complete mt presentation q2 '09 final from 9.3.09

8/14/2019 Complete MT Presentation Q2 '09 Final From 9.3.09

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Hosted by:

Shaking theMoneyTree

Q2 2009


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AgendaPlease join PricewaterhouseCoopers, CooleyGodward Kronish LLP and a distinguished panel asthey provide insight into Q2 2009 VentureInvestments, including PwC's Shaking theMoneyTree Report.

Q2 2009 MoneyTree

Thursday, September 3, 2009Wilson Sonsini Goodrich & Rosati650 Page Mill RoadPalo Alto, California 94304

6:00 - 7:00 p.m.

Registration and Networking

7:00 - 8:15 p.m.

Presentation and Panel Discussion

Moderator

Steve Bengston, PricewaterhouseCoopers LLP

Event Panelists

Tim Carey, PricewaterhouseCoopers LLPEmmett Cunningham, Clarus VenturesRich Ferrari, De Novo VenturesAllan May, Emergent Medical Parnters

Rich Redelfs, Foundation Capital

PricewaterhouseCoopers/National Venture CapitalAssociation MoneyTree TM Report based on datafrom Thomson Reuters.


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EventPanelists


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Steve BengstonDirectorPricewaterhouseCoopers [email protected]

Steve is Director of Emerging Company Services(ECS) at PricewaterhouseCoopers. ECS acts asmentor capitalists for young, high potential companiesand assists them with a variety of services, including,Review- ing Executive Summaries/Investor

Presentations, Referrals, Raising Money, Partnershipsand Finding People.

Before joining PwC, Steve had 20 years of experiencein a variety of marketing, business development andgeneral management roles at several high techcompanies in the Bay Area. Most recently, he wasPres/ CEO of ynot.com, a leading internationalemarketing and greeting card company. Previously, he

was VP Marketing & Business Development atWorldview Systems, an Internet travel pioneer. AtWorldview, Steve helped launch and market Travelocitywith Sabre Interactive.

Steve has a BA in Economics and MBA from StanfordUniversity. He works closely or sits on the AdvisoryBoard at Churchill Club, SVASE, SDForum, LifeScience Angels, Entrepreneurs Foundation, and theStanford/MIT Venture Lab, has taught classes on startups at UC Berkeley, Santa Clara Law School, HastingsLaw School, and Stanford, and is active in a variety ofother organizations in the Bay Area targetingentrepreneurs and investors. He also hosts thePricewaterhouseCoopers Startup radio show atwww.wsradio.com. He is a frequent moderator/panelistat both university and industry sponsored events.


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Tim CareyPartnerPricewaterhouseCoopers [email protected]

Tim Carey joined PricewaterhouseCoopers' Detroit officein 1992 and was admitted to the partnership in 2000. Hehas spent the past 7 years as a Partner in the San Joseoffice specializing in the semiconductor industry. Tim alsospent two years in our Manchester, England office andhas extensive experience working in both Europe and

Asia.

Tim is the US Leader of the firm's CleanTech practice andhas worked with numerous companies in the renewableenergy and transportation sectors within CleanTech. Heis the firm's liaison to VC CleanTech funds and isresponsible for PwC's thought leadership efforts within thesector.

Tim has extensive SEC experience having served as thelead Engagement Partner on five IPO's and numerousdebt and equity offerings. In addition, he has significantexperience with M&A transactions ranging fromacquisitions, spin-offs and divestitures to complex jointventures, strategic investments and alliances.

In addition to client work, Tim speaks regularly to outsidegroups on a variety of topics including corporategovernance, revenue recognition, accounting for stock-based compensation and initial public offerings. He isalso currently on the board of the Silicon Valley Chapter ofthe National Association of Corporate Directors.

Tim received a Bachelors degree in FinancialAdministration from Michigan State University in 1987 andan MBA with Distinction from the University of Michigan in1992. He is a certified public accountant and a member ofthe American Institute of Certified Public Accountants as

well as the Michigan and California Associations ofCertified Public Accountants.

Tim is also a Board Member of the Silicon Valley Chapterof the National Association of Corporate Directors and isaffiliated with the American Institute of Certified PublicAccountants , California Society of Certified Public


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Emmett Cunningham, Jr., MD,

PhD, MPHPartnerClarus [email protected]

Dr. Cunningham joined Clarus Ventures with more than20 years experience in the biomedical andbiopharmaceutical sectors. Prior to Clarus, Dr.Cunningham was the Senior Vice President, MedicalStrategy at Eyetech Pharmaceuticals, Inc.(NASDAQ:EYET), where he helped build and lead theteam that developed and commercialized Macugen, a

first-in-class product for the treatment of age-relatedmacular degeneration. Prior to Eyetech, Dr.Cunningham was at Pfizer, Inc, where he wasresponsible for the clinical development of early phasecentral nervous system compounds and the in-licensingof early and late-stage therapeutic candidates inophthalmology.

Dr. Cunningham is an internationally recognized

specialist in infectious and inflammatory eye diseasewith over 200 publications. He is an Adjunct ClinicalProfessor of Ophthalmology at Stanford University, wasClinical Professor and Director of the Uveitis service atNYU from 2002 to 2005, and was Director of both theUveitis Service and the Kimura Ocular ImmunologyLaboratory at the University of California at SanFrancisco (UCSF) from 1995 to 2001. Dr. Cunninghamreceived an MD and MPH in epidemiology and statisticsfrom Johns Hopkins University, a PhD in neuroscience

from the University of California at San Diego (UCSD)for work done at The Salk Institute, and completed botha residency in ophthalmology and fellowship training inCorneal Disease and Uveitis at UCSF.

Dr. Cunningham is a member of the Board of Directorsfor SARcode Inc., a member of the Scientific AdvisoryBoards of ESBAtech AG and Comentis Inc., and aBoard observer for Ferrokin Biosciences, Pearl

Therapeutics Inc., Taligen Therapeutics Inc., andZogenix, Inc.


