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PricewaterhouseCoopers/ National Venture PricewaterhouseCoopers/ National Venture Capital Association MoneyTree™ ReportCapital Association MoneyTree™ Reportbased on data from Thomson Financialbased on data from Thomson Financial
Shaking the MoneyTree™™
Q1 2007 UpdateMay 2007
Page 2PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Financial
The MoneyTree Report – Q1 ’07
Presented by Wes Getman, PwC
Discussion Panel- Allen Moseley, Noro-Moseley Partners- Stephen Fleming, Georgia Tech
VentureLab
Q&A
Page 3PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
Wes Getman, PricewaterhouseCoopers
Wes Getman is a senior manager as part of the assurance practice in the Technology Industry for PricewaterhouseCoopers LLP. Wes has been with PwC since 1998 and has been part of the Atlanta practice throughout his career. His focus is on introducing emerging technology companies to PricewaterhouseCoopers and its vast resources in order to help the companies grow and succeed. As part of his responsibilities, Wes is actively involved as a client service audit professional. His current audit clients include some of Atlanta’s most promising young companies, including Servigistics, Comverge, Nexidia, Procuri, and CardioMEMS. Wes has also held positions at Xerox as a financial analyst and with Thomas’ Publishing in marketing. Wes is actively involved in several Atlanta-based technology groups.
Page 4PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
Allen Moseley, General Partner, Noro-Moseley Partners
Allen is a General Partner at Noro-Moseley Partners where he focuses on healthcare investments, primarily in the healthcare services and healthcare information technology areas, as well as technology enabled business services. He serves on the board of a number of Noro-Moseley portfolio companies, including Apex Analytix, Bloodhound Software, Neospine, Senior Whole Health, and Valor Healthcare.
Allen is currently Chairman of the Technology Association of Georgia (TAG) and has previously served on the Board of Directors of the Council for Entrepreneurial Development (CED) in the Research Triangle Park, NC. He is also a member of the Nashville Healthcare Council.
Before joining NMP in 1998, Allen was employed as an Associate in the Corporate Finance group at The Robinson-Humphrey Company. While at Robinson-Humphrey, he worked on a number of initial public offerings, mergers and acquisitions, and private placements in the healthcare and technology industries. Allen also worked on private equity investments for R-H Capital Partners, a private equity fund affiliated with Robinson-Humphrey.
Page 5PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
Stephen Fleming, Chief Commercialization Officer, Georgia Tech
Stephen Fleming is an Atlanta native, a graduate of Georgia Tech, and a successful Atlanta investor and entrepreneur. After technical and management positions at AT&T Bell Laboratories and Northern Telecom, Stephen has been a partner in two Atlanta-based venture capital firms; he has managed investments in more than 20 start-up companies. In his role as Chief Commercialization Officer, he is responsible for streamlining the handling of Georgia Tech's intellectual property, accelerating the licensing of technology, and making the Institute’s resources more readily accessible to business and industry.
Page 6PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
About The Report
• PricewaterhouseCoopers and the National Venture Capital Association produce the MoneyTree Report™ based on data from Thomson Financial
• ‘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 13th year• Results online at www.pwcmoneytree.com, www.nvca.org,
www.venturexpert.com
Page 7PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
MoneyTree Total Investments: Q1 1998 – Q1 2007
($ in billions)
$4.1
$6.6
$28.
4
$12.
8
$6.8
$4.3 $5
.2
$5.1 $6
.3 $7.1
$5.7
$11.
0
$28.
1
$11.
4
$6.0
$5.0 $6
.3
$6.3
$6.9
$5.3
$13.
2
$26.
4
$8.4
$4.5
$4.8
$4.8 $5
.7 $6.6
$6.0
$23.
4
$22.
2
$8.1
$4.5 $5
.6
$5.8
$5.7
$6.2
$0.0
$8.0
$16.0
$24.0
$32.0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
#
of
Deals
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
843 901 910 990 916 1304 1422 1868 2131 2105 1933 1745 1289 1225 1002 977 831 846 687 722 690 735 705 774 702 844 678 817 720 812 774 801 853 910 875 884 778
Page 8PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
MoneyTree Total Investments: 1980 – YTD Q1 2007
($ in billions)
$0.6
$1.2
$1.6
$3.0
$3.0
$2.8
$3.1
$3.3
$3.3
$3.3
$2.8
$2.2
$3.5
$3.7
$4.1 $8
.1 $11.
