Shaking the Moneytreetm Q1 2012 Update

www.pwc.com Shaking the MoneyTreeTM Q1 2012 Update

PricewaterhouseCoopers/National Venture Capital Association MoneyTreeTM Report based on data from Thomson Reuters

Randy Churchill Director, Emerging Company Services [email protected] (213) 217-3819

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 15th year • Results online at www.pwcmoneytree.com and www.nvca.org

Shaking the MoneyTreeTM Q1 2012 2 MoneyTree total investments Annual Venture Capital Investments 1982 to Q1 2012

($ in billions)

$120 $105.2

$100

$80

$60 $54.7

$41.0

$40

$31.8

$30.0

$29.1

$27.5

$23.6

$23.3

$23.2

$22.2

$21.3

$20.1

$19.7

$20 $14.9

$11.4

$8.0

$5.8

$4.1

$3.7

$3.6

$3.4 $3.4

$3.3

$3.1

$2.9

$2.8 $2.8 $2.8

$2.2 $1.5

1991

2011

1997

1995

1987

1993

1985 1992

1994 1996 1999

1983

1982

1998 1984 1986 1989

1990

1988

2001 2010

2007

2005

2003

2002

2004

2009 2006

2008

2000 Q1 2012 Q1

Shaking the MoneyTreeTM Q1 2012 3 MoneyTree total investments: Q1 2005 – Q1 2012

($ in billions)

$9.0

$8.0

$8.4

$8.2

$8.1

$8.0

$7.8

$7.0

$7.6

$7.5

$7.3

$7.2

$7.1

$6.9

$6.0 $6.7

$6.7

$6.6

$6.4

$6.2

$6.1

$5.9

$5.8 $5.8

$5.0

$5.6

$5.4

$5.3

$5.2

$5.2 $5.1

$4.0

$3.0 $3.9

$2.0

$1.0

$0.0 2005 2006 2007 2008 2009 2010 2011 2012

Q1 Q2 Q3 Q4

# 2005 2006 2007 2008 2009 2010 2011 2012 of 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 Deals 755 858 808 849 896 1,001 944 996 894 1,091 1,036 1,119 1,049 1,092 1,038 949 670 751 739 920 805 1,014 869 876 861 1,041 961 889 758

Shaking the MoneyTreeTM Q1 2012 4 Investments by region: Q1 2012

Q1 2012 Total Investments - $5,751.8 million in 758 deals

New England $677.9 M Upstate NY 97 Deals $12.1 M Northwest 12% of total US $ Northwest 3 Deals $213.5 M $136.6 M <1% of total US $ Sacramento/N. CA 38 Deals 34 Deals North Central $8 M 4%North of total Central US $ NY Metro 2% of total US $ $90.4 M 1 Deal $41.8 M $378.3 M 12 Deals <1% of total US $ 15 Deals 75 Deals 2% of total US $ 7% of total US $ Silicon Valley 1% of total US $ Midwest $2,079.7 M Colorado Midwest Colorado $285.5 M Philadelphia Metro 213 Deals $121.6 M $200.6 M $166.3 M 63 Deals $141.6 M 36% of total US $ 20 Deals 48 Deals 27 Deals 5% of total US $ 22 Deals Los Angeles 2% of total US3% $of total US $ 3% of total US $ South Central 2% of total US $ $317.8M South Central Southwest $18.1 M 45 DealsSouthwest $37.8 M DC/Metroplex $91.3 M 4 Deals 6% of total$63.1 US M $ 22 Deals Southeast $202.5 M 19 Deals <1% of total US $ 19 Deals 1% of total US $ $118.0 M 40 Deals Orange County 2% of total US $ 1% of US total $ Texas 29 Deals 4% of total US $ $249.3M Texas $388.5 M 2% of total US $ 13 Deals $306.2 M 41 Deals 4% of total US $ 31 Deals KAU AI 7% of total US $

