by Sector - Dollars of Funding Last Five Quarters 4% 10% 4% 25% 32% 14% 13% 50% 11% 5% 4% 16% 48% 6% 32% 36% 1% 11% 10% 13% 2% 10% 16% 36% 32% 30% 10% 14% 6% Q409 Q110 Q210 Q310 Q410 Healthcare Internet Energy & Utilities Mobile & Telecommunications Computer Hardware & Services Other www.cbinsights.comwww.cbinsights.com
  • 58. 58 Venture Capital Activity Report | Q4 2010Texas Continues to be a Destination for Early Stage Deals TexasSeed fell off the map, but early stage deals still commanded over 60% of overall dealvolume in Texas. Early stage investment dollars also held their ground. Share of VC in Texas by Series - Number of Deals Last Five Quarters 6% 6% 14% 6% 15% 20% 10% 22% 12% 5% 11% 10% 12% 4% 20% 7% 17% 33% 11% 47% 35% 63% 39% 33% 20% 18% 6% 0% 0% 0% Q409 Q110 Q210 Q310 Q410 Seed Series A Series B Series C Series D Series E + www.cbinsights.com Share of VC in Texas by Series - Dollars of Funding Last Five Quarters 4% 14% 13% 14% 17% 29% 20% 16% 12% 24% 21% 22% 35% 32% 28% 31% 33% 21% 20% 21% 13% 13% 16% 15% 11% 0% 0% 1% 1% 1% Q409 Q110 Q210 Q310 Q410 Seed Series A Series B Series C Series D Series E + www.cbinsights.comwww.cbinsights.com
  • 59. 59 Venture Capital Activity Report | Q4 2010Definitions – Ensuring Data IntegrityWhat’s Included in our Quarterly Venture Capital Numbers? What is not?Given the importance of venture capital in spurring innovation and entrepreneurship, measuring venture capital activityaccurately is important. We encourage you to review the methodology and definitions employed by us to betterunderstand the numbers presented in this report. If you have any questions about our definitions or methodologicalprinciples, we encourage you to reach out to us directly. What is included? What is excluded?• Equity financings into emerging companies. • Angel investment. These are not included in Funding must come from venture capital firms including numbers unless an investment round included Angels corporate venture groups. investing alongside a venture capital firm or corporate• Fundings of only private companies. Public venture group. companies of any kind on any exchange (including Pink • No contingent funding. If a company receives a Sheets) are excluded from our numbers even if they commitment for $20M subject to hitting certain received investment by a venture firm(s) milestones but first gets $8M, only the $8M is included• Companies must be headquartered in the USA. Our in our data. geographic data is based on the city and state where the • No business development/R&D arrangements company receiving investment is headquartered. If a whether transferable into equity now, later or company has a satellite office/presence in multiple cities never. If a company signs a $300M R&D partnership or was founded in a particular city but has moved its HQ, with a larger corporation, this is not equity financing our results reflect only this HQ address. nor is it from venture capital firms. As a result, it is not• Only include the investment made in the quarter for included. tranched investments. If a company does a second • Buyouts, Consolidations and Recapitalizations. closing of its Series B round for $5M and previously had All three of these of transaction types are commonly closed $2M in a prior quarter, only the $5M is reflected employed by private equity firms and are tracked by in our results. CB Insights. However, they are excluded for the• Round #s reflect what has closed – not what is purposes of this report. Private equity investments into intended. If a company indicates the closing of $5M out companies which may have received venture capital of a desired raise of $15M, our numbers reflect only the investment prior are also not included. amount which has closed. • Private placements. These investments also known• Only verifiable fundings are included. Fundings are as PIPEs (Private Investment in Public Equities) even verified via (1) various federal & state regulatory filings if made by a venture capital firm(s) are not included. (2) direct confirmation with firm or investor or (3) press • Debt/loans of any kind. Venture debt or any kind of release. debt/loan issued to emerging, startup companies even• Funding close date matters. Fundings are provided if included as an additional part of an equity financing based on funding close date and not on announcement is not included. If a company receives $3M with $2M date. from venture investors and $1M in debt, only the $2M is included in these statistics. • Government funding. Grants, loans, equity financings by the federal government, state agencies or public-private partnerships to emerging, startup companies are not included. Strictly venture or corporate venture outfits. • Incubator investments. Investments of money as equity or debt and/or services by incubators are not included. • Strategic corporate investments. Corporations making strategic investments in companies but not as part of a specific organized venture group are not included.www.cbinsights.com
  • 60. 60 Venture Capital Activity Report | Q4 2010CB Insights is the Premiere VentureCapital and Angel Investment Database.With CB Insights you can access deep private company info that was once exclusivelyavailable behind prohibitively expensive paywalls.CB Insights is accessible for free by visiting http://www.cbinsights.com 82,000+ Private Company Profiles. Coverage Universe Over 82,000 high value private company profiles across industries and • Venture Capital – 1999 to present sectors. Medical devices to • Angel Investment mobile. Industrial to internet. • Private Equity • Federal SBIR Grants – 3 years • State Grant Programs From Angel to Private Equity. • Incubators – Over 300 Angel investment to venture capital to • Middle Market Private Companies private equity to government funding to under the radar mid-market private Sector Coverage companies. • Green/clean tech • Internet Company & Investor Updates via Email. • Mobile & Telecom • Software Add companies and investors of • Energy & Utilities interest to your CBI Watchlist and get • Computer Hardware & Services notified of changes and updates • Healthcare automatically. • Industrial • Automotive & Transportation Management & Board Information • Business Products & Services • Consumer Products & Services Find out about the people behind the • Electronics companies including management and • Environmental Services & board of directors profiles. Equipment • Financial Services • Food & Beverages • Leisure Analytics & Reporting • Media • Metals & Mining Downloadable reports and analytics • Retail which allow you to manipulate data • Risk & Security when and how you want to.www.cbinsights.com
  • 61. 61 Venture Capital Activity Report | Q4 2010Get Started for Free with CB InsightsBasic membership to CB Insights venture capital and angel investor database is free.Just visit http://www.cbinsights.com. And also connect with us via any of the following. Twitter Newsletter Follow us @cbinsights Click here to receive our dealflow newsletter. Email Telephone 212-292-3148 info@cbinsights.comwww.cbinsights.com