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Shaking the MoneyTree™

Q3 2014 Update

PricewaterhouseCoopers/National Venture Capital Association MoneyTree TM based on data from Thomson Reuters Report,

PricewaterhouseCoopers/National Venture Capital Association MoneyTree

TM

report, based on data from Thomson Reuters

By Name: PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters PwC 2

About the report

• PricewaterhouseCoopers and the National Venture Capital Association produce the MoneyTree Report™, based on data from Thomson Reuters • ‘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 20th year • Results online at www.pwcmoneytree.com and www.nvca.org

PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters PwC 3

MoneyTree total investments: Q1 2010 – Q3 2014

($ in billions ) $16,0 $14,0 $12,0 $10,0 $8,0 $9,8 $13,5 $9,9 $6,0 $4,0 $2,0 $5,1 $7,1 $5,5 $5,7 $6,5 $8,2 $7,5 $7,5 $6,3 $7,5 $6,7 $7,0 $6,1 $7,2 $8,0 $8,5 $0,0

2010

# of Deals Q1 827

2010

Q2 1,023 Q3 889 Q4 912

2011

Q1 908

2011

Q2 Q3 Q4 1,092 1,020 1,000 Q1 Q1 889 Q2

2012

Q3 Q4 Q2 989

2012

Q3 954 Q4 1,072

2013 2014

Q1 924

2013

Q2 1,005 Q3 1,065 Q4 1,140 Q1 1,002

2014

Q2 1,129 Q3 1,023 PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters PwC 4

MoneyTree total investments

Annual venture capital investments 1995 – Q3 2014 YTD ($ in billions) $120 $105,1 $100 $80 $60 $54,9 $40 $20 $8,0 $11,3 $15,1 $21,5 $0 $40,9 $22,2 $19,7 $22,8 $23,6 $27,6 $32,1 $30,4 $20,3 $23,4 $29,8 $27,5 $29,8 $33,2 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q3 YTD

# of deals 1995 1996 1997 1998 1999 2000 2001

1,897 2,636 3,232 3,743 5,606 8,044 4,595

2002 2003 2004 2005 2006 2007 2008 2009

3,218 3,035 3,236 3,304 3,890 4,234 4,189 3,162

2010 2011 2012 2013

3,651 4,020 3,904 4,134

2014 Q3 YTD

3,154 PricewaterhouseCoopers/National Venture Capital Association MoneyTree ™ Report, based on data from Thomson Reuters PwC 5

MoneyTree total investments

Quarterly venture capital investments Q1 2010 – Q3 2014

Total amount invested ($B)

$5,1 $7,1 $5,5 $5,7 $6,5 $8,2 $7,5 $7,5 $6,3 $7,5 $6,7 $7,0 $6,1 $7,2 $8,0 $8,5 $9,8 $13,5 $9,9 Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 1200 1000 800 600 400 200 0

Average deal size ($M)

$6,2 $7,0 $6,2 $6,2 $7,2 $7,6 $7,4 $7,5 $7,1 $7,5 $7,0 $6,6 $6,6 $7,2 $7,5 $7,5 $9,7 $12,0 $9,7 Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 PricewaterhouseCoopers/National Venture Capital Association MoneyTree ™ Report, based on data from Thomson Reuters PwC 6

30% 20% 10% 0%

Investments by region – Quarterly percent of total US investments

Top 5 US regions : Q3 2013 – Q3 2014 (% of total dollars) 60% 57% 50% 50% 46% 44% 40% 40% Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Silicon Valley 9% 13% 10% 9% 17% 11% 11% 10% 9% 7% NY Metro New England 6% 5% 6% 4% 6% LA/Orange County 2% 2% 3% 2% 5% SouthWest PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters PwC 7

Investments by industry – Quarterly percent of total US investments

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Top 5 Industries : Q3 2013 – Q3 2014 (% of Total Dollars) Q3 '13 Q4 '13 Q1 '14 46% 35% 42% 45% 37% 7% 13% 10% 11% 19% Q2 '14 12% 16% 11% 14% 11% Software Media and Entertainment Biotechnology Q3 '14 5% 7% 8% 5% 7% IT Services 6% 5% 6% 5% 6% Medical Devices and Equipment PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters PwC 8

