1. The MoneyTree™ Report
Overview of Venture
Capital Investments
Fourth Quarter and Year End 2008
PricewaterhouseCoopers/National Venture Capital Association
MoneyTree™ Report
based on data from Thomson Reuters
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2. Host of the Analyst Call
Maryanne Coughlin
Director, Technology Sector Analyst
PricewaterhouseCoopers
Maryanne Coughlin is a director at PricewaterhouseCoopers, serving as
sector analyst for the Firm's US technology and venture capital industry
practices. In this role, she advises partners and client teams on
marketplace trends and their impact on technology sector firms.
Prior to joining PwC in 2007, Maryanne was director of global services
model and forecast management at IDC, a technology research firm. While
at IDC, Maryanne launched and managed two new research services,
presented at the firm's flagship US vendor conferences, and authored one
of the firm's most popular research documents. Before joining IDC,
Maryanne held positions in client services, marketing, interactive
communications and editorial at marchFIRST (formerly USWeb/CKS),
Tenet Healthcare, and the US Naval Institute. While at USWeb/CKS
Maryanne led the engagement to design and create an award-winning
online insurance marketplace. While at Tenet, Coughlin authored the
Fortune 500 company's Internet business plan, established the company's
brand on the Internet, and served on the Tenet Marketing Council. Earlier
in her career, Maryanne worked for international startup Americom
International Corp., assisting an entrepreneur in raising funding to build and
operate a hotel and business center as a joint venture with Radisson Hotels
International and Intourist in Moscow, Russia.
Maryanne holds a Master's degree from the University of Virginia and a
bachelor's degree from Loyola College in Maryland. She completed the
Stanford Professional Publishing Course at Stanford University.
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3. Overview
National Fourth Quarter and Year End Results
$ Invested and # Deals by Quarter
Investments by Stage of Development
Investments by Industry/Sector
First-time Financing
PricewaterhouseCoopers Commentary on Results
NVCA Commentary on Results
Levensohn Venture Partners
Frazier Healthcare Ventures
MoneyTree Report Q&A
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4. Thomson Reuters
Matthew Toole
Research Director, Private Equity
Thomson Reuters
Matthew Toole is the director of research for Thomson Reuters’ Investment
Banking content, which includes mergers & acquisitions, venture capital, private
equity and capital markets.
Prior to this appointment, Matthew managed Thomson Financial’s capital
markets content strategy and development including debt and equity research
and banking contributor relations. Matthew started his career as a research
analyst in the fixed income group at Thomson Financial Securities Data.
Matthew received his Bachelor of Science in Biology from Providence College.
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5. Investments Decline 8% Over 2007
US Venture Capital Investments: 2001-2008
45 5,000
$40.6
4,500
40
4,000
35
$30.9 3,500
Total Amount Invested ($bil)
30 $28.3
$26.7
Number of Deals
3,000
25 $23.2
$22.5
$21.9 2,500
$19.7
20
2,000
15
1,500
10 1,000
5 500
0 0
2001 2002 2003 2004 2005 2006 2007 2008
Q1 Q2 Q3 Q4 Number of Deals
5
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Reuters
6. Bulk of the $$ Going to Expansion & Later Stage Deals
US Venture Capital Investments: 2001-2008
45
40
8.2
35
Total Amount Invested ($bil)
30
25 12.5
10.8
9.9
23.0
20 5.5
9.8
8.8
5.8
15
11.7 10.6
11.5
12.4
10 9.2 8.7
10.1
5 9.4
6.8
6.8
5.3
4.7
4.5
4.2 3.9
0
2001 2002 2003 2004 2005 2006 2007 2008
Seed/Early Stage Expansion Later Stage
6
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Reuters
7. First Sequence Financing accounts for 22% of 2008
venture capital investments
8 30%
7 24.2%
24.8%
25%
23.1%
21.7%
21.6%
6
20.0%
Total Amount Invested ($bil)
20.0%
% of Investment Dollars
20%
18.3%
5
4 15%
3
10%
2
5%
1
0 0%
2001 2002 2003 2004 2005 2006 2007 2008
Total Amount Invested ($bil) % of Investment Dollars
7
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Reuters
8. Software and Biotech Have Investor’s Interest
US Venture Capital Investments By Industry – 2008
IT Investments ($M)
$4,918.8
IT $13.3 billion $2,039.0
$1,832.0 $1,650.9
$1,687.9
$644.8 $573.3
Software Media & IT Services Telecom Semiconductors Networking & Electronics &
Entertainment Equipment Instrumentation
Life Sciences Investments ($M)
$4,500.4
$3,459.9
LS
$9.5 billion
$195.0
Biotechnology Medical Devices & Healthcare Services
Equipment
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PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Reuters
9. PricewaterhouseCoopers
Tracy T. Lefteroff
Global Managing Partner
Private Equity & Venture Capital and Life Sciences Industry Services
As Global Managing Partner of Private Equity and Venture Capital as well as Life
Sciences Industry Services, Mr. Lefteroff is in charge of services provided to the venture
capital community, venture-funded technology companies and publicly-held, privately-
owned and venture-funded life sciences companies worldwide. Mr. Lefteroff has been
key to the development of strategic collaborative agreements with many of the major
international pharmaceutical companies and has recently assisted in several high profile
industry mergers. He also co-authored the Firm’s Practice Standards and Aids for the
Life Sciences Industry.
