1. PREPARED BY
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18th Floor
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www.thomsonreuters.com
1655 Fort Myer Drive
Suite 850
Arlington, VA 22209
www.nvca.org
INCLUDING STATISTICS FROM THE
PricewaterhouseCoopers/National Venture Capital Association
MoneyTree™ Report based on data from Thomson Reuters
NATIONAL
VENTURE
CAPITAL
ASSOCIATION
NATIONALVENTURECAPITALASSOCIATIONYEARBOOK2013
NATIONAL
VENTURE
CAPITAL
ASSOCIATION
YEARBOOK 2013

2. March 2013
Dear Reader:
These are interesting times characterized by economic and political uncertainty - and little forward
motion. And yet in the entrepreneurial section of the economy, the opportunities to create great
companies remain unabated. There is wide agreement among policy makers on the importance of
entrepreneurial companies to economic growth and well-being. Venture capital is a major driver of
that entrepreneurial economy. The nation continues to look to this sector for job creation, economic
development, better healthcare, cleaner technology, and a faster, better, and more secure internet.
The NVCA Yearbook 2013, prepared by Thomson Reuters, is the 16th iteration of a series launched
in early 1998 by NVCA and what is now Thomson Reuters. Since then we have joined forces with
PricewaterhouseCoopers to provide the best possible information on venture capital deals across all
50 states. This investment information is tracked and reported by the PricewaterhouseCoopers/NVCA
MoneyTreeTM
Report based on data from Thomson Reuters.
On behalf of the National Venture Capital Association board of directors and staff, we are pleased to
present you with the latest statistics that describe the activity of the venture capital industry in the
United States. These statistics reflect strong survey participation by venture capital practitioners.
This support has allowed us to bring appropriate transparency to a part of the economy that most
people are aware of but few really understand. Your comments are always welcome at
research@nvca.org.
NVCA believes that it is more important than ever to effectively tell the story of venture capital, dif-
ferentiate it from other forms of alternative assets, and explain what’s needed to continue creating
great, leading-edge companies. We believe that a strong venture capital industry is essential to
America’s future and our quality of life. NVCA is proud to be funding innovation and empowering
entrepreneurs!
Very truly yours
Diana Frazier Mark G. Heesen John S. Taylor
FLAG Capital Management NVCA President NVCA Head of Research
NVCA Director & Chair,
NVCA Research Committee

3. 2 Thomson Reuters
NVCA BOARD OF DIRECTORS 2012-2013
Executive Committee
Ray Rothrock Josh Green
Chair Chair-Elect
Venrock Associates Mohr, Davidow Ventures
Michael Greeley Jonathan Leff
Treasurer At-Large & Research Committee
FlyBridge Capital Partners Deerfield Management
Jason Mendelson Scott Sandell
At-Large At-Large
Foundry Group New Enterprise Associates
Research Committee
Diana Frazier Mike Elliott
Chair, Research Committee Noro-Moseley Partners
FLAG Capital Management, LLC
Adam Grosser
Silver Lake Kraftwerk
Board Members At-Large
Jonathan Callaghan Maria Cirino
True Ventures .406 Ventures
David Douglass Bruce Evans
Delphi Ventures Summit Partners
Claudia Fan Munce Norm Fogelsong
IBM Venture Capital Group Institutional Venture Partners
Venky Ganesan Robert Goodman
Menlo Ventures Bessemer Venture Partners
Mark Gorenberg Jason Green
Hummer Winblad Venture Partners Emergence Capital Partners
Ross Jaffe, MD Ray Leach
Versant Ventures Jumpstart, Inc.
Sherrill Neff Robert Nelsen
Quaker BioVentures ARCH Venture Partners
David Lincoln James Marver
Element Partners VantagePoint Capital Partners
Anne Rockhold
Accel Partners

4. For the National Venture Capital Association
Prepared by Thomson Reuters
Copyright © 2013 Thomson Reuters
The information presented in this report has been gathered with the utmost care
from sources believed to be reliable, but is not guaranteed. Thomson Reuters dis-
claims any liability including incidental or consequential damages arising from
errors or omissions in this report.
2013
National Venture Capital Association
Yearbook
Thomson Reuters 3

5. National Venture Capital Association
1655 Fort Myer Drive, Suite 850
Arlington, Virginia 22209-3114
Telephone: 703-524-2549
Telephone: 703-524-3940
www.nvca.org
President
Mark G. Heesen
Head of Research
John S. Taylor
Senior Vice President
Molly M. Myers
Senior Vice President of Federal Policy & Political
Advocacy
Jennifer Connell Dowling
Vice President of Communications
Emily Mendell
Vice President of Membership & Member Firm
Liaison
Janice Mawson
Vice President of Federal Policy & Political Advocacy
Emily A. Baker
Chief Marketing Officer
Jeanne Lazarus Metzger
Vice President of Federal Life Science Policy
Kelly Slone
Membership and Database Manager
Terry Samm
Manager of Administration and Meetings
Allyson Chappell
Accounting Manager
Beverley Badley
Administrative Assistant
Gwendolyn Taylor
Research Lab
Mavis Moulterd, Thea Shepherd
Thomson Reuters
3 Times Square, 18th Floor
New York, NY 10036
Telephone: 646-223-4431
Fax: 646-223-4470
www.thomsonreuters.com
Global Head of Deals & Private Equity
Stephen N. Case II
Vice President, Deals and Private Equity Operations
Shariq Kajiji
Global Business Manager – Private Equity
Jim Beecher
Editor-in-Charge
David Toll
Global Private Equity Operations Manager
Anna Aquino-Chavez
Press Management
Matthew Toole
Product Manager
Lori Ann Silva
Content Specialist
Paul Pantalla
Data Specialist
Francis Base
Research Editor
Eamon Beltran
Senior Art Director
David Cooke
Sales Manager – Publications (Buyouts, VCJ, peHUB)
Greg Winterton (646-223-6787)
ThomsonONE.com Sales:
Dave Sharma (646-223-4048)
4 Thomson Reuters
National Venture Capital Association 2013 Yearbook

6. Table of Contents
What is Venture Capital? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Industry Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . 11
Investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Exits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . 15
Industry Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . 17
Capital Commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Investments.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Exits: IPOs and Acquisitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Appendix A: Glossary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
Appendix B: MoneyTree Report Criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
Appendix C: MoneyTree Geographical Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
Appendix D: Industry Codes (VEICs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
Appendix E: Industry Sector VEIC Ranges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
Appendix F: Stage Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
Appendix G: Data Sources and Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
Appendix H: International Convergence. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
Appendix I: US Accounting Rulemaking and Valuation Guidelines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .105
Appendix J: Non-US Private Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
Thomson Reuters 5

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6 Thomson Reuters
National Venture Capital Association

8. Thomson Reuters 7
Venture capital has enabled the United States to sup-
port its entrepreneurial talent and appetite by turning
ideas and basic science into products and services
that are the envy of the world. Venture capital funds
build companies from the simplest form – perhaps
just the entrepreneur and an idea expressed as a busi-
ness plan – to freestanding, mature organizations.
Risk Capital for Business
Venture capital firms are professional, institutional
managers of risk capital that enables and supports the
most innovative and promising companies. This
money funds new ideas that could not be financed
with traditional bank financing, that threaten estab-
lished products and services in a corporation, and that
typically require five to eight years to be launched.
Venture capital is quite unique as an institutional
investor asset class. When an investment is made in a
company, it is an equity investment in a company
whose stock is essentially illiquid and worthless until a
company matures five to eight years down the road.
Follow-on investment provides additional funding as
the company grows. These “rounds,” typically occur-
ring every year or two, are also equity investment, with
the shares allocated among the investors and manage-
ment team based on an agreed “valuation.” But, unless
a company is acquired or goes public, there is little
actual value. Venture capital is a long-term investment.
More Than Money
The U.S. venture industry provides the capital to cre-
ate some of the most innovative and successful com-
panies. But venture capital is more than money.
Venture capital partners become actively engaged
with a company, typically taking a board seat. With a
startup, daily interaction with the management team is
common. This limits the number of startups in which
any one fund can invest. Few entrepreneurs approach-
ing venture capital firms for money are aware that
they essentially are asking for 1/6 of a person!
Yet that active engagement is critical to the success of
the fledgling company. Many one- and two-person
companies have received funding but no one- or two-
person company has ever gone public! Along the way,
talent must be recruited and the company scaled up.
Ask any venture capitalist who has had an ultra-suc-
cessful investment and he or she will tell you that the
company that broke through the gravity evolved from
the original business plan concept with the careful
input of an experienced hand.
Deal Flows — Where The Buys Are
For every 100 business plans that come to a venture
capital firm for funding, usually only 10 or so get a
serious look, and only one ends up being funded. The
venture capital firm looks at the management team,
the concept, the marketplace, fit to the fund’s objec-
tives, the value-added potential for the firm, and the
capital needed to build a successful business. A busy
venture capital professional’s most precious asset is
time. These days, a business concept needs to address
world markets, have superb scalability, be made suc-
cessful in a reasonable timeframe, and be truly inno-
vative. A concept that promises a 10 or 20 percent
improvement on something that already exists is not
likely to get a close look.
What is Venture Capital?
Venture Capital Backed Companies
Known for Innovative Business Models
Employment at IPO and Now
Company As of IPO Current # Change
The Home Depot 650 331,000 330,350
Starbucks Corporation 2,521 160,000 157,479
Staples 1,693 89,019 87,326
Whole Foods Market, Inc. 2,350 69,500 67,150
eBay 138 31,500 31,362
Venture Capital Backed Companies
Known for Innovative Technology and Products
Employment at IPO and Now
Company As of IPO Current # Change
Microsoft 1,153 94,000 92,847
Intel Corporation 460 100,100 99,640
Medtronic, Inc. 1,287 45,000 43,713
Apple Inc. 1,015 76,100 75,085
Google 3,021 53,861 50,840
JetBlue 4,011 12,070 8,059
Source: Global Insight; Updated from ThomsonOne 2/2013

9. Many technologies currently under development by
venture capital firms are truly disruptive technologies
that do not lend themselves to being embraced by
larger companies whose current products could be
cannibalized by this. Also, with the increased empha-
sis on public company quarterly results, many larger
organizations tend to reduce spending on research and
development and product development when things
get tight. Many talented teams have come to the ven-
ture capital process when their projects were turned
down by their companies.
Common Structure — Unique Results
While the legal and economic structures used to cre-
ate a venture capital fund are similar to those used by
other alternative investment asset classes, venture cap-
ital itself is unique. Typically, a venture capital firm
will create a Limited Partnership with the investors as
LPs and the firm itself as the General Partner. Each
“fund,” or portfolio, is a separate partnership. A new
fund is established when the venture capital firm
obtains necessary commitments from its investors, say
$100 million. The money is taken from investors as
the investments are made. Typically, an initial funding
of a company will cause the venture fund to reserve
three or four times that first investment for follow-on
financing. Over the next three to eight or so years, the
venture firm works with the founding entrepreneur to
grow the company. The payoff comes after the compa-
ny is acquired or goes public. Although the investor
has high hopes for any company getting funded, only
one in six ever goes public and one in three is
acquired.
Economic Alignment of all Stakeholders —
An American Success Story
Venture capital is rare among asset classes in that suc-
cess is truly shared. It is not driven by quick returns or
transaction fees. Economic success occurs when the
stock price increases above the purchase price. When
a company is successful and has a strong public stock
offering, or is acquired, the stock price of the compa-
ny reflects its success. The entrepreneur benefits from
appreciated stock and stock options. The rank and file
employees throughout the organization historically
also do well with their stock options. The venture cap-
ital fund and its investors split the capital gains per a
pre-agreed formula. Many college endowments, pen-
sion funds, charities, individuals, and corporations
have benefited far beyond the risk-adjusted returns of
the public markets.
Beyond the IPO
Many of the most exciting venture capital backed
companies left the venture portfolios after they went
public. Far from being a destination, the IPO process
provides needed growth capital for a growing compa-
ny. A 2009 analysis by IHS Global Insight shows that
more than 90% of the jobs at today’s venture backed
public companies were created after it went public.
That is, these companies on average are 10% of their
mature size at the time they go public.
What’s Ahead
Much of venture capital’s success has come from the
entrepreneurial spirit pervasive in the American culture,
financial recognition of success, access to good science,
and fair and open capital markets. It is dependent upon
a good flow of science, motivated entrepreneurs, protec-
tion of intellectual property, and a skilled workforce.
The nascent deployment of venture capital in other
countries is gated by a country’s or region’s cultur-
al fit, tolerance for failure, services infrastructure
that supports developing companies, intellectual
property protection, efficient capital markets, and
the willingness of big business to purchase from
small companies.
The Exit Funnel
Outcomes of the 11,686 Companies
First Funded 1991 to 2000
Went/Going Public
14%
Acquired
33%
Known Failed
18%
Still Private
or Unknown*
35%
*Of these, most have quietly failed
8 Thomson Reuters
National Venture Capital Association

