Key Metrics for Recent Technology and Life Sciences Initial Public Offerings

H1 2014

H1 2014

Key Metrics for Recent Technology and Life Sciences Initial Public Offerings H1 2014

Survey Introduction and Background

This report has been developed as a resource for our clients and friends interested in understanding recent IPO activity of technology and life sciences companies. This information comprises a number of graphs and charts reflecting selected statistics that we believe provide useful information about activity in these markets. This is followed by the listing of technology and life sciences IPOs priced in the first half of 2014 and second half of 2013. We hope that you find this useful. Please contact Daniel J. Winnike at [email protected] or Jeffrey R. Vetter at [email protected] if you care to discuss this information or, as always, contact members of your client service team for more information.

Survey Contents

Survey Results...... 2

Offerings Completed...... 3

Size of Offerings, Red Herring Midpoint...... 4

Size of Offerings, Final IPO Price...... 5

Aggregate Amount Raised, Red Herring Midpoint...... 6

Aggregate Amount Raised, Final IPO Price...... 7

Price Changes Between the Red Herring and Initial Offering Price ��8

Confidential Submissions...... 14

Price Changes Around the Expiration of the Lock-Up...... 15

List of Technology Offerings...... 16

List of Life Sciences Offerings ...... 19

Methodology...... 22 Survey Results

In this report we have included technology and life sciences IPOs filed with the U.S. Securities and Exchange Commission by U.S. and International issuers for trading on a U.S. exchange. International issuers were not included in the 2013 statistics presented in this report.

The brisk pace from 2013 continued in the first half of 2014, as a total of 76 technology and life sciences companies completed their IPOs during the first half of 2014. Life sciences companies were particularly active, with 43 completed deals compared to 33 technology transactions. Of the 2014 IPOs, 14 were for companies with headquarters outside the U.S., with six of these being for China-based companies, five for European-based companies, two for companies based in Israel and one company based in Canada. The 62 offerings for U.S.-based companies compares to 45 U.S.-based IPOs completed in the second half of 2013, comprising 23 life sciences and 22 technology issuers.

Notable observations from the first half of 2014 relate to deal size and pricing. Of the completed technology IPOs, just under 60% raised more than $100 million, and just over 20% raised over $200 million. Of completed life sciences IPOs, fewer than 20% raised over $100 million and under 5% raised over $200 million. Of the completed life sciences IPOs, 44% priced below the range provided in their red herring while only 15% of the technology deals priced below their red herring range. Over 25% of all life sciences deals traded down in their first day of trading. In contrast, fewer than 7% of all technology IPOs traded down in their first day of trading.

Technology companies showed greater volatility around the expiration of their lock-up periods than did life sciences companies. On average, technology companies completing IPOs in the second half of 2013, thus having their lock-ups expire in the first half of 2014, were more likely to be trading down around the time of, and two weeks following, the expiration of their lock-ups than were life sciences companies.

While it is common in the life sciences industry for insiders and strategic partners to purchase significant amounts of the shares offered in the IPO, it is unusual with technology company IPOs. In the second quarter of 2014, insiders or strategic partners were disclosed on the prospectus cover as purchasing in (or alongside) five IPOs, representing 25% of all technology IPOs in the second quarter of 2014, as opposed to none in the first quarter of 2014.

Follow-on offerings for IPO issuers remained popular during the first half of 2014. Of the 45 companies that completed life sciences or technology IPOs in the second half of 2013, 13 completed follow-on offerings within 180 days of their IPO.

key metrics for recent technology and life sciences initial public offerings h1 2014 2 Offerings Completed The graph below shows the number of technology and life sciences IPOs completed during each quarter of 2012, 2013, and 2014. ipos per quarter 2012—2014

0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2012 2013 2014

Technology—U.S. Technology—International Life Sciences—U.S. Life Sciences—International

key metrics for recent technology and life sciences initial public offerings h1 2014 3 Size of Offerings, Red Herring Midpoint The following scatter graphs plot all technology and life sciences IPOs completed during the first half of 2014 and second half of 2013 in terms of the initial offering price per share and number of shares offered based on the red herring stage of the offering.

red herring deal comparison (midpoint price): 2014, first half

$45

$40

$35 Arista Networks Technology—U.S. (25 deals)

$30 King Digital Technology—International (8 deals) Entertainment Life Sciences—U.S. (37 deals) GoPro IMS Health $25 Holdings Life Sciences—International (6 deals)

$20

$15 Weibo

$1.6B Sabre $10 JD.com

$400.5M $5

$30.5M

$0 1 10 100 1,000 Bubble Size = deal size Number of Shares in Millions (logarithmic scale)

red herring deal comparison (midpoint price): 2013, second half

$35

$30

Surgical Care $25 Affiliates Premier, Inc. Technology (22 deals) Life Science (23 deals) $20 CommScope Share Twitter Price $15

Endurance International Group $10 $1.3B

$5 $750M

$11.5M $0 1 10 100 1,000 Bubble Size = deal size Number of Shares in Millions (logarithmic scale)

key metrics for recent technology and life sciences initial public offerings h1 2014 4

$35

$30 Surgical Care Affiliates Premier, Inc. Twitter $25

Technology (22 deals) $20 Life Science (23 deals) Share Price $15 CommScope

$1.8B Endurance $10 International Group

$577M

$11.7M $0 1 10 100 1,000 Bubble Size = deal size

Number of Shares in Millions (logarithmic scale) Size of Offerings, Final IPO Price The following scatter graphs plot all technology and life sciences IPOs completed during the first half of 2014 and second half of 2013 in terms of the initial offering price per share and number of shares offered based on actual pricing of the offering.

ipo deal comparison: 2014, first half Red Herring Deal Comparison (Midpoint Price): 2011-2012 $45 $35 $50

