Transcript pwc_may_atlanta_presentation

Q1 2007 Update
May 2007
Shaking the MoneyTree™
PricewaterhouseCoopers/ National Venture
Capital Association MoneyTree™ Report
based on data from Thomson Financial
PricewaterhouseCoopers/National Venture Capital Association
MoneyTree™ Report based on data from Thomson Financial
The MoneyTree Report – Q1 ’07
Presented by Wes Getman, PwC
Discussion Panel
- Allen Moseley, Noro-Moseley Partners
- Stephen Fleming, Georgia Tech
VentureLab
Q&A
Page 2
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Financial
Wes Getman, PricewaterhouseCoopers
Wes Getman is a senior manager as part of the assurance practice
in the Technology Industry for PricewaterhouseCoopers LLP. Wes
has been with PwC since 1998 and has been part of the Atlanta
practice throughout his career. His focus is on introducing emerging
technology companies to PricewaterhouseCoopers and its vast
resources in order to help the companies grow and succeed. As
part of his responsibilities, Wes is actively involved as a client
service audit professional. His current audit clients include some of
Atlanta’s most promising young companies, including Servigistics,
Comverge, Nexidia, Procuri, and CardioMEMS. Wes has also held
positions at Xerox as a financial analyst and with Thomas’
Publishing in marketing. Wes is actively involved in several Atlantabased technology groups.
Page 3
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Financial
Allen Moseley, General Partner, Noro-Moseley Partners
Allen is a General Partner at Noro-Moseley Partners where he focuses on
healthcare investments, primarily in the healthcare services and healthcare
information technology areas, as well as technology enabled business services.
He serves on the board of a number of Noro-Moseley portfolio companies,
including Apex Analytix, Bloodhound Software, Neospine, Senior Whole Health,
and Valor Healthcare.
Allen is currently Chairman of the Technology Association of Georgia (TAG) and
has previously served on the Board of Directors of the Council for
Entrepreneurial Development (CED) in the Research Triangle Park, NC. He is also
a member of the Nashville Healthcare Council.
Before joining NMP in 1998, Allen was employed as an Associate in the Corporate
Finance group at The Robinson-Humphrey Company. While at RobinsonHumphrey, he worked on a number of initial public offerings, mergers and
acquisitions, and private placements in the healthcare and technology industries.
Allen also worked on private equity investments for R-H Capital Partners, a
private equity fund affiliated with Robinson-Humphrey.
Page 4
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Financial
Stephen Fleming, Chief Commercialization Officer, Georgia Tech
Stephen Fleming is an Atlanta native, a graduate of Georgia
Tech, and a successful Atlanta investor and entrepreneur.
After technical and management positions at AT&T Bell
Laboratories and Northern Telecom, Stephen has been a
partner in two Atlanta-based venture capital firms; he has
managed investments in more than 20 start-up companies.
In his role as Chief Commercialization Officer, he is
responsible for streamlining the handling of Georgia Tech's
intellectual property, accelerating the licensing of
technology, and making the Institute’s resources more
readily accessible to business and industry.
Page 5
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Financial
About The Report
• PricewaterhouseCoopers and the National Venture Capital Association
produce the MoneyTree Report™ based on data from Thomson Financial
• ‘Core’ measure of equity investments in venture-backed companies in the
United States
• Companies have received at least one round of financing involving a
professional VC firm or equivalent
• Captures: tranches, not term sheets, foreign VCs, qualified private
placement
• Excludes: debt, bridge loans, recaps, roll-ups, IPOs, PIPEs, leasing, etc.
