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Shaking the MoneyTree™

Q4 and Full Year 2014 Update

www.pwc.com

PricewaterhouseCoopers/National Venture Capital Association MoneyTreeTM Report, based on data from Thomson Reuters

HJ Paik Director, Emerging Company Services [email protected] (213) 356-6110

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 20th year

• Results online at www.pwcmoneytree.com and www.nvca.org

2

Shaking the MoneyTreeTM Q4 and Full Year 2014

$5.1

$6.5 $6.3 $6.1

$9.9

$7.2

$8.3

$7.5 $7.3

$13.6

$5.5

$7.6

$6.7

$8.0

$10.1

$5.7

$7.5 $7.0

$8.6

$14.8

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

$16.0

2010 2011 2012 2013 2014Q1 Q2 Q3 Q4

MoneyTree total investments: Q1 2010 – Q4 2014

($ in billions)

2010 2011 2012 2013 2014

# of Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Deals 827 1,030 894 915 911 1,096 1,020 1,007 891 992 968 1,085 933 1,023 1,077 1,160 1,027 1,169 1,051 1,109

3


$8.0 $11.3

$15.1 $21.5

$54.9

$105.0

$40.9

$22.2 $19.7 $22.9 $23.2

$27.6 $32.1 $30.4

$20.4 $23.4

$29.8 $27.6 $30.0

$48.3

$0

$20

$40

$60

$80

$100

$120

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

($ in billions)

MoneyTree total investments Annual venture capital investments 1995 – 2014

# of deals

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

1,897 2,635 3,232 3,743 5,606 8,042 4,595 3,217 3,036 3,236 3,301 3,889 4,230 4,198 3,172 3,666 4,034 3,936 4,193 4,356

4


$5.1

$7.2

$5.5 $5.7 $6.5

$8.3 $7.6 $7.5

$6.3 $7.5

$6.7 $7.0 $6.1

$7.3 $8.0 $8.6

$9.9

$13.6

$10.1

$14.8

0

200

400

600

800

1000

1200

1400

Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14

# D

eals

Total amount invested ($B)

Average deal size ($M)

$6.2 $7.0

$6.1 $6.2 $7.2 $7.5 $7.4 $7.4 $7.1 $7.6

$6.9 $6.5 $6.5 $7.1 $7.4 $7.4

$9.6

$11.6

$9.6

$13.3


MoneyTree total investments Quarterly venture capital investments Q1 2010 – Q4 2014

5


Investments by region – Annual percentage of total US investments

Top 5 US regions : 2010 – 2014

6


40%

11%

8%

11%

6%

41%

11% 10% 10%

5%

41%

13%

9%

12%

5%

42%

11% 11% 8%

4%

48%

10% 10% 8%

4%

0%

10%

20%

30%

40%

50%

60%

Silicon Valley New England NY Metro Southern California Midwest

(% of total dollars) 2010 2011 2012 2013 2014

Investments by industry – Annual percentage of total US investments

22%

17%

7% 7%

11%

26%

16%

9% 9% 10%

31%

15%

8% 7%

9%

37%

15%

10%

7% 7%

41%

12% 12%

7% 6%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Software Biotechnology Media andEntertainment

IT Services Medical Devices andEquipment

2010 2011 2012 2013 2014

(% of Total Dollars)

Top 5 Industries : 2010 – 2014

7


Internet-specific investments ($B)

Software & Internet-specific investments Q1 2010 – Q4 2014

$0.9 $1.0

$1.2 $1.3 $1.4

$2.3

$1.7 $1.7 $1.6 $1.9

$1.7 $1.6 $1.3

$1.8

$1.4

$2.5 $2.4

$3.2 $3.2 $3.0

0

50

100

150

200

250

300

350


$ Invested

# of deals

Software investments ($B)