$40 Arista Networks $45 $30

$35 $40 Surgical Care Technology—U.S. (25 deals) $25 Affiliates Premier, Inc. $35 Technology—International (8 deals) $30 King Digital Technology (22 deals) Entertainment Technology (63 deals) Facebook $30 Life Sciences—U.S.Life Science (23 (37 deals) deals) $20 GoPro IMS Health Life Sciences (27 deals) CommScope Share $25 HoldingsTwitter Share Life Sciences—International (6 deals) Price $25 Workday Price Freescale $15 Semiconductor $20 $20 EnduranceVantiv International Groupon Group $10 $15 $15 $1.3B$10.6B

$1.8B $10 Sabre Weibo Zynga $750M $10$5 JD.com $1B $5 $499.5M $11.5M$12M $5 $0 $0 Bubble Size = deal size 1 1 10 10 100 100 1,000 1000 Bubble $38.3M Size = deal size

$0 NumberNumber of Shares of Shares in Millions in Millions (logarithmic (logarithmic scale) scale) 1 10 100 1,000 Bubble Size = deal size Number of Shares in Millions (logarithmic scale)

IPO Dealipo deal Comparison: comparison: 2011-2012 2013, second half

$35 $50

$45 $30

$40 Surgical Care Premier, Inc. Affiliates Facebook Twitter $25 $35

$30 TechnologyTechnology (22 deals) (63 deals) $20 Workday Life ScienceLife Sciences (23 deals) (27 deals) Share Share $25 Price Price $15 CommScope $20 Groupon Vantiv Freescale Semiconductor $1.8B $15 Endurance $10 International Group $16B Zynga $10 $577M

$5 $5 $1B $11.7M $0 $0 1 10 100 1000 1 10 100 1,000 BubbleBubble Size Size = = deal deal size size Number of Shares in Millions (logarithmic scale) Number of Shares in Millions (logarithmic scale)

key metrics for recent technology and life sciences initial public offerings h1 2014 5 Aggregate Amount Raised, Red Herring Midpoint The following graphs provide information about aggregate deal size at the red herring stage in the first half of 2014 and second half of 2013. The first two graphs provide information for technology and life sciences offerings during the first half of 2014 and the second two graphs provide information for technology and life sciences offerings during the second half of 2013. distribution of deal size (red herring midpoint): 2014, first half

27.3% 27.3%

9.1% 9.1% 6.1% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% % of deals

$25M $50M $75M $100M $125M $150M $175M $200M $225M $250M $350M $375M $400M $425M $475M $500M $825M $850M $1.6B deal size Technology Deal Size Distribution

46.5%

32.6%

9.3% 7.0% 2.3% 2.3% % of deals

$25M $50M $75M $100M $125M $150M $175M $1.3B deal size Life Sciences Deal Size Distribution

distribution of deal size (red herring midpoint): 2013, second half 22.7% 22.7% 13.6% 13.6% 13.6% 13.6% 13.6% 13.6% 13.6% 13.6% 4.5% 36.4% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% % of deals $0 $25M $50M $75M $100M $125M $150M $175M $200M $350M $375M $725M $750M $1.25B $1.5B deal% siz ofe deals $0 $25M $50M $75M 21.2%$100M $125M $150M $175M $200M $350M $375M $725M $750M $1.25B $1.5B deal size Technology Deal Size Distribution

Technology Deal Size Distribution9.1% 6.1% 6.1% 6.1% 3.0% 3.0% 3.0% 3.0% 3.0% 43.5% % of deals

$25M $50M $75M43.5% $100M $125M $150M $175M $200M $225M $250M $275M $300M $425M $450M $475M $500M $625M $650M $1.8B deal size

Technology Deal26.1% Size Distribution

26.1% 48.8% 17.4%

17.4%

4.3% 4.3% 4.3% % of deals 4.3% 4.3% 4.3% $0 $25M $50M $75M $100M $125M $200M $225M $675M $700M deal% sizof edeals 20.9% $0Life $25MSciences$50M $75MDeal$100M Size$125M Distribution$200M $225M $675M $700M deal size 11.6% Life Sciences Deal9.3% Size Distribution 7.0% 2.3% % of deals

$25M $50M $75M $100M $125M $150M $175Mkey metrics$1.3B for recentdeal siz technologye and life sciences initial public offerings h1 2014 6 Life Sciences Deal Size Distribution

18.2% 13.6% 13.6% 18.2% 9.1% 9.1% 9.1% 4.5% 13.6% 4.5% 4.5% 13.6% 4.5% 4.5% 4.5% 9.1% 9.1% 9.1% % of deals

$0 4.5%$25M $50M $75M4.5%$100M $125M4.5%$150M $175M $200M $225M $250M $275M $300M 4.5%$325M $575M 4.5%$600M $1.75B 4.5%$2B deal size % of deals

$0Technology$25M $50M Deal$75M $100MSize $125MDistribution$150M $175M $200M $225M $250M $275M $300M $325M $575M $600M $1.75B $2B deal size Technology Deal Size Distribution

30.4% 26.1%

30.4% 17.4% 26.1%

8.7% 17.4% 8.7% 4.3% 4.3% % of deals 8.7% 8.7% $0 $25M $50M $75M $100M $125M $150M $175M $200M $225M 4.3%$250M $750M 4.3%$775M deal size % of deals

$0Life$25M Sciences$50M $75MDeal$100M Size$125M Distribution$150M $175M $200M $225M $250M $750M $775M deal size Life Sciences Deal Size Distribution 27.3% 27.3%

9.1% 9.1% 6.1% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% % of deals

$25M $50M $75M $100M $125M $150M $175M $200M $225M $250M $350M $375M $400M $425M $475M $500M $825M $850M $1.6B deal size Technology Deal Size Distribution