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Rich FerrariManaging DirectorDe Novo [email protected]

Rich has been a successful CEO of several medicaltechnology companies, both prior to and after co-founding De Novo in 2000. Following De Novosinvestment in CryoVascular Systems, Rich becameCEO, growing the initial 5 person start up team to acompany of 20 employees. He was instrumental in

developing the clinical and product strategies and hiringthe executive team. In 2002, Rich led Paracor Medical,another De Novo portfolio company. He grew thecompany from 4 to 22 employees, refined the productstrategy, raised its Series B financing and hired hisreplacement CEO. Prior to co-founding De NovoVentures, he was the co-founder and CEO ofCardioThoracic Systems (CTSI), a company he led toan initial public offering in only 7 months in 1996. CTSI,

the market leader in disposable instruments andsystems for performing minimally invasive beating heartbypass surgery, was ultimately acquired by GuidantCorporation in November 1999. Before that, Rich wasthe CEO of Cardiovascular Imaging Systems (CVIS).As CEO, he orchestrated a successful IPO andultimately sold the company to Boston ScientificCorporation in 1995.

In addition, Rich founded Saratoga Ventures in 1996, a

venture capital partnership that has provided seedfinancing to startup medical technology companies,including Atrionix, Oratec, Enteric Medical, Trivascular,and Endotex. At Saratoga, Rich was Chairman ofOratec, which was sold in 2001 to Smith & NephewPLC. Mr. Ferrari also co-founded The MedicalTechnology Group, which spun out Integrated VascularSystems, an early stage femoral artery closure companywhich was sold to Abbott and Angiosense, a needle-

free, jet injection, local drug delivery company. Early inhis career, Rich held the position of Executive VicePresident and General Manager of ADAC Laboratories.Rich holds a BS degree from Ashland University and anMBA from the University of South Florida.

Rich sits on the boards of BenVenue, CardioMind,


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Allan MayManaging DirectorEmergent Medical [email protected]

Allan has been a founder, board member and/or CEO ofa number of early stage companies in medical deviceand biotechnology including Athenagen (an LSAcompany), MAST Immunosystems, Intella InterventionalSystems, Quanam Medical, ImmuneTech, NuGENTechnologies, AngstroVision, IntegriGen, Imetrx, andVascular Architects.

Previously, Mr. May was Senior Vice President ofDiasonics, Inc., a NYSE-listed medical imagingcompany manufacturing and distributing MRI,ultrasound, fluoroscopic and therapeutic devices, andPresident and COO of Fortune Systems Corporation, aNASDAQ-traded developer of microprocessor based fileservers utilizing the Unix operating system. He also has

extensive experience in negotiating and consummatingmergers and acquisitions, having been involved in over100 transactions.

He co-founded Life Science Angels (LSA) in 2005 andcurrently serves as its Chairman. LSA is the largestangel organization in the United States comprised solelyof life science industry veterans and investing solely inmedical device and life science early stage companies.


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Rich RedelfsGeneral PartnerFoundation [email protected]

Rich joined Foundation Capital in 2004 after more than20 years in networking and communications, amassinga combination of start-up entrepreneurial as well aslarge company intrapreneurial experience. Mostrecently, he was president and CEO of Atheros

Communications, which he helped build into the leadingprovider of Wi-Fi wireless semiconductors; it wassubsequently named "Silicon Valley's Fastest GrowingPrivate Company" by the Silicon Valley/San JoseBusiness Journal and PricewaterhouseCoopers for the20012003 period. In 2003 Rich received Frost &Sullivan's prestigious "Wireless LAN CEO of the Year"award.

Rich currently serves on the boards of Dust Networks,Mobius Microsystems, Prematics, ACCO Semiconductorand Ventiva, and was previously on the boards ofAzimuth Systems and Atheros Communications. He hasan MBA from Harvard Business School and a BSIE fromPurdue.


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Companies


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PricewaterhouseCoopersTen Almaden BoulevardSuite 1600San Jose, CA 95113Phone: 408-817-3700www.pwc.com/us

PricewaterhouseCoopers (PwC) is well placed to help youmeet the challenges and opportunities of the US

marketplace. We offer the perspective of a globalorganization combined with detailed knowledge of local,state and US national issues. Formed in 1998 from a mergerbetween Price Waterhouse and Coopers & Lybrand, PwChas a history in client services that dates back to thenineteenth century. Each accounting practice originated inLondon during the mid-1800s.

Today, PwC serves 29 industries. Our industry-focusedprofessionals in the fields of assurance, tax, humanresources, transactions, performance improvement andcrisis management help to resolve complex client andstakeholder issues worldwide. We also bring our experienceand talents to help educational institutions, the federalgovernment, non-profits, and international relief agenciesaddress their unique business issues.


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Clarus Ventures801 Gateway BoulevardSuite 410South San Francisco, CA 94080Phone: (650) 238-5000www.clarusventures.com/index.html

Clarus Ventures is a life sciences venture capitalfirm founded by a team of accomplishedinvestment professionals with extensive andcomplementary industry backgrounds which haveenabled them to establish a long history of successin creating value. Their deep relationships withworld thought leaders and decision makers allowthis team to identify unique investmentopportunities and shepherd them to maturity.Clarus augments its core expertise of investing in

biopharmaceuticals and medical technologycompanies with the deep and diverse expertise ofthe team in research and development,commercialization, business development andoperations management at the global level. Clarushas $1.2 billion of assets under managementacross two lifesciences dedicated funds. Clarus isheadquartered in Cambridge, MA, and has anoffice in South San Francisco, CA.