Mr. Lefteroff currently serves on the Board of Directors of the Stanford Venture
Laboratory and the California Healthcare Institute. He has served as Treasurer of the
Washington State Biotechnology Association, Chairman of the MIT Enterprise Forum of
the Northwest and as a Committee Member of the Washington Society of CPA’s High
Technology Committee. He is also a member of the American Institute of Certified Public
Accountants and the California, Washington and Idaho Societies of CPA’s. Mr. Lefteroff
has been with PricewaterhouseCoopers for approximately 16 years, including three years
in the Seattle, Washington office, where he was extensively involved with the Firm’s
venture capital and life sciences clients. Today he resides in the San Jose, California
office.
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10. Investment Activity – Q4 2008 Top Industries
Q4 2007, Q3 2008, Q4 2008
Total Amount Invested ($M)
Q4 2007
$1,391
Q3 2008
$1,345 $1,327 $1,300
$1,289
Q4 2008
$1,021
$1,022 $1,005
$1,016
$947
$814
$550
$496
$411 $432
Sof tw are Biotechnology Industrial/Energy Medical Devices and Equipment Media and Entertainment
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PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Reuters
11. Investment Activity – Full-Year 2008 Top Industries
2006, 2007, 2008
Total Amount Invested ($M)
2006
$5,462
$5,028 $5,239
2007
$4,919
2008
$4,594
$4,651 $4,500
$4,069
$3,460
$3,248
$2,924
$1,974 $2,039
$1,956
$1,641
Sof tw are Industrial/Energy Biotechnology Medical Devices and Equipment Media and Entertainment
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PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Reuters
12. Life Sciences Investments
2004 – 2008
Total Amount Invested ($M)
$5,239
$4,500
$4,594
$4,267
$4,069
$3,916
$3,460
$2,924
$2,222
$1,936
2004 2005 2006 2007 2008
Medical Devices and Equipment Biotechnology
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PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Reuters
13. Internet-Specific & Clean Tech Investments
2004 – 2008
Internet-Specific Investments ($M)
1,000
$5,015 $4,900
$4,291 800
$3,300
600
$2,904
400
200
0
2004 2005 2006 2007 2008
$ Invested # of deals
Clean Tech Investments ($M) 300
$4,115
250
200
$2,666
150
$1,440
100
$550
$444 50
0
2004 2005 2006 2007 2008
$ Invested # of deals
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PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Reuters
14. National Venture Capital Association
John S. Taylor
Vice President of Research
National Venture Capital Association
John S. Taylor is Vice President of Research at the National Venture Capital
Association (NVCA) which is based in the Washington, DC area. He is responsible for
developing and overseeing association data and research efforts. The key element in
this effort is the creation of a research consortium which was announced in 1998
involving the NVCA, Thomson Venture Economics, and the Ewing Marion Kauffman
Foundation. In December 2001, PricewaterhouseCoopers joined the team and the tri-
branded MoneyTree™ survey became the definitive source for venture capital
investment information. This team was created to ensure accurate, impartial, durable,
and practical data on the venture capital and private equity industries. He joined the
NVCA in 1996.
Mr. Taylor is frequently quoted by major newspapers and magazines on the subject of
venture capital and private equity and has recently provided live commentary on
CNBC, CNNfn, Bloomberg radio, and NPR Morning Edition.
Mr. Taylor’s career began with the company now known as Accenture where he was a
senior consultant advising small business clients. He has since held senior product
manager and IT positions in both large and small organizations. At a national
computer services provider, he helped develop a new generation of minicomputer and
microcomputer products for the residential real estate industry.
He has served as a board member of both for-profit businesses and non-profit
organizations. In 1998, he was awarded the Maryland Governors Citation for
outstanding volunteer service. He recently joined the Advisory Board of the Center for
Private Equity and Entrepreneurship at the Amos Tuck School.