46.5%

32.6%

9.3% 7.0% 2.3% 2.3% % of deals

$25M $50M $75M $100M $125M $150M $175M $1.3B deal size

AggregateLife Sciences Amount Deal Raised, Size Final Distribution IPO Price The following graphs provide information about aggregate deal size based on the actual pricing of the offering in the first half of 2014 and second half of 2013. The first two graphs provide information for technology and life sciences offerings during22.7% the first half of 2014 and the second two graphs provide information for technology and life sciences offerings during the13.6% second13.6% half of 2013.13.6% 13.6% 22.7% 4.5% 4.5% distribution4.5% of deal size (final4.5% ipo price): 2014, first half 4.5% 13.6% 13.6% 13.6% 13.6% % of deals

$0 $25M $50M $75M $100M $125M $150M $175M $200M $350M $375M $725M $750M $1.25B $1.5B deal size 36.4% 4.5% 4.5% 4.5% 4.5% 4.5% Technology Deal Size Distribution % of deals $0 $25M $50M $75M $100M $125M $150M $175M $200M $350M $375M $725M $750M $1.25B $1.5B deal size 21.2% Technology Deal Size Distribution 43.5% 9.1% 6.1% 6.1% 6.1% 3.0% 3.0% 3.0% 3.0% 3.0% 43.5% % of deals 26.1% $25M $50M $75M $100M $125M $150M $175M $200M $225M $250M $275M $300M $425M $450M $475M $500M $625M $650M $1.8B deal size

17.4% Technology Deal26.1% Size Distribution

48.8% 4.3% 17.4% 4.3% 4.3% % of deals

$0 $25M $50M $75M $100M $125M $200M $225M $675M $700M deal size 4.3% 4.3% 4.3% Life Sciences Deal Size Distribution % of deals $0 $25M $50M $75M $100M $125M $200M $225M $675M $700M deal size 20.9% Life Sciences Deal Size Distribution 11.6% 9.3% 7.0% 2.3% % of deals

$25M $50M $75M $100M $125M $150M $175M $1.3B deal size Life Sciences Deal Size Distribution

distribution of deal size (final ipo price): 2013, second half 18.2% 13.6% 13.6%

18.2% 9.1% 9.1% 9.1% 4.5% 13.6% 4.5% 4.5% 13.6% 4.5% 4.5% 4.5% 9.1% 9.1% 9.1% % of deals $0 4.5%$25M $50M $75M4.5%$100M $125M4.5%$150M $175M $200M $225M $250M $275M $3004.5%M $325M $575M4.5% $600M $1.75B4.5% $2B deal size % of deals

$0Technology$25M $50M $75MDeal$100M Size$125M Distribution$150M $175M $200M $225M $250M $275M $300M $325M $575M $600M $1.75B $2B deal size Technology Deal Size Distribution

30.4% 26.1% 30.4% 26.1% 17.4%

8.7% 17.4% 8.7% 4.3% 4.3% 8.7% 8.7% % of deals 4.3% 4.3% $0 $25M $50M $75M $100M $125M $150M $175M $200M $225M $250M $750M $775M deal size % of deals $0Life$25M Sciences$50M $75M Deal$100M Size$125M Distribution$150M $175M $200M $225M $250M $750M $775M deal size Life Sciences Deal Size Distribution

key metrics for recent technology and life sciences initial public offerings h1 2014 7 Price Changes Between the Red Herring and Initial Offering Price Estimating the offering price for the IPO in the red herring prospectus and pricing the IPO upon completion of marketing efforts are processes that are part science and art. The graphs below show the median and average prices for technology and life sciences IPOs from the red herring stage to the actual public offering price to the close price on the first day of trading, for each of the first half of 2014 and second half of 2013.

median prices for technology & life sciences ipo deals

2014 H1 $20 2013 H2 $19.26 $19.13 $18

Technology $15.50 $16.50 $16 $15.50 $15.00 $14.00 $15.00 $14.00 $15.00 $13.50 Life Sciences $12.00 $12

$10 Red Herring Final Price 1st Day Close

average prices for technology & life sciences ipo deals

2014 H1 $24 2013 H2 $23.47

$22

$20.27 $20

$18.53 $18

Technology $16.18 $15.32 $16 $15.31 $15.88 $15.47 $15.26 $14.24 $14.67 $14 $12.63 Life Sciences $12

$10 Red Herring Final Price 1st Day Close

key metrics for recent technology and life sciences initial public offerings h1 2014 8 Price Changes (continued) The first two graphs show the percentage of technology and life sciences IPOs with a final price that falls above, within and below the red herring range in the first half of 2014 compared with the second half of 2013. The lower graphs show the percentage of technology and life sciences deals that closed up, down, or flat on their first day of trading in the first half of 2014 compared with the second half of 2013.

relation of final ipo price to original relation of final ipo price to original red herring range (% of deals) red herring range (% of deals) 2014, first half 2013, second half

Technology Technology Life Sciences

30.3% 40.9% 26.1% Life Sciences

14.0% Deals 54.5% Deals 52.2% Above Above Range 41.9% Range 36.4%

Within Within Range Range

Below Below Range Range 22.7% 44.2% 15.2% 21.7%

relation of price at 1st day close to relation of price at 1st day close to final ipo price (% of deals) final ipo price (% of deals)

2014, first half Technology 2013, second half

Life Sciences 90.9%

82.6% Life Sciences Technology

60.5% 63.6%

Closed Closed Up Up

11.6% Closed Closed 3.0% 4.3% 4.5% Flat Flat 13.36.1%% 13.0% 31.8% 27.9%

Closed Closed Down Down

key metrics for recent technology and life sciences initial public offerings h1 2014 9 Price Changes (continued) The graphs below show the five technology company IPOs with the largest percentage gain and loss on the first day of trading for IPOs completed in the first half of 2014 and second half of 2013.

