1. 1 National Venture Capital Association 2008 Predictions Survey All data embargoed until: December 17, 2007

2. 2 NVCA 2008 Venture Capital Predictions Survey  Second annual predictions survey  Conducted in December 2007  More than 170 respondents  Quotes and press release available – contact Emily Mendell (610-565-3904)

3. 3 Venture Investment

4. 4 How much will venture capitalists invest in 2008? Mean = $26.8 billion Median = $27 billion Range: $18 – 43 billion Source: NVCA 2008 Predictions Survey

5. 5 Of which single global investment region are you most leery? Source: NVCA 2008 Predictions Survey

6. 6 Predictions for high growth investment sectors in 2008 Source: NVCA 2008 Predictions Survey

7. 7 Predictions for moderate growth investment sectors in 2008 Source: NVCA 2008 Predictions Survey

8. 8 Predictions for lower growth investment sectors in 2008 Source: NVCA 2008 Predictions Survey

9. 9 Which single industry will be overvalued in 2008? Source: NVCA 2007 Predictions Survey

10. 10 Which single industry will be undervalued in 2008? Source: NVCA 2008 Predictions Survey

11. 11 Venture Exits

12. 12 In 2008, the venture-backed U.S. IPO market will… Source: NVCA 2008 Predictions Survey 15 % faster pace than 2007 20 % slower pace to 2007 24 % equal pace to 2007

13. 13 Which stock exchanges hold the most promise for growth for venture backed companies in 2008? Source: NVCA 2008 Predictions Survey

14. 14 In 2008, transaction volume in the venture- backed M&A market will… Source: NVCA 2008 Predictions Survey

15. 15 In 2008, transaction value in the venture- backed M&A market will… Source: NVCA 2008 Predictions Survey

16. 16 Venture Fundraising

17. 17 On average, venture capital funds raised in 2008 will be … Source: NVCA 2008 Predictions Survey

18. 18 In 2008, we will see the number of venture capital firms… Source: NVCA 2008 Predictions Survey

19. 19 Venture Performance

20. 20 How will venture capital performance change over time? Short Term Returns (1-5 years) Long Term Returns (5-10 years) Source: NVCA 2008 Predictions Survey

21. 21 US Economic and Political Predictions

22. 22 How will the US economy trend in 2008? Source: NVCA 2008 Predictions Survey

23. 23 Will the sub-prime credit woes be contained in 2008? Source: NVCA 2008 Predictions Survey

24. 24 Where will the price of oil be in December 2008? Source: NVCA 2008 Predictions Survey

25. 25 What will happen to the value of the US dollar in 2008? Source: NVCA 2008 Predictions Survey

26. 26 Who will be sworn in as US president in January 2009? Source: NVCA 2008 Predictions Survey

27. 27 Venture Capital Historical Data

28. 28 VC Fundraising 1996 – 2007 (thru Q3) Source: VentureXpert™ Database by VE & NVCA

29. 29 Venture Capital Investment 1995 – Q3 2007 Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report; Data: Thomson Financial

30. 30 Venture Exit Counts- IPOs and M&A by Year Source: Thomson Financial/National Venture Capital Association

31. 31 Private Equity Returns As of 6/30/07 Source: Thomson Financial/National Venture Capital Association Fund Type 1yr 5 yr 10 yr 20 yr Early VC 8%-1%40%21% Balanced VC 25%6%18%14% Later VC 24%5%10%14% > All VC 18%3%21%16% Buyouts22%11%9%13% All PE 21%9%11%14% S&P 500 10%4%7%8% NASDAQ4%6%7%9%

32. 32 www.nvca.org