$1.0 $1.4 $1.3 $1.5 $1.5

$2.0 $2.3

$1.9 $1.8 $2.5

$2.1 $2.3 $2.2 $2.3

$3.7

$2.9

$4.1

$6.1

$3.8

$5.8

0

50

100

150

200

250

300

350

400

450

500


$ Invested

# of deals

8


Life sciences investments – Percentage of total US investments Q4 2013 – Q4 2014

16%

5%

22%

10%

6%

17%

14%

5%

19%

11%

6%

17%

14%

5%

19%

0%

5%

10%

15%

20%

25%

Biotechnology Medical Devices and Equipment Life Sciences

(% of total dollars)

Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14

9


$719

$15,819

$19,767

$12,044

Seed Stage Early Stage

Expansion Stage Later Stage

Investments by stage of development: 2014

2014 Total Investments - $48,349 million in 4,356 deals

Stage of Development # of

Deals

% Change in $ from

2013

Seed Stage 192 -29%

Early Stage 2,165 54%

Expansion Stage

1,156 102%

Later Stage 843 35%

Total 4,356 61%

($) in millions

10


Amount Invested by Stage ($M)

US Investments by stage: Annually 2006 – 2014

$1,343 $1,832 $1,966 $1,684 $1,661 $1,069 $850 $1,007 $719

$4,897 $6,240 $5,970

$4,965 $6,106 $9,074 $8,480

$10,283

$15,819

$11,045 $10,989 $11,198

$6,850 $8,520

$9,941 $9,532

$9,775

$19,767

$10,343

$13,002 $11,246

$6,858

$7,152

$9,762 $8,715

$8,899

$12,044

0

10,000

20,000

30,000

40,000

50,000

60,000

2006 2007 2008 2009 2010 2011 2012 2013 2014

Later Stage

ExpansionStage

Early Stage

Seed Stage

11


Number of Deals by Stage

US Investments by stage: Annually 2006 – 2014

401 525 536 373 408 441 301 235 192

1,010

1,149 1,169

994

1,302

1,643 1,785 2,137 2,165

1,377

1,267 1,244

892

1,075

1,030 999

1,023 1,156

1,101

1,289 1,249

913

881

920 851

798 843

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2006 2007 2008 2009 2010 2011 2012 2013 2014

Later Stage

ExpansionStage

Early Stage

Seed Stage

12


$7,369

$40,979

First Sequence Follow-on

Investments by sequence of financing: 2014

Financing # of Deals % Change in $

from 2013

First Sequence 1,409 47%

Follow-on 2,947 64%

Total 4,356 61%

($) in millions

2014 Total Investments - $48,349 million in 4,356 deals

13


First sequence financing Investment amount: Q1 2009 – Q4 2014

First sequence investments

$0.7

$1.0

$1.2

$0.9 $0.9

$1.3

$0.8

$1.2

$1.6

$1.2 $1.3

$1.8

$0.8

$1.3 $1.3

$1.1

$1.3

$1.7

$1.2

$0.9

$1.2 $1.3

$1.5

$2.6

-

$1

$1

$2

$2

$3

$3

2009 2010 2011 2012 2013 2014

($ in billions) Q1 Q2 Q3 Q4

14


First sequence financing Number of deals: Q1 2009 – Q4 2014

First sequence deals

167

235

304

264

289

314

199

297

368

332 346

375

187

275

346 329

385

346

283 288

336

382 377 374

-

100

200

300

400

500

2009 2010 2011 2012 2013 2014

Q1 Q2 Q3 Q4

15


Number of First-time vs. Follow-on Deals US Venture Capital deals 2009 – 2014

Number of Deals

836 1,095

1,354 1,307 1,397 1,409

2,336

2,571

2,680 2,629 2,796

2,947

0

500

1000

1500

2000

2500

3000

3500

4000

4500

2009 2010 2011 2012 2013 2014

Follow on First sequence

16


First sequence financing Percentage of total US investments: Q1 2009 – Q4 2014

17%

16% 15%

20%

19%

17%

23%

16%

19%

20%

18% 17%

14% 16%

17%

18%

15% 17% 17% 17%

13% 13%

16% 18%

24%

26% 24%

30% 28% 29%

31% 31%

33% 34% 34% 33%

30%

33% 34% 35%

31%

34%

36%

33% 31%

32% 33%

34%

0%

5%

10%

15%

20%

25%

30%

35%

40%

% of Total Dollars % of Total Deals

17


Quarterly percentage of total first sequence dollars Stage of development 2010 – 2014