Software & Internet-specific investments

Q1 2010 – Q3 2014

Software investments ($B)

$1,0 $1,4 $ Invested # of deals $1,3 $1,5 $1,4 $2,0 $2,3 $1,9 $1,8 $2,5 $2,1 $2,3 $2,2 $2,3 $3,7 $2,9 $4,1 $6,1 $3,7 Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 500 450 400 350 300 250 200 150 100 50 0

Internet-specific investments ($B)

$ Invested # of deals $3,1 $3,2 350 $0,9 $1,1 $1,1 $1,3 $1,4 $2,3 $1,7 $1,6 $1,5 $1,9 $1,6 $1,6 $1,4 $1,8 $1,4 $2,4 $2,4 300 250 200 150 100 50 Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 0 PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters PwC 9

Life sciences investments – Percent of total US investments

Life sciences sector : Q3 2013 – Q3 2014 (% of total dollars) 25% Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 22% 20% 19% 19% 17% 17% 16% 15% 14% 12% 11% 11% 10% 6% 6% 6% 5% 5% 5% 0% Biotechnology Medical Devices and Equipment Life Sciences PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters PwC 10

Investments by stage of development: Q3 2014

Stage of Development # of Deals % Change in $ from Q2 2014

($) in millions $197 Seed Stage 48 -16% $3,331 $2,958 Early Stage 511 -3% $3,427 Seed Stage Early Stage Expansion Stage Later Stage Expansion Stage 264 -16%

Total

Later Stage 200

1,023

-13%

-9% Q3 2014 Total Investments - $9,913 million in 1,023 deals

PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters PwC 11

US Investments by stage: Quarterly Q1 2012 – Q3 2014

Amount Invested by Stage ($M)

16 000 14 000 12 000 Later Stage $3 225 Stage 10 000 Expansion 8 000 2 000 0 $2 360 $1 813 $2 225 $2 773 $1 884 $2 256 $2 647 $2 241 $2 586 $2 350 $2 220 $2 166 $2 185 $2 198 $2 488 $2 958 $3 767 $6 248 $3 331 $3 427 $2 070 $2 602 $2 941 $2 997 $3 274 $3 816 $2 958 $1 983 $2 184 $175 Q1 '12 $1 976 $2 316 $281 $174 $214 Q2 '12 Q3 '12 Q4 '12 $1 624 $191 Q1 '13 $248 $201 $352 Q2 '13 Q3 '13 Q4 '13 $135 Q1 '14 $208 $197 Q2 '14 Q3 '14 PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters PwC 12

US Investments by stage: Quarterly Q1 2012 – Q3 2014

Number of Deals by Stage

1 200 213 1 000 197 Later Stage 800 234 Expansion Stage 600 Early Stage 400 Seed Stage 200 226 366 256 448 200 253 430 219 257 520 205 238 426 195 236 184 239 293 526 582 561 196 274 231 315 485 526 200 264 511 0 63 Q1 '12 88 71 76 Q2 '12 Q3 '12 Q4 '12 55 Q1 '13 48 60 73 Q2 '13 Q3 '13 Q4 '13 47 Q1 '14 57 48 Q2 '14 Q3 '14 PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters PwC 13

Investments by sequence of financing: Q3 2014

($) in millions $1,642

Financing

First Sequence Follow-on

Total # of Deals

337 686

1,023 % Change in $ from Q2 2014

-8% -29%

-27%

$8,271 First Sequence Follow-on

Q3 2014 Total Investments - $9,913 million in 1,023 deals

PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters PwC 14

First sequence financing

Investment amount: Q1 2009 – Q3 2014 First sequence investments ($ in billions) $2 $2 $2 $1 $0 $0 $1 $1 $1 $1 $0,7 $0,8 $0,8 2009 $1,2 $1,0 $1,1 $1,3 $0,9 $1,2 $1,6 $1,3 $1,3 $0,9 $1,2 $1,1 $1,3 $0,9 $1,2 $1,3 $1,5 2010 Q1 2011 Q2 Q3 Q4 2012 2013 $1,3 $1,8 $1,6 2014 PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters PwC 15