3
$14.
9
$21.
1
$54.
2
$105
.0
$40.
7
$21.
8
$19.
7
$22.
2
$22.
8
$26.
1
$7.1
$0
$20
$40
$60
$80
$100
$120
Annual Venture Capital Investments 1980 to YTD Q1 2007
Page 9PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
Investments by Region: Q1 2007($ in millions)
$0.2
$3.0
$100.4
$121.8
$197.2
$204.8
$277.6
$280.5
$360.5
$456.7
$526.0
$579.3
$686.3
$975.5
$2,165.1
$79.8
$30.1
$11.1
$0 $700 $1,400 $2,100
AK/HI/PR
South Central
Upstate NY
Sacramento/N.Cal
North Central
Colorado
SouthWest
DC/Metroplex
Philadelphia Metro
Texas
Midwest
NY Metro
Northwest
LA/Orange County
Southeast
San Diego
New England
Silicon Valley
Region# of
Deals
% Change $
from Q4 ‘06
Silicon Valley 244 -7.28%
New England 95 29.14%
San Diego 44 73.91%
Southeast 54 54.05%
LA/Orange County 40 26.51%
Northwest 42 52.30%
NY Metro 48 -39.90%
Midwest 43 15.13%
Texas 34 61.06%
Philadelphia Metro 34 48.81%
DC/Metroplex 41 5.29%
South West 22 127.38%
Colorado 13 35.85%
North Central 10 -18.07%
Sacramento/N.Cal 6 329.78%
Upstate NY 4 -71.45%
South Central 3 -83.10%
AK/HI/PR 1 -98.36%
Total 778 13.47%
Q1 2007 Total: $7,056 in 778 Deals
NM = Not Meaningful
Page 10PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
Investments by Region – Quarterly Percent of Total U.S. Investments
Top U.S. Regions Q1 ‘06– Q1’07(% of Total Dollars)
38
.4%
15
.0%
5.1
%
4.1
% 6.0
%
35
.2%
10
.7%
3.3
%
4.3
% 7.3
%
33
.9%
9.9
%
4.4
%
5.1
% 8.5
%
37
.6%
12
.2%
6.4
%
6.1
%
6.7
%
30
.7%
13
.8%
9.7
%
8.2
%
7.5
%
0%
10%
20%
30%
40%
Silicon Valley New England San Diego Southeast LA/Orange County
Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07
Page 11PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
HA W AII
MA UI
KAHOOL A WE
LANAI
MOLOKAI
OAHU
KAU AI
NIIHA U
Investments by Region: Q1 2007
Texas$277.6
34 Deals
Silicon Valley$2,165.1
244 Deals
New England$975.5
95 Deals
Midwest$280.5
43 Deals
South Central$3.0
3 Deals
Northwest$456.7
42 DealsSacramento/N. CA
$30.1 6 Deals
San Diego$686.3
44 Deals
Southeast$579.3
54 Deals
Southwest$121.8
22 Deals
LA/Orange County$526.0
40 Deals
DC/Metroplex$197.2
41 Deals
NY Metro$360.5
48 Deals
Philadelphia Metro$204.8
34 Deals
North Central$79.8
10 Deals
Q1 2007 Total Investments - $7,056 in 778 Deals
Colorado$100.4
13 Deals
AK/HI/PR$0.2
1 Deal
Upstate NY$11.1
4 Deals
Page 12PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
Investments by Industry – Quarterly Percent of Total U.S. Investments
Top 5 Industries – Q1 ‘06 to Q1 ‘07(% of Total Dollars)
13
.9%
21
.7%
11
.5%
9.2
%
4.5
%
19
.6%
19
.9%
8.2
%
9.2
%
8.1
%
17
.4%
17
.2%
10
.4%
13
.9%
9.5
%
20
.0%
19
.7%
10
.9%
7.4
%
6.7
%
21
.1%
15
.6%
15
.3%
8.3
%
7.1
%
0%
5%
10%
15%
20%
25%
30%
Biotechnology Software Medical Devices andEquipment
Telecommunications Industrial/Energy
Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07
Page 13PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
Investments by Industry: Q1 2007($ in millions)
$0.4
$75.4
$161.5
$176.6
$212.3
$274.7
$288.1
$358.1
$489.4
$501.2
$588.1
