Venture Capital Industry Update

1

• Venture Capital Industry Update
• Florida Venture Forum
• February 7, 2007

Stephane R Dupont Executive Vice
President National Venture Capital Association
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• The Big Picture
• Regional Snapshot
• Valuations
• Exits

3

• The Big Picture
• Regional Snapshot
• Valuations
• Exits

4
After Peaking in 2000 at 104B The Industry Has
Stabilized _at_ 18-24B p.a.
Source PricewaterhouseCoopers/National Venture
Capital Association MoneyTree Report, Data
Thomson Financial
5
Right Sizing The Industry
Source PricewaterhouseCoopers/National Venture
Capital Association MoneyTree Report, Data
Thomson Financial
6
1998 to 2006Life Sciences Comes of Age
Source PricewaterhouseCoopers/National Venture
Capital Association MoneyTree Report, Data
Thomson Financial
7
Putting Venture Capital In Perspective

• US GDP 12.5 Trillion annually
• Hedge fund intake 1.0 Trillion (last 3 years)
• Mutual fund intake 136B in 2005
• Buyout intake 86B in 2005
• Venture capital intake 25B in 2005
• Venture capital 0.2 of total GDP (fundraising or
  investment)

Source BLS website, Investment Company
Institute, Thomson Financial, NVCA
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• The Big Picture
• Regional Snapshot
• Valuations
• Exits

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Investments by Region Q3 2006
Q3 2006 Total6,242.9M in 797 Deals
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Investments by Region Q3 2006
New England 578.1 87 Deals
( in millions)
Upstate NY 30.6 6 Deals
Northwest 190.0 33 Deals
NY Metro 389.5 56 Deals
North Central 139.1 17 Deals
Sacramento/N. CA 19.9 2 Deals
Philadelphia Metro 213.2 22 Deals
Silicon Valley 1,988.6 250 Deals
Midwest 199.0 36 Deals
Colorado 209.0 23 Deals
DC/Metroplex 332.1 54 Deals
Los Angeles 415.1 41 Deals
South Central 9.6 5 Deals
Southwest 215.9 16 Deals
Orange County 127.7 15 Deals
Southeast 357.8 56 Deals
Texas 533.8 49 Deals
San Diego 292.5 27 Deals
AK/HI/PR 1.4 2 Deals
Q3 2006 Total Investments - 6,242.9M in 797 Deals
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Dollars Invested Florida State Hit Hard In
Post-Bubble Decline
Source PricewaterhouseCoopers/National Venture
Capital Association MoneyTree Report, Data
Thomson Financial
12
Steady Deal Count Has The Gradual Shift from
Later Stage to Early Stage Begun?
Source PricewaterhouseCoopers/National Venture
Capital Association MoneyTree Report, Data
Thomson Financial
13
Life Sciences gt in State vs Nationalw/ Devices
HC gt Biotech
Source PricewaterhouseCoopers/National Venture
Capital Association MoneyTree Report, Data
Thomson Financial
14
Where Is the Money Coming Florida (Florida
2004-2006)
Source PricewaterhouseCoopers/National Venture
Capital Association MoneyTree Report, Data
Thomson Financial
15

• The Big Picture
• Regional Snapshot
• Valuations
• Exits

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Valuation Trends(Median Post-Money Valuations)
Source PricewaterhouseCoopers/National Venture
Capital Association MoneyTree Report, Data
Thomson Financial
17

• The Big Picture
• Regional Snapshot
• Valuations
• Exits

18
VC OutcomesHistorical Trends
11,686 Companies Total
Source PricewaterhouseCoopers/National Venture
Capital Association MoneyTree Report, Data
Thomson Financial
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Venture ExitsIPOs and MA by Year
Source Thomson Financial/National Venture
Capital Association
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VC IPOs Six Years of Darkness
Source Americas Growth Capital
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Florida Venture Forum

• Paul C. Johan, Ballast Point Ventures, LP
• John Kim, H.i.G. Ventures
• Steve G. Nussrallah, Noro-Mosley Partners
• Kevin Ooley, Lovett Miller
• Ravi M. Ugale, Crossbow Ventures, Inc.
• Stephane R Dupont, NVCA