San Diego NI I HA U 5% of total US $ O AHU

$357.1 M M O L O KAI MAUI

L ANAI 22 Deals KAHO O LA WE

HA W AII 6% of total US $ AK/HI/PR $0.6 M 1 Deal <1% of total US $

Unknown region totals not included

Shaking the MoneyTreeTM Q1 2012 5 Investments by region: Q1 2012

Q1 2012 Total Investments - $5,751.8 million in 758 deals ($ in millions) Silicon Valley $2079.7

Southern California $924.1 % Change $ Region # of Deals from Q4’ 11 New England $677.9 Silicon Valley 213 -37% Texas $388.5 New England 97 -15% NY Metro $378.3 Southern California 80 18% NY Metro 75 -34% Midwest $285.5 Midwest 63 7% Northwest $213.5 Texas 41 19% DC/Metroplex $202.5 DC/Metroplex 40 14% Northwest 38 56% Philadelphia Metro $141.6 Southeast 29 -42% Colorado $121.6 Philadelphia Metro 22 7%

Southeast $118.0 Colorado 20 -28% SouthWest 19 13% SouthWest $91.3 North Central 12 74% North Central $90.4 South Central 4 -52%

South Central $18.1 Upstate NY 3 -48% Sacramento/N.Cal 1 N/A Upstate NY $12.1 AK/HI/PR 1 N/A Sacramento/N.Cal $8.0 Total 758 -19%

AK/HI/PR $0.6

- $500 $1000 $1500 $2000 $2500 $3000

Unknown region totals not included Shaking the MoneyTreeTM Q1 2012 6 Investments by region – Quarterly percent of total U.S. investments

Top U.S. regions Q1 2011 – Q1 2012

(% of total dollars)

50% 47%

41% 39% 40% 38% 36%

30%

20% 16% 13% 13% 12% 11% 11% 11% 11% 9% 9% 9% 9% 9% 10% 8% 8% 7% 7% 5% 5% 4%

0% Silicon Valley Southern California New England Texas NY Metro

Q1 11 Q2 11 Q3 11 Q4 11 Q1 12

Shaking the MoneyTreeTM Q1 2012 7 Investments by industry: Q1 2012 Q1 2012 Total Investments - $5,751.8 million in 758 deals ($ in millions) Software $1,646.9 % Change Biotechnology $780.0 # 0f Industry in $ from Deals Industrial/Energy $778.1 Q4' 11 Software 231 -18% Medical Devices and Equipment $686.6 Biotechnology 99 -43% Consumer Products and Services $417.9 Media and Entertainment 76 2% Medical Devices and Media and Entertainment $399.4 72 33% Equipment IT Services $347.1 IT Services 69 -26% Industrial/Energy 58 -14% Semiconductors $199.3 Consumer Products and 32 78% Telecommunications $172.2 Services Semiconductors 26 -43% Networking and Equipment $66.9 Telecommunications 21 31% Financial Services $55.3 Business Products and Services 15 143% Electronics/Instrumentation 12 -60% Computers and Peripherals $48.0 Networking and Equipment 11 -2% Retailing/Distribution $47.6 Financial Services 10 -58% Computers and Peripherals 9 -71% Business Products and Services $47.5 Retailing/Distribution 7 -65% Electronics/Instrumentation $36.4 Healthcare Services 6 -69% Healthcare Services $18.3 Other 4 48% Total 758 -19% Other $4.4

- $500 $1000 $1500 $2000

Visit www.pwcmoneytree.com for Industry definitions

Shaking the MoneyTreeTM Q1 2012 8 Investments by industry – Quarterly percent of total U.S. investments

Top 5 Industries – Q1 2011 to Q1 2012

(% of Total Dollars)

30% 29% 28% 28%

25%

20% 20% 19% 18% 17% 17% 16% 15% 14% 14% 14% 13% 12% 11% 10% 10% 10% 10% 10% 7% 7% 5% 5% 4% 4% 3%

0% Software Biotechnology Industrial/Energy Medical Devices and Consumer Products and Equipment Services Q1 11 Q2 11 Q3 11 Q4 11 Q1 12