biggest movers - ipo price to price at biggest movers - ipo price to price at 206.7% 1st day close 2014, first half 1st day close 2013, second half Castlight Health 148.8% Dicerna Pharmaceuticals Technology—U.S. Technology—International Benefitfocus Ultragenyx Pharmaceuticals Varonis Systems

Foundation Medicine 102.1% 101.2% 100.0% Rocket Fuel 96.4% 93.5% Veeva Systems Coupons.com

87.5% 85.8% FireEye 80.0% Twitter Agios Pharmaceuticals

Kite Pharma 73.8% 72.7% 70.6% Revance Therapeutics 67.8% OncoMed Pharmaceuticals MacroGenics

ZS Pharma 59.9% Intrexon Corporation 57.7% 56.2% 54.6% Zendesk

49.2% Care.com 42.9%

2.3% 0.0% 0.7% 0.0% 0.3% -6.1%-3.8% -6.3% -4.5% -10.0% -9.1% -12.4% -14.5% -14.1% -13.6%-15.6% -15.1% -20.8% -22.6% -22.0% SCYNEXIS Cheetah Mobile Paycom Software Aerohive Network Materialise NV Chegg uniQure B.V. Mavenir Systems Lombard Medical BIND Therapeutics Violin Memory Karyopharm Therapeutics Eagle Pharmaceuticals Adamas Pharmaceuticals Conatus Pharmaceuticals Liquid Holdings Group, LLC King Digital Entertainment plc. TetraLogic Pharmaceuticals Corporation Cellular Dynamics International Endurance International Group Holdings

key metrics for recent technology and life sciences initial public offerings h1 2014 10 Price Changes (continued) The graphs below show the five life sciences company IPOs with the largest percentage gain and loss on the first day of trading for IPOs completed in the first half of 2014 and second half of 2013. biggest movers - ipo price to price at biggest movers - ipo price to price at 1st day close 2014, first half 1st day close 2013, second half 206.7% Castlight Health 148.8% Dicerna Pharmaceuticals Life Sciences—U.S. Life Sciences—International Benefitfocus Ultragenyx Pharmaceuticals Varonis Systems

Foundation Medicine 102.1% 101.2% 100.0% Rocket Fuel 96.4% 93.5% Coupons.com Veeva Systems 87.5%

85.8% FireEye 80.0% Twitter Agios Pharmaceuticals

Kite Pharma 73.8% 72.7% 70.6% Revance Therapeutics 67.8% OncoMed Pharmaceuticals MacroGenics ZS Pharma 59.9% Intrexon Corporation 57.7% 56.2% 54.6% Zendesk

49.2% Care.com 42.9%

2.3% 0.0% 0.7% 0.0% 0.3% -3.8%-6.1% -6.3% -4.5% -10.0% -9.1% -14.1% -12.4% -14.5% -15.6%-13.6% -15.1% -20.8% -22.6% -22.0% SCYNEXIS Cheetah Mobile Paycom Software Aerohive Network Chegg Materialise NV uniQure B.V. Mavenir Systems Lombard Medical BIND Therapeutics Violin Memory Karyopharm Therapeutics Eagle Pharmaceuticals Adamas Pharmaceuticals Conatus Pharmaceuticals Liquid Holdings Group, LLC King Digital Entertainment plc. TetraLogic Pharmaceuticals Corporation Cellular Dynamics International Endurance International Group Holdings

key metrics for recent technology and life sciences initial public offerings h1 2014 11 Price Changes (continued) The graphs below show the five technology company IPOs with the largest percentage increase, and largest percentage decrease, from the red herring midpoint to actual initial public offering price for IPOs completed in the first half of 2014 and second half of 2013.

biggest movers - red herring price to biggest movers - red herring price to final ipo price 2014, first half final ipo price 2013, second half Castlight Health

60.0% Veeva Systems

53.9% FireEye 48.2% Technology—U.S. Technology—International Twitter 40.5% Ultragenyx Pharmaceutical zulily 35.5% Kite Pharma 30.8% Ophthotech Corporation 29.4% Nimble Storage GrubHub Dicerna Pharmaceuticals Coupons.com Varonis Systems uniQure B.V. 25.7% Agios Pharmaceuticals Foundation Medicine Xunlei Limited 25.0% Versartis 23.8% 23.1% 23.5% 21.4% 20.0% 20.0% Oncnova Therapeutics 22.2% 20.0% 20.0% OncoMed Pharmaceuticals 15.4% 13.3%

-11.8% -15.8% -21.1% -20.0% -23.1% -23.1% -30.8% -30.0% -30.8% -28.6%

-37.1% Imprivata -37.5%

-46.7% -46.7% -46.7% -46.7% Five9 YuMe

-53.9% TrueCar -50.0%

-60.0% Relypsa Sabre Corporation

-63.3% Paycom Software Radius Health Aerie Pharmaceuticals Mavenir Systems Xencor Glyco Mimetics Quotient Limited Applied Optoelectronics Celladon Corporation CommScope Holding Company Agile Therapeutics Fate Therapeutics Endurance International Group Holdings TetraLogic Pharmaceuticals Corporation

key metrics for recent technology and life sciences initial public offerings h1 2014 12 Price Changes (continued) The graphs below show the five life sciences company IPOs with the largest percentage increase, and largest percentage decrease, from the red herring midpoint to actual initial public offering price for IPOs completed in the first half of 2014 and second half of 2013. biggest movers - red herring price to biggest movers - red herring price to final ipo price 2014, first half final ipo price 2013, second half Castlight Health

60.0% Veeva Systems

53.9% FireEye 48.2% Twitter

Life Sciences—U.S. Life Sciences—International 40.5% Ultragenyx Pharmaceutical zulily 35.5% Kite Pharma