$1,078.4
$1,097.9
$1,488.8
$77.3
$93.4
$93.9
$0 $900 $1,800
Undisclosed/Other
Consumer Products and Services
Financial Services
Computers and Peripherals
Retailing/Distribution
Healthcare Services
Electronics/Instrumentation
Business Products and Services
Networking and Equipment
IT Services
Semiconductors
Media and Entertainment
Industrial/Energy
Telecommunications
Medical Devices and Equipment
Software
Biotechnology
Industry# of
Deals
% Change $
from Q4 ‘06
Biotechnology 102 19.65%
Software 193 -10.29%
Medical Devices & Equipment 96 59.83%
Telecommunications 63 27.19%
Industrial/Energy 44 20.50%
Media & Entertainment 72 16.47%
Semiconductors 42 -26.07%
IT Services 38 7.60%
Networking & Equipment 29 31.45%
Business Products and Services 22 37.12%
Electronics/Instrumentation 16 77.64%
Healthcare Services 10 20.86%
Retailing/Distribution 12 56.71%
Computers and Peripherals 9 61.92%
Financial Services 17 20.43%
Consumer Products and Services 12 -67.91%
Undisclosed/Other 1 NM
TOTAL 778 13.47%
Q1 2007 Total: $7,056 in 778 DealsVisit www.pwcmoneytree.com for Industry definitions
NM = Not Meaningful
Page 14PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
Life Science Investments – Percent of Total U.S. Investments*
(% of Total Dollars)
13
.9%
11
.5%
25
.4%
19
.6%
8.2
%
27
.8%
17
.4%
10
.4%
27
.8%
20
.0%
10
.9%
30
.9%
21
.1%
15
.3%
36
.4%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Biotechnology Medical Devices and Equipment Life Sciences
Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07
Life Science Sectors – Q1 ’06 to Q1 ‘07
Page 15PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
Investments by Sequence of Financing: Q1 2007
($ in millions)
$950.5
$1,194.8
$1,297.4
$1,536.1
$2,076.7
$0 $500 $1,000 $1,500 $2,000 $2,500
Fourth
Third
Second
First
5th and Beyond
Financing# of
Deals
% Change in
$ Amount from
Q4 2006
Fifth & Beyond 192 23.39%
First 223 6.09%
Second 163 4.30%
Third 115 18.87%
Fourth 85 13.41%
Total 778 13.47%
Q1 2007 Totals: $7,056 in 778 Deals
Page 16PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
First Sequence Financing – Number of Deals
95
6
38
5
22
5
17
0
19
0 22
9 25
9
22
3
94
5
32
9
24
1
18
6 24
5 30
1
80
0
26
5
18
5
17
9 21
9 24
8 29
9
66
7
23
6
18
6 21
3 25
0 27
9
26
6
23
9
0
200
400
600
800
1000
2000 2001 2002 2003 2004 2005 2006 2007
Q1 Q2 Q3 Q4
First Sequence Deals
Page 17PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
First Sequence Financing – Investment Amount
($ in billions)
$8
.8
$2
.9
$1
.3
$0
.8
$1
.0 $1
.4
$1
.3
$1
.5$2
.0
$1
.2
$1
.0
$1
.3
$1
.5
$1
.6
$6
.3
$1
.3
$1
.0
$1
.1
$1
.2
$1
.3
$1
.5
$5
.4
$1
.3
$0
.8 $1
.1
$1
.2
$1
.4
$1
.4
$8
.5
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
2000 2001 2002 2003 2004 2005 2006 2007
Q1 Q2 Q3 Q4
First Sequence Investments
Page 18PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
Investments by Stage of Development: Q1 2007
($ in millions)
$169.3
$962.7
$2,875.1
$3,048.5
$0 $1,000 $2,000 $3,000
Startup/Seed
Early Stage
Expansion
