Q12009 Shaking Presentation Nym

PricewaterhouseCoopers/ National Venture PricewaterhouseCoopers/ National Venture Capital Association MoneyTree™ ReportCapital Association MoneyTree™ Reportbased on data from Thomson Reutersbased on data from Thomson Reuters

Shaking the MoneyTree™™

Q1 UpdateApril 2009

Slide 2PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters

Q1 2009

PricewaterhouseCoopers / National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters

By Name: David Silverman


Q1 2009

About The Report

• PricewaterhouseCoopers and the National Venture Capital Association produce the MoneyTree Report™ based on data from Thomson Reuters

• ‘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 14th year• Results online at www.pwcmoneytree.com, www.nvca.org,

www.venturexpert.com


Q1 2009

MoneyTree Total Investments: Q1 2001 – Q1 2009

($ in billions)

$12.

6

$6.7

$4.3

$5.2

$5.1

$6.4

$7.5

$7.7

$3.0

$11.

1

$5.9

$4.9

$6.2

$6.3 $7

.1 $7.4

$7.6$8

.2

$4.4 $4

.8

$5.0 $5

.9 $6.6

$7.9

$7.3$7

.8

$4.4

$5.6 $5.9

$5.8 $6

.4

$8.1

$5.7

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

2001 2002 2003 2004 2005 2006 2007 2008 2009

Q1

Q2

Q3

Q4

#

of

Deals

2001 2002 2003 2004 2005 2006 2007 2008 2009

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

1283 1216 1004 980 839 852 691 721 702 741 717 786 715 851 692 840 732 826 792 814 875 963 909 949 869 1043 997 1058 997 1051 970 866 549


Q1 2009

MoneyTree Total Investments: 1980 – 2009

($ in billions)

$0.6

$1.1

$1.6

$2.8

$2.9

$2.7

$2.9

$3.2

$3.3

$3.2

$2.7

$2.1

$3.4

$3.6

$4.0 $7

.7 $11.

0

$14.

5

$20.

4

$52.

5

$102

.6

$39.

6

$21.

5

$19.

5

$22.

2

$23.

0

$26.

5

$30.

8

$28.

2

$3.0

$0

$20

$40

$60

$80

$100

$120

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

Annual Venture Capital Investments 1980 to 2009


Q1 2009

Investments by Region: Q1 2009($ in millions)

$1.3

$7.0

$59.1

$60.5

$61.1

$76.9

$87.4

$113.4

$121.6

$129.5

$156.1

$207.7

$322.7

$375.7

$7.1

$16.8

$40.0

$1,159.7

$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000

Upstate NY

Sacramento/N.Cal

AK/HI/PR

South Central

SouthWest

DC/Metroplex

North Central

Philadelphia Metro

Colorado

San Diego

Southeast

Midwest

Northwest

Texas

LA/Orange County

NY Metro

New England

Silicon Valley

Region# of

Deals

% Change $

from Q4 ’08

Silicon Valley 173 -42.74%

New England 67 -51.18%

NY Metro 54 -4.19%

LA/Orange County 39 -28.24%

Texas 24 -52.48%

Northwest 27 -0.26%

Midwest 41 -63.26%

Southeast 29 -62.38%

San Diego 15 -57.19%

Colorado 16 -52.70%

Philadelphia Metro 13 -54.53%

North Central 6 -35.51%

DC/Metroplex 20 -83.28%

Southwest 9 -71.15%

South Central 8 53.72%

AK/HI/PR 2 544.82%

Sacramento/N.Cal 2 -82.65%

Upstate NY 4 -79.43%

Total 549 -46.91%

Q1 2009 Total: $3,003.7 million in 549 deals


Q1 2009

Investments by Region – Quarterly Percent of Total U.S. Investments

Top U.S. Regions Q1 ‘08– Q1 ‘09

(% of Total Dollars)

38.8

6%

10.7

9%

7.62

%

5.83

%

5.13

%

40.0

9%

11.0

1%

5.14

%

8.03

%

3.74

%

38.3

7%

11.9

2%

7.71

%

8.05

%

3.75

%

35.8

0%

13.6

0%

5.94

%

5.12

%

5.81

%

38.6

1%

12.5

1%

10.7

4%

6.92

%

5.20

%

0%

10%

20%

30%

40%

50%

Silicon Valley New England NY Metro LA/Orange County Texas

Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09


Q1 2009

Investments by Industry: Q1 2009($ in millions)