30.8% Ophthotech Corporation 29.4% GrubHub Nimble Storage Dicerna Pharmaceuticals Coupons.com Varonis Systems

uniQure B.V. 25.7% Agios Pharmaceuticals Foundation Medicine Xunlei Limited 25.0% Versartis 23.8% 23.1% 23.5% 21.4% 20.0% 20.0% Oncnova Therapeutics 22.2% 20.0% 20.0% OncoMed Pharmaceuticals 15.4% 13.3%

-11.8% -15.8% -21.1% -20.0% -23.1% -23.1% -30.0% -30.8% -30.8% -28.6%

-37.1% Imprivata -37.5%

-46.7% -46.7% -46.7% -46.7% Five9 YuMe

-53.9% TrueCar -50.0%

-60.0% Relypsa Sabre Corporation

-63.3% Paycom Software Radius Health Aerie Pharmaceuticals Mavenir Systems Xencor Glyco Mimetics Quotient Limited Applied Optoelectronics Celladon Corporation Agile Therapeutics CommScope Holding Company Fate Therapeutics Endurance International Group Holdings TetraLogic Pharmaceuticals Corporation

key metrics for recent technology and life sciences initial public offerings h1 2014 13 Confidential Submissions For deals that began with a confidential filing, the graphs below show the number of days between the initial confidential submission and pricing. The graphs display the percentage of deals that priced within each 15 day period from the initial confidential submission date.

distribution of days between initial confidential submission and final pricing 2014, first half

27.6% Technology (29 deals)

17.2% 13.8% 10.3% 10.3% 6.9% 3.4% 3.4% 3.4% 3.4% % of deals

0 15 30 45 60 75 90 105 120 135 150 165 180 195 210 225 240 255 270 285 300 315 330 345 360 number of days

Life Sciences (38 deals) 18.4% 18.4% 18.4% 15.8% 13.2%

5.3% 2.6% 2.6% 2.6% 2.6% % of deals

0 15 30 45 60 75 90 105 120 135 150 165 180 195 210 225 240 255 270 285 300 315 330 345 360 number of days

distribution of days between initial confidential submission and final pricing 2013, second half

Technology (21 deals) 23.8% 23.8%

14.3% 9.5% 9.5% 4.8% 4.8% 4.8% 4.8% % of deals

0 15 30 45 60 75 90 105 120 135 150 165 180 195 210 225 240 255 270 285 300 315 330 405 420 number of days

36.4% Life Sciences (22 deals) 27.3%

18.2%

4.5% 4.5% 4.5% 4.5% % of deals

0 15 30 45 60 75 90 105 120 135 150 165 180 195 210 225 240 255 270 285 300 315 330 345 360 number of days

key metrics for recent technology and life sciences initial public offerings h1 2014 14 Price Changes Around the Expiration of the Lock-Up In order to assist the development of an orderly market for the shares being offered, IPO underwriters require the stockholders of the offering company to agree not to sell shares of the company’s common stock for a specified period without the underwriters’ consent. Customarily this period is 180 days and applies equally to all holders delivering the “lock-up” agreement, although in a few instances the lock-up may roll off in stages and different holders may be subject to different restrictive periods. Upon expiration of the lock-up period, there generally is an influx of “supply,” as pre-IPO stockholders have their first ability to sell shares into the public market. The graphs below shows the average and median changes in the closing trading price of the subject company shares for the period beginning two weeks prior, and ending two weeks following, the scheduled expiration of the lock-up period for lock-ups expiring in the first half of 2014 and second half of 2013. Those companies completing IPOs in the second half of 2013 and a follow-on offering within 180 days are excluded from the first graph below. Those companies completing IPOs in the first half of 2013 and a follow-on offering within 180 days are excluded from the second graph below. percent change of share prices surrounding end of lock-up period 2014, first half

End of Lock-Up 15%

10%

0% -1.3% Life Sciences Avg

-5% -5.3% Life Sciences Median

-10%

-15% -16.2% Technology Avg -16.6% Technology Median

-20% 2 wk prior Lock-up 2 wk post percent change of share prices surrounding end of lock-up period 2013, second half

End of Lock-Up 10%

1.8% Life Sciences Median 0% -1.2% Life Sciences Avg

-5%

-10%

-15%

-20% -21.2% Technology Avg -24.1% Technology Median -25% 2 wk prior Lock-up 2 wk post

key metrics for recent technology and life sciences initial public offerings h1 2014 15 Technology Offerings: H2 20131

company name/ticker symbol red herring midpoint priced final shares2 final pricing final deal size

RetailMeNot, Inc. $21.00 7/2013 9,090,908 $21.00 $190,909,068 NasdaqGS:SALE Liquid Holdings Group, LLC $10.00 7/2013 3,175,000 $9.00 $28,575,000 NasdaqGM:LIQD Control4 Corporation's $16.00 8/2013 4,000,000 $16.00 $64,000,000 NasdaqGM:CTRL YuMe, Inc. $13.00 8/2013 5,125,000 $9.00 $46,125,000 NYSE:YUME Cvent, Inc. $18.00 8/2013 5,600,000 $21.00 $117,600,000 NYSE:CVT Benefitfocus, Inc. $23.00 9/2013 4,935,000 $26.50 $130,777,500 NasdaqGM:BNFT FireEye, Inc. $13.50 9/2013 15,175,000 $20.00 $303,500,000 NasdaqGS:FEYE Rocket Fuel Inc. $25.50 9/2013 4,000,000 $29.00 $116,000,000 NasdaqGS:FUEL Covisint Corporation $10.00 9/2013 6,400,000 $10.00 $64,000,000 NasdaqGS:COVS Applied Optoelectronics, Inc. $14.00 9/2013 3,600,000 $10.00 $36,000,000 NasdaqGM:AAOI RingCentral, Inc. $12.00 9/2013 7,500,000 $13.00 $97,500,000 NYSE:RNG Violin Memory, Inc. $9.00 9/2013 18,000,000 $9.00 $162,000,000 NYSE:VMEM Veeva Systems Inc. $13.00 10/2013 13,045,000 $20.00 $260,900,000 NYSE:VEEV Endurance International Group $15.00 10/2013 21,051,000 $12.00 $252,612,000 Holdings, Inc. NasdaqGS:EIGI CommScope Holding Company, $19.50 10/2013 38,461,537 $15.00 $576,923,055 Inc. NasdaqGS:COMM Barracuda Networks, Inc. $19.50 11/2013 4,140,000 $18.00 $74,520,000 NYSE:CUDA Twitter, Inc. $18.50 11/2013 70,000,000 $26.00 $1,820,000,000 NYSE:TWTR Mavenir Systems, Inc. $16.00 11/2013 5,450,000 $10.00 $54,500,000 NYSE:MVNR Chegg, Inc. $10.50 11/2013 15,000,000 $12.50 $187,500,000 NYSE:CHGG zulily, inc. $17.00 11/2013 11,500,000 $22.00 $253,000,000 NasdaqGS:ZU Kofax Limited $5.75 12/2013 2,000,000 $5.85 $11,700,000 NasdaqGS:KFX Nimble Storage, Inc. $17.00 12/2013 8,000,000 $21.00 $168,000,000 NYSE:NMBL