Shaking the MoneyTreeTM Q1 2012 9 Life science investments – Percent of total U.S. investments

Life science sectors – Q1 2011 to Q1 2012 (% of total dollars)

30% 29% 27% 26% 26% 25% 24%

20% 19% 17% 16% 15% 14% 14% 12% 11% 10% 10% 10% 7%

0% Biotechnology Medical Devices and Equipment Life Sciences

Q1 11 Q2 11 Q3 11 Q4 11 Q1 12

Shaking the MoneyTreeTM Q1 2012 10 US Cleantech Investments by Sub-sector

Cleantech sub-sectors – Q1 2011 – Q1 2012

($ in millions)

$600

$513.0

$500.0

$500 $453.6

$400

$318.9

$306.5

$305.8

$289.0

$286.1

$276.2

$300

$209.6

$202.8

$185.3

$184.7

$160.4 $155.5

$200

$132.7

$115.4

$112.9

$106.4

$105.2

$100.4

$79.7

$79.3

$70.1

$65.2

$54.6 $54.2

$100 $53.2

$37.1

$31.9

$19.3

$16.4

$9.3

$3.9 $1.7 $0 Solar Energy Transportation Alternative Fuels Pollution and Smart Grid Wind Energy Other (includes electric (includes biofuels) Recycling (includes energy (Includes business vehicles) storage) serv, computer hardware / software, industrial equipment & products, oil & gas exploration, and utilities)

Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012

Shaking the MoneyTree™ Q1 2012 11 Investments by stage of development: Q1 2012

Q1 2012 Total Investments - $5,751.8 million in 758 deals ($ in millions)

Later Stage $2,283.4

Stage of # of % Change in $ Development Deals from Q4 2011 Expansion $1,714.4 Early Stage 290 -31%

Later Stage 208 11%

Expansion 207 -32%

Seed 53 -9% Early Stage $1,612.6 Total 758 -19%

Seed Stage $141.4

- $500 $1000 $1500 $2000 $2500

Shaking the MoneyTreeTM Q1 2012 12 Investments by sequence of financing: Q1 2012

($ in millions) Q1 2012 Total Investments - $5,751.8 million in 758 deals

Fifth and $2,625.3 beyond

% Change in $ Fourth $979.2 Financing # of Deals from Q4 2011

Fifth and beyond 246 6%

First 195 -22% Second $811.2 Second 140 -30%

Third 103 -59%

Fourth 74 -10% First $783.2 Total 758 -19%

Third $552.9

- $500 $1000 $1500 $2000 $2500 $3000

Shaking the MoneyTreeTM Q1 2012 13 First sequence financing – Investment amount

First sequence investments

($ in billions)

$2.2 $2.2

$2.0 $2.0

$1.9

$1.8 $1.8

$1.7

$1.6

$1.6 $1.6

$1.6

$1.5

$2 $1.4

$1.3

$1.2 $1.2

$1.1

$1.0

$0.9 $0.9

$1 $0.9

$0.8 $0.8

$0.8 $0.8 $0.7

- 2004 2005 2006 2007 2008 2009 2010 2011 2012

Q1 Q2 Q3 Q4

Shaking the MoneyTreeTM Q1 2012 14 First sequence financing – Percent of total U.S. investments

60%

55%

50%

45%

40% 35% 35% 35% 34% 35% 32% 31% 33% 32% 32% 35% 33% 32% 31% 32% 31% 32% 32% 31% 30% 30% 30% 30% 29% 29%29% 30% 25% 26% 26% 29% 24% 25% 26% 24% 25% 24% 25% 25% 24% 23% 23% 20% 22% 22% 24% 22% 23% 22% 21% 21% 19% 17% 19% 19% 14% 15% 17% 17% 18% 15% 16% 14% 10%

% of Total Dollars % of Total Deals

Shaking the MoneyTreeTM Q1 2012 15 Stage of development – Quarterly percent of total first sequence dollars

