U.S.Venture Capital Q1 2015 Mid-QuarterTrend
Analysis February 22, 2015

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● MATTERMARK TRACTION REPORT ● MATTERMARK.COM ● (415) 366-6587 This report provides a data-driven exploration of the United States startup funding environment over the past year. The resources that flow into startups each year are a calculated risk on the part of investors, founders, employees, service- providers and everyone who stands to benefit from the proliferation of new product, better services, and saved time and money. Understanding how businesses are created, funded, grown and ultimately rewarded with sustainability or an exit helps inform the conversations and actions for the coming years, and it is our hope you will read this report and combine it with your special knowledge of your industry, region, role and community as you charge forward into the New Year. Sincerely, Danielle Morrill, CEO & Cofounder of Mattermark Acknowledgements This analysis would not be possible without a team effort. Thank you to the Mattermark analysts, researchers, software engineers and designers who made this report possible: Sarah Catanzaro, Bryan Chang, Clare Corthell, Avi Eisenberger, Nick Frost, Kevin Liu, Josh Luxton, Samiur Rahman, and Tristan Williams and many more. MATTERMARK Q1 2015 MID-QUARTER ANALYSIS 2 Introduction

© 2015 ALL RIGHTS RESERVED
● MATTERMARK TRACTION REPORT ● MATTERMARK.COM ● (415) 366-6587 3 Table of Contents 2 3 5 9 13 16 18 22 MATTERMARK Q1 2015 MID-QUARTER ANALYSIS INTRODUCTION METHODOLOGY DEAL VOLUMES CAPITAL DISTRIBUTION CAPITAL CONCENTRATION MEGA “PRIVATE IPO” ROUNDS RISING VALUATIONS ECOSYSTEM IMPACT: NEW YORK Disclaimer This information has been prepared by Mattermark Inc. solely for informational purposes. It is not, and should not be regarded as, investment advice or as a recommendation regarding any particular security or course of action. Opinions expressed herein are current opinions as of the date appearing in this material only and are subject to change without notice. This information is provided with the understanding that with respect to the material provided herein, you will make your own independent decision with respect to any course of action based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. Neither the information, nor any opinion contained herein, constitute a solicitation or offer by Mattermark, Inc. to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service. Mattermark, Inc. does not purport to, and does not, in any fashion, provide broker/dealer, consulting or any related services. Mattermark, Inc. shall not have any liability for any damages of any kind whatsoever relating to this material. By accepting this material, you acknowledge, understand and accept the foregoing.

© 2015 ALL RIGHTS RESERVED
● MATTERMARK TRACTION REPORT ● MATTERMARK.COM ● (415) 366-6587 Time Period For this report we compared Q1 2014 and the 2014 calendar year to Q1 2015 in progress. For all “pace” metrics, we have taken the current deal volumes or amounts invested between January 1st and February 15th and assumed the same pace for the remainder of the quarter. Funding Rounds For venture rounds, we only included deals in which the amount of funding raised was disclosed. “Late” stage rounds include all rounds Series D and beyond (traditionally the 4th round of venture funding). “New York” includes the New York metro region (for example Jet is based in New Jersey according to our data set, but was still included in the geographical analysis). Data Sources Mattermark uses a broad range of sources to present the most complete picture possible of the startup ecosystem. In addition to extensive primary source research sourced specifically for this report, Mattermark uses publicly-available data from Crunchbase (www.crunchbase.com), AngelList (www.angel.co), NASDAQ (www.nasdaq.com), the United States Securities and Exchange Commission (www.sec.gov), The White House Office of Management & Budget, and source relationships with thousands of investors, community leaders and startup founders. MATTERMARK Q1 2015 MID-QUARTER ANALYSIS 4 Methodology

DEALVOLUME MATTERMARK COPYRIGHT 2015,ALL RIGHT
RESERVED — WWW.MATTERMARK.COM

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— WWW.MATTERMARK.COM NumberofFundingEvents 0 20 40 60 80 100 120 Q1 2015 Seed Series A Series B Series C Late Other 32 78 37 59 74 109 U.S. STARTUP FUNDING JAN. 1 - FEB. 15, 2015 366 COMPANIES FUNDED

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— WWW.MATTERMARK.COM NumberofFundingEvents 0 50 100 150 200 250 300 350 400 Seed Series A Series B Series C Late Other Q1 2014 Q1 2015 37 78 37 59 74 108 124 67 38 74 102 359 U.S. STARTUP FUNDING JAN. 1 - FEB. 15, 2015 Q1 ’15 MIDPOINT VS. ’14 MIDPOINT

