1. Angel Breakfast
April 30, 2013

2. 2
Gold Sponsor
Platinum
Sponsor
Diamond
Sponsors
Thank You To Our Sponsors

3. 3
Agenda
Q1 Industry Trends
-US Venture Capital
-NY Venture Capital
-Sectors
-Exits
First 100 days of 2013
-What We Are Looking At
-Opportunities for Co-Investment

4. 4
US Venture Capital Market – Hot Topics
Sources: CB Insights, VentureSource
•$6.9BN invested across 841 deals in Q1’13
-Flat quarter to quarter, but up 17% since Q1’12
-Average deal size $8.2MM
-Median deal size of $4.0MM
•“Series A Crunch”
-1,749 seed deals completed last year
-vs. 692 Series A deals completed last year
-Overhang of 1,057 deals (60%)
•Overhang is slowly shrinking
-194 Angel/Seed deals in Q1’13, up 31% year over year
-245 Series A deals in Q1’13, up 42% year over year

5. 5
0
2
4
6
8
$10B
0
200
400
600
800
1,000
Q1 '12
$5.9B
Q2 '12
$8.1B
Q3 '12
$7.5B
Q4 '12
$6.8B
Q1 '13
$6.9B
US VC Funding, Trailing 5 Quarters
Dollars of VC funding
by quarter ($B)
Number of deals
Number of deals
Dollars invested
Sources: CB Insights

6. 6
But What About New York?
Sources: CB Insights
•Q1’13: 100 venture deals with $715MM invested
-Deals volume up 22% since Q1’12
-Average deal size $7.2MM
-Median deal size of $1.7MM
•Q1’13: 57 seed stage deals with $50.1MM invested
•Series A crunch more pronounced on west coast than
New York

7. 7
0.0
0.2
0.4
0.6
0.8
$1.0B
0
25
50
75
100
125
Q1 '12
$0.3B
Q2 '12
$0.5B
Q3 '12
$0.5B
Q4 '12
$0.6B
Q1 '13
$0.7B
NY VC Investment and Deal Volume
Dollars of VC funding
by quarter ($B)
Number of deals
Number of deals
Dollars invested
Sources: CB Insights

8. 8
0
50
100
150
Q
1
'12
16
Q
2
'12
22
Q
3
'12Q
4
'12Q
1'13
15
0
100
200
300
400
Q
1
'10
221
Q
1
'11
286
Q
1
'12
326
Q
1
'13
379
0
50
100
150
Q
1
'12
93
Q
2
'12
102
Q
3
'12
116
Q
4
'12
122
Q
1'13
106
INTERNET INVESTMENTS CONTINUE
TO INCREASE IN VOLUME
SOCIAL INVESTMENTS DECREASED
OVER A SIMILAR PERIOD
THE NUMBER OF MOBILE
INVESTMENTS HAS DECREASED
Sector Shifts
Number of investments in
internet companies
Sources: CB Insights
Number of investments in
mobile companies
Number of investments in
social companies

9. 9
Sector Shifts
•SAAS (“Consumerization of the Enterprise”)
-Dropbox, Box.net, Yammer
•Connected hardware (“Internet of Things”)
-MYO, Fitbit, Nest, Square, Leap Motion, Google Glass
•Retail tech
-Nomi, Prism
•Will adtech come back in 2014?

10. 10
0
20
40
60
80
100
Q
1
'12
66
Q
2
'12
88
Q
3
'12
66
Q
4
'12
48
Q
1
'13
46
0
20
40
60
80
100
Q
1
'12
39
Q
2
'12
30
Q
3
'12
46
Q
4
'12
30
Q
1
'13
29
EAST COAST WEST COAST
East vs. West Coast VC Exits
Number of Venture
Backed Exits
Number of Venture
Backed Exits
- M&A Exits
- IPO Exits
- M&A Exits
- IPO Exits
Note: East Coast defined as NY and MA, West Coast defined as CA
Sources: CB Insights

11. 11
0.0
1.0
2.0
3.0
4.0
5.0X
Average
East Coast West Coast
1.5 1.5
90th Percentile
4.5 4.6
East vs. West Coast VC Exits
Realized cash-on-cash
multiple
Note: VC Exits 2001 – 2012 (3Q)
Sources: Dow Jones VentureSource and others