• MoneyTree™ Report in its 13th year
• Results online at www.pwcmoneytree.com, www.nvca.org,
www.venturexpert.com
Page 6
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Financial
MoneyTree Total Investments: Q1 1998 – Q1 2007
($ in billions)
$28.4
$28.1
$26.4
$32.0
$22.2
$23.4
$24.0
$4.3
$5.0
$4.8
$5.6
$5.2
$6.3
$4.8
$5.8
$5.1
$6.3
$5.7
$5.7
$6.3
$6.9
$6.6
$6.2
2002
2003
2004
2005
2006
$7.1
$6.8
$6.0
$4.5
$4.5
$4.1
$5.7
$5.3
$6.0
$6.6
$8.0
$12.8
$11.4
$8.4
$8.1
$11.0
$13.2
$16.0
$0.0
1998
2001
2000
1999
1998
1999
2000
2001
2002
2003
2004
2007
2005
2006
2007
#
of
Q1
Q2
Q3
Q4
Q1
Q2
843
901
910
990 916 1304
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4 Q1 Q2 Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
1422 1868 2131 2105 1933 1745 1289 1225 1002 977 831 846 687 722 690 735 705 774 702 844
678
817
720
812
774
801
853
910
875
884
778
Deals
Page 7
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Financial
MoneyTree Total Investments: 1980 – YTD Q1 2007
Annual Venture Capital Investments
1980 to YTD Q1 2007
($ in billions)
$105.0
$120
$100
$54.2
$80
$22.8
$22.2
$7.1
$19.7
$21.1
$14.9
$11.3
$8.1
$4.1
$3.7
$3.5
$2.2
$2.8
$3.3
$3.3
$3.3
$3.1
$2.8
$3.0
$1.6
$1.2
$0.6
$3.0
$20
$21.8
$40
$26.1
$40.7
$60
07
20
06
20
05
20
04
20
03
20
02
20
01
20
00
20
99
19
98
19
97
19
96
19
95
19
94
19
93
19
92
19
91
19
90
19
89
19
88
19
87
19
86
19
85
19
84
19
83
19
82
19
81
19
19
80
$0
Page 8
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Financial
Investments by Region: Q1 2007
($ in millions )
$2,165.1
Silicon Valley
$975.5
New England
$686.3
San Diego
Region
$579.3
Southeast
$526.0
LA/Orange County
$456.7
Northwest
$360.5
NY Metro
Midwest
Texas
73.91%
Southeast
54
54.05%
26.51%
52.30%
$277.6
Midwest
43
15.13%
Texas
34
61.06%
Philadelphia Metro
34
48.81%
DC/Metroplex
41
5.29%
South West
22
127.38%
Colorado
13
35.85%
North Central
10
-18.07%
Sacramento/N.Cal
6
329.78%
Upstate NY
4
-71.45%
South Central
3
-83.10%
AK/HI/PR
1
-98.36%
778
13.47%
$11.1
$0.2
29.14%
44
-39.90%
$30.1
AK/HI/PR
95
San Diego
48
$79.8
$3.0
New England
42
$100.4
South Central
-7.28%
NY Metro
$121.8
Upstate NY
244
Northwest
$197.2
Sacramento/N.Cal
Silicon Valley
40
DC/Metroplex
North Central
Total
$0
from Q4 ‘06
LA/Orange County
$204.8
Colorado
% Change $
$280.5
Philadelphia Metro
SouthWest
# of
Deals
$700
$1,400
NM = Not Meaningful
$2,100
Q1 2007 Total: $7,056 in 778 Deals
Page 9
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Financial
Investments by Region –
Quarterly Percent of Total U.S. Investments
Top U.S. Regions Q1 ‘06– Q1’07
30.7%
37.6%
33.9%
35.2%
40%
38.4%
(% of Total Dollars)
7.5%
6.7%
8.5%
7.3%
6.0%
8.2%
6.1%
5.1%
4.3%
4.1%
9.7%
6.4%
4.4%
3.3%
13.8%
12.2%
5.1%
10%