10. Executive Summary
Introduction
The National Venture Capital Association 2013
Yearbook provides a summary of venture capital
activity in the United States. This ranges from invest-
ments into portfolio companies to capital managed
by general partners to fundraising from limited part-
ners to exits of the investments by either IPOs or
mergers and acquisitions. The statistics for this pub-
lication were assembled primarily from the
MoneyTree™ Report by PricewaterhouseCoopers
and the National Venture Capital Association, based
on data from Thomson Reuters and analyzed through
the ThomsonONE.com (formerly VentureXpert)
database of Thomson Reuters, which has been
endorsed by the NVCA as the official industry activ-
ity database. Subscribers to ThomsonONE can recre-
ate most of the charts in this publication and report
individual deal detail and more granular statistics
than provided herein.
Industry Resources
The activity level of the U.S. venture capital industry
is roughly half of what it was at the 2000-era peak.
For example, in 2000, 1053 firms each invested $5
million or more during the year. In 2012, the count
was less than half that at 522.
Venture capital under management in the United
States by the end of 2012 decreased to $199.2 billion
as calculated using the methodology described
below. However, looking behind the numbers, we
know that the industry continues to contract from the
circa 2000 bubble high of $261.2 billion
The slight downtick in number of firms and capital
managed in 2012 perhaps understates a consolidat-
ing trend. The average venture capital firm shrunk to
7.0 principals per firm from 7.4 in 2011. The corre-
sponding drop in headcount to under 6,000 princi-
pals is almost one-third lower than 2007 levels. This
During 2012, many of the metrics describing the venture capital industry in the United States were similar to
those of the prior two years. The decline in the number of firms and capital managed was expected but not as
large as some were anticipating. Venture investment focused on companies in the seed and early stages, with
many later-stage companies continuing to await a helpful IPO environment. Investment in early-stage life sci-
ence companies continues to soften.
Fundraising remained very challenging for the majority of venture firms, largely because of a dearth of healthy
exits that would distribute yet-unrealized returns to current fund investors. The number of initial public offer-
ings in 2012 fell slightly from 2011 levels, but the proceeds and IPO valuation tally were both up significant-
ly, largely as a result of one huge IPO and a handful of large ones.
A healthy venture capital ecosystem requires its metrics to be in balance. And while the quality of new business
opportunities, known as deal flow, remains very high and the best opportunities are getting funded, stresses
remain.
Thomson Reuters 9
11999922 22000022 22001122
No. of VC Firms in Existence 358 1,089 841
No. of VC Funds in Existence 616 2,119 1,269
No. of Principals 4,996 14,541 5,887
No. of First Time VC Funds Raised 13 25 43
No. of VC Funds Raising Money This Year 78 176 162
VC Capital Raised This Year ($B) 4.9 15.7 20.1
VC Capital Under Management ($B) 28.7 272.1 199.2
Avg VC Capital Under Mgt per Firm ($M) 80.2 249.9 236.9
Avg VC Fund Size to Date ($M) 39.1 94.4 110.6
Avg VC Fund Size Raised This Year ($M) 62.8 89.2 124.1
Largest VC Fund Raised to Date ($M) 1,775.0 6,300.0 6,300.0
Figure 1.0
Venture Capital Under Management
Summary Statistics

11. National Venture Capital Association
10 Thomson Reuters
0
50
100
150
200
250
300
350
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
($Billions)
Year
Figure 2.0
Capital Under Management
U.S. Venture Funds ($ Billions)
1985 to 2012
Figure 3.0
Capital Commitments to
U.S. Venture Funds ($ Billions)
1985 to 2012
0
20
40
60
80
100
120
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
($Billions)
Year

12. meant that there was an increase in the average
amount of capital managed by each principal. It is
possible going forward, that the number of principals
per firm will increase as the number of firms
decreases. This is because the bulk of the money
being raised today is being raised by larger, special-
ty, and boutique firms.
Commitments
New commitments to venture capital funds in the
United States increased for the second year in a row,
which follows four years of declines. In 2012, com-
mitments totaling $20.1 billion were made to 183
funds. This is roughly two-thirds of the annual levels
seen in 2005-2007 and approximately one-fifth of the
annual amount raised at the bubble peak.
When you look behind the 2012 capital commitments
at the specific funds being raised, the 10 largest funds
represent 48% of the capital raised, with 173 funds
raising the other 52%.
This is the sixth consecutive year in which more
money was invested by the industry than raised in
new commitments. That has been the case in 11 of
the past 13 years. While this is not a true apples-to-
apples comparison, it does explain the industry’s
strong interest in raising additional funds in 2013
and beyond. The narrow success of recent IPO and
2013 NVCA Yearbook
Thomson Reuters 11
Figure 4.0
Investments in
Portfolio Companies ($ Billions)
1985 to 2012
Investment Investment
Industry Group # Companies # Deals Amt ($Bil) # Companies # Deals Amt ($Bil)
Information Technology 2,130 2,480 16.5 870 870 3.0
Medical/Health/Life Science 649 818 6.8 148 148 0.7
Non-High Technology 364 425 3.4 156 156 0.4
Total 3,143 3,723 26.7 1,174 1,174 4.1
All Investments Initial Investments
Figure 5.0
Venture Capital Investments in 2012
By Industry Group
0
20
40
60
80
100
120
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
($Billions)
Year

13. National Venture Capital Association
12 Thomson Reuters
Figure 7.0
Venture Capital Investments in 2012
Industry Sector by Dollars Invested
Business Products
and Services 0.4%
Computers and
Peripherals 2%
Consumer Products
and Services 5%
Electronics/
Instrumentation 1%
Biotechnology
15%
Financial Services 1%
Healthcare Services 1%
Industrial/Energy 10%
IT Services 7%
Media and
Entertainment 7%
Medical Devices
and Equipment 9%
Networking and
Equipment 1%
Retailing/
Distribution 2%
Semiconductors
3%
Telecommunications 2%
Software 31%
Other
0.2%
Seed 3%
Early Stage 30%
Expansion 35%
Later Stage 32%
Figure 6.0
Venture Capital Investments in 2012
Stage by Dollars Invested

14. acquisition markets has not enabled most firms to
pay out sufficient distributions to their investors to
begin raising another fund. For the vast majority of
firms, raising additional capital right now is very
difficult.
Investments
Measuring industry activity with the total dollars
invested in a given year shows that the industry has
remained generally in the $20 billion to $30 billion
range since 2002. In 2012, $26.7 billion was invested in
3,143 companies. This is less than 2011 totals and
greater than 2010 totals.The number of first-time fund-
ings likewise was less than 2011 and greater than 2010.
Further parsing the data shows an increasing portion of
the investment dollars going to California companies.
Software was the leading sector in 2012, receiving
31% of the total dollars. The second largest sector was
Biotechnology which fell to roughly half that amount
at 15.4% of total investment The continued interest in
Clean Technology investing brought the
2013 NVCA Yearbook
Thomson Reuters 13
Figure 8.0
2012 Investments
By State
Year
1985 48 763 13 16 1,991 32 47 3 4
1986 104 2,414 14 23 166,260 53 1889 4 4
1987 86 2,125 17 25 10,790 46 150 4 4
1988 43 769 15 18 20,523 51 555 3 4
1989 42 873 16 21 5,479 51 166 4 4
1990 47 1,108 20 24 5,886 60 178 4 4
1991 120 3,726 27 31 14,151 78 168 5 5
1992 150 5,431 24 36 15,759 68 147 5 5
1993 175 6,141 24 35 14,430 75 129 5 6
1994 140 4,004 24 29 9,854 67 91 5 5
1995 184 7,859 36 43 17,046 103 136 4 5
1996 256 12,666 35 49 40,360 111 191 3 4
1997 141 5,831 33 41 17,784 99 146 3 6
1998 79 4,221 43 53 9,649 149 214 3 3
1999 280 24,005 70 86 86,669 294 425 3 3
2000 238 27,443 83 115 63,610 336 464 3 4
2001 37 4,130 80 112 15,545 304 576 4 4
2002 24 2,333 89 97 8,322 266 347 3 5
2003 26 2,024 71 78 7,412 252 285 5 6
2004 82 10,032 70 122 50,268 254 613 6 6
2005 59 5,113 68 87 39,702 202 673 5 5
2006 68 7,127 85 105 71,467 293 1067 5 6
2007 92 12,365 97 134 68,282 361 742 6 6
2008 7 765 83 109 3,645 278 521 7 7
2009 13 1,980 123 152 9,192 548 707 6 7
2010 68 7,609 93 112 111,386 431 1662 5 6
2011 51 10,690 106 210 94,987 606 1862 6 7
2012 49 21,451 89 438 122,264 371 2495 7 8
Mean Age
@ IPO (yrs)Num of IPOs
Offer
Amount
($Mil)
Med Offer
Amt ($Mil)
Mean Offer
Amt ($Mil)
Post Offer
Value ($Mil)
Med Post
Value ($Mil)
Mean Post
Value ($Mil)
Median Age
@ IPO (yrs)
Figure 9.0
Venture-Backed IPOs
Number of Pct of Investment Pct of
State Companies Total ($ Millions) Total
California 1,280 41% 14,128.8 53%
Massachusetts 326 10% 3,067.9 12%
New York 287 9% 1,856.7 7%
Washington 101 3% 931.5 3%
Texas 134 4% 930.5 3%
Illinois 76 2% 570.4 2%
Colorado 85 3% 564.2 2%
Pennsylvania 154 5% 517.8 2%
New Jersey 49 2% 429.3 2%
Virginia 62 2% 372.3 1%
All Others 589 19% 3,282.8 12%
Total 3,143 26,652.4

15. National Venture Capital Association
14 Thomson Reuters
Industrial/Energy sector to 10.5% of the total. Medical
Devices rounded out the top four sectors at 9.4%.
The life sciences share of the venture capital invest-
ment dollars decreased in 2012 to its lowest level
since 2002. In 2012, 15.4% of the money went into
Biotechnology, 9.4% into Medical Devices, and 1.2%
into Healthcare Services, totaling 26.0%. This is
down from the 33.1% combined share in 2009.
As has been the case for several years, attention has
been focused on the two ends of the spectrum.
Looking at deal counts, 2012 actually saw the highest
percentage of seed- and early-stage deals since at least
1985 (51.8% of total deals). This certainly would
challenge the suggestion that the industry’s attention
is single-focused on later-stage companies. That said,
the 22.4% of deals going to later-stage companies is
also toward the top end of the historical range. There
remains a record number of companies in portfolios
in the later stage of development that in most other
positions in the business cycle would have already
gone public or otherwise been acquired.
With the rule of thumb that a healthy venture capital
industry invests in 1,000-1,300 new companies each
year, the 1,174 first fundings in 2012 is very much in
that range. Not surprisingly, 81% of those first round
investments were made at the seed- and early-stage
levels.
The year 2012 provided an interesting contrast in geo-
graphic dispersion. While 53% of all the investment
dollars went to California-based portfolio companies,
a record for MoneyTree™, companies in 48 states and
DC received financing, also a MoneyTree™ record
high.
Number Number ($ Millions)
Year Total Known Price Average
1985 6 3 300.2 100.1
1986 8 1 63.4 9.1
1987 10 4 667.2 111.2
1988 17 9 920.7 115.1
1989 20 10 746.9 74.7
1990 19 7 120.3 10.0
1991 16 4 190.5 15.9
1992 69 43 2,119.1 81.5
1993 59 36 1,332.9 58.0
1994 82 56 3,207.1 123.4
1995 92 58 3,801.8 111.8
1996 107 76 8,230.8 265.5
1997 143 99 7,743.6 176.0
1998 189 113 8,002.0 105.3
1999 227 154 38,688.0 530.0
2000 379 245 79,996.4 597.0
2001 384 175 25,115.6 120.2
2002 363 165 11,913.2 60.2
2003 323 134 8,240.8 43.6
2004 402 199 28,846.1 142.1
2005 443 198 19,600.2 80.0
2006 485 207 24,288.5 87.4
2007 488 200 30,745.5 106.8
2008 416 134 16,236.9 57.6
2009 350 108 12,364.9 51.1
2010 521 149 17,700.3 47.6
2011 488 169 24,093.2 75.5
2012 449 121 21,516.2 65.6
Figure 10.0
Venture-Backed M&A Exits

16. Exits
Once successful portfolio companies mature, venture
funds generally exit their positions in those compa-
nies by taking them public through an initial public
offering (IPO) or by selling them to presumably larg-
er organizations (acquisition, or trade sale). This then
lets the venture fund distribute the proceeds to
investors, raise a new fund for future investment, and
invest in the next generation of companies. This chap-
ter considers each type of exit separately.
IPOs in 2012 were a mixed bag at best. On the one
hand, the number of venture-backed companies going
public actually fell from 2011 from 51 to 49. But the
dollars raised in those initial public offerings more
than doubled from $10.7 billion to $21.5 billion. But
looking behind the numbers, we see that Facebook
itself raised $16.0 billion of that $21.5 billion, with a
few other high-profile IPOs looming large in the
remainder. This meant that many companies attempt-
ing or seeking to go public were not able to do so.
On the market valuation placed on these IPOs at the
offer price, 2012 was a very good year. The 49 IPOs
had a valuation of $122.3 billion. This is the highest
amount since 1986. What is quite striking (Fig 5.03),
is the huge gap between median and mean (average)
valuation of almost seven times! This suggests a huge
outlier effect created by the very large IPOs that suc-
ceeded.
In 2012, the acquisition market weakened. There was
a slight decrease in the number of acquisitions, or
trade sales, of venture-backed companies. We tracked
449 acquisitions, of which we had disclosed deal
amounts for 121 of them. The sum of the disclosed
values was also down at $21.5 billion. Just over one-
fifth of them were acquired at 10 times or greater than
the cumulative venture capital investment in those
companies. We tracked four acquisitions at more than
$1 billion.
2013 NVCA Yearbook
Thomson Reuters 15