20%

41%

21% 18%

15%

49%

19% 18%

13%

50%

22%

15% 16%

58%

14% 13%

7%

53%

28%

12%

0%

10%

20%

30%

40%

50%

60%

70%

Seed Stage Early Stage Expansion Stage Later Stage

(% of first sequence dollars)

2010

2011

2012

2013

2014

18


Quarterly percentage of total first sequence deals Stage of development 2010 – 2014

25%

51%

15%

9%

26%

53%

13% 8%

17%

64%

12%

7%

14%

69%

11%

6%

11%

68%

14%

7%

0%

10%

20%

30%

40%

50%

60%

70%

80%


(% of first sequence deals)

2010

2011

2012

2013

2014

19


First sequence deals in Seed Stage & Early Stage companies 1995 – 2014

53

7 710

82

0 96

2

1,7

78

2,5

02

914

59

7

58

9 713

74

7 89

3 1,0

14

94

2

617

83

2

1,0

71

1,0

61

1,15

9

1,11

1

60% 62% 63%

67% 72%

74% 74% 70%

76% 73%

70% 70% 72% 72% 74% 76%

79% 81%

83%

79%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

0

1000

2000

3000

Seq 1 Deals in Seed/Early Stage

% of Total Seq 1 DealsSeed stage

Early stage

20


Median deal size vs. mean deal size Quarterly total US investments: Q1 2009 – Q4 2014

$5.7

$6.6 $7.1

$6.3 $6.2

$7.0

$6.1 $6.2

$7.2 $7.5 $7.4 $7.4

$7.1 $7.6

$6.9 $6.5

$6.5 $7.1 $7.4

$7.4

$9.6

$11.6

$9.6

$13.3

$3.0

$2.5 $3.1 $2.4 $2.8 $3.0

$2.6 $2.7

$2.5 $2.9 $3.0 $2.5

$2.9 $3.0

$2.2 $2.1 $2.3 $2.5 $2.6 $2.6 $3.1

$3.4 $3.0

$3.9

-

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

Median Deal Size Mean Deal Size

($ in millions)

21


SoCal MoneyTree total investments: 2009 – 2014

($ in millions)

22


$3

81.

0

$6

41.

3

$5

97

.5

$9

59

.6

$5

52

.6 $

80

1.8

$5

77

.5

$8

87

.7

$8

78

.0

$8

96

.9

$5

99

.8

$7

21.

2

$4

35

.4

$4

48

.2 $6

56

.4

$7

12.6

$7

28

.6

$8

00

.1

$5

97

.3

$5

19.0

$8

44

.9

$7

32

.2

$6

21.

0

$1,

33

0.3

$0.0

$200.0

$400.0

$600.0

$800.0

$1,000.0

$1,200.0

$1,400.0

2009 2010 2011 2012 2013 2014

Q1 Q2 Q3 Q4

# of

Deals

2009 2010 2011 2012 2013 2014

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

63 75 79 76 89 106 81 83 77 99 91 83 96 99 87 105 92 84 96 95 96 99 105 83

$10.9

$20.3

$20.8

$26.2

$31.7

$34.7

$44.2

$102.4

$103.5

$113.6

$122.1

$255.8

$272.8

$287.0

$529.9

$1,675.3

$0.0 $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 $700.0 $800.0 $900.0$1,000.0$1,100.0$1,200.0$1,300.0$1,400.0$1,500.0$1,600.0$1,700.0

Other

Computers and Peripherals

Electronics/Instrumentation

Business Products and Services

Networking & Equipment

Healthcare Services

Financial Services

Telecommunications

IT Services

Industrial/Energy

Retailing/Distribution

Semiconductors

Medical Devices and Equipment

Media and Entertainment

Consumer Products and Services

Biotechnology

Software

($ in millions)