9.9%
20%
10.7%
15.0%
30%
0%
Silicon Valley
New England
Q1 '06
Q2 '06
San Diego
Q3 '06
Q4 '06
Southeast
LA/Orange County
Q1 '07
Page 10
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Financial
Investments by Region: Q1 2007
Sacramento/N. CA
$30.1
6 Deals
Upstate NY
$11.1
4 Deals
Northwest
$456.7
42 Deals
North Central
$79.8
10 Deals
Silicon Valley
$2,165.1
244 Deals
Midwest
$280.5
43 Deals
Colorado
$100.4
13 Deals
LA/Orange County
$526.0
40 Deals
Southwest
$121.8
22 Deals
San Diego
$686.3
44 Deals
Texas
$277.6
34 Deals
K AU A I
AK/HI/PR
$0.2
1 Deal
South Central
$3.0
3 Deals
New England
$975.5
95 Deals
NY Metro
$360.5
48 Deals
Philadelphia Metro
$204.8
34 Deals
DC/Metroplex
$197.2
41 Deals
Southeast
$579.3
54 Deals
N I I U
HA
OA HU
M
O
L O
KA I
M UA I
L AN AI
K AH O
O
W
LE A
H AW A I I
Q1 2007 Total Investments - $7,056 in 778 Deals
Page 11
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Financial
Investments by Industry –
Quarterly Percent of Total U.S. Investments
Top 5 Industries – Q1 ‘06 to Q1 ‘07
(% of Total Dollars)
5%
7.1%
9.5%
6.7%
4.5%
8.1%
8.3%
7.4%
13.9%
9.2%
9.2%
10.9%
8.2%
10%
10.4%
15.3%
15.6%
19.7%
17.2%
21.7%
20.0%
19.9%
11.5%
15%
13.9%
20%
17.4%
19.6%
25%
21.1%
30%
0%
Biotechnology
Software
Q1 '06
Medical Devices and
Equipment
Q2 '06
Q3 '06
Telecommunications
Q4 '06
Industrial/Energy
Q1 '07
Page 12
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Financial
Investments by Industry: Q1 2007
($ in millions)
$1,488.8
Biotechnology
$1,097.9
Software
$1,078.4
Medical Devices and Equipment
$588.1
Telecommunications
Industry
$501.2
Industrial/Energy
$489.4
Media and Entertainment
$358.1
Semiconductors
$288.1
IT Services
$274.7
Networking and Equipment
$212.3
Business Products and Services
$176.6
Electronics/Instrumentation
$161.5
Healthcare Services
# of % Change $
Deals from Q4 ‘06
Biotechnology
102
19.65%
Software
193
-10.29%
Medical Devices & Equipment
96
59.83%
Telecommunications
63
27.19%
Industrial/Energy
44
20.50%
Media & Entertainment
72
16.47%
Semiconductors
42
-26.07%
IT Services
38
7.60%
Networking & Equipment
29
31.45%
Business Products and Services
22
37.12%
Electronics/Instrumentation
16
77.64%
Healthcare Services
10
20.86%
Retailing/Distribution
$93.9
Retailing/Distribution
12
56.71%
Computers and Peripherals
$93.4
Computers and Peripherals
9
61.92%
Financial Services
17
20.43%
Consumer Products and Services
12
-67.91%
Undisclosed/Other
1
$77.3
Financial Services
$75.4
Consumer Products and Services
TOTAL
Undisclosed/Other
778
NM
13.47%
$0.4
$0
$900
NM = Not Meaningful
$1,800
Q1 2007 Total: $7,056 in 778 Deals
Visit www.pwcmoneytree.com for Industry definitions
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Financial
