2Q 2013 Venture Capital Rundown Presentation Slide Deck Try the PitchBook Platform: Phone: Consult the Research Team: Phone:

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Source:PitchBook Since hitting an all-time high in 2Q 2012, VC investment in U.S.-based companies has decelerated for three consecutive quarters.

Source:PitchBook VC Deal-Making Declined for a Third Straight Quarter, Hitting the Lowest Level in More Than 2 Years U.S. VC Deal Flow by Quarter

Source:PitchBook Early Stage Deals Have Shrunk as a Proportion of Overall VC Activity in Recent Years VC Deal Flow (count) by Stage

Source:PitchBook Angel & Seed Rounds

Source:PitchBook Angel & Seed Financings Have Held Relatively Steady, Helping Increase Their Share of VC Deal Flow to 29% Angel & Seed Deal Flow by Quarter

Source:PitchBook Software Remains the Most Active Sector, But Angel & Seed Investors Have Been Exploring Other Sectors Angel & Seed Deals (count) by Sector

Source:PitchBook The Median Round Amount was Just 14% of the Median Pre-Money Valuation, the Lowest Since 1Q 2009 Angel & Seed Median Pre-Money Valuation and Round Amount

Source:PitchBook Virtually All of the Recent Increase in Angel & Seed Rounds Can be Attributed to a Rise in Seed Financings Deal Count of Angel vs. Seed Rounds

Source:PitchBook Early Stage Rounds

Source:PitchBook Early Stage Deals Hit a Four-Year Low with $2.0 Billion Invested Through 295 Financings in 1Q 2013 Early Stage Deal Flow by Quarter

Source:PitchBook Software Continues to be the Mainstay of Early Stage Investing Early Stage Deals (count) by Sector

Source:PitchBook The Median Pre-Money Valuation has Shifted Fairly Significantly From Quarter-to-Quarter Early Stage Median Pre-Money Valuation and Round Amount

Source:PitchBook The Median Time Between Angel & Seed Funding and the First Early Stage Round Jumped 4 Months in 1Q 2013 Median Time Between Angel & Seed and Early Stage Rounds

Source:PitchBook Late Stage Rounds

Source:PitchBook Late Stage Financings Have Been in Decline, But the Downturn is Not as Severe as in Early Stage Deals Late Stage Deal Flow by Quarter

Source:PitchBook Other Leading Sectors Besides Software Continue to Grow in Importance Late Stage Deals (count) by Sector

Source:PitchBook The Median Pre-Money Valuation Rose Significantly in the Last Year While the Median Round Amount was Flat Late Stage Median Pre-Money Valuation and Round Amount

Source:PitchBook Commercial Services has More Than Doubled Its Share of Late Stage Deal-Making in the Last Year Commercial Services as % of Late Stage Deals

Source:PitchBook First Financings

Source:PitchBook After Hitting a Zenith in 1Q 2012, the Number of First Financings Has Been in Free Fall First Financings from Top Sectors

Source:PitchBook The Median Pre-Money Valuation for First Financings Has Swung Widely from Quarter-to-Quarter First Financing Median Pre-Money Valuation and Round Amount

Source:PitchBook VC Deal Flow Details

Source:PitchBook All of the Most Active Regions for VC Investing Saw a Slowdown in 1Q 2013 VC Deals (count) by Region 4Q Q 2013

Source:PitchBook Despite the Slowdown in Overall Deal-Making, VC Investing in Many of the Most Active Sectors Held Steady VC Deals (count) by Sector 4Q Q 2013

Source:PitchBook The Median Pre-Money Valuation is Substantially Higher in Software and Media Than Most Other Sectors Median Pre-Money Valuations ($M) by Sector from 1Q 2012 to 1Q 2013

Source:PitchBook VC Exits

Source:PitchBook Exit Flow Sank 25% and Capital Exited Cratered 84% in 1Q 2013 to the Lowest Levels Seen Since 2009 VC Exits by Quarter

Source:PitchBook Virtually All of the Decline in Exits in 1Q 2013 Can be Attributed to Weakness in Corporate Acquisitions VC Exits (count) by Exit Type

Source:PitchBook VC Fundraising

Source:PitchBook VC Fundraising Continues to be a Slog, With Just 13 U.S-Based Funds Closing on $3.3 Billion in 1Q 2013 VC Fundraising by Quarter

Source:PitchBook The 4 Largest Vehicles Attracted 60% of the Capital Raised in 1Q 2013 VC Fundraising (count) by Fund Size * *as of 3/31/2013

Source:PitchBook Most Active Angel & Seed Investors in 1Q 2013 By Count of Closed U.S. Deals Y Combinator19First Round Capital4 500 Startups18Greylock Partners4 Andreessen Horowitz9Lightbank4 MuckerLab8Resolute.vc4 SV Angel8Atlas Venture3 Connecticut Innovations6Capital Innovators3 Fortify Ventures6Cowboy Ventures3 TechStars6Felicis Ventures3 Acceleprise5ff Venture Capital3 Blueprint Health5Founders Fund3 CrunchFund5Harrison Metal Capital3 Google Ventures5Launchpad LA3 Great Oaks Venture Capital5Quotidian Ventures3 Portland Seed Fund5Trinity Ventures3

Source:PitchBook Most Active Early Stage Investors in 1Q 2013 By Count of Closed U.S. Deals Bessemer Venture Partners9Lightspeed Venture Partners5 First Round Capital8True Ventures5 Kleiner Perkins Caufield & Byers8Baseline Ventures4 New Enterprise Associates8Charles River Ventures4 500 Startups7CrunchFund4 Andreessen Horowitz7Draper Associates4 Google Ventures7Draper Fisher Jurvetson4 Greylock Partners7Founder Collective4 Intel Capital6Harrison Metal Capital4 Siemer Ventures6Norwest Venture Partners4 SV Angel6RRE Ventures4 Highland Capital Partners5Sequoia Capital4 Lerer Ventures5Third Rock Ventures4

Source:PitchBook Most Active Late Stage Investors in 1Q 2013 By Count of Closed U.S. Deals Intel Capital8FirstMark Capital4 InterWest Partners6Flybridge Capital Partners4 Kleiner Perkins Caufield & Byers6Google Ventures4 Norwest Venture Partners6Greylock Partners4 Sequoia Capital6Khosla Ventures4 Menlo Ventures5Mayfield Fund4 New Enterprise Associates5Shasta Ventures4 Qualcomm Ventures5True Ventures4 Accel Partners4US Venture Partners4 Advanced Technology Ventures4VantagePoint Capital Partners4 Baird Venture Partners4Versant Ventures4 Delphi Ventures4Vulcan Capital4 Draper Fisher Jurvetson4

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