Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals

PwC Presents: VC Investing –

Major Trends From Q3 2014

• Learn key trends in venture capital investing during Q3

2014 by sector and industry

• Understand which of the 17 industry sectors in the report

experienced growth in venture capital investments in

during the quarter

• Discover investment trends by the stage of company

development, and insights into key factors which fueled

these trends

After attending this event you will be able to:

Learning Objectives

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Welcome to Proformative

Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals

PwC Presents: VC Investing – Major Trends

From Q3 2014Brad Phillips, Director of the Emerging Company

Services (ECS) Group, PwC

Claire Hayes, Managing Director, PwC

Shaking the MoneyTree™Q3 2014 Update

www.pwc.com

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

PwC

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

6

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

PwC

$5.1

$6.5 $6.3 $6.1

$9.8

$7.1

$8.2

$7.5 $7.2

$13.5

$5.5

$7.5

$6.7

$8.0

$9.9

$5.7

$7.5$7.0

$8.5

$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 – Q3 2014

7

($ 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

Deals 827 1,023 889 912 908 1,092 1,020 1,000 889 989 954 1,072 924 1,005 1,065 1,140 1,002 1,129 1,023

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

PwC

$8.0$11.3

$15.1$21.5

$54.9

$105.1

$40.9

$22.2 $19.7$22.8 $23.6

$27.6$32.1 $30.4

$20.3$23.4

$29.8 $27.5 $29.8$33.2

$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 2014Q3

YTD

($ in billions)

MoneyTree total investmentsAnnual venture capital investments 1995 – Q3 2014 YTD

8

# of deals

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q3

YTD

1,897 2,636 3,232 3,743 5,606 8,044 4,595 3,218 3,035 3,236 3,304 3,890 4,234 4,189 3,162 3,651 4,020 3,904 4,134 3,154

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

PwC

$5.1

$7.1

$5.5 $5.7$6.5

$8.2$7.5 $7.5

$6.3$7.5

$6.7 $7.0$6.1

$7.2$8.0 $8.5

$9.8

$13.5

$9.9

0

200

400

600

800

1000

1200

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

# D

eals

Total amount invested ($B)

9

Average deal size ($M)

$6.2$7.0

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

$7.0 $6.6 $6.6$7.2 $7.5 $7.5

$9.7

$12.0

$9.7

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

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

MoneyTree total investmentsQuarterly venture capital investments Q1 2010 – Q3 2014

PwC

Investments by region –Quarterly percent of total US investments

Top 5 US regions : Q3 2013 – Q3 2014

10

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

46%

9%11%

6%

2%

40%

13%11%

5%

2%

50%

10% 10%

6%

3%

57%

9% 9%

4%2%

44%

17%

7% 6% 5%

0%

10%

20%

30%

40%

50%

60%

Silicon Valley NY Metro New England LA/Orange County SouthWest

(% of total dollars)

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

PwC

Investments by industry –Quarterly percent of total US investments

11

46%

7%

12%

5% 6%

35%

13%

16%

7%5%

42%

10%11%

8%6%

45%

11%14%

5% 5%

37%

19%

11%

7% 6%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Software Media andEntertainment

Biotechnology IT Services Medical Devices andEquipment

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

(% of Total Dollars)

Top 5 Industries : Q3 2013 – Q3 2014

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

Thank you for your interest in this presentation. View the on-demand webinar or download the full presentation at:www.Proformative.com

PwC Presents: VC Investing – Major Trends

From Q3 2014