$15.8

$26.7

$56.6

$58.6

$83.2

$107.9

$110.3

$172.6

$206.7

$217.3

$234.4

$412.4

$576.8

$614.2

$28.2

$35.2

$46.7

$0 $900 $1,800

Other

Electronics/Instrumentation

Retailing/Distribution

Computers and Peripherals

Healthcare Services

Consumer Products and Services

Business Products and Services

Networking and Equipment

Financial Services

Telecommunications

Semiconductors

IT Services

Media and Entertainment

Industrial/Energy

Medical Devices and Equipment

Biotechnology

Software

Industry# of

Deals

% Change $

from Q4 ’08

Software 138 -41.98%

Biotechnology 81 -46.34%

Medical Devices and Equipment 52 -26.81%

Industrial/Energy 38 -74.95%

Media and Entertainment 43 -44.56%

IT Services 42 -22.91%

Semiconductors 23 -34.61%

Telecommunications 27 -72.45%

Financial Services 17 25.58%

Networking and Equipment 16 -46.72%

Business Products and Services 17 42.15%

Consumer Products and Services 11 -45.55%

Healthcare Services 11 9.77%

Computers and Peripherals 10 -32.86%

Retailing/Distribution 9 0.08%

Electronics/Instrumentation 8 -85.25%

Other 6 78.19%

TOTAL 549 -46.91%

Q1 2009 Total: $3,003.7 million in 549 dealsVisit www.pwcmoneytree.com for Industry definitions


Q1 2009


26.4

8%

20.7

7%

19.4

9%

24.5

4%

8.72

%

23.7

3%

21.2

4%

18.3

4%

23.4

7%

13.2

2%

25.3

0%

25.0

1%

17.6

9%

24.4

7%

7.53

%

26.3

0%

26.7

1%

14.0

0%

23.2

5%

9.74

%

29.8

9%

28.0

7%

20.0

7%

11.4

1%

10.5

7%

0%

5%

10%

15%

20%

25%

30%

Software Biotechnology Medical Devices andEquipment

Industrial/Energy Media andEntertainment

Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09

Investments by Industry – Quarterly Percent of Total U.S. Investments

Top 5 Industries – Q1 ‘08 to Q1 ‘09


Q1 2009

Investments by Industry: Q1 2009 – NY Metro($ in millions)

$1.8

$0.6

$1.0

$21.4

$16.0

$32.9

$39.2

$37.0

$44.2

$104.5

$1.7

$11.1

$11.4

$0 $25 $50 $75 $100 $125 $150

Other

Electronics/Instrumentation

Healthcare Services

Consumer Products and Services

Business Products and Services

Networking and Equipment

Telecommunications

Semiconductors

IT Services

Media and Entertainment

Medical Devices and Equipment

Biotechnology

Software

Q1 2009 Total: $ $322,664,700 and 54 dealsVisit www.pwcmoneytree.com for Industry definitions


Q1 2009


21.6

0%

5.20

%

22.7

0%

7.80

%

9.20

%

10.9

0%

9.60

%

17.0

0%

8.64

% 11.6

0%

20.3

0%

5.14

%

18.5

0%

11.8

0%

10.9

0%

32.4

0%

0%

13.7

0%

10.2

0% 12.2

0%

0%

5%

10%

15%

20%

25%

30%

35%

Software Industrial/Energy Biotechnology IT Media andEntertainment

2006 2007 2008 Q1 2009

Investments by Industry – Quarterly Percent of Total NY Metro Investments

Top 5 Industries – 2005 to Q1 ‘09


Q1 2009

Investments by Stage of Development: Q1 2009($ in millions)

$169.2

$682.8

$1,331.9

$819.7

$0 $1,000 $2,000 $3,000

Startup/Seed

Early Stage

Expansion

Later Stage

Stage of Development

# of

Deals

% Change in $ Amount

from Q4 2008

Later Stage 199 -35.15%

Expansion Stage 146 -59.85%

Early Stage 157 -45.93%

Startup/Seed 47 -43.50%

Total 549 -46.91%



Q1 2009

Investments by Stage of Development: Q1 2009- NY Metro($ in millions)