Stage Development – Q1 2011 to Q1 2012

(% of first sequence dollars) 69% 70%

59% 60%

50% 48% 45% 39% 40%

30% 28% 23% 24% 19% 20% 19% 20% 16% 14% 13% 13% 12% 11% 12% 9% 9% 10%

0% Seed Early Stage Expansion Later Stage

Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12

Shaking the MoneyTreeTM Q1 2012 16 Median deal size vs. mean deal size – Quarterly total U.S. investments

($ in millions)

$9.0 $8.4 $7.9 $7.9 $7.8 $8.0 $7.5 $7.7 $7.4 $7.7 $7.6 $7.6 $7.5 $7.5 $7.3 $7.3 $7.3 $7.1 $7.4 $6.7 $6.9 $6.8 $7.1 $7.2 $6.9 $7.0 $6.4 $6.5 $6.4 $6.4 $6.2 $6.0 $5.8

$5.0 $4.4 $4.3 $4.3 $4.4 $4.2 $4.0 $4.0 $4.0 $4.0 $3.9 $4.0 $4.1 $4.0 $3.5 $3.6 $3.6 $3.2 $3.0 $3.0 $3.0 $3.0 $3.0 $3.0 $3.0 $2.8 $2.9 $2.8 $3.0 $2.7 $2.5 $2.4

$2.0

$1.0

Median Deal Size Mean Deal Size

Shaking the MoneyTreeTM Q1 2012 17 SoCal MoneyTree total investments: 2002 – Q1 2012

($ in millions)

$1,400

$1,200

$1,000

$1,103.7

$988.5

$800

$941.8

$939.7

$928.3

$924.1

$918.0

$884.5

$879.9

$849.6

$824.7

$821.1

$776.5

$600

$756.5 $756.6

$745.7

$738.3

$712.2

$661.4

$652.4

$638.1

$626.2

$612.0

$589.7

$400 $581.2

$542.6

$530.6

$528.1

$510.3

$484.2

$461.4

$459.3

$450.0

$444.6

$444.5

$443.8

$426.7 $426.5

$200 $399.8

$362.8 $291.7

$0 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 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Q1 Q2 Q3 Q4

# 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 of Deals 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 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

74 76 57 68 56 68 71 72 62 77 55 79 58 93 88 72 69 91 89 104 86 106 107 95 102 106 90 77 59 70 73 75 86 104 73 78 70 91 84 67 80

Shaking the MoneyTreeTM Q1 2012 18 Southern California investments by industry: Q1 2012

Q1 2012 Total: $924.1 ($ in millions)

Industrial/Energy $320.6

Biotechnology $182.8 Industry # of % Change $ Medical Devices and Equipment $181.4 Deals from Q4 2011

Consumer Products and Services $97.5 Biotechnology 14 -12% Software $82.4 Software 14 32% Medical Devices and Equipment 11 33% IT Services $13.9 Industrial/Energy 8 112% Consumer Products and Services 8 1,078% Media and Entertainment $9.8 Media and Entertainment 8 -82% IT Services 7 -46% Retailing/Distribution $9.0 Electronics/Instrumentation 3 -39% Networking & Equipment 2 -88% Telecommunications $8.2 Retailing/Distribution 1 -33% Telecommunications 1 139% Electronics/Instrumentation $6.7 Business Products and Services 1 1,549% Semiconductors 1 -86% Business Products and Services $4.6 Healthcare Services 1 -91% Semiconductors $3.0 Total 80 18%