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De Novo Ventures400 Hamilton Avenue

Suite 300Palo Alto, CA 94301Phone: (650) 329-1999www.denovovc.com/contact.html

De Novo Ventures was formed in 2000 byseasoned investors and experienced medical

device entrepreneurs who sought to share thelessons learned from a history of successfulinvesting and building successful companies. Theybelieved that their unique combination of skills andperspectives could help entrepreneurs to buildcompanies which would have significant clinicalimpact and generate superior returns. Seven yearslater, this belief continues to hold true,demonstrated by our investment success inselected medical device and biotechnologycompanies.

With $650 million under management, De Novo hasmade more than 40 investments in medical devicesand biotechnology across three funds. We invest inall stages of enterprise development and growth from early stage to late stage. Our uniquebackground of leading companies as entrepreneursand operating executives from start to exit enables

us to advise entrepreneurs and management teamsover the full life cycle of the company.

Eight exits have occurred in DNV I -- four IPOs:Favrille (NASDAQ: FVRL), Fox HollowTechnologies (NASDAQ: EVVV), Renovis(NASDAQ: RNVS), and SenoRx (NASDAQ: SENO)and four acquisitions: CryoVascular Systems(Boston Scientific), TriVascular (Boston Scientific),

LuMend (Johnson and Johnson) and Microvention(Terumo). DNV II has had one exit to date Hansen Medical (NASDAQ: HNSN).


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Emergent Medical Partners3282 Alpine Road

Portola Valley, CA 94028Phone: (650) 854-8600www.emvllp.com/index.html

Emergent Medical Partners is a life sciences investmentfirm that focuses on medical device and healthcarecompanies. We have over 50 years of experiencecreating and investing in medical devices and healthcare

companies. Our focus is on early stage companies andour expertise encompasses all areas of medicine,including cardiovascular and general surgery,orthopedic surgery, cardiology, radiology, oncology,obesity, gynecology, oncology, and sleep disorders.

Often, an engineer and a physician come to us with anidea or a prototype, and we work with them to help bringabout a clinical solution. We are able to find managers,engineers, and clinicians to fill any gaps in these teams.This assistance is in addition to the possible investmentin the company by Emergent Medical Ventures. Most ofthe exits of the companies associated with our managingdirectors have been by acquisition.

Emergent Medical Partners network is unparalleled inSilicon Valley, as we have access to the CEOs of largeand small companies throughout the United States,relationships with local hospitals to facilitate

implementation of clinical trials, and relationships withthe major universities in the Bay Area. Combined, theseabilities help entrepreneurs while helping our investorsrealize superior returns.


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Foundation Capital250 Middlefield Road

Menlo Park, CA 94025Phone: (650) 614-0500www.foundationcapital.com/

Foundation Capital was founded in 1995 by BillElmore, Kathryn Gould, and Jim Anderson with asingle purpose: to build great companies.These are companies that rise upward on the

strongest of all foundationsthe power of an idea.And as such, they are organizations that make adifference, not only in the lives of their constituents,but in the impact they have on their markets.We should know: every partner at FoundationCapital has been an entrepreneur before cominghere. We have served as CEOs, as executivemanagers, and as technologists with a compellingidea that ultimately resulted in real-world experiencedirecting a company to success.We continue to run Foundation Capital with thisentrepreneurial spirit, because our true expertise isthe understanding, the perspective, and theenthusiasm we bring to helping promisingcompanies in their formative stages.We are, quite simply, a venture capital firm wherethe venture matters more than the capital. Wherepurpose, and hard work, count.Where people, and beliefs, matter.


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Silicon Valley Bank3005 Tasman Drive

Santa Clara, CA 95054Phone: (408) 654 - 7400www.svb.com/company/

A SVB Financial Group provides diversified financialservices to emerging, growth and establishedtechnology companies and the life science, venturecapital and premium wine markets. Through its

focus on specialized markets and extensiveknowledge of the people and business issuesdriving them, SVB Financial Group provides a levelof service and partnership that measurably impactsits clients' success.

Headquartered in Santa Clara, Calif., the companyoffers its clients commercial, investment, merchantand private banking, as well as value-addedservices using its knowledge and networks.Founded in 1983, SVB Financial Group servesnearly 11,000 clients around the world through 27domestic offices, and international subsidiaries inthe U.K., Israel, India and China, and an extensivenetwork of relationships with venture capitalists inAsia, Australia, Europe, India, and Israel.

With solid understanding of the true risks andrewards faced by companies in dynamic markets,

the company is widely recognized for its ability todevelop innovative approaches to meet the uniquefinancial needs of its clients. SVB Financial Groupbegan serving the technology and life sciencemarkets at a time when they were not well-understood by the financial services industry andwhen many of the leading companies in theseindustries were just getting started. At that time,many of these companies had yet to show profits

and were not considered creditworthy by localcommunity or regional banks.

Over the last two decades, SVB Financial Grouphas become one of the most respected names inthe financial services industry. The company hascreated innovative solutions for some of the world's


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Presentation


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PricewaterhouseCoopers/ National VentureCapital Association MoneyTree Reportbased on data from Thomson Reuters

Shaking the MoneyTreeSteve Bengston650 281 [email protected]

Q2 Update: September 2009


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Slide 2PricewaterhouseCoopers/National Venture Capital Association MoneyTree Reportbased on data from Thomson Reuters

Q2 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, note term sheets, foreign VCs, qualified privateplacement

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


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Q2 2009

MoneyTree Total Investments: Q1 2001 Q2 2009

($ in billions)