Q1 2014 Other 16% Late
Stage 9% Series C 5% Series B 10% Series A 13% Seed 47% Q1 2015 Other 9% Late Stage 20% Series C 9% Series B 15% Series A 19% Seed 27% MATTERMARK COPYRIGHT 2015,ALL RIGHT RESERVED — WWW.MATTERMARK.COM U.S. STARTUP FUNDING JAN. 1 - FEB. 15, 2015 DEAL VOLUME BY STAGE

CAPITAL INVESTED MATTERMARK COPYRIGHT 2015,ALL
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U.S. STARTUP FUNDING JAN. 1
- FEB. 15, 2015 $9.7B DOLLARS INVESTED MATTERMARK COPYRIGHT 2015,ALL RIGHT RESERVED — WWW.MATTERMARK.COM CapitalInvested(inBillionsofDollarsUSD) $1 $2 $3 $3 $4 $5 $6 Investment Stage Seed Series A Series B Series C Late Other $1.13 $5.18 $1.16$1.26 $0.76$0.20

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— WWW.MATTERMARK.COM DollarsInvested(inBillionsUSD) $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 Seed Series A Series B Series C Late Other Q1 2014 Q1 2015 $1.17 $5.18 $1.16$1.26 $0.76 $0.20 $0.63 $2.00 $1.12$1.06 $0.61 $0.21 U.S. STARTUP FUNDING JAN. 1 - FEB. 15, 2015 Q1 ’15 MIDPOINT VS. ’14 MIDPOINT

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— WWW.MATTERMARK.COM U.S. STARTUP FUNDING JAN. 1 - FEB. 15, 2015 CAPITAL ALLOCATED BY STAGE Q1 2014 Other 11% Late Stage 35% Series C 20% Series B 19% Series A 11% Seed 4% Q1 2015 Other 12% Late Stage 53% Series C 12% Series B 13% Series A 8% Seed 2%

TREND #1: GREATER CAPITAL CONCENTRATION
IN SEED DEALS 60%YEAR-OVER-YEAR DECLINE IN DEALVOLUME 25%YEAR-OVER-YEAR INCREASE IN CAPITAL DEPLOYMENT MATTERMARK COPYRIGHT 2015,ALL RIGHT RESERVED — WWW.MATTERMARK.COM

RoundSize(inMillionsofDollarsUSD) $0.00 $0.50 $1.00 $1.50
$2.00 $2.50 NumberofRounds 0 300 600 900 1200 1500 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015* Average Seed Deal Size Median Seed Deal Size Seed DealVolume 216202 456421 542 U.S. SEED DEAL VOLUME VS. ROUND SIZE * Q1 2015 BASED ON PACE AS OF FEB. 15, 2015 MATTERMARK COPYRIGHT 2015,ALL RIGHT RESERVED — WWW.MATTERMARK.COM

RoundSize(inMillionsofDollarsUSD) $0.00 $0.50 $1.00 $1.50
$2.00 $2.50 TotalSeedCapitalDeployed(inMillionsUSD) 0 100 200 300 400 500 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015* Average Seed Deal Size Median Seed Deal Size Seed DealVolume $397.6 $342.6$348.7 $302.7 $320.5 U.S. SEED CAPITAL VS. ROUND SIZE * Q1 2015 BASED ON PACE AS OF FEB. 15, 2015 MATTERMARK COPYRIGHT 2015,ALL RIGHT RESERVED — WWW.MATTERMARK.COM

TREND #2: LATE STAGE MEGA
“PRIVATE IPO” ROUNDS MATTERMARK COPYRIGHT 2015,ALL RIGHT RESERVED — WWW.MATTERMARK.COM

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— WWW.MATTERMARK.COM U.S. STARTUP FUNDING JAN. 1 - FEB. 15, 2015 10 BIGGEST DEALS OF 2014 1. Uber - $1.2B 2. Cloudera - $900M 3. Chobani - $750M 4. Cape Wind - $600M 5. ABILITY Network - $550M 6. Magic Leap - $542M 7. Dropbox - $500M 8. Snapchat - $485M 9. Airbnb - $475M 10. WeWork - $355M

NumberofRounds 0 18 36 54
72 90 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015* 34 48 20 30 20 4239 34 46 39 Deals $50M - $100M Deals > $100M MEGA “PRIVATE IPO” DEAL VOLUME * Q1 2015 BASED ON PACE AS OF FEB. 15, 2015 MATTERMARK COPYRIGHT 2015,ALL RIGHT RESERVED — WWW.MATTERMARK.COM

TREND #3: VC ROUND SIZES
(AND VALUATIONS) ON THE RISE AS DEAL VOLUMES CONTINUE TO DECLINE MATTERMARK COPYRIGHT 2015,ALL RIGHT RESERVED — WWW.MATTERMARK.COM YoY Change in Average Round Size YoY Change in Total Capital YoY Change in Deal Volume Pre Series A +142% 25% -60% Series A +52% +24% -19% Series B +44% +19% +7% Series C +16% +3% +14% Late Stage +19% +159% +16%