Southern California investments by industry: Full Year 2014

Industry # of Deals

% Change since 2013

Software 138 131%

Biotechnology 54 13%

Media and Entertainment 37 7%

IT Services 33 59%

Medical Devices and Equipment 26 -26%

Consumer Products and Services 24 211%

Industrial/Energy 15 -30%

Semiconductors 12 243%

Retailing/Distribution 9 249%

Telecommunications 7 -50%

Financial Services 6 -42%

Business Products and Services 6 201%

Computers and Peripherals 6 -88%

Healthcare Services 4 -28%

Electronics/Instrumentation 3 170%

Networking & Equipment 2 -19%

Other 1 -65%

Total 383 46%

2014 Total: $3,653.3

$2.3

23


$2.3

$3.8

$12.5

$12.8

$18.3

$20.6

$21.1

$27.6

$29.3

$36.7

$44.2

$85.9

$89.3

$110.5

$218.4

$233.1

$1,333.8

$0.0 $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 $700.0 $800.0 $900.0 $1,000.0$1,100.0$1,200.0$1,300.0$1,400.0

Other


Networking and Equipment




Financial Services

Healthcare Services

Biotechnology

Semiconductors

Telecommunications

IT Services

Industrial/Energy




Software

($ in millions)

Los Angeles investments by industry: Full Year 2014 2014 Total: $2,300.0

Industry # of Deals

% Change $ from

2013

Software 73 267%


IT Services 23 53%


Industrial/Energy 11 10%

Biotechnology 8 -45%

Retailing/Distribution 7 240%

Telecommunications 7 -49%

Business Products and Services 5 198%


Financial Services 4 322%


Computers and Peripherals 3 NV

Healthcare Services 3 -33%

Electronics/Instrumentation 2 NV

Networking and Equipment 1 3%

Other 1 NV

Total 200 100%

NV - no value in prior year

24


$0.3

$2.5

$4.1

$6.2

$7.3

$11.2

$12.2

$22.2

$26.0

$27.7

$194.9

$233.8

$0.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0



Healthcare Services

Biotechnology

IT Services

Industrial/Energy

Financial Services



Semiconductors


Software

($ in millions)


Orange County investments by industry: Full Year 2014

2014 Total: $548.2

Industry # of Deals

% Change $ from 2013

Software 42 -2%

Medical Devices and Equipment 14 7%

IT Services 8 3,145%




Industrial/Energy 2 1,255%


Financial Services 1 -77%

Healthcare Services 1 311%

Computer and Peripherals 1 -97%

Business Products and Services 1 NV

Total 84 -11%

25


$1.4

$2.0

$3.1

$3.1

$4.5

$9.3

$13.6

$17.6

$42.6

$48.1

$57.6

$107.8

$494.5

$0.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 $400.0 $450.0 $500.0

Financial Services


Industrial/Energy



IT Services

Networking & Equipment




Semiconductors

Software

Biotechnology

($ in millions)