1The survey does not include offerings on the OTC Bulletin Board, Nasdaq Capital Market, or those with proceeds of less than $10 million. 2Final share numbers do not reflect any exercise of the over-allotment option.

key metrics for recent technology and life sciences initial public offerings h1 2014 16 Technology Offerings: H1 20141, 2

company name/ticker symbol red herring midpoint priced final shares3 final pricing final deal size

Care.com, Inc. $15.00 1/2014 5,350,000 $17.00 $90,950,000 NYSE:CRCM Varonis Systems, Inc. $18.00 2/2014 4,800,000 $22.00 $105,600,000 NasdaqGS:VRNS Coupons.com Incorporated $13.00 3/2014 10,500,000 $16.00 $168,000,000 NYSE:COUP Castlight Health, Inc. $10.00 3/2014 11,100,000 $16.00 $177,600,000 NYSE:CSLT Paylocity Holding Corporation $15.00 3/2014 7,045,000 $17.00 $119,765,000 NasdaqGS:PCTY Q2 Holdings, Inc. $12.00 3/2014 7,760,870 $13.00 $100,891,310 NYSE:QTWO A10 Networks, Inc. $14.00 3/2014 12,500,000 $15.00 $187,500,000 NYSE:ATEN Amber Road, Inc. $11.50 3/2014 7,391,565 $13.00 $96,090,345 NYSE:AMBR Borderfree, Inc. $15.00 3/2014 5,000,000 $16.00 $80,000,000 NasdaqGS:BRDR King Digital Entertainment plc. $22.50 3/2014 22,200,000 $22.50 $499,500,000 NYSE:KING TriNet Group, Inc. $16.00 3/2014 15,000,000 $16.00 $240,000,000 NYSE:TNET 2U, Inc. $12.00 3/2014 9,175,000 $13.00 $119,275,000 NasdaqGS:TWOU Aerohive Networks, Inc. $10.00 3/2014 7,500,000 $10.00 $75,000,000 NYSE:HIVE Rubicon Project, Inc. $16.00 4/2014 6,770,995 $15.00 $101,564,925 NYSE:RUBI Five9, Inc. $10.00 4/2014 10,000,000 $7.00 $70,000,000 NasdaqGM:FIVN GrubHub Inc. $21.00 4/2014 7,405,614 $26.00 $192,545,964 NYSE:GRUB Opower, Inc. $18.00 4/2014 6,100,000 $19.00 $115,900,000 NYSE:OPWR Paycom Software, Inc. $19.00 4/2014 6,645,000 $15.00 $99,675,000 NYSE:PAYC Leju Holdings Limited $11.00 4/2014 10,000,000 $10.00 $100,000,000 NYSE:LEJU Sabre Corporation $19.00 4/2014 39,200,000 $16.00 $627,200,000 NasdaqGS:SABR Weibo Corporation $18.00 4/2014 16,800,000 $17.00 $285,600,000 NasdaqGS:WB Cheetah Mobile Inc. $13.50 5/2014 12,000,000 $14.00 $168,000,000 NYSE:CMCM Zendesk, Inc. $9.00 5/2014 11,111,111 $9.00 $99,999,999 NYSE:ZEN

1The survey does not include offerings on the OTC Bulletin Board, Nasdaq Capital Market, or those with proceeds of less than $10 million. 2Rows shaded in orange represent International Technology IPOs. 3Final share numbers do not reflect any exercise of the over-allotment option.

key metrics for recent technology and life sciences initial public offerings h1 2014 17 Technology Offerings: H1 20141, 2 (continued)

company name/ticker symbol red herring midpoint priced final shares3 final pricing final deal size

TrueCar, Inc. $13.00 5/2014 7,775,000 $9.00 $69,975,000 NasdaqGS:TRUE JD.com, Inc. $17.00 5/2014 93,685,620 $19.00 $1,780,026,780 NasdaqGS:JD SunEdison Semiconductor, Inc. $14.00 5/2014 7,200,000 $13.00 $93,600,000 NasdaqGS:SEMI Arista Networks, Inc. $38.00 6/2014 5,250,000 $43.00 $225,750,000 NYSE:ANET MobileIron, Inc. $9.00 6/2014 11,111,111 $9.00 $99,999,999 NasdaqGS:MOBL Zhaopin Limited $13.50 6/2014 5,610,000 $13.50 $75,735,000 NYSE:ZPIN Xunlei Limited $10.00 6/2014 7,315,000 $12.00 $87,780,000 NasdaqGS:XNET Imprivata, Inc. $17.00 6/2014 5,000,000 $15.00 $75,000,000 NYSE:IMPR Materialise NV $13.00 6/2014 8,000,000 $12.00 $96,000,000 NasdaqGS:MTLS GoPro, Inc. $22.50 6/2014 17,800,000 $24.00 $427,200,000 NasdaqGS:GPRO

key metrics for recent technology and life sciences initial public offerings h1 2014 18 Life Sciences Offerings: H2 20131

company name/ticker symbol red herring midpoint priced final shares2 final pricing final deal size

