q1 12 exits release final

8/13/2019 Q1 12 Exits Release FINAL

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VENTURE-BACKED IPOS HAVE STRONGEST OPENING QUARTER IN FIVE YEARS

Market Stability and Favorable Legislation Positions Emerging Growth CompaniesWell for 2012 Exits

New York, New York, April 2, 2012 Venture-backed initial public offering (IPO) activitymarked its strongest opening quarter, by number of issues and dollars raised, since thefirst quarter of 2007. Bolstered by increased stability in the broader U.S. stock marketindices, 19 venture-backed companies went public in the United States during the firstquarter of 2012, raising $1.5 billion, according to the Exit Poll report by Thomson Reutersand the National Venture Capital Association (NVCA). By dollars, the quarter registered a

10 percent increase compared to the first quarter of 2011, when 14 venture backedcompanies raised $1.4 billion. For the first quarter of 2012, 86 venture-backed M&A dealswere reported, 24 of which had an aggregate deal value of $2.7 billion.

As we close the first quarter of 2012, venture-backed companies are extremely wellpositioned to consider an initial public offering on a U.S. exchange, said Mark Heesen,president of the NVCA. The recently passed JOBS Act will grant emerging growthcompanies temporary but significant regulatory relief during the IPO process, allowingthem to focus on accessing capital to grow their businesses. We have two vibrantexchanges that are eager for venture-backed company listings and we have a strong list ofcompanies in registration poised to enter, what appears for the time being, to be arelatively stable market. This environment can only help the M&A market as well, ascompanies now have two viable exit paths from which to choose.

CONTACTS

Emily [email protected]

Lauren HermanThomson [email protected]


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April 2, 2012

Venture-Backed Liquidity Events by Year/Quarter, 2006-2012

Quarter/Year

TotalM&ADeals

M&ADealswith

DisclosedValues

*TotalDisclosed

M&AValue($M)

*AverageM&A

Deal Size($M)

**Numberof IPO's

TotalOffer

Amount($M)

AverageIPO OfferAmount

($M)

2006 378 167 19,141.8 114.6 57 5,117.1 89.8

2007 382 170 29,556.6 173.9 87 10,960.6 126.0

2008-1 109 42 4,983.2 118.7 5 282.7 56.6

2008-2 85 26 3,267.9 125.7 0 0.0 0.0

2008-3 89 33 3,235.2 98.0 1 187.5 187.5

2008-4 65 18 2,390.9 132.8 0 0.0 0.0

2008 348 119 13,877.2 116.6 6 470.2 78.4

2009-1 65 15 666.0 44.4 0 0.0 0.0

2009-2 65 13 2,550.1 196.2 6 827.4 137.9

2009-3 69 23 1,362.4 59.2 2 465.4 232.7

2009-4 74 41 8,614.7 210.1 4 349.3 87.3

2009 273 92 12,525.6 136.2 12 1,642.1 136.8

2010-1 121 32 5,426.6 169.6 9 936.3 104.0

2010-2 99 23 2,924.6 127.2 18 1,382.7 76.8

2010-3 117 31 3,729.1 120.3 15 1,558.0 103.9

2010-4 108 43 6,324.2 147.1 32 3,555.6 111.1

2010 445 129 18,404.5 142.7 74 7,432.5 100.4

2011-1 133 51 6,127.2 120.1 14 1,375.8 98.3

2011-2 92 39 6,406.7 164.3 22 5,454.2 247.9

2011-3 125 39 6,611.3 169.5 5 442.9 88.6

2011-4 117 37 4,936.6 133.4 12 2,648.9 220.7

2011 467 166 24,081.8 145.1 53 9,921.9 187.2

2012-1 86 24 2,730.1 113.8 19 1,517.9 79.9

Source: Thomson Reuters & National Venture Capital Association

*Only accounts for deals with disclosed values

**Includes all companies with at least one U.S. VC investor that trade on U.S. exchanges, regardless of domicile.

IPO Activity Overview

There were 19 venture-backed IPOs valued at $1.5 billion in the first quarter of 2012, whichrepresented a 10 percent increase in dollar value and a 36 percent increase in volumecompared to the first quarter of 2011. Eleven of the 19 IPOs of the quarter were IT-relatedIPOs representing 58 percent of the total issues for in the quarter.


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April 2, 2012

By location, 18 of the quarters 19IPOs were by U.S.-based companies with six comingfrom the state of California. Guanghzhou, China-based online retailer, Vipshop Holdings(VIPS), was the lone initial public offering from a non-U.S. company. The company raised$71.5 million on the New York Stock Exchange in March.

In the largest IPO of the quarter, ExactTarget (ET), an interactive marketing companybased in Indianapolis, raised $161.5 million and began trading on the New York StockExchange on March 22nd.