Networking & Equipment $2.3

Healthcare Services $2.0

$0.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 $400.0

Shaking the MoneyTreeTM Q1 2012 19 Los Angeles investments by industry: Q1 2012

($ in millions) Q1 2012 Total: $317.8

Medical Devices and Equipment $95.0

Consumer Products and Services $70.7

Software $64.5 Industry # of % Change Deals $ from Industrial/Energy $29.4 Q4 2011 Software 10 173% Biotechnology $12.5 Media and Entertainment 7 60% Consumer Products and Services 6 1,668% Retailing/Distribution $9.0 Industrial/Energy 5 -31% IT Services 5 -66% Media and Entertainment $8.5 Medical Devices and Equipment 4 3,700% Electronics/Instrumentation 2 -39% Telecommunications $8.2 Biotechnology 1 -74% Retailing/Distribution 1 -33% IT Services $6.9 Telecommunications 1 475% Semiconductors 1 NM Electronics/Instrumentation $6.7 Healthcare Services 1 -91% Networking and Equipment 1 -93% Semiconductors $3.0 Total 45 35%

Healthcare Services $2.0 NM = not meaningful

Networking and Equipment $1.4

$0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0

Shaking the MoneyTreeTM Q1 2012 20 Orange County investments by industry: Q1 2012

($ in millions) Q1 2012 Total: $249.3

Industrial/Energy $152.2

Medical Devices and Equipment $73.7 Industry # of % Change $ Deals from Q4 2011

Software $17.9 Medical Devices and Equipment 5 -10% Software 4 -52% Industrial/Energy 2 41% Business Products and Services 1 NM

Business Products and Services $4.6 Networking and Equipment 1 NM Total 13 -2%

NM = not meaningful

Networking and Equipment $0.9

$0.0 $50.0 $100.0 $150.0 $200.0

Shaking the MoneyTreeTM Q1 2012 21 San Diego investments by industry: Q1 2012

Q1 2012 Total: $357.1 ($ in millions)

Biotechnology $170.3

Industrial/Energy $139.0

Industry # of % Change $ Consumer Products & Services $26.8 Deals from Q4 2011

Biotechnology 13 20% Medical Devices and Equipment $12.7 Industrial/Energy 2 NM Medical Devices and Equipment 2 -75% IT Services 2 NM Consumer Products & Services 1 NM IT Services $7.0 Media and Entertainment 1 -97% Electronics/Instrumentation 1 ND Total 22 24% Media and Entertainment $1.3 NM = not meaningful ND = not disclosed

Electronics/Instrumentation ND

$0.0 $50.0 $100.0 $150.0 $200.0

Shaking the MoneyTreeTM Q1 2012 22 SoCal venture capital firms: Q1 2012 investments

Venture capital firm Location Investments Siemer Ventures Santa Monica 6 Avalon Ventures La Jolla 4 DFJ Frontier Sherman Oaks 3 Qualcomm Ventures San Diego 3 Cycad Group LLC Carpinteria 3 Mission Ventures San Diego 2 GRP Partners Los Angeles 1 Idealab Pasadena 1 California Technology Ventures LLC Pasadena 1 Miramar Venture Partners Corona del Mar 1 Baroda Ventures LLC Beverly Hills 1 Revolution Ventures, LLC San Diego 1 Tech Coast Angels, Inc. Los Angeles 1 Coastview Capital LLC Los Angeles 1 Triton Pacific Capital Partners LLC Westwood 1 Craton Equity Partners West Los Angeles 1 Angeleno Group LLC Los Angeles 1 SAIL Capital Partners LLC Irvine 1 Finistere Ventures LLC San Diego 1 Pasadena Angels Altadena 1 Shamrock Capital Advisors LLC Westwood 1 K1 Capital Advisors LLC El Segundo 1 Rustic Canyon Partners Santa Monica 1 Palomar Ventures Santa Monica 1 Clearstone Venture Partners Santa Monica 1 Forward Ventures San Diego 1 Enterprise Partners Venture Capital La Jolla 1 Science, Inc. Santa Monica 1 J. F. Shea Co., Inc. Walnut 1

Shaking the MoneyTreeTM Q1 2012 23 Venture capital firms: Q1 2012 investments in SoCal

