Current Trends in United States Venture Capital InvestingCurrent Trends in United States Venture Capital Investing

MIT Enterprise Forum of IsraelLooking for the Next BIG Thing: Israel's leading investors speak

February 8, 2011

Who We Are

• AM-Law 100 full service U.S. law firm

• Offices in Boston, London, UK, Los Angeles, New York, Palo-Alto, San Diego, Stamford, CT, Washington D.C.

• Israel liaison office in Herzelia

Israel Business Practice

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• Recognized leader in serving technology based companies in Industries such as high-tech, health, clean-tech and the life-sciences

• 40 years of experience in taking emerging technology companies public

• Over 10 years of experience in supporting Israeli businesses

• Over 80% of our firm’s attorneys have Israel-related work experience

• Commitment to working with clients to build long term success

Representative Israeli Clients

Israel Business Practice

• Alvarion

• American Well Corp

• Cheetah Medical

• Lumenis

• Medingo

• Mobile Access Networks

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• CellEra Technologies

• Elron

• Gamida Cell

• Glycominds

• IMDsoft

• Israel Discount Bank of NY

• NeuroPhage

• Nice Systems

• RDC

• Rosetta Genomics

• Scodix Ltd.

• Teva Pharmaceuticals

Venture Capital and Emerging Companies

• More than 200 completed venture capital transactions since 2008, with an aggregate transaction value of over $1.7 billion

• Represent founders, companies and venture capital and other investors

• All stages, from early or seed-stage investments through subsequent multi-investor and

Venture Capital and Emerging Companies

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late stage financing

• Frequently initiate introductions between our start-up clients and our network of “angel” investors and venture capital firms

Venture-Backed IPO’s and M&A Deals, 2005-2010

Current Trends in United States Venture Capital Investing

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Source: NVCA

Total Dollars Raised by VC Funds – 2005-2010

Current Trends in United States Venture Capital Investing

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Source: NVCA

Investment in Different Stages

Current Trends in United States Venture Capital Investing

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Source: PWC/NVCA MoneyTree Report, Q4 2010

VC Investments in IT, Biotech and Cleantech, 2005-2010

Current Trends in United States Venture Capital Investing

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Source: PWC/NVCA MoneyTree Report

Zynga Financings

• January 15, 2008: Zynga raises $10M from Avalon Ventures; Foundry Group; and Union Square Ventures

• July 23, 2008: Zynga raises $29M from Avalon Ventures; Foundry Group; Institutional Venture Partners; Kleiner Perkins; and Union Square Ventures

Current Trends in United States Venture Capital Investing

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

• December 15, 2009: Zynga raises $180M from Andreessen Horowitz; Institutional Venture Partners; Mail.ru Group; and Tiger Global Management

• June 14, 2010: Zynga raises $150M from SOFTBANK Corp.

• July 10, 2010: Zynga raises $200M from Google Inc.

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Twitter Financings

• July 25, 2007: Twitter raises $4.8M from Charles River Ventures and Union Square Ventures, among others

• January 8, 2008: Twitter receives an undisclosed amount from DG Incubation, Inc.

• May 21, 2008: Twitter raises $15M from Union Square Ventures

Current Trends in United States Venture Capital Investing

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

• June 24, 2008: Twitter raises an undisclosed amount from Bezos Expeditions; DG Incubation; Spark Capital; and Union Square Ventures

• February 12, 2009: In a Series C round, Twitter receives $21M from Benchmark Capital and $14M from Institutional Venture Partners, in addition to funds from DG Incubators, Charles River Ventures, Spark Capital and Union Square Ventures

• September 24, 2009: Twitter raises $100M from T. Rowe Price Group, Insight Venture Partners, Spark Capital and Institutional Venture Partners

• November 17, 2010: Kleiner Perkins and other existing investors raise $200M for Twitter; to date, Twitter has raised over $360M

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Facebook Financings

• April 15, 2005: Facebook raises $12.7M from Accel Partners in a Series A financing

• April 19, 2006: Facebook receives $27.5M in funding from Greylock Partners; MeriTech Capital Partners; Accel; and Peter Thiel

• October 24, 2007: Facebook raises $240M in an equity round from Microsoft, with

Current Trends in United States Venture Capital Investing

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

Microsoft holding a 1.6% stake in the company

• April 22, 2009: Facebook raises another round of funding from Millennium Technology Value Partners

• May 26, 2009: Facebook receives $200M in funding from Digital Sky Technologies Limited, which receives a 1.96% stake in the company, valuing it at $10B

• December 31, 2010: Facebook receives a $500M round of equity funding from Goldman Sachs, Merchant Banking Division and Mail.ru Group, valuing the company at $50B

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Groupon Financing

• December 2, 2009: Groupon raises $30M from Accel Partners and New Enterprise Associates

• April 16, 2010: Groupon raises $135M from Accel; Battery Ventures; and Mail.ru Group, and issues equity securities

Current Trends in United States Venture Capital Investing

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

• December 17, 2010: Groupon raises $950.09M from Fidelity Investments; Mail.ru Group; Morgan Stanley Private Equity; and T. Rowe Price Group

– As of January 10, 2011, a number of other VCs had joined the investment, including Kleiner Perkins; Andreessen Horowitz; Battery Ventures; Greylock Partners; Mail.ru Group; Maverick Partners; Silverlake Partners; and Technology Crossover Ventures, valuing the company at $4.75B

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Thank You!

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