Later Stage
Stage of Development
# of
Deals
% Change in $ Amount
from Q4 2006
Later Stage 245 56.72%
Expansion Stage 274 8.57%
Early Stage 188 -28.48%
Startup/Seed 71 -39.29%
Total 778 13.47%
Q1 2007 Totals: $7,056 in 778 Deals
Page 19PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
First Sequence Financing –Percent of Total U.S. Investments
30.1%
23.8%24.4%22.3%
17.6%15.2%16.0%
19.6%20.3%22.4%
17.8%17.3%
20.7%21.9%
20.3%20.0%19.9%
25.4%
21.1%
28.4%
23.3%22.4%
25.1%23.0%23.3%
21.8%
44.9%
41.4%
38.2%
29.9%
26.9%26.4%24.2%
27.1%28.5%
26.9%25.8%24.6%25.3%25.4%
27.5%27.1%29.0%
32.3%30.6%
31.8%29.4%
32.0%
34.8%33.1%
34.2%
30.1%28.7%
31.0%
20.8%22.6%
44.9%
30.4%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
Q1
2000
Q2
2000
Q3
2000
Q4
2000
Q1
2001
Q2
2001
Q3
2001
Q4
2001
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
% of Total Dollars % of Total Deals
Page 20PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
Stage of Development – Quarterly Percent of Total First Sequence Dollars
(% of first sequence dollars)
15
.1%
37
.8%
35
.0%
12
.1%17
.2%
30
.1%
40
.9%
11
.8%
38
.7%
27
.6%
13
.5%
17
.4%
49
.5%
24
.9%
8.2
%
8.1
%
39
.5%
34
.8%
17
.6%
20
.2%
0%
10%
20%
30%
40%
50%
60%
70%
Startup/Seed Early Stage Expansion Later Stage
Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07
Stage Development – Q1 2006 to Q1 2007
Page 21PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
Stage of Development – Quarterly Percent of Total First Sequence Deals
(% of first sequence deals)
21
.2%
44
.4%
29
.3%
5.0
%
22
.9%
43
.9%
24
.9%
8.3
%
32
.1%
40
.1%
20
.4%
7.4
%
22.6
%
57.1
%
14.3
%
6.0%
26.0
%
45.7
%
21.5
%
6.7%
0%
10%
20%
30%
40%
50%
60%
70%
Startup/Seed Early Stage Expansion Later Stage
Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07
Stage Development – Q1 2006 to Q1 2007
Page 22PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
First Sequence Deals in Startup & Early Stage Companies
728 81
1 943
1,75
6
905
606
579 68
3
160
799
2,49
9
689
538
28.3%
22.2% 22.7%
20.6%
25.9%
29.1%
25.7%
31.9% 31.6%
20.1%
19.6% 19.9%
22.5%
0
1000
2000
3000
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
YTD 200
7
0%
5%
10%
15%
20%
25%
30%
35%
40%
Seq 1 Deals in Startup/Early Stage% of Total US Deals
Page 23PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
Median Deal Size vs. Mean Deal Size –Quarterly Total U.S. Investments
$7.0$6.5 $6.2 $6.0
$5.0 $5.0
$4.0$4.6 $4.5
$4.0 $4.0$3.2
$3.7 $4.0 $4.0$4.5
$5.0 $4.7 $4.5 $4.8 $4.5 $4.6$4.0
$4.8 $4.5 $4.2 4.1 4.04.5
$13.3 $13.3 $13.6
$12.7
$8.2
$7.1$6.7 $6.8 $6.9 $7.2 $7.1 $7.1 $7.1
$7.8$7.3 $7.1 $7.4 $7.6 7.6
7.0
9.1
$8.4
$10.0$9.3
$8.3
$6.3 $6.2
$7.5 $7.5
$0
$2
$4
$6
$8
$10
$12
$14
Q1
2000
Q2
2000
Q3
2000
Q4
2000
Q1
2001
Q2
2001
Q3
2001
Q4
2001
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
Median Deal Size Mean Deal Size
Page 24PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
Post-Money Valuations – Early Stage Companies 1997 to 2006
$12.
8
$17.
9
$17.
6
$26.
1
$19.
3
$10.