OncoMed Pharmaceuticals, Inc. $15.00 7/2013 4,800,000 $17.00 $81,600,000 NasdaqGS:OMED Agios Pharmaceuticals, Inc. $15.00 7/2013 5,888,888 $18.00 $105,999,984 NasdaqGS:AGIO Onconova Therapeutics, Inc $13.00 7/2013 5,166,667 $15.00 $77,500,005 NasdaqGS:ONTX Cellular Dynamics International, Inc. $13.00 7/2013 3,846,000 $12.00 $46,152,000 NasdaqGM:ICEL Conatus Pharmaceuticals Inc. $11.00 7/2013 6,000,000 $11.00 $66,000,000 NasdaqGM:CNAT Intrexon Corporation $15.00 8/2013 9,999,999 $16.00 $159,999,984 NYSE:XON Five Prime Therapeutics, Inc. $13.00 9/2013 4,800,000 $13.00 $62,400,000 NasdaqGM:FPRX Acceleron Pharma, Inc. $14.00 9/2013 5,580,000 $15.00 $83,700,000 NasdaqGM:XLRN BIND Therapeutics, Inc. $15.00 9/2013 4,700,000 $15.00 $70,500,000 NasdaqGM:BIND Ophthotech Corporation $17.50 9/2013 7,600,000 $22.00 $167,200,000 NasdaqGS:OPHT Foundation Medicine, Inc. $15.00 9/2013 5,888,888 $18.00 $105,999,984 NasdaqGM:FMI Premier, Inc. $24.50 9/2013 28,151,958 $27.00 $760,102,866 NasdaqGS:PINC Fate Therapeutics, Inc. $15.00 10/2013 6,666,667 $6.00 $40,000,002 NasdaqGM:FATE LDR Holding Corporation $15.00 10/2013 5,000,000 $15.00 $75,000,000 NasdaqGS:LDRH MacroGenics, Inc. $15.00 10/2013 5,000,000 $16.00 $80,000,000 NasdaqGS:MGNX Aerie Pharmaceuticals, Inc. $13.00 10/2013 6,720,000 $10.00 $67,200,000 NasdaqGM:AERI Surgical Care Affiliates, Inc. $22.50 10/2013 9,777,778 $24.00 $234,666,672 NasdaqGS:SCAI

Veracyte, Inc. $14.00 10/2013 5,000,000 $13.00 $65,000,000 NasdaqGM:VCYT

Karyopharm Therapeutics Inc. $15.00 11/2013 6,800,000 $16.00 $108,800,000 NasdaqGM:KPTI

Tandem Diabetes Care, Inc. $14.00 11/2013 8,000,000 $15.00 $120,000,000 NasdaqGM:TNDM

Relypsa, Inc. $17.50 11/2013 6,850,000 $11.00 $75,350,000 NasdaqGS:RLYP

Xencor, Inc. $15.00 12/2013 12,730,000 $5.50 $70,015,000 NasdaqGM:XNCR

TetraLogic Pharmaceuticals $14.00 12/2013 7,150,000 $7.00 $50,050,000 Corporation NasdaqGM:TLOG

key metrics for recent technology and life sciences initial public offerings h1 2014 19 Life Sciences Offerings: H1 20141, 2

company name/ticker symbol red herring midpoint priced final shares3 final pricing final deal size

GlycoMimetics, Inc. $15.00 1/2014 7,000,000 $8.00 $56,000,000 NasdaqGM:GLYC Celladon Corporation $15.00 1/2014 5,500,000 $8.00 $44,000,000 NasdaqGM:CLDN Dicerna Pharmaceuticals, Inc. $12.00 1/2014 6,000,000 $15.00 $90,000,000 NasdaqGS:DRNA Cara Therapeutics, Inc. $12.00 1/2014 5,000,000 $11.00 $55,000,000 NasdaqGM:CARA Trevena, Inc. $13.00 1/2014 9,250,000 $7.00 $64,750,000 NasdaqGS:TRVN Ultragenyx Pharmaceutical Inc. $15.50 1/2014 5,760,369 $21.00 $120,967,749 NasdaqGS:RARE Auspex Pharmaceuticals, Inc. $11.00 2/2014 7,000,000 $12.00 $84,000,000 NasdaqGM:ASPX Genocea Biosciences, Inc. $13.00 2/2014 5,500,000 $12.00 $66,000,000 NasdaqGM:GNCA uniQure B.V. $14.00 2/2014 5,400,000 $17.00 $91,800,000 NasdaqGS:QURE Egalet Corporation $12.00 2/2014 4,200,000 $12.00 $50,400,000 NasdaqGM:EGLT Eleven Biotherapeutics, Inc. $14.00 2/2014 5,000,000 $10.00 $50,000,000 NasdaqGM:EBIO Revance Therapeutics, Inc. $15.00 2/2014 6,000,000 $16.00 $96,000,000 NasdaqGM:RVNC Argos Therapeutics, Inc. $14.00 2/2014 5,625,000 $8.00 $45,000,000 NasdaqGM:ARGS Eagle Pharmaceuticals, Inc. $15.00 2/2014 3,350,000 $15.00 $50,250,000 NasdaqGM:EGRX Flexion Therapeutics, Inc. $13.00 2/2014 5,000,000 $13.00 $65,000,000 NasdaqGM:FLXN Concert Pharmaceuticals, Inc. $13.00 2/2014 6,000,000 $14.00 $84,000,000 NasdaqGM:CNCE Inogen, Inc. $17.00 2/2014 4,411,763 $16.00 $70,588,208 NasdaqGS:INGN Lumenis Ltd. $16.00 2/2014 6,250,000 $12.00 $75,000,000 NasdaqGS:LMNS Aquinox Pharmaceuticals, Inc. $11.00 3/2014 4,200,000 $11.00 $46,200,000 NasdaqGM:AQXP Achaogen, Inc. $13.00 3/2014 6,000,000 $12.00 $72,000,000 NasdaqGM:AKAO Akebia Therapeutics, Inc. $15.50 3/2014 5,882,353 $17.00 $100,000,001 NasdaqGM:AKBA MediWound Ltd. $15.00 3/2014 5,000,000 $14.00 $70,000,000 NasdaqGM:MDWD Versartis, Inc. $17.50 3/2014 6,000,000 $21.00 $126,000,000 NasdaqGS:VSAR