$1

2.5

$

6.6

$4.2

$5.2

$5.0

$6

.3$

7.4

$7.7

$3.2

$10.9

$5.9

$4.8

$6.1

$6

.3 $7.1

$7.4

$7.6$

8.1

$4.4

$4.7

$4.9

$5.8 $

6.6

$7.8

$7.2$

7.8

$4.4

$5.5

$5.8

$5.8 $6

.3

$8.0

$5.7

$3.7

$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

1006

Q1

2008

1059

Q2

980

Q3

884

Q4 Q4Q3

612

Q2

603

Q1

2009

867

Q1

2007

1051

Q2

1002

Q3

1064

Q4

880

Q1

2006

952

Q4

911

Q3

962

Q2

732

Q1

791

Q3

829

Q2

815

Q4

2005#

of

Deals

842

Q4

694

Q3

852

Q2

716

Q1

2004200320022001

787

Q4

719

Q3

742

Q2

704

Q1

722

Q4

692

Q3

850

Q2

841

Q1

982

Q4

1005

Q3

1214

Q2

1282

Q1


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Q2 2009

MoneyTree Total Investments: 1980 YTD 2009

($ in billions)

$0

.5

$

1.1

$

1.5

$2

.8

$2

.9

$2

.7

$2

.9

$3

.2

$3

.2

$3

.2

$2

.6

$

2.1

$3

.4

$3

.5

$4

.0 $7

.6$10

.8

$14

.4$20

.2

$52.0

$101

.8

$39

.3

$21

.3

$19

.3

$22

.1

$22

.9

$26

.3

$30

.6

$28

.1

$6

.9

$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 Investments1980 to YTD 2009


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Q2 2009

HAWAII

MAUI

KAH O OLAW E

LANAI

MOLOKAI

OAHU

KAU AI

N I I H AU

Investments by Region: Q2 2009

Texas$74.1 M23 Deals

2% of US total

Silicon Valley$1,176.7 M174 Deals

32% of US total

New England$466.9 M76 Deals

13% of US total

Midwest$201.2 M52 Deals

5% of US total

South Central$5.8 M7 Deals

0% of US total

Northwest$126.7 M35 Deals

3% of US totalSacramento/N. CA$7.3 M4 Deals

0% of US total

San Diego$172.2 M22 Deals

5% of US total

Southeast$282.3 M34 Deals

8% of US total

Southwest$157.9 M18 Deals

4% of US total

LA/Orange County

$159.0 M30 Deals

4% of US total

DC/Metroplex$89.8 M26 Deals

2% of US total

NY Metro$276.2 M

54 Deals8% of US total

Philadelphia Metro$161.9 M22 Deals

4% of US total

North Central$100.7 M15 Deals

3% of US total

Q2 2009 Total Investments - $3,674.4 million in 612 deals

Colorado$211.1 M16 Deals

6% of US total

AK/HI/PR

$0 M0 Deals

0% of US total

Upstate NY$2.6 M2 Deals

0% of US total

Unknown region totals are not included in the map


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Q2 2009

Investments by Region: Q2 2009($ in millions)

$2.6

$89.8

$100.7

$126.7

$157.9

$159.0

$161.9

$172.2

$201.2$211.1

$276.2

$282.3

$466.9

$5.8

$7.3

$74.1

$1,176.7

$0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 $1,100 $1,200

AK/HI/PR

Upstate NY

South Central

Sacramento/N.Cal

Texas

DC/Metroplex

North Central

Northwest

SouthWest

LA/Orange County

Philadelphia Metro

San Diego

Midwest

Colorado

NY Metro

Southeast

New England

Silicon Valley

-44%7South Central

4%4Sacramento/N.Cal

280%18SouthWest

-4%35Northwest

66%15North Central

90%22San Diego

418%22Philadelphia Metro

-24%30LA/Orange County

53%52Midwest

-18%54NY Metro

-58%23Texas

15%612Total

AK/HI/PRUpstate NY

DC/Metroplex

Colorado

Southeast

New England

Silicon Valley

Region

-100%057%2

13%26

158%16

149%34

15%76

-8%174

% Change $

from Q1 09# of

Deals

Q2 2009 Total: $3,674.4 million in 612 dealsUnknown region totals are not included in the chart


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Q2 2009

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

Top U.S. Regions Q2 08 Q2 09

(% of Total Dollars )