1
$8.7
$9.6
$8.6
$6.9
$5
.8
$5
.4
$8
.6
$1
0.2
$7
.8
$5
.4
$4
.2
$6
.9
$6
.4
$4
.8
$0
$5
$10
$15
$20
$25
$30
$35
$40
Q4 97 Q4 98 Q4 99 Q4 00 Q4 01 Q4 02 Q4 03 Q4 04 Q4 05 Q4 06
Pre-money Valuation Investment Amount
Year 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Total $17.55 $24.30 $25.41 $36.22 $27.92 $15.41 $14.13 $15.37 $15.52 $11.13
12 Month Average
Page 25PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
Post-Money Valuations – Expansion Stage Companies 1997 to 2006
$30.
8
$34.
3
$62.
9
$87.
3
$48.
5
$33.
4
$32.
1
$48.
5
$46.
4
$54.
9
$1
2.4
$1
1.3
$1
3.8
$2
1.7
$1
6.5
$1
2.5
$1
4.0
$1
4.2
$8
.8
$8
.1
-$10
$10
$30
$50
$70
$90
$110
Q4 97 Q4 98 Q4 99 Q4 00 Q4 01 Q4 02 Q4 03 Q4 04 Q4 05 Q4 06
Pre-money Valuation Investment Amount
12 Month Average
Year 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Total $38.88 $43.02 $79.43 $108.99 $62.33 $45.89 $43.46 $60.87 $60.62 $68.90
Page 26PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
Post-Money Valuations – Later Stage Companies 1997 to 2006
$60.
8
$55.
3
$105
.3
$130
.5
$78.
4
$48.
7
$54.
4
$56.
4
$80.
2
$81.
3
$1
6.7
$1
4.3
$2
0.5
$2
8.9
$2
0.6
$1
6.7
$1
4.1
$1
5.1
$1
0.6
$9
.8
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
Q4 97 Q4 98 Q4 99 Q4 00 Q4 01 Q4 02 Q4 03 Q4 04 Q4 05 Q4 06
Pre-money Valuation Investment Amount
Year1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Total $70.58 $65.97 $125.87 $159.40 $98.87 $65.44 $68.71 $73.17 $95.29 $95.33
12 Month Average
Page 27PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
Q1 2007 – Most Active Venture Investors
Venture Capital Firm LocationTotal Deals
Alta Partners San Francisco, California 18
New Enterprise Associates Baltimore, Maryland 18
Draper Fisher Jurvetson Menlo Park, California 17
Canaan Partners Westport, Connecticut 16
Intel Capital Santa Clara, California 15
Menlo Ventures Menlo Park, California 15
Sequoia Capital Menlo Park, California 15
ARCH Venture Partners Chicago, Illinois 14
Venrock Associates New York, New York 14
Page 28PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
Thomson FinancialU.S. Private Equity Performance Index (PEPI)
Fund Type 1 Year 3 Year 5 Year 10 Year 20 Year
Early/Seed VC 9.9 6.5 -3.0 36.4 20.5
Balanced VC 20.5 11.7 4.1 17.6 14.6
Later Stage VC 25.2 9.4 3.7 9.0 14.0
All Venture 16.4 9.1 1.0 20.3 16.6
All Buyouts 24.5 14.6 10.4 8.5 12.9
Mezzanine 12.6 5.0 4.1 6.1 8.5
All Private Equity 23.3 12.7 7.5 11.0 13.9
NASDAQ 4.7 6.2 4.3 6.4 10.1
S&P 500 10.8 8.2 4.2 6.6 9.2
(Investment Horizon Performance as of 12/31/2006)
Source: Thomson Financial/National Venture Capital Association *Data as of 4/13/2007--The Private Equity Performance Index (PEPI) is based on the latest quarterly statistics from the Thomson Financial Private Equity Performance Database analyzing the cashflows and returns for over 1860 US venture capital and private equity partnerships with a capitalization of $679 billion. Sources are financial documents and schedules from Limited Partners investors and General Partners. All returns are calculated by Thomson Financial from the underlying financial cashflows. Returns are net to investors after management fees and carried interest.