Page 13
Life Science Investments –
Percent of Total U.S. Investments*
Life Science Sectors – Q1 ’06 to Q1 ‘07
36.4%
(% of Total Dollars)
10%
27.8%
15.3%
10.9%
10.4%
8.2%
21.1%
20.0%
11.5%
15%
13.9%
20%
19.6%
25%
17.4%
30%
27.8%
25.4%
35%
30.9%
40%
5%
0%
Life Sciences
Medical Devices and Equipment
Biotechnology
Q1 '06
Q2 '06
Q3 '06
Q4 '06
Q1 '07
Page 14
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Financial
Investments by Sequence of Financing: Q1 2007
($ in millions)
5th and Beyond
$2,076.7
$1,536.1
First
Financing
Second
# of
Deals
$1,297.4
Third
$1,194.8
Fourth
$950.5
$0
$500
$1,000
% Change in
$ Amount from
Q4 2006
Fifth & Beyond
192
23.39%
First
223
6.09%
Second
163
4.30%
Third
115
18.87%
Fourth
85
13.41%
Total
778
13.47%
$1,500
$2,000
$2,500
Q1 2007 Totals: $7,056 in 778 Deals
Page 15
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Financial
First Sequence Financing –
Number of Deals
800
667
800
956
945
1000
First Sequence Deals
2004
2005
2006
223
2003
259
301
299
266
2002
229
239
248
279
190
245
219
250
200
170
186
179
213
400
225
241
185
186
385
329
265
236
600
0
2000
2001
Q1
Q2
Q3
2007
Q4
Page 16
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Financial
First Sequence Financing –
Investment Amount
First Sequence Investments
$10
$9
$8.8
$8.5
($ in billions)
$7
$6
$6.3
$5.4
$8
2002
2003
2004
2005
2006
$1.5
$1.3
$1.6
$1.5
$1.4
$1
$1.4
$1.5
$1.3
$1.4
$2
$1.0
$1.3
$1.2
$1.2
$3
$0.8
$1.0
$1.1
$1.1
$2.9
$2.0
$1.3
$1.3
$4
$1.3
$1.2
$1.0
$0.8
$5
$0
2000
2001
Q1
Q2
Q3
2007
Q4
Page 17
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Financial
Investments by Stage of Development: Q1 2007
($ in millions)
Later Stage
$3,048.5
Expansion
$2,875.1
Stage of Development
Early Stage
% Change in
$ Amount
Deals from Q4 2006
# of
$962.7
Startup/Seed
$169.3
$0
$1,000
$2,000
Later Stage
245
56.72%
Expansion Stage
274
8.57%
Early Stage
188
-28.48%
Startup/Seed
71
-39.29%
Total
778
13.47%
$3,000
Q1 2007 Totals: $7,056 in 778 Deals
Page 18
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Financial
First Sequence Financing –
Percent of Total U.S. Investments
60%
55%
50%
44.9%44.9%
45%
41.4%
38.2%
40%
34.8%
35%
31.0%
29.9%
30%
27.1%
26.9%26.4%
30.1%
28.5%
26.9%
24.2%
27.5%27.1%
25.8%
24.6%25.3%25.4%
29.0%
32.3%
31.8%
30.6%
23.8%24.4%
30.1%
28.7%
29.4%
25.4%
22.4%
19.6%20.3%
22.3%
15%
17.6%
34.2%
28.4%
25%
20%
30.4%33.1%
32.0%
20.7%
21.9%
20.3%20.0%19.9%
25.1%
23.3%22.4%
21.1%
20.8%
22.6%23.0%23.3%21.8%
17.8%17.3%
15.2%16.0%
10%
% of Total Dollars
Q1 2007
Q4 2006
Q3 2006
Q2 2006
Q1 2006
Q4 2005
Q3 2005
Q2 2005
Q1 2005
Q4 2004
Q3 2004
Q2 2004
Q1 2004
Q4 2003
Q3 2003
Q2 2003
Q1 2003
Q4 2002
Q3 2002
Q2 2002
Q1 2002
Q4 2001
Q3 2001
Q2 2001
Q1 2001
Q4 2000
Q3 2000