17. This page is intentionally left blank.
National Venture Capital Association
16 Thomson Reuters

18. Industry Resources
METHODOLOGY
Historically we have calculated industry size using a
“rolling eight years of fundraising” proxy for capital
managed, number of funds, number of firms, etc. The
number of firms in existence will vary on a rolling
eight-year basis as firms raise new funds or do not
raise funds for more than eight years. Currently, we
know the industry is consolidating, but the eight- year
model now includes fund vintage years 2005-2012.
However, through 2012, the rolling eight year
methodology belies this contraction because the very
slow fundraising years of 2002-2004 were rolling out
of the calculation.
Under this methodology, we estimate that there are
currently 841 firms with limited partnerships “in
existence.” To clarify, this is actually stating that there
are 841 firms that have raised a venture capital fund
in the last eight years. In reality, fewer firms are actu-
ally making new investments in 2012.
To better report the actual number of active firms, we
added a column to the table to report the number of
independent and corporate venture groups actually
investing $5 million or more in a given year. These
522 firms are less than half the level of 2000. We
expect this statistic to fall further going forward.
For this publication, we are primarily counting the
number of firms with limited partnerships and are
excluding other types of investment vehicles. From
that description, it may appear that the statistics for
total industry resources may be underestimated.
However, this must be balanced with the fact that cap-
ital under management by captive and evergreen
funds is difficult to compare equitably to typical lim-
ited partnerships with fixed lives. For this analysis
only, the firms counted for capital under management
include firms with fixed-life partnerships and venture
capital funds they raised. If a firm raised both buyout
and venture capital funds, only the venture funds
would be counted in the calculation of venture capital
under management.
The activity level of the U.S. venture capital industry is roughly half of what it was at the 2000-era peak. For
example, in 2000, 1053 firms each invested $5 million or more during the year. In 2012, the count was less than
half that at 522.
Venture capital under management in the United States by the end of 2012 decreased to $199.2 billion as cal-
culated using the methodology described below. However, looking behind the numbers, we know that the indus-
try continues to contract from the circa 2000 bubble high of $261.2 billion
The slight downtick in firms and capital managed in 2012 perhaps understates a consolidating trend. The aver-
age venture capital firm shrunk to 7.0 principals per firm from 7.4 in 2011. The corresponding drop in head-
count to under 6,000 principals is almost one-third lower than 2007 levels. This meant that there was an
increase in the average amount of capital managed by each principal. It is possible going forward, that the
number of principals per firm will increase as the number of firms decreases. This is because the bulk of the
money being raised today is being raised by larger, specialty, and boutique firms. For our purposes here, we
define a principal to be someone who goes to portfolio company board meetings. That is, deal partners would
be included and firm CFOs would not be included.
Geographic location of the largest venture firms is quite concentrated. California domiciled firms manage
47.1% of the industry’s capital although these firms may be actively investing in other states and countries. This
concentration has been consistent for several years and may increase going forward, given the movement of
some east coast funds westward. Taken together, the top five states (California, Massachusetts, New York,
Connecticut, and Illinois) hold 81.4% of total venture capital in this country.
Thomson Reuters 17

19. 0
50
100
150
200
250
300
350
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
($Billions)
Year
Figure 1.01
Capital Under Management
U.S. Venture Funds ($ Billions)
1985 to 2012
18 Thomson Reuters
Venture capital under management can be a complex
statistic to estimate. Indeed, capital under manage-
ment reported by firms can differ from firm to firm as
there’s not one singular definition. For example, some
firms include only cumulative committed capital, oth-
ers may include committed capital plus capital gains,
and still other firms define it as committed capital
after subtracting liquidations. To complicate matters,
it is difficult to compare these totals to European pri-
vate equity firms, which include capital gains as part
of their capital under management measurements.
For purposes of the analysis in this publication, we
have tried to clarify the industry definition of capital
under management as the cumulative total of commit-
ted capital less liquidated funds or those funds that
have completed their life cycle. Typically, venture
capital firms have a stated 10-year fixed life span,
except for life science funds, which are often estab-
lished as 12-year funds. Figure 1.08 shows the reality
of fund life. Thomson Reuters calculates capital under
management as the cumulative amount committed to
funds on a rolling eight-year basis. Current capital
under management is calculated by taking the capital
under management calculation from the previous
year, adding in the current year’s funds’commitments,
and subtracting the capital raised eight years prior.
For this analysis, Thomson Reuters classifies venture
capital firms using four distinct types: private inde-
pendent firms, financial institutions, corporations,
and other entities. ‘Private independent’ firms are
National Venture Capital Association

20. 0
20
40
60
80
100
120
140
160
0-10
10-25
25-50
50-100
100-250
250-500
500-1000
1000+
155
125
111 112
139
91
60
47
Capital Under Management ($ Millions)
This chart shows capital committed to U.S. venture firms in active funds. While much of the capital is managed
by larger firms, of the 841 firms at the end of 2012, roughly 60% of them (504) managed $100 million or less. By
comparison, just 47 firms managed active funds totaling more than $1 billion.
Figure 1.03
Distribution of Firms
By Capital Managed 2012
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
PrivateIndependent 11,636 14,574 17,299 18,607 22,112 22,632 21,805 22,557 25,199 28,528 33,417 40,235 51,877
FinancialInstitutions 3,368 3,508 3,442 3,178 2,714 2,802 2,392 2,220 2,484 2,924 3,758 5,123 7,209
Corporations 1,739 1,709 2,062 2,148 2,095 2,142 2,086 2,211 1,526 1,573 1,345 2,032 2,348 3
Other 857 909 897 867 779 725 618 313 191 275 380 409 665
Total 17,600 20,700 23,700 24,800 27,700 28,300 26,900 27,300 29,400 33,300 38,900 47,800 62,100
Figure 1.02
Total Capital Under Management
By Firm Type 1985 to 2012 ($ Millions)
Thomson Reuters 19
made up of independent private and public firms
including both institutionally and non-institutionally
funded firms and family groups. ‘Financial institu-
tions’ refers to firms that are affiliates and/or sub-
sidiaries of investment banks and non-investment
bank financial entities, including commercial banks
and insurance companies. The ‘corporations’ classifi-
cation includes venture capital subsidiaries and affili-
ates of industrial corporations. In 2013, we will mod-
ify the methodology to reflect virtually all direct cor-
porate investment because many of the corporate ven-
ture investors do not operate out of a separate fund or
group. The capital under management statistics
reported in this section consist primarily of venture
capital firms investing through limited partnerships
with fixed commitment levels and fixed lives and do
not include non-vintage “evergreen funds” or true
captive corporate industrial investment groups with-
out fixed commitment levels. The term ‘evergreen
funds’ refers to funds that have a continuous infusion
of capital from a parent organization, as opposed to
the fixed life and commitment level of a closed-end
venture capital fund.
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
P 76,398 120,221 187,475 221,105 221,634 225,208 233,976 242,466 255,714 238,766 194,698 171,713 175,980 183,482 180,936
10,382 15,466 23,454 24,975 24,453 23,558 22,277 21,634 18,991 14,384 6,263 4,865 5,266 9,541 9,670
3,245 6,797 11,604 12,787 12,766 12,717 12,245 12,044 11,964 8,828 4,171 2,979 3,458 4,483 4,497
875 1,116 1,467 2,134 2,347 2,317 2,302 2,055 2,031 1,822 1,469 843 3,997 3,995 4,098
90,900 143,600 224,000 261,000 261,200 263,800 270,800 278,200 288,700 263,800 206,600 180,400 188,700 201,500 199,200
2013 NVCA Yearbook

21. No. Estimated Avg Mgt
Principals Industry Per Principal
Year Per Firm Principals ($M)
2007 8.7 8,665 30.0
2008 8.5 7,293 28.3
2009 8.6 6,760 26.4
2010 8.0 6,328 25.7
2011 7.4 6,231 28.6
2012 7.0 5,887 33.8
Figure 1.05
Principals Information
State ($ Millions)
CA 93,814.8
MA 34,482.3
NY 21,378.0
CT 8,051.2
IL 4,369.0
Total* 162,095.4
*Total includes above 5 states only
Figure 1.06
Top 5 States
By Capital Under Management 2012
*Total includes above 5 states only
The correct interpretation of this chart is that at year end 2012, there were 5,887
principals (people who go to board meetings) in the industry. A principal on aver-
age manages $33.8 million and the average firm is made up of 7.0 principals, down
from 7.4 principals a year earlier.
Fund Total Total Total Firms That Raised Capital Avg Avg Firms
Vintage Cumulative Cumulative Cumulative Existing Funds in the Last Managed Fund Size Firm Size Actively
Year Funds Firms Capital ($B) Funds 8 Vintage Years ($B) ($M) ($M) Investing
1985 631 323 20 532 294 17.6 33.1 59.9 92
1986 707 353 23.4 590 324 20.7 35.1 63.9 113
1987 810 388 27.4 670 353 23.7 35.4 67.1 112
1988 887 406 30.8 700 365 24.8 35.4 67.9 118
1989 979 435 35.8 727 380 27.7 38.1 72.9 115
1990 1,037 451 38.3 716 383 28.3 39.5 73.9 100
1991 1,075 458 40.5 639 360 26.9 42.1 74.7 80
1992 1,147 478 44.1 601 352 27.3 45.4 77.6 104
1993 1,244 509 49.4 613 370 29.4 48.0 79.5 93
1994 1,342 542 56.7 635 385 33.3 52.4 86.5 110
1995 1,497 607 66.2 687 424 38.9 56.6 91.7 185
1996 1,647 668 78.6 760 469 47.8 62.9 101.9 249
1997 1,859 760 97.9 880 541 62.1 70.6 114.8 342
1998 2,096 839 129.2 1,059 613 90.9 85.8 148.3 408
1999 2,433 966 184.1 1,358 733 143.6 105.7 195.9 713
2000 2,849 1,109 268.2 1,702 864 224 131.6 259.3 1053
2001 3,092 1,191 310.4 1,848 920 261 141.2 283.7 759
2002 3,174 1,208 318 1,832 918 261.2 142.6 284.5 534
2003 3,282 1,260 330 1,785 948 263.8 147.8 278.3 505
2004 3,447 1,328 349.4 1,800 984 270.8 150.4 275.2 575
2005 3,622 1,398 376.2 1,763 1009 278.2 157.8 275.7 558
2006 3,805 1,474 417.9 1,709 1019 288.7 168.9 283.3 570
2007 4,019 1,558 447.9 1,586 1010 263.8 166.3 261.2 627
2008 4,205 1,621 474.8 1,356 879 206.6 152.4 235 603
2009 4,313 1,664 490.7 1,221 818 180.4 147.7 220.5 462
2010 4,439 1,725 506.7 1,265 844 188.7 149.2 223.6 509
2011 4,599 1,787 531.5 1,317 868 201.5 153.0 232.1 545
2012 4,716 1,828 548.6 1,269 841 199.2 157.0 236.9 522
Figure 1.04
Fund and Firm Analysis
The correct interpretation of this chart is that since the beginning of the industry to the end of 2012, 1,828 firms had been founded and 4,716 funds had
been raised. Those funds totaled $548.6 billion. At the end of 2012, 841 firms as calculated using our eight-year methodology managed 1,269 individual
funds, with each fund typically being a separate limited partnership. Capital under management, again calculated using a rolling eight years of fundrais-
ing, by those firms at the end of 2012 was $199.2 billion. However, only 522 independent and corporate venture groups invested at least $5 million in
MoneyTree™ deals in 2012.
20 Thomson Reuters
National Venture Capital Association