$7.3

$82.0

$160.9

$72.4

$0 $50 $100 $150 $200 $250 $300

Startup/Seed

Early Stage

Expansion

Later Stage

Stage of Development

# of

Deals

% Change in $ Amount

from Q4 2008

Later Stage 22 26%

Expansion Stage 8 -9.0%

Early Stage 19 -33.0%

Startup/Seed 5 27.0%

Total 54 -4.0%

Q1 2009 Total: $322,664,700 and 54 deals


Q1 2009

Investments by Sequence of Financing: Q1 2009

($ in millions)

$422.5

$437.0

$1,076.8

$596.0

$471.4

$0 $500 $1,000 $1,500 $2,000 $2,500

Third

Second

Fourth

First

5th and Beyond

Financing# of

Deals

% Change in

$ Amount from

Q4 2008

5th and Beyond 155 -46.71%

First 132 -47.51%

Fourth 69 -36.31%

Second 105 -50.79%

Third 88 -51.60%

Total 549 -46.91%



Q1 2009

First Sequence Financing – Number of Deals

384

225

177

195 23

5 269

264 32

4

324

185 25

0

251

360

333

222

317

328

256 29

3

132

238

332

183

183

259

274

283

186 21

9 281

356

246

233

0

200

400

600

800

1000

2001 2002 2003 2004 2005 2006 2007 2008 2009

Q1 Q2 Q3 Q4

First Sequence Deals


Q1 2009

First Sequence Financing – Investment Amount

($ in billions)