Industry # of Deals

% Change $ from 2013

Biotechnology 42 27%

Software 23 -11%



Semiconductors 6 3,689%

Consumer Products and Services 3 NV

IT Services 2 12%

Computers and Peripherals 2 NV

Retailing/Distribution 2 NV


Networking and Equipment 1 -32%

Electronics/Instrumentation 1 -73%

Financial Services 1 2%

Total 99 10%

San Diego investments by industry: Full Year 2014

2014 Total: $805.1


26


SoCal venture capital firms: Full Year 2014 investments

Venture capital firm Location Investments

Correlation Ventures LP San Diego 36

Upfront Ventures Los Angeles 33

Tech Coast Angels Los Angeles 30

Frost Data Capital San Juan Capistrano 26

Avalon Ventures, LLC La Jolla 20

Qualcomm Ventures San Diego 19

Miramar Venture Partners Corona del Mar 10

Wavemaker Partners Santa Monica 9

DFJ Frontier Sherman Oaks 8

Crosscut Ventures Manhattan Beach 7

Pasadena Angels, Inc. Altadena 7

Double M Partners, L.P. Brentwood 7

RINCON VENTURE PARTNERS L P Santa Barbara 7

Creative Artists Agency Inc Los Angeles 7

NGEN Partners LLC Santa Barbara 6

Angeleno Group Investors LLC Los Angeles 6

TVC Capital LLC San Diego 6

J. F. Shea Co Inc Walnut 5

Okapi Venture Capital LLC Laguna Beach 5

7 Other Firms 4 each




27


Venture capital firms: Full Year 2014 investments in SoCal


Frost Data Capital CA,San Juan Capistrano 26

Tech Coast Angels CA,Los Angeles 24

Upfront Ventures CA,Los Angeles 18

Kleiner Perkins Caufield & Byers LLC CA,Menlo Park 13

Avalon Ventures, LLC CA,La Jolla 10

Domain Associates LLC NJ,Princeton 10

Versant Ventures, Inc. CA,Menlo Park 9

Wavemaker Partners CA,Santa Monica 7

Pasadena Angels, Inc. CA,Altadena 7

Institutional Venture Partners CA,Menlo Park 6

Canaan Partners CA,Menlo Park 6

DFJ Frontier CA,Sherman Oaks 6

U.S. Venture Partners CA,Menlo Park 6

First Round Capital PA,Philadelphia 6

Greycroft Partners LLC NY,New York 5

True Ventures CA,Palo Alto 5

5AM Venture Management LLC CA,Menlo Park 5

ff Venture Capital NY,New York 5

Delphi Ventures CA,Menlo Park 5

Miramar Venture Partners CA,Corona del Mar 5

Crosscut Ventures CA,Manhattan Beach 5

Shasta Ventures, L.P. CA,Menlo Park 5

Double M Partners, L.P. CA,Brentwood 5

Thomas Mcnerney and Partners LLC CT,Stamford 5





28


2014 – Most active US venture investors

VC Firm Location Number of Deals

Kleiner Perkins Caufield & Byers LLC Menlo Park, California 110

New Enterprise Associates, Inc. Menlo Park, California 105

Andreessen Horowitz LLC Menlo Park, California 86

First Round Capital Philadelphia, Pennsylvania 81

Google Ventures Mountain View, California 66

Khosla Ventures LLC Menlo Park, California 64

Atlas Venture Cambridge, Massachusetts 62

Sequoia Capital Menlo Park, California 61

True Ventures Palo Alto, California 56

SV Angel II Q LP San Francisco, California 55

Intel Capital Corporation Santa Clara, California 54

Canaan Partners Menlo Park, California 54

Bessemer Venture Partners, L.P. Larchmont, New York 54

General Catalyst Partners LLC Cambridge, Massachusetts 52

Accel Partners & Co Inc Palo Alto, California 48

Ben Franklin Technology Partners Southeastern PA Philadelphia, Pennsylvania 46

DreamIt Ventures Bryn Mawr, Pennsylvania 45

Draper Fisher Jurvetson Menlo Park, California 45

Foundation Capital Menlo Park, California 45

Innovation Works, Inc. Pittsburgh, Pennsylvania 44

Polaris Partners Waltham, Massachusetts 43

500 Startups, L.P. Mountain View, California 43

Lerer Ventures New York, New York 42

Advanced Technology Ventures Palo Alto, California 42

Redpoint Ventures Menlo Park, California 42

29


Analysis of venture-backed IPO and M&A activity

Source: Thomson Reuters and National Venture Capital Association *Only accounts for deals with disclosed values **Includes all companies with at least one U.S. VC investor that trade on U.S. exchanges, regardless of domicile

Date Total M&A Deals

Average M&A deal size ($M)*

Number of IPOs**

Total Offer Amount ($M)

Average IPO Offer

Amount ($M)