22. SSttaattee 11998855 11998866 11998877 11998888 11998899 11999900 11999911 11999922 11999933 11999944 11999955 11999966 11999977 11999988
CA 4,875 5,836 6,493 6,727 7,987 7,620 7,732 7,728 8,562 9,315 11,524 14,797 19,349 26,799
MA 2,331 2,646 3,533 3,886 4,292 4,414 4,070 4,944 5,136 5,645 6,881 7,339 10,436 15,737
NY 3,382 4,421 4,369 4,158 5,589 5,810 5,460 5,314 5,911 6,977 8,268 9,952 10,286 19,646
CT 1,285 1,432 1,917 1,979 1,821 1,984 1,840 1,937 2,268 2,430 2,282 2,397 3,677 4,684
IL 470 490 720 848 804 818 783 886 1,148 1,220 1,361 1,312 1,989 2,245
PA 444 518 548 562 731 772 774 770 570 739 822 1,324 1,743 2,100 3
DC 3 4 4 3 4 4 4 1 20 20 123 1,670 2,325 2,450
TX 454 488 722 720 792 835 773 805 936 1,143 1,145 1,225 1,681 2,994
NJ 610 707 746 734 730 950 880 546 512 695 958 1,480 1,557 2,171
MD 93 97 123 116 158 163 98 115 374 784 914 1,514 2,004 2,642 3
WA 313 406 384 422 395 383 198 241 227 178 299 460 677 1,078
VA 72 78 78 84 104 91 56 42 35 32 48 73 251 506
MN 198 294 338 672 743 882 810 764 842 896 877 511 616 713
NC 34 54 87 89 124 113 109 110 108 146 128 298 618 804 1,007 1,36
CO 361 428 396 513 613 572 554 528 617 566 475 549 863 1,162
MO 557 581 614 591 599 655 653 642 107 137 119 124 147 111
UT 9 19 19 15 15 16 15 10 10 25 31 31 94 96
MI 111 119 125 122 123 38 14 14 13 10 41 41 66 76
FL 124 131 172 192 194 132 110 97 151 223 321 303 378 688
TN 102 127 191 183 215 259 276 270 200 292 306 453 463 743
GA 88 94 175 257 261 275 262 262 434 432 434 359 762 1,074
DE 39 40 40 38 47 41 41 14 41 51 100 121 114 116
OH 852 889 969 831 254 257 273 303 427 470 447 375 689 764
AL 125 131 131 127 134 136 136 137 6 6 6 6 5 24
IN 45 55 56 77 96 88 80 96 99 109 111 192 176 191
AZ 40 43 43 73 74 75 75 34 44 43 44 10 9 38
LA 7 7 7 7 7 5 2 11 22 31 49 89 275 366
KY 15 16 16 16 0 0 0 0 0 7 21 21 21 21
WI 181 99 98 95 104 104 78 78 81 163 168 195 180 204 1
NM 71 100 135 132 168 255 243 230 205 179 154 151 120 12
ID 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1
ME 1 1 20 25 26 26 26 28 29 98 89 86 88 89
OK 1 29 29 28 37 38 37 37 38 9 10 32 23 67
SD 0 0 0 0 0 0 0 0 0 0 0 10 10 85
HI 2 2 2 2 2 2 2 0 0 0 2 2 2 2 1
IA 49 51 104 101 80 82 61 62 54 55 5 5 16 17
OR 168 176 203 239 242 246 228 116 74 74 77 30 30 40
VT 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1
NH 24 25 25 49 50 51 50 50 27 27 47 19 66 67
ND 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1
KS 0 0 0 0 0 13 13 13 14 14 37 37 56 43
SC 1 1 1 1 15 15 15 15 15 15 29 52 37 37
NE 0 0 0 1 1 1 1 1 11 11 105 136 138 141
MS 0 0 0 0 0 0 0 0 0 0 11 11 11 11
PR 0 0 0 0 0 9 9 9 9 9 9 9 49 40
WY 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1
RI 15 16 16 36 36 37 36 36 22 22 23 0 2 2 2 2 2
NV 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2
WV 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2
AR 2 2 2 2 2 2 2 0 0 0 0 0 0 0 1
MT 0 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
UN 46 48 48 46 31 31 21 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
AK 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
TToottaall 1177,,660000 2200,,770000 2233,,770000 2244,,880000 2277,,770000 2288,,330000 2266,,990000 2277,,330000 2299,,440000 3333,,330000 3388,,990000 4477,,880000 6622,,110000 9900,,990000
22000000 22000011 22000022 22000033 22000044 22000055 22000066 22000077 22000088 22000099 22001100 22001111 22001122
83,652 102,032 102,065 105,008 110,920 116,533 125,205 113,611 97,099 85,072 88,085 93,952 93,815
38,137 47,762 49,004 48,678 49,187 50,675 55,598 52,312 38,586 32,397 32,001 31,836 34,482
38,221 39,225 37,658 37,086 36,655 36,182 29,295 25,621 14,104 13,156 18,116 22,380 21,378
8,913 11,878 11,710 11,682 13,333 13,525 14,879 13,251 12,165 8,498 9,263 10,076 8,051
4,393 4,805 5,258 5,616 5,690 5,168 5,289 4,235 3,590 3,278 3,060 4,564 4,369
6,233 6,338 6,231 6,523 6,100 6,506 7,033 7,063 4,564 4,399 4,408 4,123 4,183
3,847 4,122 4,686 4,584 3,373 3,582 4,640 5,046 4,835 4,631 4,043 4,510 4,165
6,871 7,994 7,922 7,799 8,259 8,448 8,203 6,550 5,431 4,203 4,061 4,164 3,838
3,628 4,311 4,226 4,440 4,083 4,073 5,159 5,021 4,137 3,916 3,959 3,554 3,355
5,112 5,378 5,159 5,043 4,811 4,762 4,743 4,432 2,936 3,005 2,912 2,891 3,010
2,799 3,684 3,687 3,566 4,630 4,591 4,597 5,173 4,627 3,720 3,684 3,693 2,749
2,520 2,636 2,649 2,819 2,868 3,338 3,367 3,013 1,802 2,225 2,267 2,073 1,999
2,235 2,187 2,363 2,357 2,361 2,441 2,593 2,472 1,640 1,657 1,317 1,763 1,862
N 1,365 1,446 1,577 1,776 1,618 1,447 1,657 1,542 1,190 1,216 1,696 1,614 1,633
4,775 5,288 5,432 5,412 5,229 4,882 4,663 3,010 1,604 974 1,137 1,144 1,399
307 449 417 407 504 1,232 1,293 1,384 1,318 1,182 1,187 1,188 1,315
268 475 448 559 589 546 651 1,251 1,328 1,136 1,199 1,314 1,296
587 591 589 631 859 912 946 685 919 976 1,051 1,244 1,022
1,782 1,749 1,682 1,591 1,577 1,802 1,525 1,283 558 801 864 819 818
1,235 1,280 1,161 1,150 1,043 1,089 840 669 576 565 775 802 763
2,308 2,158 2,151 2,075 2,109 1,835 1,697 1,686 558 530 533 646 605
113 80 69 28 15 15 15 251 256 394 396 445 544
O 1,847 1,872 1,873 1,853 1,986 1,805 1,721 1,329 714 565 521 570 439
107 107 107 155 173 225 224 216 357 361 362 387 369
662 662 650 683 593 595 608 617 136 342 343 308 335
101 104 145 180 180 199 171 173 130 118 263 260 309
476 651 648 631 663 502 430 353 336 196 263 279 214
21 21 14 14 14 18 216 218 223 225 226 212 212
W 245 245 152 152 133 105 205 213 141 143 170 194 199
12 12 12 33 35 69 74 77 79 80 114 84 82
14 14 14 14 14 14 84 85 72 73 73 73 73
202 290 218 219 214 215 276 160 164 73 73 69 69
140 139 139 139 117 117 111 121 47 47 47 47 48
178 177 177 177 175 175 103 113 32 32 48 48 40
11 11 11 9 16 16 16 7 14 14 43 43 36
16 60 60 55 65 53 60 67 69 39 39 39 29
100 100 112 83 85 85 76 78 34 40 29 29 27
16 43 43 43 43 43 43 57 41 14 19 19 19
65 65 84 65 65 19 30 30 31 31 11 11 16
0 0 0 0 0 0 0 0 13 13 14 14 14
42 42 42 19 19 0 0 0 0 0 8 8 8
S 36 37 71 58 35 41 41 41 42 41 5 5 5
N 175 164 164 71 38 38 38 38 0 0 2 2 3
M 11 39 39 28 28 28 29 30 30 1 1 1 1
P 39 68 68 68 68 29 29 30 31 1 1 1 1
W 117 117 117 117 117 118 118 119 0 0 0 0 0
R 2 26 26 35 35 33 33 33 34 10 10 0 0
N 23 23 32 32 33 33 33 9 10 10 0 0 0
W 21 21 21 21 21 21 21 21 0 0 0 0 0
A 19 19 19 19 19 19 19 0 0 0 0 0 0
M 0 0 0 0 0 0 0 0 0 0 0 0 0
U 0 0 0 0 0 0 0 0 0 0 0 0 0
A 0 0 0 0 0 0 0 0 0 0 0 0 0
T 222244,,0000 226611,,330000 226611,,220000 226633,,880000 227700,,880000 227788,,220000 228888,,770000 226633,,880000 220066,,660000 118800,,440000 118888,,770000 220011,,550000 119999,,220000
Figure 1.07
Capital Under Management By State 1985 to 2012 ($ Millions)
Thomson Reuters 21
2013 NVCA Yearbook

23. Life of IT Funds % of
In Years Funds
<= 10 7%
11-12 20%
13-14 27%
15-16 22%
17-18 14%
>=19 10%
Figure 1.08
Life of IT Funds in Years
Source: Adams Street Partners, based on 2010 analysis of dissolved funds.
This chart tracks the year in which a 10-year fund is, in fact, dissolved.
These later periods are referred to as “out years.” Historically, after the 10th year, only a few companies remain in the portfolios that typically do not have
huge upside potential. But the slow pace of exits in recent years has resulted in a number of good, mature companies remaining in portfolios well past
the nominal 10-year mark. Life science funds tend to have lives two years longer than typical technology funds. In preparing this chart, partial years are
rounded to the nearest whole year. So 10.4 years would round to 10 years, and 10.5 years would round up to 11 years. The median life span of a fund in
this analysis is 14.17 years.
National Venture Capital Association
22 Thomson Reuters

24. Capital Commitments
Methodology
As defined by Thomson Reuters, capital commitments,
also known as fundraising, are firm capital commit-
ments to private equity/venture capital limited partner-
ships by outside investors. For purposes of these statis-
tics, the terms “capital commitments,” “fundraising,”
and “fund closes” are used interchangeably. There are
three data sources for tracking capital commitments:
(1) SEC filings that are regularly monitored by our
research staff, (2) surveys of the industry routinely con-
ducted by Thomson Reuters, and (3) verified industry
press and press releases from venture firms.
Capital commitments are stated on either (1) a calen-
dar-year basis when committed (for example, through-
out this chapter) or (2) a vintage-year basis which is
designated once the fund starts investing (for example,
figure 1.04). The data in this chapter is by calendar
year and incrementally measures how much in new
commitments funds raised during the calendar year.
Consider, for example, a venture capital firm that
announces a $200 million fund in late 2010, raises
$75 million in 2011, and subsequently raises the
remaining $125 million in 2012. In this chapter, noth-
ing would be reflected in 2010, $75 million would be
counted in 2011, and $125 million would be counted
in 2012. Assuming it started investing and made its
first capital call in 2012, the entire fund would then be
considered to be a 2012 vintage year fund.
Note that fund commitments presented in this publica-
tion do not include those corporate captive venture cap-
ital funds that are funded by a corporate parent, which
do not typically raise capital from outside investors.
New commitments to venture capital funds in the United States increased for the second year in a row, which
follows four years of declines. In 2012, commitments totaling $20.1 billion were made to 183 funds. This is
roughly two-thirds of the annual levels seen in 2005-2007 and approximately one-fifth of the annual amount
raised at the bubble peak.
When you look behind the 2012 capital commitments at the specific funds being raised, the 10 largest funds
represent 48% of the capital raised, with 173 funds raising the other 52%.
This is the sixth consecutive year in which more money was invested by the industry than raised in new com-
mitments. That has been the case in 11 of the past 13 years. While this is not a true apples-to-apples compar-
ison, it does explain the industry’s strong interest in raising additional funds in 2013 and beyond. The narrow
success of recent IPO and acquisition markets has not enabled most firms to pay out sufficient distributions to
their investors to begin raising another fund. For the vast majority of firms, raising additional capital right now
is very difficult.
For the seventh year in a row, the top fundraising states were California and Massachusetts. This year,
Connecticut replaces New York in the third position. California, with its venture firms raising $13.7 billion,
holds the top spot for the tenth year in a row. Firms domiciled in the top five fundraising states in 2012 gath-
ered 88% of the dollars, compared with 91% in 2011, 88% in 2010 and 82% in 2009.
Please note that the state of fund domicile matters less than has been true historically. Much of the money is
managed by large, national funds that tend to be domiciled in any of several states with a broad geographic
investing footprint. Readers should not interpret capital available to entrepreneurs in a given state as being
limited to the capital raised in that state.
Venture capital fundraising typically makes up 20-25% of private equity fundraising. But in 2012, it represent-
ed 16% of total, down from 22% in 2011.
Thomson Reuters 23

25. National Venture Capital Association
24 Thomson Reuters
Year Sum ($Mil) % of Total PE
No.
Funds Sum ($Mil) No. Funds Sum ($Mil)
No.
Funds
1985 3,727.9 56% 116 2,971.8 21 6,699.7 137
1986 3,584.5 42% 101 5,043.7 32 8,628.2 133
1987 4,379.1 21% 116 16,234.6 47 20,613.6 163
1988 4,209.7 28% 104 10,946.4 54 15,156.1 158
1989 4,918.8 29% 106 12,068.5 78 16,987.3 184
1990 3,222.7 27% 86 8,831.5 64 12,054.3 150
1991 1,900.3 31% 40 4,242.1 27 6,142.4 67
1992 5,223.1 33% 80 10,752.5 58 15,975.6 138
1993 4,489.2 21% 93 16,961.7 81 21,451.0 174
1994 7,636.7 27% 136 20,457.0 100 28,093.7 236
1995 9,387.3 26% 161 27,040.7 108 36,428.0 269
1996 11,550.0 26% 168 32,981.4 104 44,531.3 272
1997 17,741.9 29% 242 42,803.0 136 60,544.9 378
1998 30,641.7 33% 290 62,023.7 173 92,665.4 463
1999 53,597.8 50% 430 53,720.7 166 107,318.5 596
2000 101,417.9 56% 634 80,614.8 171 182,032.7 805
2001 38,923.4 43% 324 52,523.0 137 91,446.4 461
2002 11,867.3 25% 202 35,076.8 124 46,944.0 326
2003 10,586.7 23% 161 35,913.4 121 46,500.1 282
2004 18,137.1 23% 212 59,878.5 158 78,015.6 370
2005 30,627.3 22% 234 108,249.8 205 138,877.1 439
2006 31,371.7 17% 236 152,566.2 216 183,937.9 452
2007 29,378.1 11% 235 243,264.2 264 272,642.3 499
2008 25,577.2 12% 215 180,923.9 231 206,501.1 446
2009 16,194.4 25% 162 49,871.5 148 66,065.9 310
2010 13,519.8 21% 175 51,674.8 173 65,194.6 348
2011 19,296.2 22% 188 70,103.5 207 89,399.6 395
2012 20,065.9 16% 183 106,249.9 217 126,315.7 400
Venture Capital Buyouts and Mezzanine Capital Total Private Equity
Figure 2.02
Capital Commitments To Private Equity Funds 1985-2012
0
20
40
60
80
100
120
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
($Billions)
Year
Figure 2.01
Capital Commitments
To U.S. Venture Funds ($ Billions)
1985 to 2012