$2

.8

$1

.3

$0

.8

$1

.0 $1

.5

$1

.4

$1

.7

$1

.7

$0

.6$1

.2

$1

.0 $1

.3

$1

.5

$1

.7

$1

.8

$1

.7

$1

.3

$1

.0

$1

.1

$1

.2

$1

.4

$1

.6 $2

.0

$1

.5

$1

.3

$0

.8 $1

.1

$1

.3

$1

.4

$1

.5 $2

.1

$1

.1

$2

.0

$0

$1

$2

$3

$4

$5

$6

$7

$8

$9

$10

2001 2002 2003 2004 2005 2006 2007 2008 2009

Q1 Q2 Q3 Q4

First Sequence Investments


Q1 2009

First Sequence Financing –Percent of Total U.S. Investments

20.5%18.1%18.0%

21.8%24.3%24.1% 23.8%23.0% 23.7%

20.1%19.8%

25.8%25.2%

29.4%30.5%

32.7%34.5% 34.9%

30.9%

34.5%

31.7%

28.4%

24.0%

19.2%

21.9%

22.3%22.0%

20.2%22.3%

20.5%20.0%20.8%

25.1%

28.7%

23.8% 21.9%

24.0%

22.3%

25.6% 26.1%

21.3%26.8%

32.5%

27.9%26.5%

25.0%25.5%

27.9% 27.3%

32.1%32.1%30.4% 30.7%

34.5%

30.4%

32.9%

33.7%

29.2%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

Q1

2002

Q2

2002

Q3

2002

Q4

2002

Q1

2003

Q2

2003

Q3

2003

Q4

2003

Q1

2004

Q2

2004

Q3

2004

Q4

2004

Q1

2005

Q2

2005

Q3

2005

Q4

2005

Q1

2006

Q2

2006

Q3

2006

Q4

2006

Q1

2007

Q2

2007

Q3

2007

Q4

2007

Q1

2008

Q2

2008

Q3

2008

Q4

2008

Q1

2009

% of Total Dollars % of Total Deals


Q1 2009

First Sequence Deals in Startup & Early Stage Companies

727 81

4 946

906

597

587 69

2

92

945

863

2,50

0

724

536

841

1,76

3

69.7%63.6%

60.6%63.3%

67.0%

72.3%74.3%

74.6%

71.8%

76.8% 75.0%70.6% 71.3% 72.3% 70.9%

0

1000

2000

3000

4000

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

YTD

0%

10%

20%

30%

40%

50%

60%

70%

80%

Seq 1 Deals in Startup/Early Stage% of Total Seq 1 Deals


Q1 2009

Median Deal Size vs. Mean Deal Size –Quarterly Total U.S. Investments

$4.0

$3.2$3.5

$4.0$3.7

$4.2$4.7

$4.3 $4.5 $4.6$4.3 $4.5

$4.0

$4.6 $4.4$4.0 $4.0

$3.7

$4.3 $4.3$4.0 $4.0

$4.3

$3.6$3.9

$2.8 $3.0

$6.4 $6.2 $6.1$6.6

$7.2 $7.0 $6.9 $7.1 $7.3 $7.4

$8.7

$7.1

$7.9$7.6 $7.8

$7.2$7.5

$6.5

$5.5

$6.7$7.3$7.4

$7.7$7.2$7.1

$6.6

$7.3

$0

$2

$4

$6

$8

$10

Q3

2002

Q4

2002

Q1

2003

Q2

2003

Q3

2003

Q4

2003

Q1

2004

Q2

2004

Q3

2004

Q4

2004

Q1

2005

Q2

2005

Q3

2005

Q4

2005

Q1

2006

Q2

2006

Q3

2006

Q4

2006

Q1

2007

Q2

2007

Q3

2007

Q4

2007

Q1

2008

Q2

2008

Q3

2008

Q4

2008

Q1

2009

Median Deal Size Mean Deal Size


Q1 2009

Post-Money Valuations – Early Stage Companies Q4 2001 to Q4 2008

$19.

29

$10.

12

$9.0

0

$9.3

0

$8.5

3

$7.6

6

$13.

88

$11.

63

27.58

15.4714.33 15.08 14.66

12.07

21.1319.49

$8

.29

$5

.35

$4

.41

$5

.33

$5

.78

$6

.13

$7

.25

$7

.86

$0

$5

$10

$15

$20

$25

$30

$35

$40

Q4 01 Q4 02 Q4 03 Q4 04 Q4 05 Q4 06 Q4 07 Q4 08

Pre-money Valuation Investment AmountPost-money Valuation

12 Month Average

Source: Thomson Reuters


Q1 2009

Post-Money Valuations – Expansion Stage Companies Q4 2001 to Q4 2008

$47.

89

$33.

65

$34.

05

$48.

08

$47.

85

$54.

87

$48.

07

$37.

60

61.40

45.86 45.24

60.67 62.4168.64

63.25

47.93

$1

3.5

1

$1

2.2

1

$1

3.7

7

$1

1.1

9

$1

2.5

9

$1

4.5

6

$1

5.1

8

$1

0.3

3

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

$110

Q4 01 Q4 02 Q4 03 Q4 04 Q4 05 Q4 06 Q4 07 Q4 08


12 Month Average



Q1 2009

Post-Money Valuations – Later Stage Companies Q4 2001 to Q4 2008

$79.

03

$47.

77

$52.

25

$55.

19

$78.

79

$84.

37

$72.

65

$69.

35

99.35

63.75 66.0971.08

94.4699.08

85.91

$2

0.3

2

$1

5.9

8

$1

4.7

1

$1

3.8

4

$1

5.8

9

$1

5.6

7

$1

3.2

6

$1

2.7

3

82.08

$0

$50

$100

$150

Q4 01 Q4 02 Q4 03 Q4 04 Q4 05 Q4 06 Q4 07 Q4 08


12 Month Average



Q1 2009

Q1 2009 – Most Active Venture InvestorsVenture Capital Firm Location Total Deals

Oak Investment Partners Westport, Connecticut 13

Draper Fisher Jurvetson (FKA: Draper Associates)

Menlo Park, California 11

Venrock Associates Palo Alto, California 11

SV Life Sciences Advisers (Schroder Ventures Life Sciences)

Boston, Massachusetts 11

Highland Capital Partners LLC Lexington, Massachusetts 10

Polaris Venture Partners Waltham, Massachusetts 10

Menlo Ventures Menlo Park, California 10

Kleiner Perkins Caufield & Byers Menlo Park, California 9

First Round Capital West Conshohocken, Pennsylvania 9

Maryland Technology Development Corporation (AKA: TEDCO)