40

.34%

10

.93%

4.3

0%

5.3

0%

2.4

7%

38

.74%

11

.92%

3.4

4% 7

.36%

2.9

1%

35

.93%

13

.58%

4.8

6%

6.9

2%

2.8

7%

39

.98%

12

.70%

3.5

6%

10

.54%

2.5

6%

32

.03%

12

.71%

7.6

8%

7.5

2%

5.7

5%

0%

10%

20%

30%

40%

50%

Silicon Valley New England Southeast NY Metro Colorado

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


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Q2 2009

Silicon Valley Market Share of US VC $: 1995-2009

05

10

15

20

25

30

35

40

'95 '97 '99 '01 '03 '05 '07 Q1'09

SV %


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Q2 2009

All Deals ($M): Silicon Valley

0

2000

4000

6000

8000

10000

12000

Q1'95

Q3'95

Q1'96

Q3'96

Q1'97

Q3'97

Q1'98

Q3'98

Q1'99

Q3'99

Q1'00

Q3'00

Q1'01

Q3'01

Q1'02

Q3'02

Q1'03

Q3'03

Q1'04

Q3'04

Q1'05

Q3'05

Q1'06

Q3'06

Q1'07

Q3'07

Q1'08

Q3'08

Q1'09

$M Deals


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Q2 2009

All Deals (#): Silicon Valley

0

100

200

300

400

500

600

700

Q1'95

Q3'95

Q1'96

Q3'96

Q1'97

Q3'97

Q1'98

Q3'98

Q1'99

Q3'99

Q1'00

Q3'00

Q1'01

Q3'01

Q1'02

Q3'02

Q1'03

Q3'03

Q1'04

Q3'04

Q1'05

Q3'05

Q1'06

Q3'06

Q1'07

Q3'07

Q1'08

Q3'08

Q1'09

# Deals


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Q2 2009

Series A Deals ($M): Silicon Valley

0

500

1000

1500

2000

2500

Q1'95

Q3'95

Q1'96

Q3'96

Q1'97

Q3'97

Q1'98

Q3'98

Q1'99

Q3'99

Q1'00

Q3'00

Q1'01

Q3'01

Q1'02

Q3'02

Q1'03

Q3'03

Q1'04

Q3'04

Q1'05

Q3'05

Q1'06

Q3'06

Q1'07

Q3'07

Q1'08

Q3'08

Q1'09

$M Deals


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Q2 2009

Series A Deals (#): Silicon Valley

0

50

100

150

200

250

300

Q1'95

Q3'95

Q1'96

Q3'96

Q1'97

Q3'97

Q1'98

Q3'98

Q1'99

Q3'99

Q1'00

Q3'00

Q1'01

Q3'01

Q1'02

Q3'02

Q1'03

Q3'03

Q1'04

Q3'04

Q1'05

Q3'05

Q1'06

Q3'06

Q1'07

Q3'07

Q1'08

Q3'08

Q1'09

# Deals


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Q2 2009

Silicon Valley Inv. By Round: Q1 2009

0

50

100

150

200

250

A B C D E F G H I J K L M N O P

$ M


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Q2 2009

Silicon Valley Inv. By Round: Q2 2009

0

50

100

150

200

250

300

A B C D E F G H I J K L M N O

$ M


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Q2 2009

Investments by Industry: Q2 2009($ in millions)

$5.7

$15.7

$49.5

$84.6$94.9

$115.8

$131.5

$170.2

$180.3

$286.5

$295.1

$628.4

$644.1

$43.5

$22.8

$17.7

$888.1

$0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000

Other

Financial Services

Retailing/Distribution

Healthcare Services

Consumer Products and Services

Business Products and Services

Electronics/Instrumentation

Telecommunications

Media and Entertainment

Computers and Peripherals

Semiconductors

Networking and Equipment

Industrial/Energy

IT Services

Medical Devices and Equipment

Software

Biotechnology

-42.94%7Healthcare Services

-37.41%5Retailing/Distribution

-30.32%15Consumer Products and Services

-18.77%15Business Products and Services

205.71%14Electronics/Instrumentation

-13.17%26Telecommunications

-47.92%52Media and Entertainment

-5.15%27Semiconductors

112.43%27Networking and Equipment

38.80%75Medical Devices and Equipment

-85.27%11Financial Services

261.79%15Computers and Peripherals

-10.52%53Industrial/Energy

28.22%44IT Services

0.98%135Software

54.01%85Biotechnology

15.14%612TOTAL

Other

Industry

-64.24%6

% Change $

from Q1 09

# of

Deals

Q2 2009 Total: $3,674.4 million in 612 dealsVisit www.pwcmoneytree.com for Industry definitions


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Q2 2009

(% of Total Dollars)

14.05%

16.29%

12.11%

7.89%

15.51%

17.21%

18.82%

12.89%

6.00%

17.65%

18.44%

18.75%

10.34%

4.71%

16.49%

18.07%

19.99%

14.19%

7.21%

10.03%

24.17%

17.53%

17.10%

8.03%

7.80%

0%

5%

10%

15%

20%

25%

30%

Biotechnology Software Medical Devices andEquipment

IT Services Industrial/Energy

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

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

Top 5 Industries Q2 08 to Q2 09


34/62


Q2 2009

Life Science Investments Percent of Total U.S. Investments

(% of Total Dollars)

14.05%

12.11%

26.17%

17

.20%

12.8

9%

30.1

0%

1

8.4

4%

10.3

4%

28.7

9%

18.0

7%

14.1

9%

32.2

6%

24.1

7%

17.1

0%

41.2

7%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Biotechnology Medical Devices and Equipment Life Sciences

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

Life Science Sectors Q2 08 to Q2 09


35/62


Q2 2009

Life Science $ Invested as % Total: 1995-2009 YTD

0

5

10

1520

25

30

35

40

95 97 99 '01 '03 '05 '07 '09

YTD

LS % Tot


36/62


Q2 2009

MoneyTree Cleantech Investments: Q1 2004 Q2 2009($ in millions)

$460.4

$1,0

89.8

$402.3

$586.5

$910.8

$274.4

$892.5 $

1,0

45.4

$716.6

$977.3

$238.3

$41.9

$157.9 $

287

.7

$128.0

$136.5

$75.7

$116.4

$522.9

$120. 6 $

245.5

$186.3

$0

$200

$400

$600

$800

$1,000

$1,200

2004 2005 2006 2007 2008 2009

Q1

Q2

Q3

Q4

Q4Q3

42

Q2

68

Q1

2008

71

Q2

79

Q3

68

Q4

41

Q1

2009

45

Q1

2007

63

Q4

73

Q3

58

Q2

28

Q1

39

Q3

40

Q2

37

Q4

2006#

of

Deals

20

Q4

22

Q3

25

Q2

25

Q1

20052004

23

Q4

18

Q3

23

Q2

16

Q1


37/62


Q2 2009

($ in millions)

$

430

.0

$271

.2

$39

.0

$43

.8$

95

.1

$26

.1

$420

.1

$162

.3

$26

.4

$10

.7

$141.8

$13

.2

$446

.9

$129

.9

$43

.7 $71

.5$

125

.6

$69

.3

$460

.0

$87

.8

$96

.8

$15

.6 $43

.9

$7

.0

$81

.1

$33

.6

$13

.3

$18

.3

$31

.6

$4

.450

.6

50

.5

30

.2

3.0

1.1

0.1

$0

$100

$200

$300

$400

$500

Solar Energy Alternative Fuels(includes biofuels)

Energy Storage(includes vehicular

battery technology)

Transportation(includes electric

vehicles)

Pollution andRecycling (includes

water technology)