26. 2013 NVCA Yearbook
Thomson Reuters 25
State 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
CA 1,250 969 1,159 936 1,519 831 549 1,311 1,333 1,764 3,107 3,724 5,463 8,456 21,891 43,485
MA 534 356 973 582 339 675 180 1,051 368 1,158 1,955 1,871 2,602 5,176 7,659 16,692
CT 282 156 420 352 66 290 150 300 473 388 260 425 1,324 1,068 2,843 2,313 4
NY 202 1,460 547 279 2,260 490 474 494 940 1,860 2,364 1,516 3,609 9,346 8,945 15,400
NC 7 7 31 23 38 1 0 0 0 63 10 184 349 174 180 613
WA 25 126 37 60 0 0 5 48 40 37 129 239 180 409 640 1,175
CO 32 71 32 70 80 0 0 0 114 0 19 216 253 433 1,942 2,414
TN 20 23 73 0 34 0 0 40 0 116 84 149 109 266 267 262
FL 10 0 36 11 29 0 35 0 59 105 106 0 78 250 326 955
PA 54 73 55 12 118 45 167 30 110 182 114 264 784 177 1,241 2,751
UT 0 11 1 0 0 0 0 0 0 27 0 0 17 50 62 126
MO 644 0 33 0 0 53 0 0 64 0 11 6 45 25 80 65
MN 14 110 51 418 20 162 16 946 66 164 7 36 208 217 107 1,827
IL 51 47 325 158 26 57 94 247 278 183 230 295 575 466 1,304 964 1,10
NJ 254 61 120 0 125 243 75 110 177 401 213 606 118 1,002 570 1,041 6
AZ 0 0 0 37 0 0 0 0 10 0 0 0 0 0 29 60
VA 0 4 10 13 15 2 0 17 5 0 7 20 165 226 884 2,212 1
WI 0 0 0 0 0 0 0 0 0 40 0 31 30 0 17 66
IN 0 10 0 27 16 5 0 49 0 20 0 116 0 13 20 103
OH 3 0 87 75 0 30 0 67 4 86 10 0 358 58 659 662
TX 37 33 231 41 161 143 50 381 137 283 179 326 394 1,330 1,803 3,615
MI 5 0 7 33 0 0 0 0 3 14 0 26 11 0 321 241
MD 4 7 24 0 49 14 50 0 225 479 67 439 145 768 840 1,990
AL 150 0 0 0 0 0 0 0 0 0 0 0 5 30 0 137
GA 0 0 15 65 0 14 0 0 56 0 74 34 41 181 30 918
NH 49 0 0 40 0 0 15 0 0 0 20 0 50 0 0 0 0 1
NE 0 0 0 0 0 0 0 0 0 0 111 36 0 0 0 41
DE 39 0 0 5 0 0 0 0 0 0 130 820 668 392 360 778
ND 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1
OK 0 32 0 0 10 0 0 0 0 0 0 24 0 45 0 110 0 0 0 0 1
AR 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 20
DC 0 0 0 0 0 0 0 0 0 25 31 65 0 0 28 0
HI 0 0 0 0 0 0 0 0 0 0 3 0 0 0 10 0
ID 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 15
IA 11 0 60 0 0 0 0 56 0 0 5 0 11 2 5 21
KS 0 0 0 0 0 0 0 0 0 0 0 0 20 0 0 0 0 0 0 0 0 0 1
KY 0 0 0 0 0 0 0 0 14 7 15 0 42 0 0 0 1
LA 0 0 0 0 0 0 0 11 14 169 18 24 88 51 373 70
ME 0 0 22 948 0 0 0 2 0 59 0 22 0 0 127 0
MS 0 0 0 0 0 0 0 0 0 0 12 0 0 0 0 30
NV 0 0 0 0 0 0 0 0 0 0 50 25 0 0 25 0
NM 36 28 0 2 0 155 40 0 0 6 2 0 0 0 0 0 0 0 1
OR 0 0 30 0 0 0 0 0 0 0 32 0 0 10 0 65
PR 0 0 0 0 0 10 0 0 0 0 0 0 0 0 0 0 3
RI 17 0 0 25 0 0 0 0 0 0 0 0 0 0 0 0 2
SC 0 0 0 0 13 5 0 0 0 0 14 0 0 0 0 0 0 3
SD 0 0 0 0 0 0 0 0 0 0 0 11 0 22 14 131
VT 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 20
WV 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6 4 1
WY 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 26
Total 3,728 3,584 4,379 4,210 4,919 3,223 1,900 5,161 4,489 7,637 9,387 11,550 17,742 30,642 53,598 101,418
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
C 13,452 154 4,830 8,645 12,869 13,621 12,016 14,053 8,635 6,337 9,790 13,665
9,783 1,397 1,597 1,485 9,151 4,366 5,122 2,486 3,574 2,779 2,503 1,410
4,164 24 165 1,926 1,143 3,136 904 766 158 1,035 149 1,388
2,986 7,704 1,233 2,149 1,736 2,512 4,310 1,826 1,652 1,259 4,096 758
105 55 237 17 108 401 185 103 5 456 130 472
888 43 1 955 281 563 1,376 492 5 0 0 399
513 118 94 84 69 132 358 221 3 262 6 280
T 82 22 101 16 84 62 100 134 89 42 161 278
26 8 56 1 313 10 109 25 32 75 2 268
537 54 388 451 688 794 746 963 233 205 126 183
232 0 34 40 24 170 213 569 33 16 160 159
286 0 0 80 829 40 210 54 0 72 0 155
17 276 26 50 295 473 275 325 22 0 0 150
1,103 478 657 432 80 422 545 258 216 238 215 120
652 392 561 197 204 1,812 235 53 504 112 100 63
21 43 41 0 19 0 0 20 0 0 222 54
119 37 196 72 419 555 582 105 14 121 36 45
14 0 0 11 0 78 102 15 9 27 0 40
0 10 36 17 6 24 1 29 1 28 0 39
330 102 5 210 558 152 81 83 4 30 79 32
2,232 106 76 589 570 314 316 1,038 78 83 210 31
8 0 65 63 122 23 49 256 84 177 192 20
340 381 105 162 433 472 783 369 484 68 544 19
16 11 49 19 70 19 0 118 101 2 58 19
19 0 0 55 104 103 203 19 31 31 26 13
0 11 9 0 0 5 7 0 0 0 0 5
N 0 0 0 0 0 0 0 0 0 2 0 1
D 622 315 0 299 393 896 315 1,123 204 0 475 0
0 0 0 0 0 0 0 13 0 0 0 0
O 0 0 0 0 12 38 11 0 0 0 0 0
A 0 0 0 0 0 0 0 0 0 0 0 0
D 0 22 0 10 0 0 0 0 0 0 0 0
H 0 3 0 8 0 0 0 6 0 0 0 0
I 27 0 0 0 0 0 75 0 0 0 0 0
I 26 0 0 10 0 43 0 0 15 0 0 0
K 0 0 0 0 0 0 10 20 0 0 8 0
K 135 8 2 0 5 65 98 12 0 0 0 0
L 27 8 0 73 4 12 0 0 0 0 0 0
M 76 16 3 0 0 46 19 0 0 0 6 0
M 0 0 0 0 0 1 0 0 0 0 0 0
N 0 10 0 0 0 0 0 0 0 0 0 0
N 0 0 18 4 34 5 7 0 0 35 1 0
O 0 14 0 2 0 0 2 5 6 12 2 0
P 31 0 0 0 0 0 1 0 0 0 0 0
R 25 0 0 0 0 0 0 0 0 0 0 0
S 0 35 2 0 6 0 0 0 0 0 0 0
S 1 0 0 5 0 3 0 14 0 16 0 0
V 25 0 0 0 0 0 11 3 0 0 0 0
W 4 13 0 0 0 0 0 0 0 0 0 0
W 0 0 0 0 0 0 0 0 0 0 0 0
T 38,923 11,867 10,587 18,137 30,627 31,372 29,378 25,577 16,194 13,520 19,296 20,066
Figure 2.03
Venture Capital Fund Commitments
1985 to 2012 ($ Millions)

27. National Venture Capital Association
26 Thomson Reuters
-
20
40
60
80
100
120
140
160
180
200
220
240
260
280
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
($Billions)
Year
Venture Capital Buyout and Mezzannine Capital
Figure 2.05
Private Equity
Annual Commitment ($ Billions)
1985 to 2012
NNoo.. ooff CCoommmmiitttteedd
SSttaattee FFuunnddss (($$MMiill))
California 64 13,665.3
Massachusetts 17 1,409.7
Connecticut 4 1,388.0
New York 21 757.7
North Carolina 5 472.0
SSuubb--TToottaall 111111 1177,,669922..77
RReemmaaiinniinngg SSttaatteess 72 2,373.1
TToottaall 118833 2200,,006655..99
Figure 2.04
Top 5 States
By Venture Capital Committed 2012

28. Investments
Sectors
Software was the leading sector in 2012, receiving 31%
of the total dollars. The second largest sector was
Biotechnology which fell to roughly half that amount at
15.4% of total investment The continued interest in
Clean Technology investing brought the Industrial/-
Energy sector to 10.5% of the total. Medical Devices
rounded out the top four sectors at 9.4%.
The life sciences share of the venture capital invest-
ment dollars decreased in 2012 to its lowest level
since 2002. In 2012, 15.4% of the money went into
Biotechnology, 9.4% into Medical Devices, and 1.2%
into Healthcare Services, totaling 26.0%. This is
down from the 33.1% combined share in 2009.
This recent downward life sciences trend is very visi-
ble when just looking at first fundings. In 2012, only
149 life science (the three sectors combined) compa-
nies received first funding. This is 12.7% of the total.
As recently as 2006, the 294 first fundings of life sci-
ence companies made up 23.0% of total first fundings.
Among first fundings, Software led the way with 441
companies getting their initial venture capital rounds.
This is more than one-third of the total number of first
fundings. The nearest sector to Software was Media
and Entertainment with 174 first fundings.
Stages and First-Time Fundings
Seed stage companies received 3% of total dollars in
2012, with early stage, expansion, and later stage
companies roughly splitting the remaining share.
More than one-third of the capital went to expansion-
stage companies. But it is worth looking more close-
ly at those statistics.
As has been the case for several years, attention has
been focused on the two ends of the spectrum.
Looking at deal counts, 2012 actually saw the highest
percentage of seed- and early-stage deals since at least
1985 (51.8% of total deals). This certainly would
challenge the suggestion that the industry’s attention
is single-focused on later-stage companies. That said,
the 22.4% of deals going to later-stage companies is
also toward the top end of the historical range. There
remains a record number of companies in portfolios
in the later stage of development that in most other
positions in the business cycle would have already
gone public or otherwise been acquired.
With the rule of thumb that a healthy venture capital
industry invests in 1,000-1,300 new companies each
year, the 1,174 first fundings in 2012 is very much in
that range. Not surprisingly, 81% of those first round
investments were made at the seed and early stage.
Geographical Spread Across the United
States
The year 2012 provided an interesting contrast in geo-
graphic dispersion. While 53% of all the investment
dollars went to California-based portfolio companies,
a record for MoneyTree™, companies in 48 states and
DC received financing, also a MoneyTree™ record
high. That said, the five largest states (California,
Massachusetts, New York, Washington and Texas)
received 78% of all the dollars invested nationally.
This compares to 2011, when California companies
received a then-record 51.2% of the dollars. That year,
companies in a record 47 states and DC received ven-
ture capital funding. Together, the top five states
(California, Massachusetts, New York, Texas, and
Illinois) received 77% of the total dollars.
Measuring industry activity with the total dollars invested in a given year shows that the industry
has remained generally in the $20 billion to $30 billion range since 2002. In 2012, $26.7 billion was
invested in 3,143 companies. This is less than 2011 totals and greater than 2010 totals. The number
of first-time fundings likewise was less than 2011 and greater than 2010. Further parsing the data
shows an increasing portion of the investment dollars going to California companies.
Thomson Reuters 27

29. California-domiciled venture capital firms made
investments in 39 states in 2012. Approximately 49%
of all the money invested in California came from
California-domiciled firms. Conversely, California-
based firms concentrated 71% of their investment
power within the state.
Corporate Venture Group Involvement
The number and reach of corporate venture capital
groups increased in 2012. These groups provided
8.2% of the venture capital invested by all venture
groups. They were involved in 15.2% of the deals -
the highest level in four years. Going forward, all
signs suggest that these groups are becoming more
involved alongside traditional venture firms in deals,
as well as initiating corporate venture group syndi-
cates to do deals in lieu of, or in advance of, invest-
ment rounds by traditional venture firms.
Methodology
As calculated by Thomson Reuters, venture capital
investment data are derived from several sources.
Primarily, survey information is obtained from the
quarterly survey that drives the MoneyTree Report™
from PricewaterhouseCoopers and the National
Venture Capital Association based on data from
Thomson Reuters. This is the official industry database
of venture capital investment. Secondly, Thomson
Reuters obtains data from SEC filings that are regular-
ly monitored by our research staff. Finally, publicly
available sources such as press releases and trade pub-
lications are used.
For detailed information on which transactions quali-
fy as MoneyTree deals and are therefore counted in
this chapter, please refer to Appendix B.
National Venture Capital Association
28 Thomson Reuters

30. 2013 NVCA Yearbook
Thomson Reuters 29
Amt
State # Companies # Deals Invested ($Bil)
California 1,280 1,532 14.1
Massachusetts 326 414 3.1
New York 287 331 1.9
Washington 101 117 0.9
Texas 134 159 0.9
Total* 2,128 2,553 20.9
Figure 3.03
Venture Capital Investments
Top 5 States in 2012
Investment Investment
Industry Group # Companies # Deals Amt ($Bil) # Companies # Deals Amt ($Bil)
Information Technology 2,130 2,480 16.5 870 870 3.0
Medical/Health/Life Science 649 818 6.8 148 148 0.7
Non-High Technology 364 425 3.4 156 156 0.4
Total 3,143 3,723 26.7 1,174 1,174 4.1
All Investments Initial Investments
0
20
40
60
80
100
120 1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
($Billions)
Year
Figure 3.02
Venture Capital Investments in 2012
By Industry Group
Figure 3.01
Venture Capital Investments ($ Billions)
1985 to 2012
*Total includes top 5 states only

31. National Venture Capital Association
30 Thomson Reuters
Business Products
and Services 0.4%
Computers and
Peripherals 2%
Consumer Products
and Services 5%
Electronics/
Instrumentation 1%
Biotechnology
15%
Financial Services 1%
Healthcare Services 1%
Industrial/Energy 10%
IT Services 7%
Media and
Entertainment 7%
Medical Devices
and Equipment 9%
Networking and
Equipment 1%
Retailing/
Distribution 2%
Semiconductors
3%
Telecommunications 2%
Software 31%
Other
0.2%
Figure 3.04
Venture Capital Investments in 2012
Industry Sector by Dollars Invested
Seed 3%
Early Stage 30%
Expansion 35%
Later Stage 32%
Figure 3.05
Venture Capital Investments in 2012
Stage By Dollars Invested

32. 2013 NVCA Yearbook
Thomson Reuters 31
AR
NE
WY
8
AL
56
CO
5
DE
38
GA
2
HI
15
KS
MA
57
MD
33
MN
12
MO
2
MS
1
MT
2
ND
12
NH
12
NM
44
OH
94
TX
31
UT
5
VT
9
WI
250
AK
AR
NE
WY
43
AL
111
AZ
468
CO
18
DE
302
GA
7
HI
84
IA
15
ID
8
KS
277
MD
263
MN
24
MO
0
MS
15
MT
7
ND
7
NM
15
NV
101
OR
645
TX
178
UT
574
WA
23
WI
Figure 3.06
Amount of Capital Invested By State in 2012
($ Millions)
Figure 3.07
Number of Companies Invested in By State in 2012
6
MT
15
ID WY
564
CO
304
UT
7
NV14,129
CA
212
AZ
35
NM
931
TX
2
ND
0
SD
11
NE
46
KS
34
OK
243
MN
95
WI 232
MI
1,857
NY
4
VT
61
NH
13
ME
3,068 MA
85 RI
158 CT
429 NJ
9 DE
280 MD169 NC
87 TN
10
MS
23
AL
265
GA
203
FL
PR
VI
GU
5
IA
570
IL
84
IN
286
OH
372 VA
15
VW23
KY
21
MO
5
AR
11
LA
1
HI
AK
AK
24
OR
3
MT
1
ND
26
MN
4
ID
1
SD
1,280
CA
4
NV
37
UT
85
CO
5
NE
9
KS
1
IA
12
WI 41
MI
8
MO
76
IL
14
IN
51
OH
5
KY
30 TN
154
PA
62
VA
5
ME
8
NH
4
VT
287
NY
25
DC
1
AR
7
OK
134
TX
3
HI
4
LA
3
MS
6
AL
44
GA
31
FL
1 PR
VI
GU
12
NM
13
AZ
WY
518
PA
6 DC39
SC
5
SC
50
MD
6
DE
49 NJ
38 CT
12 RI
326 MA
2
WV
33 NC
932
WA
124
OR
101
WA

