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Angel Group Update Q3 2012

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Report TM

Present the

Median Angel Round Size Hits Five Quarter High

10%$Thousands

$540

Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012

$650

$500

$600

$400$350

$450

$550

$300$500

$550$530

$640

Angel group deals structured as convertible debt

1

2012 YTD

Early Stage Pre-Money Valuations Remain Stable in Angel Group Deals Based on a rolling 12 months and ending Q3 2012. This is down slightly from $2.7M reported for rolling 12 months ending Q2 2012.

$0.51M

$6.6M$4.0M3rd Quartile

$1.6M1st Quartile

*This includes all rounds with angel groups before Series A

2

$2.6M Median

Investment in Mobile Companies Jumps, Deals and Dollars

0%

5%

10%

15%

20%

25%

30%

35%

31.2%

20.1%

14.9%

3.9%

5.8% 4.5

%

19.5%

% $M

0%

5%

10%

15%

20%

25%

30%

23.4%

23.6%

16.5%

3.7%

7.3% 5.4

%

20%

Internet Healthcare Mobile & Telecom

Industrial Energy & Utilities

Consumer Products &

Services

Electronics Other

3

Healthcare companies receive largest share of dollars; Mobile share jumps 6% over Q2 2012

Internet sector still dominates angel group deals; Mobile deals reach five quarter high

Southern CAAustin, TX Sunnyvale, CABoston, MA CA, MA, NY

Most Active Angel Groups in the US: Total Deals Q3 20124

National Group

Mobile Spotlight: Most Active Mobile Investors, Total Deals

rolling year through Q3 2012

5

Menlo Park, CA Boston, MANew York, NYSeattle, WA Sunnyvale, CA Huntsville, AL

Southeast Rivals California for Share of US Deals in Q3 20126

*Q3 2012

Northwest8.3%

California21.4%

Southwest13%

Great Plains5.2%

Great Lakes9.7%

NewEngland14.3%

Southeast19.5%

Midatlantic9.1%

New York6.5%

49%of dollars invested in California and New England