Wind andGeothermal Energy

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009

Cleantech Investments by Sub-sector

Top cleantech sub-sectors Q1 2008-Q2 2009


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Q2 2009

Investments by Cleantech Sub-SectorPercent of Total Cleantech Investments

Top cleantech sub-sectors Q1 2008-Q2 2009

(% of Total Cleantech Dollars)

39%

25%

4%

4%

9%

2%

46%

18%

3%

1%

16%

1%

43%

12%

4%

7%

12%

7%

47%

9% 1

0%

2% 4

%

1%

34%

14%

6% 8

%

13%

2%

18%

18%

11%

1%

0%

0%

0%

10%

20%

30%

40%

50%

Solar Energy Alternative Fuels(includes biofuels)

Energy Storage(includes vehicular

battery technology)

Transportation(includes electric

vehicles)

Pollution andRecycling (includes

water technology)

Wind andGeothermal Energy

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009


39/62


Q2 2009Visit www.pwcmoneytree.com for Region definitions

Cleantech investments by Region: Second Quarter 2009($ in millions)

$0.1

$0.2

$6.5

$10.1

$13.9

$20.1

$20.7

$26.6

$28.6

$30.0

$112.1

$0.2

$1.4

$4.0

$0 $15 $30 $45 $60 $75 $90 $105

SouthWest

Midwest

Sacramento/N.Cal

South Central

Philadelphia Metro

New England

DC/Metroplex

North Central

NY Metro

Southeast

Colorado

Northwest

LA/Orange County

Silicon Valley

55%3Colorado

NA3Southeast

NA2Sacramento/N.Cal

-98%2Midwest

15%42Total

SouthWest

South Central

Philadelphia Metro

New England

DC/Metroplex

North CentralNY Metro

Northwest

LA/Orange County

Silicon Valley

Region

-99%1

NA1

433%2

-79%2

76%1

13791%3

3674%2

64%5

8%1

26%14

% Change $

from Q1 2009

# of

Deals

Q2 2009 Total: $274.4 million in 42 deals


40/62


Q2 2009Visit www.pwcmoneytree.com for Region definitions

Cleantech investments by Region: 1H 2008 vs 1H 2009(% of total Cleantech investment)

3%

0%

4%

7%

12%

6%

8%

41%

1%

2%

2%

2%

3%

3%

4%

4%

7%

9%

9%

11%

39%

3%

2%

1%

8%

2%

3%

4%

0% 10% 20% 30% 40% 50%

Philadelphia Metro

DC/Metroplex

SouthWest

Texas

Midwest

San Diego

North Central

NY Metro

Southeast

New England

Colorado

Northwest

LA/Orange County

Silicon Valley

1H 2008 1H 2009


41/62


Q2 2009

Investments by Stage of Development: Q2 2009($ in millions)

$474.6

$1,015.9

$1,155.2

$1,028.8

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

Startup/Seed

Early Stage

Expansion

Later Stage

19.44%172Expansion Stage

43.83%183Early Stage

15.14%612Total

Startup/Seed

Later Stage

Stage of Development

154.50%50

-19.62%207

% Change in$ Amount

from Q1 2009

# of

Deals

Q2 2009 Total: $3674.4 million in 612 deals


42/62


Q2 2009

Investments by Sequence of Financing: Q2 2009

($ in millions)

$542.2

$553.5

$1,149.8

$750.6

$678.2

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

Fourth

Third

First

Second

5th and Beyond

22.56%98Third

9.03%141First

62.05%117Second

-0.66%1825th and Beyond

15.14%612Total

Fourth

Financing

9.10%74

% Change in

$ Amount from

Q1 2009

# of

Deals

Q2 2009 Total: $3,674.4 million in 612 deals


43/62


Q2 2009

First Sequence Financing

Number of Deals

384

22

6

177 1

95 2

34

275

263

329

324

185

251

252

364

333

22

3

318

329

256

295

149

237

331

141

183

184

258

275 2

86

187 21

8

284

360

254

2

34

0

100

200

300

400

500

2001 2002 2003 2004 2005 2006 2007 2008 2009

Q1 Q2 Q3 Q4

First Sequence Deals


44/62


45/62


Q2 2009

First Sequence Financing

Percent of Total U.S. Investments

20.5%

18.2%18.0%

21.6%

24.3%24.4% 23.9%22.9%

23.8%

20.5%19.5%

18.5%

25.9%25.1%

29.5% 30.4%

32.6%

34.9% 34.9%

31.0%

34.6%

31.4%

28.7%

24.7%23.0%

19.5%

22.4%

22.3%22.1%

20.2%

22.4%20.3%20.0%20.9%

25.1%28.4%

23.8% 22.0%

23.9%

22.1%

25.3% 26.1%

21.6%26.9%

32.7%

27.9%26.5%

24.9%25.6%

27.7%27.2%

32.1%

32.0%30.4%31.3%

34.4%

30.3%

32.8%

33.8%

29.2%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

Q12002

Q22002

Q32002

Q42002

Q12003

Q22003

Q32003

Q42003

Q12004

Q22004

Q32004

Q42004

Q12005

Q22005

Q32005

Q42005

Q12006

Q22006

Q32006

Q42006

Q12007

Q22007

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

% of Total Dollars % of Total Deals


46/62


Q2 2009


Quarterly Percent of Total First Sequence Dollars

(% of first sequence dollars)

17.6

2%

40.0

2%

27.8

5%

35.9

4%

26

.42%

19.2

2%

19.5

9%

42.0

9%

21.9

0%

16.4

2%

20.1

6%

38.3

7%

23.3

9%

18.0

9%

30.2

2%

22.36

%

4.5

2%

14.5

2%

18.4

2%

42.9

0%

0%

10%

20%

30%

40%

50%

60%

Startup/Seed Early Stage Expansion Later Stage

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

Stage Development Q2 2008 to Q2 2009


47/62


Q2 2009


Quarterly Percent of Total First Sequence Deals

(% of first sequence deals)