Venture capital firm Location Investments Siemer Ventures Santa Monica, California 5 Versant Ventures Menlo Park, California 4 Venrock Associates Palo Alto, California 3 Domain Associates LLC Princeton, New Jersey 3 First Round Capital West Conshohocken, Pennsylvania 3 U.S. Venture Partners Menlo Park, California 3 Google Ventures Mountain View, California 3 New Enterprise Associates, Inc. Menlo Park, California 3 Kleiner Perkins Caufield & Byers Menlo Park, California 3 Lilly Ventures Management Company LLC Indianapolis, Indiana 2 500 Startups, L.P. Mountain View, California 2 Andreessen Horowitz Menlo Park, California 2 Cycad Group LLC Carpinteria, California 2 Arboretum Ventures Ann Arbor, Michigan 2 DFJ Frontier Sherman Oaks, California 2 Thomas, McNerney & Partners Minneapolis, Minnesota 2 GBS Venture Partners Pty, Ltd. Melbourne, Australia 2 Aisling Capital New York, New York 2 Updata Partners Reston, Virginia 2 De Novo Ventures Menlo Park, California 2 OrbiMed Advisors LLC New York, New York 2 Aberdare Ventures San Francisco, California 2 Novartis Venture Funds New York, New York 2 MPM Capital LLC Boston, Massachusetts 2 Avalon Ventures La Jolla, California 2 Draper Fisher Jurvetson Menlo Park, California 2 113 Other Firms 1 each

Shaking the MoneyTreeTM Q1 2012 24 Q1 2012 – Most active U.S. venture investors

VC Company Location Number of Deals New Enterprise Associates, Inc. Menlo Park, California 21 First Round Capital West Conshohocken, Pennsylvania 19 Kleiner Perkins Caufield & Byers Menlo Park, California 16 Canaan Partners Westport, Connecticut 13 U.S. Venture Partners Menlo Park, California 13 Draper Fisher Jurvetson Menlo Park, California 12 Intel Capital Santa Clara, California 12 500 Startups, L.P. Mountain View, California 11 Andreessen Horowitz Menlo Park, California 11 Accel Partners Palo Alto, California 10 Battery Ventures, L.P. Waltham, Massachusetts 10 Flagship Ventures Cambridge, Massachusetts 10 Bessemer Venture Partners Larchmont, New York 9 CIT GAP Funds Herndon, Virginia 9 Google Ventures Mountain View, California 9 Khosla Ventures Menlo Park, California 9 Lightspeed Venture Partners Menlo Park, California 9 Morgenthaler Ventures Menlo Park, California 9 Polaris Venture Partners Waltham, Massachusetts 9 SV Angel Palo Alto, California 9 Third Rock Ventures LLC Boston, Massachusetts 9 True Ventures Palo Alto, California 9

Shaking the MoneyTreeTM Q1 2012 25 Analysis of venture-backed IPO and M&A activity

Date Total M&A Deals Average M&A deal size Number of IPOs** Total Offer Amount ($M) Average IPO Offer ($M)* Amount ($M) 2006 378 114.6 57 5,117.1 89.8 2007 382 173.9 87 10,960.6 126.0 2008 348 116.6 6 470.2 78.4 2009 273 136.2 12 1,642.1 136.8 2010 Q1 121 169.6 9 936.3 104.0 2010 Q2 99 127.2 18 1,382.7 76.8 2010 Q3 117 120.3 15 1,558.0 103.9 2010 Q4 108 147.1 32 3,555.6 111.1 2010 445 142.7 74 7,432.5 100.4 2011 Q1 133 120.1 14 1,375.8 98.3 2011 Q2 92 164.3 22 5,454.2 247.9 2011 Q3 125 169.5 5 442.9 88.6 2011 Q4 117 133.4 12 2,648.9 220.7 2011 467 145.1 53 9,921.9 187.2 Q1 2012 86 113.8 19 1,517.9 79.9

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

Shaking the MoneyTreeTM Q1 2012 26 Venture capital fundraising

First Time Follow-On Total Number of VC Year Funds Funds Funds Raised ($M)