Venture-Backed IPO Industry Breakdown

Q1 2012

Industry

*Number of

Venture-Backed IPO's

in the U.S.

Total Venture-

BackedOffering Size

($M)

InformationTechnology

Internet Specific 8 671.8

Computer Software and Services 2 181.7

Communications and Media 1 93.6

11 947.1

Life Sciences

Biotechnology 4 265.1

Medical/Health 1 50.4

5 315.5

Industrial/Energy 2 122.6

Other Products 1 132.63 255.2

TOTAL 19 1,517.9


*Includes all companies with at least one U.S. VC investor that trade on U.S. exchanges, regardless ofdomicile

For the first quarter of 2012, 10 companies listed on the NASDAQ stock exchange andnine companies listed on the New York Stock Exchange.

Seventeen of the 19 companies brought to market this quarter are currently trading above

their offering price. There are 50 venture-backed companies currently filed for an initialpublic offering with the SEC.


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April 2, 2012

Mergers and Acquisitions Overview

As of March 30th, 86 venture-backed M&A deals were reported for the first quarter of 2012,24 of which had an aggregate deal value of $2.7 billion. The average disclosed deal valuewas $113.8 million, down 5 percent from the first quarter of 2012.

The information technology sector led the venture-backed M&A landscape with 68 of the83 deals of the quarter and had a disclosed total dollar value of $1.9 billion. This was anincrease of 37 percent from the first quarter of 2011. Within this sector, Computer Softwareand Services and Internet Specific deals accounted for the bulk of the targets with 28 and23 transactions, respectively, across these sector subsets.

Venture-Backed M&A Industry Breakdown

Q1 2012

Industry

Numberof

Venture-Backed

M&Adeals

Number ofVenture-Backed

M&A dealswith a

disclosedvalue

TotalDisclosedVenture-Backed

Deal Value($M)

InformationTechnology

Computer Software and Services 28 6 447.7

Internet Specific 24 2 285.1

Communications and Media 10 6 519.9

Semiconductors/Other Elect. 5 3 628.0

Computer Hardware 1 0 0.068 17 1,880.7

Medical/Health 7 1 325.0

Life Sciences

Biotechnology 3 2 350.2

10 3 675.2

Non-HighTechnology

Industrial/Energy 4 3 147.3

Other Products 3 1 27.0

Consumer Related 1 - 0.0

8 4 174.3

TOTAL 86 24 2,730.1


The two largest venture-backed M&A deals of the first quarter were in the Life Sciencessectors as Celgene Corp acquired Avila Therapeutics, a Waltham, Massachusetts-baseddeveloper of small molecule therapeutics, for $350 million and Covidien PLC acquiredSunnyvale, California-based BARRX Medical for $325 million.


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April 2, 2012

Deals bringing in the top returns, those with disclosed values greater than four times theventure investment, accounted for 54 percent of the total disclosed transactions during firstquarter of 2012, up from 42 percent in the third quarter. Venture-backed M&A dealsreturning less than the amount invested accounted for 21 percent of the quarterly total.

Analysis of Transaction Values versus Amount Invested

Relationship between transaction value and investment

Q4 11M&A

**

Q1 12M&A

**

Deals where transaction value is less than total venture investment 12 5

Deals where transaction value is 1-4x total venture investment 7 6

Deals where transaction value is 4x-10x total venture investment 5 11

Deals where transaction value is greater than 10x venture investment 9 2

Total Disclosed Deals 33 24


** Disclosed deals that do not have a disclosed total investment amount are not included

About Thomson Reuters

Thomson Reuters is the world's leading source of intelligent information for businesses andprofessionals. We combine industry expertise with innovative technology to deliver criticalinformation to leading decision makers in the financial, legal, tax and accounting, healthcare andscience and media markets, powered by the world's most trusted news organization. Withheadquarters in New York and major operations in London and Eagan, Minnesota, Thomson Reutersemploys more than 55,000 people and operates in over 100 countries. For more information, go towww.thomsonreuters.com.

About National Venture Capital Association

Venture capitalists are committed to funding Americas most innovative entrepreneurs, workingclosely with them to transform breakthrough ideas into emerging growth companies that drive U.S.job creation and economic growth. According to a 2011 Global Insight study, venture-backed

companies accounted for 12 million jobs and $3.1 trillion in revenue in the United States in 2010. Asthe voice of the U.S. venture capital community, the National Venture Capital Association (NVCA)empowers its members and the entrepreneurs they fund by advocating for policies that encourageinnovation and reward long-term investment. As the venture communitys preeminent tradeassociation, NVCA serves as the definitive resource for venture capital data and unites its more than400 members through a full range of professional services. For more information about the NVCA,please visitwww.nvca.org.
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