33. National Venture Capital Association
32 Thomson Reuters
RReeggiioonn 11998855 11998866 11998877 11998888 11998899 11999900 11999911 11999922 11999933 11999944 11999955 11999966
SiliconValley 758.8 1,016.3 849.9 985.9 916.5 914.1 780.5 1,119.5 903.2 1,074.4 1,807.8 3,417.7
NewEngland 435.4 436.6 525.1 496.9 404.7 425.0 287.0 417.0 358.4 440.4 796.6 1,159.4
NYMetro 221.2 211.0 273.9 308.0 360.4 190.1 181.5 239.0 222.3 283.3 509.7 743.2
LA/OrangeCounty 196.5 186.9 276.9 222.5 242.1 174.7 119.4 179.4 176.4 198.4 1,004.1 702.9
Midwest 157.5 139.9 198.4 132.3 183.2 155.9 181.4 165.2 276.9 432.6 470.3 743.3
SanDiego 99.6 95.4 107.8 149.8 145.5 113.3 115.7 111.2 133.0 220.5 276.8 485.2
Northwest 142.2 142.9 153.3 141.2 118.0 88.2 59.9 252.1 118.4 165.7 379.7 557.6
Texas 249.0 228.4 211.0 240.7 228.3 141.0 161.4 149.6 240.7 311.8 479.2 553.4
Southeast 166.4 234.2 271.0 266.5 224.4 145.9 109.4 346.6 405.8 362.3 876.6 1,165.0
DC/Metroplex 99.1 61.1 111.8 129.9 139.5 96.9 51.3 65.8 384.1 137.8 420.2 586.3
Colorado 77.0 113.8 111.4 107.8 157.8 93.7 54.2 129.7 135.0 197.4 325.1 321.2
SouthWest 40.1 82.5 57.5 59.7 50.7 30.3 49.0 98.4 49.7 38.0 113.1 184.6
PhiladelphiaMetro 52.6 63.3 79.2 71.8 65.3 105.9 34.7 168.9 108.3 137.6 220.9 349.9
NorthCentral 37.0 44.5 73.6 41.6 51.2 92.2 44.9 89.1 109.6 87.4 223.8 208.5
SouthCentral 13.7 11.4 19.8 11.7 14.5 11.6 4.2 6.5 8.6 15.2 45.2 81.1
UpstateNY 14.2 10.7 10.2 5.3 7.3 11.1 3.4 9.1 5.7 0.7 35.5 22.7
Unknown - - 0.5 0.8 6.1 13.0 0.2 30.8 0.8 0.1 0.3 2.2
Sacramento/N.Cal 16.0 45.5 32.0 33.6 4.2 19.5 15.7 8.5 19.1 20.0 20.0 28.6
AK/HI/PR - - - - - - 0.3 0.0 1.0 22.0 7.8 28.7
TToottaall 22,,777766..44 33,,112244..55 33,,336633..66 33,,440066..00 33,,331199..66 22,,882222..44 22,,225544..00 33,,558866..33 33,,665566..88 44,,115577..66 88,,001122..66 1111,,334411..55
11999977 11999988 11999999 22000000 22000011 22000022 22000033 22000044 22000055 22000066 22000077 22000088 22000099
4,632.3 5,878.3 17,801.6 33,452.0 12,599.3 7,242.9 6,755.6 7,999.3 8,116.3 9,816.8 11,554.7 11,436.4 8,220.5
1,606.7 2,353.4 5,641.6 12,019.9 5,431.2 2,992.3 2,990.4 3,345.5 2,967.1 3,310.8 3,964.5 3,788.3 2,577.6
1,289.4 1,817.6 4,532.3 10,300.4 3,512.8 1,569.4 1,422.0 1,648.2 1,998.5 2,185.5 1,902.8 2,148.7 1,737.3
875.2 1,250.6 3,596.9 6,808.1 2,285.8 1,286.8 1,069.4 1,319.8 1,506.1 1,902.7 1,906.3 2,041.1 1,060.1
919.6 1,653.5 2,729.2 5,776.7 2,182.4 976.9 913.6 712.5 918.0 1,010.1 1,167.9 1,364.6 952.8
516.0 669.1 1,429.5 2,302.3 1,579.1 996.2 825.8 1,197.8 1,203.9 1,223.6 1,844.4 1,209.4 949.0
564.4 820.3 2,877.6 3,603.4 1,426.8 746.4 643.5 993.3 1,011.3 1,318.2 1,636.2 1,134.7 678.7
908.7 1,205.6 3,162.7 6,262.9 3,104.3 1,187.6 1,221.0 1,215.1 1,189.4 1,519.7 1,496.9 1,122.6 665.5
1,366.1 1,794.8 4,831.0 7,976.1 2,684.7 1,772.7 1,117.9 1,439.2 1,101.3 1,228.2 1,812.4 1,389.3 1,045.0
515.1 1,148.5 2,395.1 5,785.3 2,103.1 1,095.6 794.6 1,086.6 1,220.4 1,361.6 1,443.5 1,145.8 678.4
405.0 838.9 1,845.8 4,091.9 1,244.4 588.0 644.8 363.2 653.4 688.8 686.3 872.3 623.2
303.1 411.2 843.1 1,387.5 515.1 393.8 220.5 393.6 524.8 526.6 577.7 490.1 277.5
534.2 703.9 1,732.6 2,591.5 1,073.3 607.8 555.1 768.4 597.8 845.5 953.6 861.9 433.7
341.6 429.6 770.0 1,426.7 669.4 431.5 268.5 464.1 367.0 382.1 535.7 644.6 400.3
67.4 196.7 360.1 446.9 110.4 69.3 65.5 130.1 96.1 64.3 152.8 91.3 25.0
90.3 195.4 212.4 293.9 159.1 104.5 122.7 104.8 60.1 156.2 136.5 92.3 26.9
4.4 39.1 2.4 50.4 14.3 - - - - - - - 0.5
21.4 86.8 119.1 375.3 203.0 65.4 32.2 38.4 37.7 29.4 82.0 71.3 18.8
14.0 5.5 17.4 248.6 69.8 4.9 17.9 15.1 43.3 47.1 20.9 21.3 7.4
1144,,997744..99 2211,,448899..99 5544,,990000..33 110055,,220000..00 4400,,996688..33 2222,,113322..33 1199,,668811..11 2233,,223355..11 2233,,661122..55 2277,,661177..22 3311,,887711..55 2299,,992255..99 2200,,337788..33
22001100 22001111 22001122
9,302.8 11,656.8 10,907.4
2,604.3 3,318.1 3,237.4
1,886.2 2,859.8 2,334.6
1,704.5 2,080.4 2,067.2
1,340.0 1,769.2 1,386.7
896.9 926.6 1,116.7
774.9 796.6 1,076.0
1,070.9 1,580.2 930.5
1,109.4 1,210.2 796.2
967.2 987.2 727.4
447.9 615.7 564.2
263.8 543.1 558.4
444.7 458.9 399.0
343.3 392.5 355.8
77.7 106.2 95.7
44.8 106.7 48.7
- - 29.5
22.5 88.3 20.1
14.0 0.6 0.7
2233,,331155..77 2299,,449977..22 2266,,665522..44
Figure 3.08
Venture Capital Investments in 1985 to 2012
By Region ($ Millions)
RReeggiioonn 11998855 11998866 11998877 11998888 11998899 11999900 11999911 11999922 11999933 11999944 11999955 11999966 11999977 11999988
SiliconValley 323 340 343 362 394 398 337 421 316 336 509 771 867 1,043
NewEngland 235 214 257 231 222 217 170 159 149 146 232 333 383 469
NYMetro 89 100 131 108 121 90 89 81 80 85 135 158 240 274
Midwest 98 116 133 101 127 103 99 93 85 83 132 192 239 250
LA/OrangeCounty 90 101 114 106 112 97 89 97 63 55 92 134 166 217
Southeast 91 117 134 115 113 130 112 108 117 112 181 226 294 308
DC/Metroplex 45 45 65 59 51 62 54 48 41 47 72 113 135 162
Texas 106 93 106 105 91 85 70 70 71 69 101 135 172 197
Northwest 47 49 62 70 64 48 41 50 49 50 84 112 134 132
PhiladelphiaMetro 38 35 54 44 41 48 43 65 47 46 78 91 142 138
SanDiego 43 35 54 56 56 47 43 46 49 61 77 109 100 123
Colorado 43 58 62 63 53 49 35 53 48 53 58 83 98 127
SouthWest 20 30 42 26 32 22 30 34 30 29 37 55 71 88
NorthCentral 37 50 54 52 39 44 40 39 38 37 70 69 116 106
UpstateNY 17 10 10 10 12 6 4 9 10 5 8 9 21 31
SouthCentral 11 10 12 6 7 5 4 5 6 9 15 22 25 27
Sacramento/N.Cal 11 18 12 10 6 10 9 9 8 10 7 9 7 17
AK/HI/PR 1 - - - - - 3 3 1 2 4 9 6 5
Unknown - - 1 2 3 1 1 2 4 2 2 7 7 14
TToottaall 11,,334455 11,,442211 11,,664466 11,,552266 11,,554444 11,,446622 11,,227733 11,,339922 11,,221122 11,,223377 11,,889944 22,,663377 33,,222233 33,,772288
11999999 22000000 22000011 22000022 22000033 22000044 22000055 22000066 22000077 22000088 22000099 22001100 22001111 22001122
1,685 2,159 1,103 817 874 958 1,006 1,236 1,305 1,290 990 1,092 1,248 1,160
663 904 597 457 446 427 440 458 521 510 387 411 448 452
491 818 448 232 193 227 192 294 296 342 287 393 415 396
311 515 276 243 174 178 181 230 272 304 252 272 311 300
356 518 251 164 149 150 178 219 234 243 170 227 233 264
454 665 391 270 247 246 198 238 246 227 159 216 211 171
272 510 261 199 183 187 222 220 220 208 139 152 162 163
318 484 341 173 173 177 181 201 188 161 123 165 167 159
264 329 192 140 108 148 160 184 216 205 129 161 167 154
145 231 142 102 88 105 97 116 138 153 97 124 119 118
161 236 156 114 125 132 143 128 169 134 115 134 113 101
162 222 115 91 74 72 93 110 114 116 94 86 107 100
116 146 89 68 55 58 84 93 106 84 71 59 84 77
114 151 125 75 71 77 67 73 95 88 68 58 70 50
31 36 29 24 22 29 28 39 33 31 13 21 21 24
30 50 28 24 21 31 11 26 31 40 32 42 58 22
19 36 27 7 11 9 11 8 18 20 9 8 8 5
5 15 10 3 8 6 8 14 10 9 3 4 3 4
3 16 8 - - - - - 1 - 1 1 1 3
55,,660000 88,,004411 44,,558899 33,,220033 33,,002222 33,,221177 33,,330000 33,,888877 44,,221133 44,,116655 33,,113399 33,,662266 33,,994466 33,,772233
Figure 3.08b
Venture Capital Investments in 1985 to 2012
By Region (Number of Deals)