First sequence financing

Number of deals: Q1 2009 – Q3 2014 First sequence deals 500 Q1 Q2 Q3 Q4 400 300 200 167 196 187 281 235 293 274 288 304 367 350 332 264 331 323 376 289 341 380 372 301 353 337 100 2009 2010 2011 2012 2013 2014 PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters PwC 16

Number of First-time vs. Follow-on Deals

US Venture Capital deals 2009 – Q3 2014 YTD

Number of Deals

4500 4000 3500 3000 2500 2000 1500 1000 500 0 2 331 831 2 561 1 090 2 667 1 353 2 610 1 294 2009 2010 2011 2012 2 752 1 382 2013 Follow on First sequence PricewaterhouseCoopers/National Venture Capital Association MoneyTree ™ Report, based on data from Thomson Reuters PwC 2 163 991 2014 YTD Q3 17

First sequence financing

Percent of total US investments: 2009 – Q3 2014 YTD

40% 35% 30% 28% 29% 31% 32% 33% 34% 34% 33% 30% 33% 34% 35% 31% 34% 36% 33% 30% 31% 33% 30% 25% 24% 26% 24% 20% 15% 17% 16% 15% 20% 19% 16% 10% 23% 16% 19% 20% 18% 17% 15% 16% 17% 18% 15% 17% 17% 17% 13% 13% 17% 5% 0% % of Total Dollars % of Total Deals PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters PwC 18

Quarterly percent of total first sequence dollars Stage of development Q3 2013 – Q3 2014

(% of first sequence dollars) 80% 70% Q3 '13 Q3 '14 30% 20% 12% 20% 10% 0% 9% 7% 11% Seed Stage 64% 53% 70% 51% 48% Early Stage 17% 14% 11% 24% 25% 7% 13% 10% 17% 16% Expansion Stage Later Stage PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters PwC 19

Quarterly percent of total first sequence deals Stage of development Q3 2013 – Q3 2014

(% of first sequence deals) 80% 70% Q3 '13 Q2 '14 40% Q3 '14 30% 20% 10% 0% 13% 16% 13% 11% 12% Seed Stage 72% 66% 70% 63% 68% Early Stage 10% 13% 11% 14% 13% 5% 6% 6% 11% 6% Expansion Stage Later Stage PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters PwC 20

First sequence deals in seed & early stage companies 1995 – Q3 2014 YTD

3000 81% 67% 72% 74% 74% 70% 76% 73% 70% 70% 71% 72% 74% 76% 79% 60% 62% 63% 2000 1000 0 83% 90% 79% 80% 70% 60% 50% 40% 30% 20% 10% 0% Seed stage Seq 1 Deals in Seed/Early Stage % of Total Seq 1 Deals Early stage PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters PwC 21

Median deal size vs. mean deal size Quarterly total US investments: Q1 2009 – Q3 2014

($ in millions ) $14,0 $12,0 $10,0 $8,0 $6,0 $5,7 $6,6 $7,1 $6,3 $6,2 $7,0 $6,2 $6,2 $7,2 $7,6 $7,4 $7,5 $7,1 $7,5 $7,0 $6,6 $6,6 $7,2 $7,5 $7,5 $9,7 $12,0 $9,7 $4,0 $3,0 $2,5 $3,1 $2,4 $2,8 $3,0 $2,7 $2,8 $2,5 $3,0 $2,9 $2,5 $2,9 $3,0 $2,2 $2,2 $2,3 $2,5 $2,6 $2,6 $3,2 $3,6 $3,1 $2,0 Median Deal Size Mean Deal Size PricewaterhouseCoopers/National Venture Capital Association MoneyTree ™ Report, based on data from Thomson Reuters PwC 22

Q3 2014 – Most active US venture investors

VC Firm

New Enterprise Associates, Inc.

Kleiner Perkins Caufield & Byers LLC Atlas Venture Intel Capital Corporation First Round Capital Innovation Works, Inc.