Q2 2000
0%
Q1 2000
5%
% of Total Deals
Page 19
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Financial
Stage of Development –
Quarterly Percent of Total First Sequence Dollars
(% of first sequence dollars)
Stage Development – Q1 2006 to Q1 2007
70%
34.8%
17.6%
13.5%
8.2%
10%
11.8%
8.1%
12.1%
24.9%
27.6%
40.9%
35.0%
39.5%
17.4%
17.2%
20%
15.1%
30%
20.2%
40%
38.7%
37.8%
50%
30.1%
49.5%
60%
0%
Startup/Seed
Early Stage
Q1 '06
Q2 '06
Expansion
Q3 '06
Q4 '06
Later Stage
Q1 '07
Page 20
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Financial
Stage of Development –
Quarterly Percent of Total First Sequence Deals
(% of first sequence deals)
Stage Development – Q1 2006 to Q1 2007
6.7%
6.0%
7.4%
5.0%
10%
8.3%
21.5%
14.3%
20%
20.4%
24.9%
40.1%
29.3%
22.6%
22.9%
21.2%
30%
32.1%
40%
26.0%
50%
43.9%
44.4%
60%
45.7%
57.1%
70%
0%
Startup/Seed
Early Stage
Q1 '06
Q2 '06
Expansion
Q3 '06
Q4 '06
Later Stage
Q1 '07
Page 21
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Financial
First Sequence Deals in Startup & Early Stage Companies
3000
40%
31.9%
28.3%
25.7%
2000
30%
2,499
29.1%
35%
31.6%
25.9%
22.5%
1,756
20.1%
19.6%
22.2%
25%
22.7%
20.6%
19.9%
20%
15%
10%
799
160
689
579
683
905
538
606
728
811
943
1000
20
07
YT
D
20
06
20
05
20
04
20
03
20
02
20
01
20
00
19
99
19
98
19
97
19
96
0%
19
95
0
5%
Seq 1 Deals in Startup/Early Stage
% of Total US Deals
Page 22
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Financial
Median Deal Size vs. Mean Deal Size –
Quarterly Total U.S. Investments
$14
$13.3 $13.3 $13.6
$12.7
$12
$10.0
$10
$9.3
9.1
$8.4
$8
$7.0
$8.3 $8.2
$7.1
$6.5
$6.2 $6.0
$6
$5.0 $5.0
$4.0
$4.6 $4.5
$6.7
$6.3 $6.2
$4.0 $4.0
$3.2
$4
$7.8
$7.6
$7.3 $7.1 $7.4
$7.2 $7.5 $7.5 $7.1 $7.1 $7.1
$6.8 $6.9
$3.7 $4.0 $4.0
$4.5
$5.0 $4.7
$4.8
$4.5
$4.5 $4.6
$4.8
$4.0
$4.5 $4.2
7.6
7.0
4.1
4.0
4.5
Median Deal Size
Q1 2007
Q4 2006
Q3 2006
Q2 2006
Q1 2006
Q4 2005
Q3 2005
Q2 2005
Q1 2005
Q4 2004
Q3 2004
Q2 2004
Q1 2004
Q4 2003
Q3 2003
Q2 2003
Q1 2003
Q4 2002
Q3 2002
Q2 2002
Q1 2002
Q4 2001
Q3 2001
Q2 2001
Q1 2001
Q4 2000
Q3 2000
Q2 2000
$0
Q1 2000
$2
Mean Deal Size
Page 23
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Financial
Post-Money Valuations – Early Stage Companies
1997 to 2006
12 Month Average
$40
$10.2
$35
$17.6
$26.1
$19.3
$10.1
$8.7
$9.6
$8.6
$6.9
$4.2
$6.9
$17.9
$0
$12.8
$10
$5
$5.8
$5.4
$5.4
$4.8
$20
$15
$7.8
$6.4
$25
$8.6
$30
Q4 97
Q4 98
Q4 99
Q4 00
Q4 01
Q4 02
Q4 03
Q4 04
Q4 05
Q4 06
Pre-money Valuation
Investment Amount
Year
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Total
$17.55
$24.30
$25.41
$36.22
$27.92
$15.41
$14.13
$15.37
$15.52
$11.13
Page 24
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Financial