2009 361 113.4 13 1,979.8 152.3

2010 545 117.3 66 7,409.5 112.3

2011 500 142.6 50 10,441.1 208.8

Q1 2012 114 131.1 19 1,682.8 88.6

Q2 2012 124 185.4 12 17,227.9 1,435.7

Q3 2012 123 228.6 10 1,140.7 114.1

Q4 2012 129 126.0 8 1,408.4 176.1

2012 490 171.9 49 21,459.9 438.0

Q1 2013 86 92.7 8 716.9 89.6

Q2 2013 98 218.6 22 2,249.9 102.3

Q3 2013 116 161.9 27 2,781.4 103.0

Q4 2013 93 196.0 24 5,320.1 221.7

2013 393 178.0 81 11,068.2 136.6

Q1 2014 113 245.8 37 3,404.5 92.0

Q2 2014 114 93.7 28 4,938.9 176.4

Q3 2014 133 245.0 23 2,592.2 112.7

Q4 2014 95 909.0 27 4,363.5 161.6

2014 455 348.7 115 15,299.1 133.0

30


Venture capital fundraising

Source: Thomson Reuters & National Venture Capital Association Data current as of January 12, 2015

Year First Time Funds

Follow-On Funds Total Number of Funds

VC Raised ($M)

2010 53 122 175 13,272.0

2011 64 127 191 19,060.5

2012 76 142 218 19,838.2

2013 64 143 207 17,694.1

2014 96 158 254 29,826.4

Quarter

Q4 ‘13 22 40 62 5,582.2

Q1 ‘14 31 38 69 10,036.1

Q2 ‘14 23 59 83 8,024.1

Q3 ‘14 24 42 66 6,162.7

Q4 ‘14 27 48 75 5,603.5

31


Appendix – Additional Quarterly Information

32


Investments by industry – Quarterly percentage of total US investments

34%

16% 14%

2%

7%

42%

10% 10%

1%

8%

45%

14% 11%

2%

5%

37%

11%

18%

1%

8%

39%

14%

10% 7% 6%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Software Biotechnology Media andEntertainment

Computers andPeripherals

IT Services

Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14

(% of Total Dollars)

Top 5 Industries : Q4 2013 – Q4 2014

33


40%

11%

7%

13%

4%

50%

10% 8%

10%

3%

57%

9%

5%

9%

3%

44%

7% 8%

17%

2%

43%

14%

9% 8% 7%

0%

10%

20%

30%

40%

50%

60%

Silicon Valley New England Southern California NY Metro Southeast

(% of total dollars)

Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14

Investments by region – Quarterly percentage of total US investments

Top 5 US regions : Q4 2013 – Q4 2014

34


Amount Invested by Stage ($M)

