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PwC Presents: VC Investing – Major trends of the first half of 2014 and predictions for the rest of the year

• Articulate key trends in venture capital investing in 2014 by sector and industry

• Observe which of the 17 industry sectors in the report experienced growth in venture capital investments in 2013/4

• Discover investment trends by the stage of company development, and insights into key factors which fueled these trends

Learning Objectives

After attending this event you will be able to:

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

PwC Presents: VC Investing – Major trends of the first half of 2014 and predictions for the rest of the yearSteve Bengston, Director of the Emerging Company Services (ECS) Group, PwCClaire Hayes, Managing Director, PwC

Shaking the MoneyTree™

www.pwc.com

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

PwC 6PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters

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 19th year

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

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

2009 2010 2011 2012 2013 2014$0.0

$2,000,000,000.0

$4,000,000,000.0

$6,000,000,000.0

$8,000,000,000.0

$10,000,000,000.0

$12,000,000,000.0

$14,000,000,000.0

$3,865,575,200.0

$5,113,354,600.0

$6,534,068,100.0 $6,332,025,000.0 $6,064,404,400.0

$9,709,919,500.0

$5,078,415,200.0

$7,112,833,600.0

$8,245,865,200.0

$7,428,081,100.0 $7,170,535,200.0

$12,968,828,000.0

$5,425,464,800.0 $5,512,109,900.0

$7,564,520,900.0

$6,683,316,600.0

$7,961,104,500.0

$5,931,995,200.0 $5,682,584,200.0

$7,490,459,300.0$6,986,885,100.0

$8,497,285,600.0

Q1 Q2 Q3 Q4

MoneyTree total investments: Q1 2009 – Q2 2014

7

($ in billions)

2009 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 Q1 Q2

Deals 680 765 767 944 826 1,023 891 911 907 1,0881,0221,000 886 987 948 1,067 923 1,0001,0571,126 985 1,114

PwC

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014 Q2 YTD

$0

$20,000,000,000

$40,000,000,000

$60,000,000,000

$80,000,000,000

$100,000,000,000

$120,000,000,000

$8,016,523,400.0$11,376,521,000.0$15,083,131,600.0

$21,577,004,300.0

$54,908,284,600.0

$105,096,894,300.0

$40,915,438,200.0

$22,166,048,700.0$19,607,438,700.0$22,813,595,800.0$23,539,087,700.0$27,643,069,900.0

$32,041,056,700.0$30,236,754,500.0

$20,301,450,400.0$23,420,882,300.0$29,834,913,500.0$27,430,307,800.0$29,693,329,700.0

$22,678,747,500.0

($ in billions)

MoneyTree total investmentsAnnual venture capital investments 1995 – Q2 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 Q2

YTD

1,897

2,637

3,232

3,745

5,603

8,040

4,591

3,208

3,027

3,231

3,298

3,884

4,229

4,182

3,156

3,651

4,017

3,888

4,106

2,099

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

PwC 9PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters

Investments by region – Quarterly percent of total US investments

Top 5 US regions : Q2 2013 – Q2 2014

Silicon Valley New England NY Metro LA/Orange County Midwest0%

10%

20%

30%

40%

50%

60%

41%

12%10%

6%

3%

46%

11%9%

6% 5%

39%

11%13%

5% 4%

51%

10% 10%

5% 4%

55%

10% 9%

4% 4%

(% of total dollars)

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

PwC 10

Investments by region: Q2 2014

AK/HI/PR

South Central

Upstate NY

Sacramento/N.Cal

North Central

Philadelphia Metro

Colorado

SouthWest

San Diego

DC/Metroplex

Texas

Southeast

Northwest

Midwest

LA/Orange County

NY Metro

New England

Silicon Valley

$0 $2,000,000,000 $4,000,000,000 $6,000,000,000 $8,000,000,000

$350,000.0

$12,850,100.0

$29,090,000.0

$98,546,900.0

$134,896,800.0

$140,942,000.0

$150,799,000.0

$219,269,900.0

$222,439,600.0

$247,283,500.0

$354,424,200.0

$363,563,800.0

$410,649,100.0

$496,502,200.0

$538,685,300.0

$1,202,681,500.0

$1,251,436,700.0

$7,094,417,400.0

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

Unknown region totals not included

Region # of Deals

% Change $ from Q1’ 14

Silicon Valley 365 45%

New England 128 26%

NY Metro 122 28%

LA/Orange County 68 5%

Midwest 82 17%

Northwest 40 74%

Southeast 61 39%

Texas 47 2%

DC/Metroplex 58 12%

San Diego 26 -15%

SouthWest 20 -16%

Colorado 20 34%

Philadelphia Metro 28 39%

North Central 21 25%

Sacramento/N.Cal 5 98,447%

Upstate NY 14 1,181%

South Central 8 -28%

AK/HI/PR 1 29%

Grand Total 1,114 34%

Q2 2014 Total Investments - $12,969 million in 1,114 deals

PwC Presents: VC Investing – Major trends of the first half of 2014 and predictions for the rest of the year

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