Page 29PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
Analysis of Venture-Backed IPO and M&A Activity*
Date Number of IPOs**
Total Venture-Backed Offering Size ($M)
Average Venture-Backed Offering Size ($M)
Number of Venture-backed M&A deals
Average M&A deal size***
2003 29 2,022.7 69.8 291 62.8
2004 93 11,014.9 118.4 339 83.0
2005 56 4,461.0 79.7 347 95.8
2006 Q1 10 540.8 54.1 104 112.2
2006 Q2 19 2,011.0 105.8 92 101.3
2006 Q3 8 934.2 116.8 87 95.6
2006 Q4 20 1,631.1 81.6 57 165.3
2006 57 5,117.1 89.8 340 113.3
2007 Q1 17 2,091.9 123.1 62 161.2
2007 17 2,091.9 123.1 62 161.2
* Q1 2007 M&A data, current as of April 2, 2007, is preliminary and subject to change** Includes all companies with at least one U.S. VC investor that trade on U.S. exchanges, regardless of domicile***Only accounts for deals with disclosed valuesSource: Thomson Financial/ National Venture Capital Association
Page 30PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
Venture Capital Fundraising*
Year First Time Funds
Follow-On Funds
Total Number of Funds
VC Raised ($M)
2002 57 115 172 3,767.4
2003 50 97 147 10,622.3
2004 56 149 205 18,566.0
2005 55 163 218 27,957.3
2006 44 168 212 30,260.4
2007 YTD 13 43 56 4,939.8
Quarter
Q1 ‘06 17 55 72 6,640.1
Q2 ‘06 13 59 72 14,050.9
Q3 ‘06 13 52 65 5,426.0
Q4 ‘06 14 42 56 4,143.4
Q1 ‘07 13 43 56 4,939.8
Source: Thomson Financial/National Venture Capital Association
*These figures take into account the subtractive effect of downsized funds Date current as of 4/16/07
Page 31PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
Georgia - Quarter by QuarterGeorgia - Quarter by Quarter2001 – 20072001 – 2007
$279
$405
$125$112 $113
$171
$89
$183
$80
$47
$80$99
$200
$87$71
$167
$34$57
$101
$56 $59
$126$113
$99
$70
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1
($ in millions)
2001
# of Deals
20042002 2003 2005 2006
40 40 25 31 16 25 19 18 16 16 10 15 25 16 16 18 11 20 16 17 18 19 17
Page 32PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ ReportBased on data from Thomson Financial
2007 Q1 “Top 13” StatesReceiving Venture Capital
State Deals Amount
California 334 $3,407,455,800 Massachusetts 84 901,224,000 Washington 33 365,881,600 Texas 34 277,607,300 New York 34 261,279,800 North Carolina 16 249,816,300 Pennsylvania 34 199,643,300 Florida 13 150,833,600 Illinois 17 134,887,000 New Jersey 18 108,627,900 Maryland 20 104,660,100 Colorado 13 100,369,300 Georgia 17 98,642,900
Page 33PricewaterhouseCoopers/National Venture Capital Association MoneyTree ™ ReportBased on data from Thomson Financial
Georgia Deals – Q1 2007
Company AmountAllConnect, Inc. $15,000,000
Carticept Medical, Inc. $20,000,000
CoalTek, Inc. $33,000,000
Compliance 360, Inc. $2,200,000
ControlScan, Inc. $1,750,000
CytoDome, Inc. $28,000
EGT, Inc. $2,000,000
Global MailExpress, Inc. $5,000,000
Interactive Advisory Software LLC $500,000
MFG.com, Inc. $3,999,900
Omnilink Systems, Inc. $500,000
Prenova, Inc. $3,000,000
Prosero, Inc. $200,000
Racemi, Inc. $3,400,000
Ryla Teleservices, Inc. $5,000,000
Stheno Corporation $65,000
Undisclosed $3,000,000 Total $98,642,900
Page 34PricewaterhouseCoopers/National Venture Capital Association MoneyTree ™ ReportBased on data from Thomson Financial
Georgia Deals – Q1 2007 by Industry
Industry Deals Amount
Biotechnology 1 $65,000
Business Products and Services 1 3,000,000
Industrial/Energy 3 38,200,000 IT Services 1 1,750,000
Media & Entertainment 2 17,000,000
Medical Devices & Equipment 2 20,028,000
Retailing/Distribution 1 3,999,900
Software 4 9,100,000
Telecommunications 2 5,500,000
Total 17 $ 98,642,900
Page 35PricewaterhouseCoopers/National Venture Capital Association MoneyTree ™ ReportBased on data from Thomson Financial
Georgia Deals – Q1 2007 by Stage of Development
Stage Deals Amount
Early 4 $22,278,000