Andreessen Horowitz LLC Bessemer Venture Partners, L.P.

Google Ventures Trinity Ventures LLP Sequoia Capital General Catalyst Partners LLC Frost Data Capital Redpoint Ventures SV Angel II Q, L.P.

500 Startups, L.P.

Greycroft Partners LLC Khosla Ventures LLC Index Ventures Bain Capital Venture Partners LLC DreamIt Ventures Mercury Fund True Ventures Correlation Ventures Foundation Capital Accel Partners & Co., Inc.

Lightspeed Management Company Domain Associates LLC Draper Fisher Jurvetson

Location

Menlo Park, California Menlo Park, California Cambridge, Massachusetts Santa Clara, California Philadelphia, Pennsylvania Pittsburgh, Pennsylvania Menlo Park, California Larchmont, New York Mountain View, California Menlo Park, California Menlo Park, California Cambridge, Massachusetts San Juan Capistrano, California Menlo Park, California San Francisco, California Mountain View, California New York, New York Menlo Park, California San Francisco, California Boston, Massachusetts Bryn Mawr, Pennsylvania Houston, Texas Palo Alto, California San Diego, California Menlo Park, California Palo Alto, California Menlo Park, California Princeton, New Jersey Menlo Park, California

Number of Deals

11 11 11 11 11 10 10 10 10 10 10 29 28 19 17 17 16 16 15 13 13 13 13 12 12 12 11 11 11 PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters PwC 23

Analysis of venture-backed IPO and M&A activity

Date 2009 2010 2011

Q1 2012 Q2 2012 Q3 2012 Q4 2012

2012

Q1 2013 Q2 2013 Q3 2013 Q4 2013

2013

Q1 2014 Q2 2014

Q3 2014 2014 Total M&A Deals 360 545 500

114 124 123 129

490

86 96 115 93

390

112 110

119 341 Average M&A deal size ($M)* 113.4

117.3

142.6

131.1

185.4

228.6

126.0

171.9

92.7

218.6

161.9

196.0

178.0

245.8

93.7

248.2

190.3

Number of IPOs**

24

81

37 28

23 88 13 66 50

19 12 10 8

49

8 22 27

Total Offer Amount ($M) 1,979.8

7,409.5

10,441.1

1,682.8

17,227.9

1,140.7

1,408.5

21,459.9

716.9

2,249.9

2,781.4

5,320.1

11,068.2

3,404.5

4,938.9

2,563.0

10,906.4

Average IPO Offer Amount ($M) 152.3

112.3

208.8

88.6

1,435.7

114.1

176.1

438.0

89.6

102.3

103.0

221.7

136.6

92.0

176.4

111.4

123.9

Source: Thomson Reuters and National Venture Capital Association *Only accounts for deals with disclosed values **Includes all companies with at least one U.S. VC investor that trade on U.S. exchanges, regardless of domicile PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters PwC 24

Venture capital fundraising

Year

2010 2011 2012 2013

2014 Q3 YTD Quarter

Q3 ‘13 Q4 ‘13 Q1 ‘14 Q2 ‘14

Q3 ’14 First Time Funds

53 61 75 61

70

18 20 30 22

24 Follow-On Funds

122 128 141 142

116 Total Number of Funds

175 189 216 203

186 VC Raised ($M)

13,272.0

19,022.7

19,798.2

17,641.8

16,471.1

45 39 38 59

36

63 59 68 81

60

4,340.7

5,569.9

10,030.2

7,672.7

6,057.2

Source: Thomson Reuters & National Venture Capital Association Data current as of October 14, 2014 PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters PwC 25

Closing thoughts & comments

PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters PwC 26

Name Title Phone Email Data is current as of October 14, 2014. PricewaterhouseCoopers and the National Venture Capital Association have taken responsible steps to ensure that the information contained in the MoneyTree™ Report has been obtained from reliable sources. However, neither of the parties nor Thomson Reuters can warrant the ultimate validity of the data obtained in this manner. Results are updated periodically. Therefore, all data is subject to change at any time.

© 2014 PricewaterhouseCoopers LLP. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers LLP, which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.