RoundSize(inMillionsofDollarsUSD) $0 $1 $3 $4
$6 $7 $8 $10 $11 NumberofRounds 0 100 200 300 400 500 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015* Average Round Size Median Round Size Series A DealVolume 170176190 232 210 SERIES A DEAL VOLUME VS. ROUND SIZE * Q1 2015 BASED ON PACE AS OF FEB. 15, 2015 MATTERMARK COPYRIGHT 2015,ALL RIGHT RESERVED — WWW.MATTERMARK.COM

RoundSize(inMillionsofDollarsUSD) $0 $4 $8 $11
$15 $19 $23 $26 $30 NumberofRounds 0 100 200 300 400 500 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015* Average Round Size Median Round Size Series B DealVolume 140 97 127132131 SERIES B DEAL VOLUME VS. ROUND SIZE * Q1 2015 BASED ON PACE AS OF FEB. 15, 2015 MATTERMARK COPYRIGHT 2015,ALL RIGHT RESERVED — WWW.MATTERMARK.COM

RoundSize(inMillionsofDollarsUSD) $0 $4 $8 $12
$16 $20 $24 $28 $32 NumberofRounds 0 100 200 300 400 500 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015* Average Round Size Median Round Size Series C DealVolume 80 5959 7770 SERIES C DEAL VOLUME VS. ROUND SIZE * Q1 2015 BASED ON PACE AS OF FEB. 15, 2015 MATTERMARK COPYRIGHT 2015,ALL RIGHT RESERVED — WWW.MATTERMARK.COM

TREND #3 EXAMPLE: NEW YORK
36% YEAR-OVER-YEAR DECLINE DEAL VOLUME, 50% INCREASE IN TOTAL CAPITAL INVESTED MATTERMARK COPYRIGHT 2015,ALL RIGHT RESERVED — WWW.MATTERMARK.COM YoY Change in Average Round Size YoY Change in Total Capital YoY Change in Deal Volume Pre Series A +66% -37% -62% Series A +26% -31% -49% Series B +35% +45% +8% Series C -24% -13% +14% Late Stage +167% +434% +100%

MATTERMARK COPYRIGHT 2015,ALL RIGHT RESERVED
— WWW.MATTERMARK.COM DollarsInvested(inMIllionsUSD) $0 $300 $600 $900 $1,200 $1,500 $1,800 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 PROJECTION* Seed Series A Series B Series C Late Other NEW YORK CAPITAL ALLOCATION * Q1 2015 BASED ON PACE AS OF FEB. 15, 2015

MATTERMARK COPYRIGHT 2015,ALL RIGHT RESERVED
— WWW.MATTERMARK.COM DollarsInvested(inMIllionsUSD) $0 $200 $400 $600 $800 $1,000 $1,200 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 PROJECTION* Seed Series A Series B Series C Late Other NEW YORK CAPITAL ALLOCATION * Q1 2015 BASED ON PACE AS OF FEB. 15, 2015 - WeWork - Harry’s - Rent the Runway - VICE - AppNexus - CommonBond - HelloFresh - Taboola

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— WWW.MATTERMARK.COM NumberofInvestmentDeals 0 20 40 60 80 100 120 140 160 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 PROJECTION* Seed Series A Series B Series C Late Other NEW YORK DEAL VOLUME * Q1 2015 BASED ON PACE AS OF FEB. 15, 2015

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— WWW.MATTERMARK.COM NumberofDeals 0 10 20 30 40 50 60 70 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 PROJECTION* Seed Series A Series B Series C Late Other 12121111 26 20 910 7 10 8 5 7 11 7 14 5 17 19 13 16 22 29 31 29 24 27 58 46 63 NEW YORK DEAL VOLUME * Q1 2015 BASED ON PACE AS OF FEB. 15, 2015

MATTERMARK COPYRIGHT 2015,ALL RIGHT RESERVED
— WWW.MATTERMARK.COM DollarsInvested(inMIllionsUSD) $0 $20 $40 $60 $80 $100 $120 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 PROJECTION* Seed Series A Series B Series C Late Other NEW YORK AVERAGE ROUND SIZES * Q1 2015 BASED ON PACE AS OF FEB. 15, 2015

MATTERMARK COPYRIGHT 2015,ALL RIGHT RESERVED
— WWW.MATTERMARK.COM DollarsInvested(inMIllionsUSD) $0 $5 $10 $15 $20 $25 $30 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 PROJECTION* Seed Series A Series B Series C NEW YORK AVERAGE ROUND SIZES * Q1 2015 BASED ON PACE AS OF FEB. 15, 2015

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