26.43%

45.95%

17.12%

10.51%

31.47%

41.26%

14.69%

12.59%

26.38%

44.49%

17.32%

11.81%

25

.50%

43.62%

16.11%

14.77%

22.70

%

48.94%

20.57%

7.80%

0%

10%

20%

30%

40%

50%

60%

Startup/Seed Early Stage Expansion Later Stage

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

Stage Development Q2 2008 to Q2 2009


48/62


Q2 2009

First Sequence Deals in Startup & Early Stage Companies

727 8

14 9

46

908

596

586 6

93

1,76

5

851

536 7

24

2,4

97

865 9

50

204

70.8%72.2%71.0%70.4%

74.9%76.7%

71.6%

74.6%74.2%

72.4%

66.9%63.3%

60.5%

63.6%70.3%

0

1000

2000

3000

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%

90%

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


49/62


Q2 2009

Median Deal Size vs. Mean Deal Size

Quarterly Total U.S. Investments

$3.4 $3.8 $3.6

$4.0$4.5

$4.2$4.5 $4.5

$4.2 $4.3$3.9

$4.5$4.2 $4.0 $4.0

$3.5

$4.1 $4.2

$3.8

$4.0 $4.0

$3.5 $3.5

$2.5

$3.0

$2.2

$6.0

$6.5 $6.6$7.0 $6.9

$7.6 $7.4 $7.4$7.2

$6.7

$7.8$7.5 $7.6

$7.1 $7.3

$6.4

$5.3

$6.0

$7.1$7.3 $7.2 $6.9$7.1 $7.2

$8.6

$7.0

$0

$2

$4

$6

$8

$10

Q12003

Q22003

Q32003

Q42003

Q12004

Q22004

Q32004

Q42004

Q12005

Q22005

Q32005

Q42005

Q12006

Q22006

Q32006

Q42006

Q12007

Q22007

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Median Deal Size Mean Deal Size


50/62


Q2 2009

Top 10 Deals : Q4 2008 ($ Millions)

Solyndra Silicon Valley Cleantech $219

Pocket Communications San Antonio Telco 100Silver Spring Networks Silicon Valley Cleantech 75

Biolex Therapeutics North Carolina Biotech 60

i/o Data Centers Phoenix IT Services 56

Boston Power Boston Cleantech 55

Pacira Pharma New Jersey Biotech 55

Bayhill Therapeutics Silicon Valley Biotech 54

Kosmos Energy Dallas Cleantech 54

Calisolar Silicon Valley Cleantech 52


51/62


Q2 2009


Anacor Pharmaceuticals Silicon Valley Biotech $ 50

Ardian Silicon Valley Med Device 47SFJ Pharma Silicon Valley Biotech 45

Pathway Medical Seattle Med Device 40

BioVex Boston Biotech 40

Green Bullions Miami Industrial/Energy 40

Kosmos Energy Dallas Cleantech 39

Obopay Silicon Valley Financial Services 35

Twitter Silicon Valley Software 35

Quadriserv NY Software 34


52/62


Q2 2009


Clovis Oncology Boulder Biotech $146

Workday Silicon Valley Software 75

ExactTarget Indianapolis IT Services 70

Hyperion Therapeutics Silicon Valley Biotech 60

PhotoThera Carlsbad Med Device 50

Phoenix Services Unionville, PA Cleantech 50

Fusion-io Salt Lake City Comp & Peripherals 48

Cempra Pharma Chapel Hill, NC Biotech 46

Revolution Money Saint Petersburg Software 42LifeLock Tempe IT Services 40


53/62


Q2 2009

Q2 2009 Most Active Venture Investors

8Menlo Park, CaliforniaRedpoint Ventures

9Chicago, IllinoisARCH Venture Partners

9San Fransisco, CaliforniaAlta Partners

10Menlo Park, CaliforniaDraper Fisher Jurvetson11Menlo Park, CaliforniaU.S. Venture Partners

11West Conshokocken, PennslyvaniaFirst Round Capital

11San Fransisco, CaliforniaDuff Ackerman & Goodrich LLC

13Waltham, MassachusettsPolaris Venture Partners

17Pittsburgh, PennslyvaniaInnovation Works, Inc.

18Westport, ConnecticutCanaan Partners

9Palo Alto, CaliforniaVenrock Associates

9Lexington, MassachusettsHighland Capital Partners LLC

9Bethesda, MarylandNovak Biddle Venture Partners, L.P.

8Kirkland, WashingtonOVP Venture Partners

16Baltimore, MarylandNew Enterprise Associates

16Menlo Park, CaliforniaKleiner Perkins Caufield & Byers

Total DealsLocationVenture Capital Firm

Q V C i l P f


54/62


Q2 2009

Q1 2009 Venture Capital Performance

-3.0

-4.7

-0.4

32.8

35.0

26.2

10 Years

5.9

4.9

7.4

32.9

33.7

34.2

15 Years

6.8-5.2-13.2-32.9-3.1SDAQ Composite

22.55.81.3-17.5-2.9March 31, 2009

7.4-4.8-13.1-38.1-11.0S&P 500

8.8-3.6-9.5-35.9-12.5DIJA

Other indices at March 31, 2009

21.8

22.3

20 Years

11.6

7.1

5 Years

14.1

4.1

3 Years

11.7

-16.5

1 Year

-1.8March 31, 2009

-12.5December 31, 2008

1st Qtr.For the period ending

US Venture Capital Index Returns for the Periods ending3/31/2009, 12/21/2008 and 3/31/2008

Source: Cambridge Associates LLCNote: Because the US Venture Capital index is cap weighted, the largest vintage years mainly drive the indexs performance.