Post-Money Valuations – Expansion Stage Companies
1997 to 2006
12 Month Average
$21.7
$110
$14.0
$62.9
$87.3
$48.5
$33.4
$32.1
$48.5
$46.4
$54.9
$11.3
$8.8
$34.3
$8.1
$10
$30.8
$30
$12.5
$50
$12.4
$13.8
$70
$14.2
$16.5
$90
-$10
Q4 97
Q4 98
Q4 99
Q4 00
Q4 01
Q4 02
Q4 03
Q4 04
Q4 05
Q4 06
Pre-money Valuation
Investment Amount
Year
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Total
$38.88
$43.02
$79.43
$108.99
$62.33
$45.89
$43.46
$60.87
$60.62
$68.90
Page 25
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Financial
Post-Money Valuations – Later Stage Companies
1997 to 2006
12 Month Average
$180
$28.9
$160
$140
$16.7
$55.3
$105.3
$130.5
$78.4
$48.7
$54.4
$56.4
$80.2
$81.3
$0
$60.8
$40
$20
$14.3
$16.7
$10.6
$60
$9.8
$80
$15.1
$20.5
$100
$14.1
$20.6
$120
Q4 97
Q4 98
Q4 99
Q4 00
Q4 01
Q4 02
Q4 03
Q4 04
Q4 05
Q4 06
Pre-money Valuation
Year
Total
Investment Amount
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
$70.58
$65.97
$125.87
$159.40
$98.87
$65.44
$68.71
$73.17
$95.29
$95.33
Page 26
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Financial
Q1 2007 – Most Active Venture Investors
Total
Deals
Venture Capital Firm
Location
Alta Partners
San Francisco, California
18
New Enterprise Associates
Baltimore, Maryland
18
Draper Fisher Jurvetson
Menlo Park, California
17
Canaan Partners
Westport, Connecticut
16
Intel Capital
Santa Clara, California
15
Menlo Ventures
Menlo Park, California
15
Sequoia Capital
Menlo Park, California
15
ARCH Venture Partners
Chicago, Illinois
14
Venrock Associates
New York, New York
14
Page 27
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Financial
Thomson Financial
U.S. Private Equity Performance Index (PEPI)
(Investment Horizon Performance as of 12/31/2006)
Fund Type
Early/Seed VC
1 Year 3 Year 5 Year 10 Year 20 Year
9.9
6.5
-3.0
36.4
20.5
Balanced VC
20.5
11.7
4.1
17.6
14.6
Later Stage VC
25.2
9.4
3.7
9.0
14.0
All Venture
16.4
9.1
1.0
20.3
16.6
All Buyouts
24.5
14.6
10.4
8.5
12.9
Mezzanine
12.6
5.0
4.1
6.1
8.5
All Private Equity
23.3
12.7
7.5
11.0
13.9
NASDAQ
4.7
6.2
4.3
6.4
10.1
S&P 500
10.8
8.2
4.2
6.6
9.2
Source: Thomson Financial/National Venture Capital Association
*Data as of 4/13/2007--The Private Equity Performance Index (PEPI) is based on the latest quarterly statistics from the Thomson Financial
Private Equity Performance Database analyzing the cashflows and returns for over 1860 US venture capital and private equity partnerships with
a capitalization of $679 billion. Sources are financial documents and schedules from Limited Partners investors and General Partners. All
returns are calculated by Thomson Financial from the underlying financial cashflows. Returns are net to investors after management fees and
carried interest.