2008 51 161 212 25,340.1 2009 40 120 160 16,400.7 2010 55 115 170 13,778.9 2011 56 125 181 18,767.6 Quarter Q1 ‟10 14 33 47 4,268.2 Q2 ‟10 18 30 48 2,099.9 Q3 ‟10 20 35 55 3,677.6 Q4 ‟10 17 32 49 3,733.2 Q1 ‟11 13 33 46 7,556.5 Q2 „11 15 31 46 2,814.4 Q3 „11 22 43 65 2,140.5 Q4 „11 14 38 52 6,256.2 Q1 „12 11 31 42 4,876.9

Source: Thomson Reuters & National Venture Capital Association Data current as of April 9, 2012

Shaking the MoneyTreeTM Q1 2012 27 Q1 2012 In Review • U.S. investment declined 19% from Q4; up slightly from Q1 2011 • Marginally improving exit market • Continued weak LP commitment • SoCal investment increased by 18%; 2nd to Silicon Valley • Led by large cleantech deals • Strong life sciences sector • Smaller “capital efficient” digital media deals • Large local funds being supplanted by micro funds • Long term outlook • Cleantech, digital media, and life sciences • More micro funds and incubator/accelerators • Will the JOBS Act enhance funding and liquidity?

Shaking the MoneyTree™ Q1 2012 28 Panelist Biographies

Jon Funk Founder Ocean Road Partners Jon Funk is the founder of Ocean Road Partners, a Southern California venture capital firm, and has been directing Series A investments in emerging information technology companies in Southern California for over 25 years, creating cumulative enterprise values in excess of $2 billion at exit.

Jon is also a Managing Director and Venture Partner with Allegis Capital, a $500 million series of venture capital funds founded in 1996.

Jon's Southern California investments include Sandpiper Networks (acquired for $630 million by Digital Island in 2000), Rent.com (acquired for $430m by eBay in 2004) and Shopzilla (acquired for $570M by Scripps in 2005). He currently represents Allegis Capital on the Board of ClariPhy Communications.

He received an MBA from the University of Southern California as a Dean's List Scholar, and a BS in Civil Engineering from the University of California at Berkeley.

Jon serves on the Advisory Boards of the Annual Fund of the Berkeley College of Engineering, the Berkeley Precollegiate Academy, and the California Science Center Foundation. He is a member of the Pacific Council on International Policy.

29 Panelist Biographies

Eric Manlunas Co-Founder and Managing Partner Siemer Ventures Eric Manlunas is a co-Founder and Managing Partner with Siemer Ventures, an early-stage venture capital firm headquartered in Los Angeles. He is a two-time start-up entrepreneur turned venture capitalist with a strong passion for early-stage investing. Eric co-founded Siemer Ventures following its merger with Frontera Group, a prior early-stage boutique venture capital firm he founded in 2002. Eric has a proven track record as an early investor in over 45 early-stage ventures, of which half remain active and growing. Those companies have collectively received over $500 million in growth capital. Eric also served in a concurrent capacity as a Principal of a Los Angeles- based value hedge fund from late-2002 until its sale to a San Francisco-based commercial bank in mid-2006.

Prior to Frontera, Eric founded Sitestar in mid-1999. Sitestar is an Internet service provider in the rural markets of the mid-Atlantic region of the United States. Upon helping steer Sitestar in becoming one of the largest independent ISPs in the region, Eric successfully divested his remaining ownership stake in December 2002. Prior to that, Eric‟s first startup was Interfoods, a specialty foods venture he founded in early 1997 focused on the consolidation of independently-owned specialty foods providers in the southern California region. During Eric‟s 2 ½-year tenure, Interfoods grew to become a mid-sized specialty foods provider in its market and was successfully acquired in late 1999.