Expansion 7 19,764,900
Later 6 56,600,000
Total 17 $98,642,900
Page 36PricewaterhouseCoopers/National Venture Capital Association MoneyTree ™ ReportBased on data from Thomson Financial
Georgia Deals – Q1 2007 by Sequence
Sequence Deals Amount
1 3 $6,249,900
2 3 22,700,000
3 3 8,028,000
4 3 3,665,000
5 2 38,000,000
7 1 2,000,000
8 1 3,000,000
10 1 15,000,000
Total 17 $98,642,900
Page 37PricewaterhouseCoopers/National Venture Capital Association MoneyTree ™ ReportBased on data from Thomson Financial
Georgia-Based VC Funds Georgia-Based VC Funds Reporting ActivityReporting ActivityQ1 2007Q1 2007
Venture Capital Firm Deals Amount
Advanced Technology Development Center 2 $41,000
Cordova Ventures 1 52,000
Fulcrum Ventures 1 1,100,000
HealthCare Capital Partners 1 13,000
Imlay Investments 1 250,000
Noro-Moseley Partners 5 3,927,300
Total Technology Ventures LLC 3 3,985,000
UPS Strategic Enterprise Fund 1 107,000
Kinetic Ventures LLC 2 6,847,600
HIG Capital Management 1 594,000
Total 15 $16,916,900
Page 38PricewaterhouseCoopers/National Venture Capital Association MoneyTree ™ ReportBased on data from Thomson Financial
Entrepreneurs’ and Venture Capitalists’ On-Line Resource GuideEntrepreneurs’ and Venture Capitalists’ On-Line Resource Guide
www.pwc.com - The PricewaterhouseCoopers’ Global website.
www.pwcmoneytree.com - The PricewaterhouseCoopers Money Tree Survey is a quarterly study of equity investments made by the venture capital community in private companies in the U.S. The survey identifies regional and national trends, entrepreneurial developments and promising industry segments.
www.pwcv2r.com (formerly www.pwcerc.com) - The Entrepreneur Resource Center (ERC) site offers proven business plan templates, financial models, technology-specific ratios, benchmarks and more.
www.pwcvc.com - The VC BestPractices site serves to provide an aggregate, comparative view of key issues and activities impacting the venture capital community, and to identify best practices.
www.pwcnextwave.com - NextWave provides news and ideas for private equity investors and entrepreneurs in the technology industry. Check out who’s who in venture capital by taking a glance at the Most Active VC Firms.
www.barometersurveys.com - The Trendsetter and Technology Barometer surveys report on the opinions and business innovations of America’s fastest-growing companies and track developments in the rapidly-changing technology industry.
www.telecomdirect.pwc.com - Telecom Direct offers telecommunications news and information specifically designed for industry professionals. The service broadcasts every business day over the Internet directly to users’ PCs.
www.tagonline.org (Technology Association of Georgia)
www.techlinks.net (News and Events for the Georgia Technology Community)
www.innovationspublishing.com - subscription-based electronic service providing detailed analysis of privately-funded technology ventures in the state of Georgia.
www.atdc.org/erc/ - Resources on starting up and building a company
– – Atlanta Contacts:Atlanta Contacts:
Wesley GetmanWesley GetmanSenior ManagerSenior Manager
Technology Industry PracticeTechnology Industry PracticePhone: 678-419-2129Phone: 678-419-2129
[email protected]@us.pwc.com
Kien TaingKien TaingSenior AssociateSenior Associate
Technology Industry PracticeTechnology Industry PracticePhone: 678-419-1577Phone: 678-419-1577
[email protected]@us.pwc.com
© 2005 PricewaterhouseCoopers LLP. All rights reserved. "PricewaterhouseCoopers" refers to PricewaterhouseCoopers LLP (a Delaware limited liability partnership) or, as the context requires, other member firms of PricewaterhouseCoopers International Ltd., each of which is a separate and independent legal entity. *connectedthinking is a trademark of PricewaterhouseCoopers LLP.