Analysis of Venture-Backed IPO and M&A Activity


55/62


Q2 2009

Analysis of Venture Backed IPO and M&A Activity

47.0620.00.002009 Q1

116.634278.4470.262008

197.759144.1720.752009 Q2

140.4620.00.002008 Q4

96.388187.5187.512008 Q3

116.310856.6282.752008 Q1

126.7840.00.002008 Q2

176.5375120.110,326.3862007

116.637189.85,117.1572006

85.3346121.011,378.0942004

105.835078.74,485.0572005

AverageM&A dealsize**

Number ofVenture-backedM&A deals

Average Venture-Backed OfferingSize ($M)

Total Venture-Backed OfferingSize ($M)

Number ofIPOs*

Date

Source: Thomson Reuters and National Venture Capital Association

* 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 values

Venture Backed Exits: #M&A vs #IPO 1992-2008


56/62


Q2 2009

Venture Backed Exits: #M&A vs #IPO 1992-2008

0

50

100

150200

250

300

350

400

92 94 96 98 2000 '02 '04 '06 '08

M&AIPO

Venture Capital Fundraising

F ll O VC R i dT t l N b


57/62


Q2 2009

4,610.949463Q1 09

1,701.925178Q2 09

3,594.7493712Q4 08

8,393.3624913Q3 08

8,661.1866917Q2 07

8,595.8776215Q3 07

12,322.5865927Q4 07

28,395.9221173482008

31,925.0241185562006

23

10

62

64

55

First Time Funds

59

62

189

175

156

Follow-OnFunds

9,284.582Q2 08

7,123.472Q1 08

36,064.92512007

Quarter

28,767.42392005

19,156.02112004

VC Raised($M)

Total Numberof Funds

Year

Source: Thomson Reuters & National Venture Capital Association

Data current as of July 13, 2009

Summary: Good News$

Cisco acquiring again


58/62


Q2 2009

y

Full Year 2008 $28 B, 5th biggest ever

Worldwide Cleantech Investments (Innovas Solutions)

- US 21%, China 14%, Japan & India 6%,

Advertising $ to Internet/Mobile just begun (7%)

- Worldwide Ad Spending $600B

- 21% media time Internet/Mobile

Big Trends still exist-Cleantech-Cloud Computing-Virtualization-Demographic/Geographic shifts

-Analytics: Extracting signal from noise-Advertising to Internet/Mobile

6900mScientific Atlanta

590MPure Digital

330mNavini Networks

44mMeetinghouse

128mNetSolve

500mLinksys

215mPost path

135mReactivity

65mProtego Networks

105mTidal Software

97MSheer Networks

200mP-Cube

250MTopspin

14mSignalWorks

100mSecurent

120mPure Networks

74mPerfigo

31mOrative

830mIronPort Systems

70mFineGround Networks

55mDynamicsoft

92MArroyo Video Solutions

450mAirespace

$ 82mActona

Summary: Not So Good News


59/62


Q2 2009

Summary: Not So Good News

IPO mkt weak- 6 vc backed IPOs in US in 08, lowest since 1977, raised $0.5B vs $10.3B in 07- 5 vc backed IPOs 1st half 09- 1990-2000: 1776 IPOs, 56% all exits- 2001-2008: 392 IPOs, 13% all exits

$3.0B invested in Q109 lowest since Q197, 62% drop vs Q108, 44% drop vs Q408

M&A weak- Q109: 56 deals, down 47% vs Q108, lowest # in decade- Q209: 67 deals for $2.8 B, down 60% vs Q208, 80% vs Q207- Median M&A about $22M in Q109 & Q209, $16M in ave. Q2 deal- $4 Trillion mkt cap lost on US exchanges in last 12 months, e.g.- Citigroup: $130B gone, AIG: $150B, Fannie Mae/Freddie Mac: $105B ($1B left)

US Homeowners lost $6 Trillion equity last 3 years- 12 Million homes worth less than mortgage

Employment down 2 million jobs in 08, US unemployment at 26 year high

- Silicon Valley unemployment 11.8% June 09 vs. 6% June 08

US household net worth shrank to $50 trillion in 09 vs $62 trillion in 07

US government recently borrowed 10% of budget, 45% of budget in 09

S /P di i VC M k M B h i B dl


60/62


Q2 2009

Summary/Predictions VC Market: Men Behaving Badly

VCs stop funding many portfolio companies, major triage

More layoffs/cost cutting, unemployment up

New Deals must be perfect

All Deals Series A, lots of down rounds

Fewer Deals per fund, higher reserves

VC syndicate quality more important, lots inside rounds (57% Q1)

VCs fear capital calls produce LP defaults

VC Fundraising problematic: $6.3B in 1st half 09, 62% drop vs 08

More Government regulation

Globalization Marches On


61/62


Q2 2009

Globalization Marches On

China VC$ : 4.2B 08, 2.5B 07, 1.3B 04

China VC$ raised $7.3B 08

India VC$: $3.0B 08 , 0.6B 04

Japan VC$: $1.9B 08, 1.5B 04

Israel VC$: $1.4B 08, $1.2B in 07 & 06

% Intl: 70% PC, 86% Internet, 92% Mobile

China surpass US for most Internet users in 08, 67% under 29

Asia 43% of Internet users by 2013

China as new IMF for US- Balanced budget, devalued currency, higher interest rates, relaxed- Regulation, tax cuts

Australian commentator: Need Communists to save Capitalism

China 2nd largest economy by 2025

India population surpass China by 2020

Steve Bengston


62/62

[email protected]

2008 PricewaterhouseCoopers LLP. All rights reserved. "PricewaterhouseCoopers" refers to PricewaterhouseCoopersLLP (a Delaware limited liability partnership) or, as the context requires, other member firms of PricewaterhouseCoopersInternational Ltd., each of which is a separate and independent legal entity. *connectedthinking is a trademark ofPricewaterhouseCoopers LLP. SJ_07_0080

complete mt presentation q2 '09 final from 9.3.09

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