34. 2013 NVCA Yearbook
Thomson Reuters 33
SSttaaggee 11998855 11998866 11998877 11998888 11998899 11999900 11999911 11999922 11999933 11999944 11999955 11999966 11999977 11999988
Seed 357 388 387 371 355 258 193 252 290 332 431 504 542 670
EarlyStage 290 333 412 359 338 370 278 291 184 256 519 754 896 1,019
Expansion 525 504 616 614 664 603 544 606 515 429 706 1,045 1,402 1,572
LaterStage 173 196 231 182 187 231 258 243 223 220 238 334 383 467
TToottaall 11,,334455 11,,442211 11,,664466 11,,552266 11,,554444 11,,446622 11,,227733 11,,339922 11,,221122 11,,223377 11,,889944 22,,663377 33,,222233 33,,772288
11999999 22000000 22000011 22000022 22000033 22000044 22000055 22000066 22000077 22000088 22000099 22001100 22001111 22001122
811 703 279 181 216 234 264 396 524 537 375 409 445 280
1,735 2,855 1,299 875 799 899 859 1,001 1,129 1,137 973 1,271 1,562 1,647
2,445 3,703 2,392 1,585 1,355 1,201 1,116 1,380 1,277 1,242 888 1,074 1,021 962
609 780 619 562 652 883 1,061 1,110 1,283 1,249 903 872 918 834
55,,660000 88,,004411 44,,558899 33,,220033 33,,002222 33,,221177 33,,330000 33,,888877 44,,221133 44,,116655 33,,113399 33,,662266 33,,994466 33,,772233
Figure 3.09b
Venture Capital Investments
1985 to 2012 By Stage (Number of Deals)
Stage 1985-1Q 1985-2Q 1985-3Q 1985-4Q 1985Total 1986-1Q 1986-2Q 1986-3Q 1986-4Q 1986Total 1987-1Q 1987-2Q 1987-3Q 1987-4Q
Seed 153.0 146.5 93.7 133.0 526.2 185.6 270.0 114.7 189.4 759.7 145.7 199.4 142.0 136.3
EarlyStage 96.3 185.3 106.3 129.9 517.8 129.6 135.3 176.6 178.7 620.3 170.7 183.9 205.1 190.8
Expansion 219.5 319.6 312.8 393.7 1,245.7 270.0 381.4 252.6 294.8 1,198.8 423.3 354.2 402.5 315.1
LaterStage 154.4 89.4 164.4 78.5 486.8 125.3 93.2 180.4 146.7 545.7 100.1 164.9 118.9 110.7
Total 623.1 740.8 677.2 735.1 2,776.4 710.5 879.9 724.4 809.6 3,124.5 839.7 902.4 868.5 752.9
1986 19871985
1987Total 1988-1Q 1988-2Q 1988-3Q 1988-4Q 1988Total
623.4 164.7 150.0 240.6 115.2 670.5
750.5 144.0 216.6 184.7 169.4 714.6
1,495.1 314.5 497.1 320.2 431.4 1,563.2
494.6 135.3 105.0 151.4 66.0 457.7
3,363.6 758.5 968.6 896.9 781.9 3,406.0
1988
Figure 3.09c-1
Quarterly Venture Capital Investments
1985 to 2012 By Stage ($ Millions)
Stage 1989-1Q 1989-2Q 1989-3Q 1989-4Q 1989Total 1990-1Q 1990-2Q 1990-3Q 1990-4Q 1990Total 1991-1Q
Seed 138.1 174.6 115.4 130.3 558.4 81.9 116.7 114.8 83.8 397.1 45.8
EarlyStage 255.9 127.7 163.1 190.9 737.6 139.7 199.1 133.1 212.5 684.4 137.9
Expansion 399.6 434.1 305.5 456.6 1,595.8 307.2 356.1 208.0 397.9 1,269.2 249.5
LaterStage 95.5 97.7 78.3 156.4 427.8 123.1 105.5 126.3 116.7 471.7 89.5
Total 889.1 834.1 662.2 934.2 3,319.6 651.9 777.4 582.2 810.9 2,822.4 522.8
1989 1990
1991-2Q 1991-3Q 1991-4Q 1991Total 1992-1Q 1992-2Q 1992-3Q 1992-4Q 1992Total
84.6 53.4 58.0 241.8 67.6 210.2 71.8 206.8 556.5
130.3 140.4 140.0 548.7 123.0 187.6 102.7 153.4 566.8
276.2 262.9 311.7 1,100.2 496.3 434.8 352.2 495.4 1,778.7
115.8 57.9 100.1 363.3 203.2 175.3 107.0 198.8 684.3
606.9 514.5 609.9 2,254.0 890.2 1,007.9 633.8 1,054.5 3,586.3
1991 1992
Figure 3.09c-2
Quarterly Venture Capital Investments
1985 to 2012 By Stage ($ Millions)
Stage 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
Seed 526.2 759.7 623.4 670.5 558.4 397.1 241.8 556.5 629.6 781.2 1,272.9 1,271.7
EarlyStage 517.8 620.3 750.5 714.6 737.6 684.4 548.7 566.8 575.8 839.7 1,733.4 2,640.5
Expansion 1,245.7 1,198.8 1,495.1 1,563.2 1,595.8 1,269.2 1,100.2 1,778.7 1,866.0 1,539.1 3,564.2 5,540.4
LaterStage 486.8 545.7 494.6 457.7 427.8 471.7 363.3 684.3 585.4 985.7 1,442.2 1,888.9
Total 2,776.4 3,124.5 3,363.6 3,406.0 3,319.6 2,822.4 2,254.0 3,586.3 3,656.8 4,145.7 8,012.6 11,341.5
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
S 1,374.2 1,766.2 3,666.2 3,156.1 800.7 340.2 365.7 951.6 1,006.3 1,293.6 1,819.6 1,917.3 1,870.7
3,420.5 5,460.1 11,360.2 25,335.4 8,606.3 3,935.3 3,608.5 4,045.9 4,056.3 4,727.4 6,081.5 5,731.0 4,906.9
7,588.6 10,367.0 29,406.8 59,121.5 22,911.7 12,135.5 9,805.5 9,046.2 8,607.9 11,154.8 11,091.8 10,857.4 6,824.2
2,591.6 3,905.5 10,467.0 17,587.0 8,649.6 5,721.1 5,901.4 9,191.5 9,942.0 10,441.5 12,882.2 11,420.1 6,776.5
14,974.9 21,498.9 54,900.3 105,200.0 40,968.3 22,132.0 19,681.1 23,235.1 23,612.5 27,617.2 31,875.1 29,925.9 20,378.3
2010 2011 2012
S 1,661.3 1,052.6 726.4
5,867.0 8,794.4 7,876.3
8,702.0 9,830.5 9,376.4
7,085.4 9,819.7 8,673.3
23,315.7 29,497.2 26,652.4
Figure 3.09
Venture Capital Investments
1985 to 2012 By Stage ($ Millions)

35. National Venture Capital Association
34 Thomson Reuters
Stage 1993-1Q 1993-2Q 1993-3Q 1993-4Q 1993Total 1994-1Q 1994-2Q 1994-3Q 1994-4Q 1994Total 1995-1Q
Seed 139.7 144.1 164.3 181.5 629.6 190.0 225.8 160.2 205.1 781.2 316.6
EarlyStage 164.3 136.8 106.6 168.0 575.8 177.6 196.4 157.8 307.9 839.7 408.8
Expansion 355.0 412.3 461.3 637.3 1,866.0 325.3 390.5 344.2 479.1 1,539.1 620.0
LaterStage 189.2 111.2 116.8 168.3 585.4 186.6 190.5 262.0 346.6 985.7 344.5
Total 848.3 804.4 849.0 1,155.2 3,656.8 879.5 1,003.3 924.2 1,338.7 4,145.7 1,689.9
1993 1994
1995-2Q 1995-3Q 1995-4Q 1995Total 1996-1Q 1996-2Q 1996-3Q 1996-4Q 1996Total
396.6 229.9 329.8 1,272.9 322.7 431.9 200.6 316.5 1,271.7
393.6 366.8 564.1 1,733.4 597.8 714.0 574.6 754.1 2,640.5
1,328.2 800.4 815.7 3,564.2 1,151.9 1,509.9 1,277.0 1,601.6 5,540.4
428.0 308.7 361.1 1,442.2 346.4 460.3 545.4 536.8 1,888.9
2,546.4 1,705.8 2,070.6 8,012.6 2,418.8 3,116.1 2,597.6 3,208.9 11,341.5
1995 1996
Figure 3.09c-3
Quarterly Venture Capital Investments
1985 to 2012 By Stage ($ Millions)
Stage 1997-1Q 1997-2Q 1997-3Q 1997-4Q 1997Total 1998-1Q 1998-2Q 1998-3Q 1998-4Q 1998Total 1999-1Q
Seed 400.6 330.8 323.3 319.5 1,374.2 402.6 426.4 459.9 477.3 1,766.2 591.5
EarlyStage 769.5 846.8 760.1 1,044.1 3,420.5 1,164.7 1,014.5 1,290.4 1,990.6 5,460.1 1,215.0
Expansion 1,358.4 1,958.5 1,970.6 2,301.0 7,588.6 1,753.9 3,359.1 2,716.0 2,538.0 10,367.0 3,210.3
LaterStage 594.7 531.6 669.3 795.9 2,591.6 854.6 973.6 949.5 1,127.9 3,905.5 1,605.2
Total 3,123.3 3,667.8 3,723.3 4,460.5 14,974.9 4,175.7 5,773.5 5,415.7 6,133.9 21,498.9 6,622.0
1997 1998
1999-2Q 1999-3Q 1999-4Q 1999Total 2000-1Q 2000-2Q 2000-3Q 2000-4Q 2000Total
840.4 989.7 1,244.5 3,666.2 807.0 984.1 878.3 486.8 3,156.1
1,993.7 2,661.8 5,489.7 11,360.2 7,138.2 6,937.9 5,912.3 5,347.0 25,335.4
5,498.5 7,348.1 13,350.0 29,406.8 16,113.3 15,761.4 15,263.6 11,983.2 59,121.5
2,999.2 2,597.5 3,265.1 10,467.0 4,382.9 4,343.2 4,572.9 4,288.1 17,587.0
11,331.8 13,597.1 23,349.3 54,900.3 28,441.3 28,026.6 26,627.0 22,105.1 105,200.0
1999 2000
Figure 3.09c-4
Quarterly Venture Capital Investments
1985 to 2012 By Stage ($ Millions)
Stage 2001-1Q 2001-2Q 2001-3Q 2001-4Q 2001Total 2002-1Q 2002-2Q 2002-3Q 2002-4Q 2002Total 2003-1Q
Seed 256.6 265.3 128.5 150.3 800.7 76.4 93.5 84.2 86.1 340.2 84.5
EarlyStage 3,459.5 2,102.1 1,712.2 1,332.5 8,606.3 1,182.2 1,134.1 827.7 791.4 3,935.3 690.0
Expansion 6,939.3 6,622.1 4,563.8 4,786.5 22,911.7 3,804.8 3,544.3 2,462.6 2,323.8 12,135.5 2,468.7
LaterStage 2,447.6 2,513.1 1,802.4 1,886.5 8,649.6 1,927.7 1,339.6 1,094.4 1,359.4 5,721.1 1,159.6
Total 13,103.0 11,502.5 8,206.9 8,155.9 40,968.3 6,991.1 6,111.4 4,468.8 4,560.7 22,132.0 4,402.8
2001 2002
2003-2Q 2003-3Q 2003-4Q 2003Total 2004-1Q 2004-2Q 2004-3Q 2004-4Q 2004Total
95.2 100.3 85.8 365.7 104.8 124.3 168.0 554.5 951.6
1,015.7 806.8 1,096.0 3,608.5 904.9 1,030.3 1,028.6 1,082.0 4,045.9
2,513.9 2,202.5 2,620.3 9,805.5 2,063.3 2,680.0 2,043.1 2,259.7 9,046.2
1,368.7 1,520.5 1,852.6 5,901.4 2,312.6 2,481.9 1,856.6 2,540.4 9,191.5
4,993.4 4,630.1 5,654.7 19,681.1 5,385.6 6,316.6 5,096.3 6,436.6 23,235.1
20042003
Figure 3.09c-5
Quarterly Venture Capital Investments
1985 to 2012 By Stage ($ Millions)
Stage 2005-1Q 2005-2Q 2005-3Q 2005-4Q 2005Total 2006-1Q 2006-2Q 2006-3Q 2006-4Q 2006Total 2007-1Q
Seed 148.5 530.5 165.0 162.2 1,006.3 246.7 374.0 366.6 306.2 1,293.6 319.3
EarlyStage 867.8 1,001.6 1,192.0 994.8 4,056.3 930.1 1,018.4 1,112.3 1,666.6 4,727.4 1,337.9
Expansion 2,132.9 2,367.4 1,759.6 2,348.1 8,607.9 2,604.7 3,211.1 2,881.2 2,457.7 11,154.8 2,646.9
LaterStage 2,082.1 2,551.8 2,972.5 2,335.5 9,942.0 2,847.4 2,793.3 2,529.5 2,271.4 10,441.5 3,108.6
Total 5,231.3 6,451.3 6,089.1 5,840.7 23,612.5 6,629.0 7,396.8 6,889.6 6,701.9 27,617.2 7,412.6
2005 2006
2007-2Q 2007-3Q 2007-4Q 2007Total 2008-1Q 2008-2Q 2008-3Q 2008-4Q 2008Total
489.2 455.0 556.0 1,819.6 459.3 535.3 557.9 364.9 1,917.3
1,700.5 1,263.1 1,780.0 6,081.5 1,376.9 1,524.3 1,372.6 1,457.2 5,731.0
2,353.2 3,104.8 2,986.9 11,091.8 3,427.7 2,697.9 2,556.8 2,175.0 10,857.4
3,289.9 3,389.9 3,093.8 12,882.2 2,813.0 3,272.5 3,137.7 2,197.1 11,420.1
7,832.8 8,213.0 8,416.7 31,875.1 8,076.8 8,030.0 7,625.0 6,194.1 29,925.9
2007 2008
Figure 3.09c-6
Quarterly Venture Capital Investments
1985 to 2012 By Stage ($ Millions)
Stage 2009-1Q 2009-2Q 2009-3Q 2009-4Q 2009Total 2010-1Q 2010-2Q 2010-3Q 2010-4Q 2010Total 2011-1Q
Seed 319.7 672.4 511.0 367.6 1,870.7 407.9 687.8 332.5 233.1 1,661.3 225.2
EarlyStage 767.3 1,179.6 1,213.6 1,746.5 4,906.9 1,147.8 1,740.3 1,410.4 1,568.5 5,867.0 1,830.3
Expansion 1,223.8 1,770.3 1,824.4 2,005.7 6,824.2 1,788.9 2,796.5 1,685.3 2,431.3 8,702.0 2,257.4
LaterStage 1,531.5 1,606.8 1,844.7 1,793.6 6,776.5 1,723.4 1,925.7 1,999.1 1,437.1 7,085.4 2,220.8
Total 3,842.2 5,229.1 5,393.7 5,913.3 20,378.3 5,067.9 7,150.2 5,427.4 5,670.2 23,315.7 6,533.7
2009 2010
2011-2Q 2011-3Q 2011-4Q 2011Total 2012-1Q 2012-2Q 2012-3Q 2012-4Q 2012Total
413.4 221.7 192.4 1,052.6 157.9 230.6 181.0 156.9 726.4
2,272.4 2,233.2 2,458.5 8,794.4 1,933.7 2,190.2 1,824.0 1,928.3 7,876.3
2,418.9 2,545.3 2,608.9 9,830.5 1,789.2 2,715.7 2,614.1 2,257.5 9,376.4
3,037.1 2,426.3 2,135.5 9,819.7 2,355.8 2,187.7 1,983.2 2,146.6 8,673.3
8,141.7 7,426.5 7,395.3 29,497.2 6,236.6 7,324.2 6,602.3 6,489.4 26,652.4
20122011
Figure 3.09c-7
Quarterly Venture Capital Investments
1985 to 2012 By Stage ($ Millions)