US Investments by stage: Quarterly Q1 2012 – Q4 2014

$176 $286 $174 $215 $189 $248 $217 $354 $143 $205 $195 $176

$1,955 $2,222 $1,974 $2,330

$1,648

$2,653 $2,943 $3,039 $3,323 $3,883

$2,999

$5,615 $1,839

$2,791 $2,657 $2,246

$2,067

$2,192 $2,513

$3,003 $3,810

$6,257

$3,451

$6,249

$2,360

$2,207

$1,892 $2,256

$2,185

$2,167

$2,329

$2,219

$2,610

$3,241

$3,478

$2,715

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14

Later Stage

ExpansionStage

Early Stage

Seed Stage

35


Number of Deals by Stage

US Investments by stage: Quarterly Q1 2012 – Q4 2014

64 88 72 77 53 47 61 74 45 61 47 39

366

451 441

527

434 541

588 574

509 553

527 576

226

257 254

262

240

240

243 300

274

319

266

297 235

196 201

219

206

195

185

212

199

236

211

197

0

200

400

600

800

1,000

1,200

1,400

Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14

Later Stage

ExpansionStage

Early Stage

Seed Stage

36


$176

$5,615

$6,249

$2,715

Seed Stage Early Stage

Expansion Stage Later Stage

Investments by stage of development: Q4 2014

Q4 2014 Total Investments - $14,754 million in 1,109 deals

Stage of Development # of

Deals

% Change in $ from Q3 2014

Seed Stage 39 -10%

Early Stage 576 87%

Expansion Stage

297 81%

Later Stage 197 -22%

Total 1,109 46%

($) in millions

37


$2,604

$12,150

First Sequence Follow-on

Investments by sequence of financing: Q4 2014

Financing # of Deals % Change in $ from Q3 2014

First Sequence 374 57%

Follow-on 735 44%

Total 1,109 46%

($) in millions

Q4 2014 Total Investments - $14,754 million in 1,109 deals

38


Quarterly percentage of total first sequence dollars Stage of development Q4 2013 – Q4 2014

20%

54%

14% 13% 9%

71%

11% 9% 7%

52%

24%

17%

11%

49%

25%

16%

4%

48%

40%

8%

0%

10%

20%

30%

40%

50%

60%

70%

80%


(% of first sequence dollars)

Q4 '13

Q1 '14

Q2 '14

Q3 '14

Q4 '14

39


Quarterly percentage of total first sequence deals Stage of development Q4 2013 – Q4 2014

16%

66%

12%

5%

11%

72%

10% 7%

11%

65%

14% 10% 12%

69%

13%

6% 8%

69%

18%

5%

0%

10%

20%

30%

40%

50%

60%

70%

80%


(% of first sequence deals)

Q4 '13

Q1 '14

Q2 '14

Q3 '14

Q4 '14

40


$3.8

$6.0

$12.5

$14.2

$14.2

$19.2

$29.5

$56.9

$67.5

$84.2

$1,020.0

$0.0 $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 $700.0 $800.0 $900.0 $1,000.0 $1,100.0

Industrial/Energy



Financial Services

Telecommunications

IT Services


Semiconductors

Biotechnology



Software

($ in millions)

Southern California investments by industry: Q4 2014

NV - no value in prior quarter

Industry # of Deals

% Change $ from Q3

2014

Software 36 917%


IT Services 9 119%

Media and Entertainment 7 -35%

Consumer Products and Services 5 -37%


Semiconductors 2 9%

Telecommunications 2 408%

Financial Services 2 NV

Computers and Peripherals 2 -2%


Business Products and Services 1 -42%

Total 83 66%

41


Q4 2014 Total: $1,330.3

$2.3

NM

$3.8

$6.0

$11.6

$12.5

$13.3

$14.2

$25.2

$52.4

$63.1

$896.5

$0.0 $200.0 $400.0 $600.0 $800.0 $1,000.0

Industrial/Energy



IT Services

Financial Services

Biotechnology

Telecommunications

Semiconductors



Software

($ in millions)

Los Angeles investments by industry: Q4 2014 Q4 2014 Total: $1,098.6

Industry # of Deals

% Change $ from Q3

2014

Software 18 2,570%

IT Services 6 2,226%

Consumer Products and Services 4 -53%

Media and Entertainment 4 -44%

Biotechnology 3 NV

Telecommunications 2 408%

Financial Services 2 NV

Computers and Peripherals 2 NM


Business Products and Services 1 -40%

Industrial/Energy 1 NM

Total 44 152%

NV - no value in prior quarter NM – not meaningful

42


$2.6

$4.1

$12.0

$15.3

$91.0

$0.0 $20.0 $40.0 $60.0 $80.0 $100.0

IT Services

Biotechnology



Software

($ in millions)

Orange County investments by industry: Q4 2014

Q4 2014 Total: $125.0

Industry # of Deals

% Change $ from Q3 2014

Software 13 209%

IT Services 3 36%



Biotechnology 1 1,536%

Total 20 -9%

43


$2.3

$3.1

$3.9

$4.3

$21.1

$32.5

$39.5

$0.0 $10.0 $20.0 $30.0 $40.0 $50.0

Industrial/Energy



Semiconductors


Software

Biotechnology

($ in millions)