Page 28
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Financial
Analysis of Venture-Backed IPO and M&A Activity*
Average VentureBacked Offering
Size ($M)
Number of
Venture-backed
M&A deals
2,022.7
69.8
291
62.8
93
11,014.9
118.4
339
83.0
2005
56
4,461.0
79.7
347
95.8
2006 Q1
10
540.8
54.1
104
112.2
2006 Q2
19
2,011.0
105.8
92
101.3
2006 Q3
8
934.2
116.8
87
95.6
2006 Q4
20
1,631.1
81.6
57
165.3
2006
57
5,117.1
89.8
340
113.3
2007 Q1
17
2,091.9
123.1
62
161.2
2007
17
2,091.9
123.1
62
161.2
Date
Number of
IPOs**
2003
29
2004
Total VentureBacked Offering
Size ($M)
Average
M&A deal
size***
* Q1 2007 M&A data, current as of April 2, 2007, is preliminary and subject to change
** Includes all companies with at least one U.S. VC investor that trade on U.S. exchanges, regardless of domicile
***Only accounts for deals with disclosed values
Source: Thomson Financial/ National Venture Capital Association
Page 29
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Financial
Venture Capital Fundraising*
Year
First Time
Funds
Follow-On
Funds
Total Number
of Funds
VC Raised
($M)
2002
57
115
172
3,767.4
2003
50
97
147
10,622.3
2004
56
149
205
18,566.0
2005
55
163
218
27,957.3
2006
44
168
212
30,260.4
2007 YTD
13
43
56
4,939.8
Q1 ‘06
17
55
72
6,640.1
Q2 ‘06
13
59
72
14,050.9
Q3 ‘06
13
52
65
5,426.0
Q4 ‘06
14
42
56
4,143.4
Q1 ‘07
13
43
56
4,939.8
Quarter
*These figures take into account the subtractive effect of downsized funds
Date current as of 4/16/07
Source: Thomson Financial/National Venture Capital Association
Page 30
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Financial
Georgia - Quarter by Quarter
2001 – 2007
($ in millions)
$500
$450
$405
$400
$350
$300
$279
$250
$200
$200
$183
$171
$150
$125
$167
$126
$112 $113
$99
$89
$100
$80
$87
$80
$101
$71
$57
$47
$50
$70
$56
$113
$99
$59
$34
$0
Q1
# of
Deals
40
Q3
40
2001
25
Q1
31
16
Q3
25
2002
Q1
19
18
Q3
16
16
Q1
10
15
2003
Q3
25
16
2004
Q1
16
18
Q3
11
20
2005
Q1
16
Q3
17
18
Q1
19
17
2006
Page 31
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Financial
2007 Q1 “Top 13” States
Receiving Venture Capital
State
California
Massachusetts
Washington
Texas
New York
North Carolina
Pennsylvania
Florida
Illinois
New Jersey
Maryland
Colorado
Georgia
Deals
334
84
33
34
34
16
34
13
17
18
20
13
17
Amount
$3,407,455,800
901,224,000
365,881,600
277,607,300
261,279,800
249,816,300
199,643,300
150,833,600
134,887,000
108,627,900
104,660,100
100,369,300
98,642,900
Page 32
PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report
Based on data from Thomson Financial
Georgia Deals – Q1 2007
Company
Amount
AllConnect, Inc.
$15,000,000
Carticept Medical, Inc.
CoalTek, Inc.
Compliance 360, Inc.
$20,000,000
$33,000,000
$2,200,000
ControlScan, Inc.
$1,750,000
CytoDome, Inc.
EGT, Inc.
Global MailExpress, Inc.
Interactive Advisory Software LLC
$28,000
$2,000,000
$5,000,000
$500,000
MFG.com, Inc.
Omnilink Systems, Inc.
Prenova, Inc.
Prosero, Inc.
$3,999,900
$500,000
$3,000,000
$200,000
Racemi, Inc.
Ryla Teleservices, Inc.