36. 2013 NVCA Yearbook
Thomson Reuters 35
Stage 1989-1Q 1989-2Q 1989-3Q 1989-4Q 1989Total 1990-1Q 1990-2Q 1990-3Q 1990-4Q 1990Total
Seed 106 100 77 72 355 60 69 59 70 258
EarlyStage 101 65 84 88 338 87 97 73 113 370
Expansion 215 160 127 162 664 148 153 145 157 603
LaterStage 52 33 38 64 187 55 57 48 71 231
Total 474 358 326 386 1,544 350 376 325 411 1,462
1989 1990
1991-1Q 1991-2Q 1991-3Q 1991-4Q 1991Total 1992-1Q 1992-2Q 1992-3Q 1992-4Q 1992Total
51 49 42 51 193 49 68 49 86 252
79 69 60 70 278 73 86 52 80 291
137 127 126 154 544 156 160 104 186 606
49 69 54 86 258 74 47 44 78 243
316 314 282 361 1,273 352 361 249 430 1,392
19921991
Figure 3.09d-2
Quarterly Venture Capital Investments
1985 to 2012 By Stage (Number of Deals)
Stage 1993-1Q 1993-2Q 1993-3Q 1993-4Q 1993Total 1994-1Q 1994-2Q 1994-3Q 1994-4Q 1994Total 1995-1Q
Seed 69 68 66 87 290 91 67 83 91 332 125
EarlyStage 41 49 38 56 184 64 61 54 77 256 130
Expansion 145 121 116 133 515 105 111 98 115 429 187
LaterStage 67 53 52 51 223 50 69 43 58 220 61
Total 322 291 272 327 1,212 310 308 278 341 1,237 503
1993 1994
1995-2Q 1995-3Q 1995-4Q 1995Total 1996-1Q 1996-2Q 1996-3Q 1996-4Q 1996Total
95 95 116 431 130 140 97 137 504
136 116 137 519 148 206 175 225 754
179 164 176 706 235 247 245 318 1,045
55 58 64 238 71 82 85 96 334
465 433 493 1,894 584 675 602 776 2,637
1995 1996
Figure 3.09d-3
Quarterly Venture Capital Investments
1985 to 2012 By Stage (Number of Deals)
Stage 1997-1Q 1997-2Q 1997-3Q 1997-4Q 1997Total 1998-1Q 1998-2Q 1998-3Q 1998-4Q 1998Total 1999-1Q
Seed 163 120 120 139 542 152 162 164 192 670 166
EarlyStage 201 208 228 259 896 242 221 243 313 1,019 245
Expansion 310 361 320 411 1,402 366 407 405 394 1,572 383
LaterStage 100 87 90 106 383 108 121 114 124 467 140
Total 774 776 758 915 3,223 868 911 926 1,023 3,728 934
1997 1998
1999-2Q 1999-3Q 1999-4Q 1999Total 2000-1Q 2000-2Q 2000-3Q 2000-4Q2000Total
211 249 185 811 196 197 172 138 703
380 448 662 1,735 763 793 680 619 2,855
567 595 900 2,445 1,009 981 899 814 3,703
174 150 145 609 192 172 207 209 780
1,332 1,442 1,892 5,600 2,160 2,143 1,958 1,780 8,041
1999 2000
Figure 3.09d-4
Quarterly Venture Capital Investments
1985 to 2012 By Stage (Number of Deals)
Figure 3.09d-5
Quarterly Venture Capital Investments
1985 to 2012 By Stage (Number of Deals)
Stage 1985-1Q 1985-2Q 1985-3Q 1985-4Q 1985Total 1986-1Q 1986-2Q 1986-3Q 1986-4Q 1986Total 1987-1Q
Seed 110 88 61 98 357 134 107 65 82 388 116
EarlyStage 88 69 60 73 290 111 70 72 80 333 131
Expansion 138 122 114 151 525 166 136 96 106 504 182
LaterStage 65 40 37 31 173 60 55 31 50 196 64
Total 401 319 272 353 1,345 471 368 264 318 1,421 493
1985 1986
1987-2Q 1987-3Q 1987-4Q 1987Total 1988-1Q 1988-2Q 1988-3Q 1988-4Q 1988Total
101 85 85 387 120 79 88 84 371
83 103 95 412 99 94 87 79 359
139 158 137 616 158 182 133 141 614
64 51 52 231 54 48 42 38 182
387 397 369 1,646 431 403 350 342 1,526
1987 1988
Figure 3.09d-1
Quarterly Venture Capital Investments
1985 to 2012 By Stage (Number of Deals)
Stage 2001-1Q 2001-2Q 2001-3Q 2001-4Q 2001Total 2002-1Q 2002-2Q 2002-3Q 2002-4Q 2002Total 2003-1Q 2003-2Q
Seed 80 73 68 58 279 47 53 40 41 181 57 60
EarlyStage 436 338 271 254 1,299 247 242 193 193 875 188 215
Expansion 650 670 543 529 2,392 410 447 348 380 1,585 346 320
LaterStage 155 156 148 160 619 160 136 128 138 562 132 160
Total 1,321 1,237 1,030 1,001 4,589 864 878 709 752 3,203 723 755
20022001
2003-3Q 2003-4Q 2003Total 2004-1Q 2004-2Q 2004-3Q 2004-4Q 2004Total
44 55 216 46 75 45 68 234
183 213 799 207 238 222 232 899
336 353 1,355 281 349 261 310 1,201
168 192 652 205 216 194 268 883
731 813 3,022 739 878 722 878 3,217
2003 2004

37. National Venture Capital Association
36 Thomson Reuters
Industry 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
Software 612 577 519 482 457 519 463 614 459 671 1,186 2,350
Biotechnology 136 223 290 369 334 314 287 581 479 585 832 1,186
Industrial/Energy 201 208 290 222 345 242 183 285 278 294 527 498
Medical Devices and Equipment 181 182 259 340 347 325 235 514 393 439 668 618
IT Services 26 38 51 39 36 38 41 29 54 119 175 442
Media and Entertainment 101 118 155 166 151 93 69 132 278 275 944 1,154
Consumer Products and Services 69 135 176 153 86 159 126 123 159 176 534 510
Semiconductors 253 293 255 294 165 190 90 156 93 157 214 340
Telecommunications 178 174 148 161 124 128 117 200 251 463 937 1,323
Retailing/Distribution 32 114 296 232 217 89 48 97 103 103 303 269
Computers and Peripherals 449 473 392 370 311 245 174 205 164 178 316 363
Networking and Equipment 224 164 143 137 197 174 140 250 516 250 372 631
Healthcare Services 81 125 140 97 155 92 72 191 202 202 460 734
Financial Services 81 96 62 209 233 63 25 120 102 123 181 323
Electronics/Instrumentation 120 121 122 77 110 58 74 51 50 65 151 211
Business Products and Services 29 81 64 53 52 94 77 39 70 40 176 369
Other 3 3 0 6 0 33 0 6 6 37 21
Total 2,776 3,125 3,364 3,406 3,320 2,822 2,254 3,586 3,657 4,146 8,013 11,341
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
S 3,462 4,721 10,690 25,251 10,820 5,509 4,855 5,483 5,144 5,449 6,124 6,069 4,205 5,116 7,516 8,293
1,368 1,551 2,101 4,270 3,480 3,312 3,745 4,388 3,930 4,816 5,713 4,970 3,972 3,903 4,825 4,115
704 1,260 1,464 2,627 1,250 826 774 847 1,138 1,996 3,082 4,631 2,564 3,465 3,595 2,792
1,026 1,256 1,577 2,403 2,046 1,863 1,613 1,905 2,209 2,778 3,759 3,603 2,605 2,341 2,883 2,511
640 1,093 4,323 8,890 2,475 978 747 748 1,057 1,482 1,930 2,108 1,228 1,661 2,264 1,993
1,056 1,873 7,408 10,598 2,370 784 662 1,410 1,200 1,888 2,166 1,796 1,371 1,572 2,258 1,976
742 680 2,718 3,220 702 256 157 334 363 424 454 418 489 571 1,399 1,208
597 631 1,380 3,806 2,474 1,654 1,767 2,166 1,855 2,307 2,041 1,595 773 1,046 1,345 926
1,562 3,024 8,032 16,468 5,179 2,168 1,674 1,854 2,150 2,414 2,191 1,514 636 792 631 582
326 769 2,810 3,209 368 139 64 217 249 189 340 222 156 165 454 498
394 383 939 1,628 693 457 360 538 535 388 550 470 345 408 494 453
962 1,446 4,658 11,730 5,791 2,671 1,739 1,559 1,695 1,252 1,443 756 753 678 357 316
939 959 1,495 1,386 543 380 229 389 364 416 307 159 171 272 394 309
385 843 2,215 4,131 1,238 331 413 530 903 528 580 464 404 408 394 284
307 202 274 797 400 309 209 395 412 703 557 646 393 422 437 244
434 706 2,590 4,726 1,085 478 673 460 408 586 621 475 260 491 215 97
71 102 225 60 55 17 - 14 - - 18 30 56 4 37 53
14,975 21,499 54,900 105,200 40,968 22,132 19,681 23,235 23,612 27,617 31,875 29,926 20,378 23,316 29,497 26,652
Figure 3.10
Venture Capital Investments
1985 to 2012 By Industry ($ Millions)
Industry 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
Software 321 323 307 280 296 302 287 296 243 253 435 686
Biotechnology 73 98 138 153 138 145 138 164 136 140 176 236
Media and Entertainment 56 68 92 75 71 58 54 79 82 97 138 191
Medical Devices and Equipment 128 117 166 151 185 191 161 188 148 128 179 212
IT Services 23 25 33 24 27 31 30 22 19 33 62 127
Industrial/Energy 122 138 162 140 144 157 125 132 102 101 128 155
Consumer Products and Services 43 51 72 59 52 67 48 51 54 66 114 132
Semiconductors 84 72 92 91 80 78 51 60 45 38 64 74
Telecommunications 86 77 94 80 81 63 67 64 73 73 141 211
Retailing/Distribution 18 32 71 81 73 46 38 34 35 28 54 70
Electronics/Instrumentation 77 68 70 57 60 50 47 38 27 37 49 47
Computers and Peripherals 157 148 131 138 135 104 78 84 65 66 93 95
Financial Services 22 28 36 43 44 25 24 24 31 31 47 61
Healthcare Services 33 56 56 46 55 41 38 46 52 45 73 139
Networking and Equipment 80 76 73 69 71 74 65 83 65 77 82 123
Business Products and Services 20 42 51 38 32 28 20 25 32 22 50 69
Other 2 2 2 1 2 2 2 3 2 9 9
Total 1,345 1,421 1,646 1,526 1,544 1,462 1,273 1,392 1,212 1,237 1,894 2,637
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
S 820 980 1,411 2,165 1,298 1,005 965 949 955 1,027 1,073 1,098 815 1,035 1,178 1,277
242 274 260 355 337 326 357 400 405 483 526 530 458 493 466 463
219 266 701 944 372 167 127 140 209 329 399 400 266 345 441 395
272 294 288 295 257 234 248 280 286 358 399 402 345 349 370 319
162 207 456 687 324 170 147 151 172 236 281 286 221 303 362 315
213 186 205 254 204 131 142 158 154 225 306 365 255 307 311 243
162 163 287 285 119 72 47 67 78 79 110 103 86 114 137 162
116 120 148 256 209 169 214 258 218 266 224 206 132 137 136 108
268 340 529 858 481 275 214 232 236 309 279 230 131 120 124 95
91 121 230 282 83 49 31 38 40 40 41 42 38 33 68 59
54 56 53 76 59 63 55 72 84 96 93 94 63 67 58 51
115 91 104 133 81 59 57 61 65 60 70 61 54 56 61 48
91 115 190 334 137 76 64 68 63 90 85 68 54 74 60 45
152 155 159 165 105 70 70 64 64 51 57 51 40 45 47 43
140 211 279 481 335 232 186 193 186 137 146 106 101 63 49 38
94 139 279 459 177 102 97 83 83 99 113 119 72 75 61 35
12 10 21 12 11 3 1 3 2 2 11 4 8 10 17 27
3,223 3,728 5,600 8,041 4,589 3,203 3,022 3,217 3,300 3,887 4,213 4,165 3,139 3,626 3,946 3,723
Figure 3.10b
Venture Capital Investments
1985 to 2012 By Industry (Number of Deals)
Stage 2005-1Q 2005-2Q 2005-3Q 2005-4Q 2005Total 2006-1Q 2006-2Q 2006-3Q 2006-4Q 2006Total 2007-1Q
Seed 52 68 68 76 264 82 93 121 100 396 90
EarlyStage 212 219 214 214 859 205 241 236 319 1,001 257
Expansion 275 295 242 304 1,116 328 360 345 347 1,380 277
LaterStage 223 280 286 272 1,061 290 314 253 253 1,110 282
Total 762 862 810 866 3,300 905 1,008 955 1,019 3,887 906
2005 2006
2007-2Q 2007-3Q 2007-4Q 2007Total 2008-1Q 2008-2Q 2008-3Q 2008-4Q2008Total
139 136 159 524 135 134 156 112 537
326 257 289 1,129 265 301 284 287 1,137
322 319 359 1,277 344 331 282 285 1,242
326 336 339 1,283 310 338 323 278 1,249
1,113 1,048 1,146 4,213 1,054 1,104 1,045 962 4,165
2007 2008
Figure 3.09d-6
Quarterly Venture Capital Investments
1985 to 2012 By Stage (Number of Deals)
Stage 2009-1Q 2009-2Q 2009-3Q 2009-4Q2009Total 2010-1Q 2010-2Q 2010-3Q 2010-4Q 2010Total 2011-1Q
Seed 70 87 99 119 375 93 119 99 98 409 94
EarlyStage 195 213 244 321 973 268 361 308 334 1,271 344
Expansion 183 217 219 269 888 252 300 244 278 1,074 225
LaterStage 229 244 199 231 903 205 239 230 198 872 234
Total 677 761 761 940 3,139 818 1,019 881 908 3,626 897
20102009
2011-2Q 2011-3Q 2011-4Q 2011Total 2012-1Q 2012-2Q 2012-3Q 2012-4Q 2012Total
128 114 109 445 61 78 73 68 280
392 401 425 1,562 350 433 411 453 1,647
275 277 244 1,021 221 250 244 247 962
279 212 193 918 229 197 192 216 834
1,074 1,004 971 3,946 861 958 920 984 3,723
20122011
Figure 3.09d-7
Quarterly Venture Capital Investments
1985 to 2012 By Stage (Number of Deals)