Industry # of Deals

% Change $ from Q3

2014


Software 5 -13%



Consumer Products and Services 1 NV

Semiconductors 1 -57%

Industrial/Energy 1 185%

Total 19 -53%

San Diego investments by industry: Q4 2014

Q4 2014 Total: $106.7

NV - no value in prior quarter

44


SoCal venture capital firms: Q4 2014 investments

45



Frost Data Capital San Juan Capistrano 10

Correlation Ventures LP San Diego 9

Upfront Ventures Los Angeles 8

Miramar Venture Partners Corona del Mar 3

Qualcomm Ventures San Diego 3

March Capital Partners GP LLC Santa Monica 3

NGEN Partners LLC Santa Barbara 2

Anthem Venture Partners Santa Monica 2

Avalon Ventures, LLC La Jolla 2

TVC Capital LLC San Diego 2

Queensbridge Venture Partners LLC Los Angeles 2

Double M Partners, L.P. Brentwood 2

Wavemaker Partners Santa Monica 2

DFJ Frontier Sherman Oaks 2

Palomar Ventures Santa Monica 2

TenOneTen Ventures LP Los Angeles 2

SG VC Santa Barbara 2


Venture capital firms: Q4 2014 investments in SoCal

46



Frost Data Capital CA,San Juan Capistrano 10

Upfront Ventures CA,Los Angeles 6

U.S. Venture Partners CA,Menlo Park 3

Insight Venture Partners LLC NY,New York 3

Toba Capital LLC CA,San Francisco 2

Greycroft Partners LLC NY,New York 2

Anthem Venture Partners CA,Santa Monica 2

First Round Capital PA,Philadelphia 2

Institutional Venture Partners CA,Menlo Park 2

Kleiner Perkins Caufield & Byers LLC CA,Menlo Park 2

Intel Capital Corporation CA,Santa Clara 2

Andreessen Horowitz LLC CA,Menlo Park 2

Wavemaker Partners CA,Santa Monica 2

Versant Ventures, Inc. CA,Menlo Park 2

Allegro Venture Partners CA,Los Altos 2

Domain Associates LLC NJ,Princeton 2


Q4 2014 – Most active US venture investors

VC Firm Location Number of Deals

Advanced Technology Ventures Palo Alto, California 27

Kleiner Perkins Caufield & Byers LLC Menlo Park, California 22

Ben Franklin Technology Partners Southeastern PA Philadelphia, Pennsylvania 21

DreamIt Ventures Bryn Mawr, Pennsylvania 20

Andreessen Horowitz LLC Menlo Park, California 19

Atlas Venture Cambridge, Massachusetts 19

Khosla Ventures LLC Menlo Park, California 19

Bain Capital Venture Partners LLC Boston, Massachusetts 17

Innovation Works, Inc. Pittsburgh, Pennsylvania 16

Intel Capital Corporation Santa Clara, California 16

New Enterprise Associates, Inc. Menlo Park, California 16

First Round Capital Philadelphia, Pennsylvania 13

General Catalyst Partners LLC Cambridge, Massachusetts 13

Sequoia Capital Menlo Park, California 13

Draper Fisher Jurvetson Menlo Park, California 12

Google Ventures Mountain View, California 12

Bessemer Venture Partners, L.P. Larchmont, New York 11

Mercury Fund Houston, Texas 11

Spark Capital Boston, Massachusetts 11

True Ventures Palo Alto, California 11

Crosslink Capital, Inc. San Francisco, California 10

Foundation Capital Menlo Park, California 10

Foundry Group LLC Boulder, Colorado 10

Frost Data Capital San Juan Capistrano, California 10

InterWest Partners LLC Menlo Park, California 10

Polaris Partners Waltham, Massachusetts 10

U.S. Venture Partners Menlo Park, California 10

47


HJ Paik

Director, Emerging Company Services (213) 356-6110 [email protected]

www.pwcmoneytree.com

Data is current as of January 13, 2015. PricewaterhouseCoopers and the National Venture Capital Association have taken responsible steps to ensure that the information contained in the MoneyTree™ 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.

© 2015 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved. PwC refers to the US member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.

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