He received an MBA degree from the Amos Tuck School at Dartmouth College, and a
BS degree in chemistry from Dickinson College. 14
15. Number of Deals by Stage
US Venture Capital Investments: 2001-2008
5000
4500
545
4000
3500
1207
1177
1014
Number of Deals
3000
488
2388 808 1001
594
2500
1259 1178
2000 1366
1582
1209
1352 1093
1500
1000
1545 1486 1453
1295
1076 1061
500 1022 976
0
2001 2002 2003 2004 2005 2006 2007 2008
Seed/Early Stage Expansion Later Stage
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PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Reuters
16. Number of Deals by Stage
US Venture Capital Investments: Quarterly 2006-2008
100%
90% 227
234 235
280 308 320
268 302
273 311 306
334
80%
70%
Percentage of Deals
60% 338
306
338 257
273
344 326
289 320 322
360
50% 330
40%
30%
249
306 240
286
226 259
242 245 279
229
231
20% 197
10%
131
109 120 128
120 115 108 86
90 82
84
72
0%
Q106 Q206 Q306 Q406 Q105 Q205 3Q05 4Q05 1Q08 2Q08 3Q08 4Q08
Seed Early Stage Expansion Later Stage
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PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Reuters
17. Number of First-Time vs. Follow-On Deals
US Venture Capital Investments: 2001-2008
5000
4500
4000
3500
Number of Deals
3000
3264
2653
2500 2637
2474
2136
2000 2172
2255
2167
1500
1000
1299
1213 1201 1171
500 1019
921
836 753
0
2001 2002 2003 2004 2005 2006 2007 2008
First-Time Follow-On
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PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Reuters
18. Levensohn Venture Partners
Pascal Levensohn
Managing Partner and Founder
Levensohn Venture Partners
Pascal Levensohn has been a finance professional for twenty six years and a venture
capitalist since 1996, when he founded Levensohn Venture Partners (quot;LVPquot;) in San
Francisco. He invests in early stage software, semiconductor, and communications
companies.
A frequent speaker on corporate governance issues, Pascal has published numerous
articles on venture capital trends since 1999. In May 2006, Pascal established and now
chairs the Working Group on Director Accountability and Board Effectiveness, a 33
member VC industry group that promotes director education and best governance
practices. The group’s first effort, “A Simple Guide to the Basic Responsibilities of
Venture–Backed Company Directors”, was released in January 2007. Pascal co-
authored the first governance white paper in the VC industry in November 2003, quot;After
the Term Sheet: How Venture Boards Influence the Success or Failure of Technology
Companiesquot;. A second white paper, “Rites of Passage: Managing CEO Transition in
Venture-Backed Technology Companies”, was published in January 2006. Pascal's VC
governance work is now part of the curriculum at several universities, including the
Harvard Business School and Stanford's Graduate School of Engineering (Department
of Management Science & Engineering).
Pascal was elected to the board of the National Venture Capital Association in April
2007, where he serves on the education committee. He currently serves as the
Chairman of the San Francisco Jewish Community Federation’s Business Leadership
Council and as co-chair of the Steering Committee of the Aspen Institute’s Socrates
Society a leadership development program with which he has been involved since
1997.
Pascal received a BA in Government from Harvard University and is a graduate of the
Lawrenceville School. He is a member of the Council on Foreign Relations and the
Pacific Council on International Policy
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19. Frazier Healthcare Ventures
Robert More
General Partner
Frazier Healthcare Ventures
Mr. More joined Frazier Healthcare Ventures in 2008 as a General Partner and is a
member of the firm’s biopharma and medical device investment teams. Prior to
Frazier Healthcare, Mr. More was a Partner with Domain Associates, having joined
the firm in 1996 as a Kauffman Fellow and becoming a Partner in 2000. From 1997-
1998, Mr. More served as the Chief Operating Officer of Small Molecule
Therapeutics, a Domain portfolio company subsequently purchased by
Morphochem AG. And from 1992 to 1995, Mr. More was with Pharmacia Biotech in
sales. Prior to joining Pharmacia, Mr. More held a research position at Somatogen,
a company developing a recombinant blood substitute that was subsequently
bought by Baxter. While attending business school, Mr. More worked with MedVest,
an early-stage venture group in Washington, D.C.
Mr. More managed successful investments in and served on the boards of ESP
Pharma (acquired by Protein Design Labs, Inc.), Proxima Therapeutics (acquired by
Cytyc Corporation), Onux Medical (acquired by C.R. Bard), NovaCardia (acquired
by Merck), Esprit Pharma (acquired by Allergan) and IntraLase (acquired by
Advanced Medical Optics, Inc.).
Mr. More serves as an advisory board member for Montagu Newhall Associates,
Okapi Ventures, The Medical Industry Group of the NVCA and The Sulpizio Family
Cardiovascular Center. He is also a past founding board member of the Kauffman
Fellows Program.
Mr. More received his MBA from the Darden School of Business Administration at
the University of Virginia and a BA from Middlebury College.
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