$3,400,000
$5,000,000
Stheno Corporation
Undisclosed
Total
PricewaterhouseCoopers/National Venture Capital Association MoneyTree ™ Report
Based on data from Thomson Financial
$65,000
$3,000,000
$98,642,900
Page 33
Georgia Deals – Q1 2007 by Industry
Industry
Deals
Amount
Biotechnology
1
$65,000
Business Products and Services
Industrial/Energy
IT Services
1
3
1
3,000,000
38,200,000
1,750,000
Media & Entertainment
2
17,000,000
Medical Devices & Equipment
2
20,028,000
Retailing/Distribution
1
3,999,900
Software
Telecommunications
4
2
9,100,000
5,500,000
Total
17
$ 98,642,900
Page 34
PricewaterhouseCoopers/National Venture Capital Association MoneyTree ™ Report
Based on data from Thomson Financial
Georgia Deals – Q1 2007 by
Stage of Development
Stage
Deals
Amount
Early
4
$22,278,000
Expansion
7
19,764,900
Later
6
56,600,000
Total
17
$98,642,900
Page 35
PricewaterhouseCoopers/National Venture Capital Association MoneyTree ™ Report
Based on data from Thomson Financial
Georgia Deals – Q1 2007 by Sequence
Sequence
Deals
Amount
1
3
$6,249,900
2
3
22,700,000
3
3
8,028,000
4
3
3,665,000
5
2
38,000,000
7
1
2,000,000
8
1
3,000,000
10
1
15,000,000
Total
17
$98,642,900
Page 36
PricewaterhouseCoopers/National Venture Capital Association MoneyTree ™ Report
Based on data from Thomson Financial
Georgia-Based VC Funds Reporting Activity
Q1 2007
Venture Capital Firm
Deals
Amount
Advanced Technology Development Center
2
$41,000
Cordova Ventures
1
52,000
Fulcrum Ventures
1
1,100,000
HealthCare Capital Partners
1
13,000
Imlay Investments
1
250,000
Noro-Moseley Partners
5
3,927,300
Total Technology Ventures LLC
3
3,985,000
UPS Strategic Enterprise Fund
1
107,000
Kinetic Ventures LLC
2
6,847,600
HIG Capital Management
1
594,000
Total
15
$16,916,900
Page 37
PricewaterhouseCoopers/National Venture Capital Association MoneyTree ™ Report
Based on data from Thomson Financial
Entrepreneurs’ and Venture Capitalists’ On-Line Resource Guide
www.pwc.com - The PricewaterhouseCoopers’ Global website.
www.pwcmoneytree.com - The PricewaterhouseCoopers Money Tree Survey is a quarterly study of equity
investments made by the venture capital community in private companies in the U.S. The survey identifies
regional and national trends, entrepreneurial developments and promising industry segments.
www.pwcv2r.com (formerly www.pwcerc.com) - The Entrepreneur Resource Center (ERC) site offers proven
business plan templates, financial models, technology-specific ratios, benchmarks and more.
www.pwcvc.com - The VC BestPractices site serves to provide an aggregate, comparative view of key issues
and activities impacting the venture capital community, and to identify best practices.
www.pwcnextwave.com - NextWave provides news and ideas for private equity investors and entrepreneurs in
the technology industry. Check out who’s who in venture capital by taking a glance at the Most Active VC Firms.
www.barometersurveys.com - The Trendsetter and Technology Barometer surveys report on the opinions and
business innovations of America’s fastest-growing companies and track developments in the rapidly-changing
technology industry.
www.telecomdirect.pwc.com - Telecom Direct offers telecommunications news and information specifically
designed for industry professionals. The service broadcasts every business day over the Internet directly to
users’ PCs.
www.tagonline.org (Technology Association of Georgia)
www.techlinks.net (News and Events for the Georgia Technology Community)
www.innovationspublishing.com - subscription-based electronic service providing detailed analysis of
privately-funded technology ventures in the state of Georgia.
www.atdc.org/erc/ - Resources on starting up and building a company
Page 38
PricewaterhouseCoopers/National Venture Capital Association MoneyTree ™ Report
Based on data from Thomson Financial
PwC– Atlanta Contacts:
Wesley Getman
Senior Manager
Technology Industry Practice
Phone: 678-419-2129
[email protected]
Kien Taing
Senior Associate
Technology Industry Practice
Phone: 678-419-1577
[email protected]
© 2005 PricewaterhouseCoopers LLP. All rights reserved. "PricewaterhouseCoopers" refers to PricewaterhouseCoopers
LLP (a Delaware limited liability partnership) or, as the context requires, other member firms of PricewaterhouseCoopers
International Ltd., each of which is a separate and independent legal entity. *connectedthinking is a trademark of
PricewaterhouseCoopers LLP.
PwC