Columbia, Maryland 9

Morgenthaler Ventures Menlo Park, California 8

Sequoia Capital Menlo Park, California 8

Accel Partners Palo Alto, California 8

Ignition Partners (FKA: Ignition Corporation)

Bellevue, Washington 8

August Capital Management Menlo Park, California 8

Versant Ventures Menlo Park, California 8

Oxford Bioscience Partners Boston, Massachusetts 8


Q1 2009

Q1 2009 – Most Active Venture Investors – NY Area

Venture Capital Firm Location Total Deals

New Jersey Economic Development Authority

Trenton, NJ 4

First Round Capital West Conshohocken, PA 3

Union Square Ventures New York, NY 3

SAS Investors New York, NY 3

Bessemer Venture Partners Larchmont, NY 3

Elm Street Ventures New Haven, CT 2

Ascend Venture Group LLC New York, NY 2

Meritech Capital Partners Palo Alto, CA 2

Oxford Bioscience Partners Boston, MA 2


Q1 2009

Q1 2009 – Top 10 Deals in NY Metro

Company Location Industry Stage $ Invested

Quadriserv, Inc. New York, NY Software Later $34.02

Rib-X Pharmaceuticals, Inc.. New Haven, CT Biotechnology Later $25.0

InSet Technologies, Inc. Budd Lake, NJMedical Devices and

EquipmentEarly $25.0

Tremor Media, Inc. (FKA: Tremor Network, Inc.)

New York, NY IT Services Expansion $18.0

Enpirion, Inc. Bridgewater, NJ Semiconductors Later $16.0

TradeCard, Inc. (FKA: Full Service Trade System, Inc.)

New York, NY Software Later $15.0

Vidyo, Inc. (FKA: Layered Media, Inc.)

Hackensack, NJ Telecommunications Later $15.0

Yodle, Inc. (FKA: Natpal, Inc.) New York, NY IT Services Expansion $13.0

SchoolNet, Inc. New York, NY Software Later $12.99

Outbrain, Inc. New York, NY Software Early $12.0


Q1 2009

Analysis of Venture-Backed IPO and M&A Activity

Date Number of IPOs*

Total Venture-Backed Offering Size ($M)

Average Venture-Backed Offering Size ($M)

Number of Venture-backed M&A deals

Average M&A deal size**

2004 94 11,378.0 121.0 346 85.1

2005 57 4,485.0 78.7 352 104.9

2006 56 5,075.1 90.6 369 116.8

2007 86 10,326.3 120.1 373 177.0

2008 Q1 5 282.7 56.5 106 113.6

2008 Q2 0 0.0 0 84 126.7

2008 Q3 1 187.5 187.5 86 96.3

2008 Q4 0 0.0 0 61 140.3

2008 6 470.2 78.4 337 115.7

2009 Q1 0 0.0 0 56 49.6

* 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 valuesSource: Thomson Reuters and National Venture Capital Association


Q1 2009

Venture Capital FundraisingYear First Time Funds

Follow-On Funds

Total Number of Funds

VC Raised ($M)

2004 55 156 211 19,156.0

2005 63 173 236 28,747.5

2006 55 184 239 31,866.0

2007 61 188 249 35,649.4

2008 47 167 214 28,278.5

Quarter

Q1 ’07 21 60 81 6,485.5

Q2 ’07 17 68 85 8,660.6

Q3 ’07 15 62 77 8,595.8

Q4 ’07 26 59 85 11,907.5

Q1 ’08 10 61 71 7,120.1

Q2 ’08 23 55 78 9,246.7

Q3 ’08 13 49 62 8,393.3

Q4 ’08 11 36 47 3,518.4

Q1 ’09 3 37 40 4,316.0Data current as of January 19, 2009Source: Thomson Reuters & National Venture Capital Association

Closing Thoughts & Comments

David SilvermanParner(646) [email protected]

© 2008 PricewaterhouseCoopers LLP. All rights reserved. "PricewaterhouseCoopers" refers to PricewaterhouseCoopers LLP 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. *connectedthinking is a trademark of PricewaterhouseCoopers LLP (US).

Economy & Finance

Q12009 Shaking Presentation Nym