Eric began his career as a consulting associate with Arthur Andersen‟s retail management consulting division from 1991-1995. He earned an M.B.A from Pepperdine University in 1995 and a B.S. in Communications from Florida International University in 1990. Eric is currently a member of the board of a number of emerging companies and has previously served as board member of over half a dozen ventures. He is also a Trustee of the Philippine Development Foundation, an organization committed to social development initiatives in the Philippines, Eric‟s country of origin. 30 Panelist Biographies

Mark Suster Partner GRP Partners Mark Suster is a partner at GRP Partners. He joined the firm in 2007 after having previously worked with GRP for nearly 8 years as a two-time entrepreneur. Most recently Mark was Vice President, Product Management at Salesforce.com (NASDAQ: CRM) following its acquisition of Koral, where Mark was Founder and CEO. Prior to Koral, Mark was Founder and CEO of BuildOnline, the largest independent global content collaboration company focused on the engineering and construction sectors, which was acquired by SWORD Group (PARIS: SWP). Earlier in his career, Mark spent nearly ten years working for Accenture in Europe, Japan and the U.S.

Mark received a BA in Economics from the University of California, San Diego, and an MBA from the University of Chicago. He grew up in the U.S. and is also a citizen of the UK.

Mark led the investment in Factual and currently sits on the Boards of the following companies in GRP's portfolio: Ad.ly, Awe.sm, Burstly, Factual, GumGum, Pose and Ring Revenue.

Follow Mark on Twitter http://twitter.com/msuster

You can read Mark‟s Blog Both Sides of the Table at www.bothsidesofthetable.com

31 Presenter Biography

Randy Churchill Director, Emerging Company Services PricewaterhouseCoopers For over 25 years, Randy Churchill has served the entrepreneurial community in a variety of roles, including stints as a commercial lender, securities lawyer, financial printer, Internet entrepreneur and, for the past 12 years, Director of Emerging Company Services for PwC's Southern California Technology practice. In addition to identifying promising venture-backed companies as potential clients, during his tenure with PwC, Randy consistently has worked to connect investors, entrepreneurs and others to promote investment and innovation within the Southern California technology ecosystem. Randy also manages and presents PwC‟s Southern California MoneyTreeTM Report, a quarterly survey of venture capital investment across the nation.

Randy was named Technology Leader of the Year in 2009 by Los Angeles County's TechWeek, and he currently sits on the LA Mayor‟s Council for Innovation and Industry, as well as the advisory boards of several organizations, including: the Los Angeles Venture Association (current president), Caltech MIT Enterprise Forum (past chair), Los Angeles Business Technology Center, USC‟s Center for Technology Commercialization, Cleantech LA, and the Los Angeles Economic Development Corporation's Green Task Force. Additionally, Randy is an inactive member of the State Bar of California.

About PricewaterhouseCoopers’ Emerging Company Services Practice PwC‟s Emerging Company Services Practice is focused on serving innovative fast-growth companies in the software, semiconductor, Internet, digital media, cleantech, telecommunications, networking, mobile applications and life sciences sectors.

We specialize in connecting the dots across a number of emerging company issues dealing with complex equity instruments, revenue recognition, compliance, controls, access to cash flow, expansion, exit strategies, succession and wealth management, all of which are crucial to building long-term success and value for both venture investors and their portfolio companies. 32 Shaking the MoneyTree TM 2 012

Please join PwC, the Los Angeles Venture Association, and a distinguished panel of venture capitalists and industry experts for their insight into results of the Randy Churchill TM MoneyTree Report. Director, Emerging Company Services Q2 2012 Results: (213) 217-3819 Thursday, September 20, 2012 [email protected] 6:00pm – 9:00pm Fairmont Miramar Hotel & Bungalows 101 Wilshire Boulevard Santa Monica, CA 90401 The MoneyTree Report is a quarterly study of venture capital investment activity in the United States. As a collaboration between PwC and the National Venture Capital Association, based upon data from Thomson Reuters, it is the only industry-endorsed research of its kind. The MoneyTree Report is a staple of the financial community, relied upon by entrepreneurs, government policymakers and the business press worldwide.

In conjunction with LAVA

To register for Shaking the MoneyTree, visit ww.lava.org

Please direct any questions to Len Lanzi at [email protected] or Sierra Smith at [email protected]

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