1The survey does not include offerings on the OTC Bulletin Board, Nasdaq Capital Market, or those with proceeds of less than $10 million. 2Rows shaded in blue represent International Life Sciences IPOs. 3Final share numbers do not reflect any exercise of the over-allotment option.

key metrics for recent technology and life sciences initial public offerings h1 2014 20 Life Sciences Offerings: H1 20141, 2 (continued)

company name/ticker symbol red herring midpoint priced final shares3 final pricing final deal size

Applied Genetic Technologies $14.00 3/2014 4,166,667 $12.00 $50,000,004 Corporation NasdaqGM:AGTC Everyday Health, Inc. $14.00 3/2014 7,150,000 $14.00 $100,100,000 NYSE:EVDY Corium International, Inc. $11.00 4/2014 6,500,000 $8.00 $52,000,000 NasdaqGM:CORI IMS Health Holdings, Inc. $19.50 4/2014 65,000,000 $20.00 $1,300,000,000 NYSE:IMS Adamas Pharmaceuticals, Inc. $17.00 4/2014 3,000,000 $16.00 $48,000,000 NasdaqGM:ADMS Cerulean Pharma Inc. $12.00 4/2014 8,500,000 $7.00 $59,500,000 NasdaqGM:CERU TriVascular Technologies, Inc. $14.00 4/2014 6,500,000 $12.00 $78,000,000 NasdaqGS:TRIV Vital Therapies, Inc. $17.00 4/2014 4,500,000 $12.00 $54,000,000 NasdaqGS:VTL Lombard Medical, Inc. $16.50 4/2014 5,000,000 $11.00 $55,000,000 NasdaqGM:EVAR Quotient Limited $15.00 4/2014 5,000,000 $8.00 $40,000,000 NasdaqGM:QTNTU SCYNEXIS, Inc. $13.00 5/2014 6,200,000 $10.00 $62,000,000 NasdaqGM:SCYX Alder BioPharmaceuticals, Inc. $14.00 5/2014 8,000,000 $10.00 $80,000,000 NasdaqGM:ALDR K2M Group Holdings, Inc. $17.00 5/2014 8,825,000 $15.00 $132,375,000 NasdaqGS:KTWO Agile Therapeutics, Inc. $13.00 5/2014 9,166,667 $6.00 $55,000,002 NasdaqGM:AGRX Radius Health, Inc. $15.00 6/2014 6,500,000 $8.00 $52,000,000 NasdaqGM:RDUS ZS Pharma, Inc. $16.00 6/2014 5,944,444 $18.00 $106,999,992 NasdaqGM:ZSPH Ardelyx, Inc. $14.00 6/2014 4,286,000 $14.00 $60,004,000 NasdaqGM:ARDX Zafgen, Inc. $15.00 6/2014 6,000,000 $16.00 $96,000,000 NasdaqGS:ZFGN Kite Pharma, Inc. $13.00 6/2014 7,500,000 $17.00 $127,500,000 NasdaqGS:KITE Amphastar Pharmaceuticals, Inc. $11.00 6/2014 8,000,000 $7.00 $56,000,000 NasdaqGS:AMPH

key metrics for recent technology and life sciences initial public offerings h1 2014 21 Methodology Data points used in the compilation and analysis of this information were gathered using a variety of resources, including, but not limited to, filings made with the U.S. Securities and Exchange Commission, lock-up expiration dates from EDGAR Online IPO Deal Data, and daily stock trading price data. The exact dates upon which lock-ups expired were estimated based on disclosure in the prospectuses and may further be approximate in the case of dates falling on holidays or weekends. Companies were assigned to the Technology and Life Sciences sectors based on SIC codes and other company descriptors. The data presented for 2014 IPOs is for U.S. and International- based issuers filing an IPO with the U.S. Securities and Exchange Commission for trading on a U.S. exchange; the data for 2013 IPOs is for U.S.-based issuers.

The information in the graphs and tables regarding offering size does not reflect any exercise of the underwriters’ over-allotment, or green shoe, option. Information at the red herring stage is based on midpoint of the range, and on the number of shares offered, as reflected on the cover page of the first preliminary, or red herring, prospectus. The information regarding the actual offering size is based on the price to the public and the aggregate number of shares offered as reflected on the cover page of the final prospectus. The closing price on the first day of trading is the closing price on the company’s primary exchange on the first day of public trading of the shares following the pricing of the offering.

Disclaimer The preparation of the information contained herein involves assumptions, compilations, and analysis, and there can be no assurance that the information provided herein is error-free. Neither Fenwick & West LLP nor any of its partners, associates, staff, or agents shall have any liability for any information contained herein, including any errors or incompleteness. The contents of this report are not intended, and should not be considered, as legal advice or opinion.

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key metrics for recent technology and life sciences initial public offerings h1 2014 22