NVCA Yearbook 2014

NATIONAL VENTURE
CAPITAL ASSOCIATION
YEARBOOK 2014
NATIONAL VENTURE CAPITAL ASSOCIATION 2014
INCLUDING STATISTICS FROM THE

PricewaterhouseCoopers/National Venture Capital Association
MoneyTree™ Report based on data from Thomson Reuters
2014 National Venture Capital Association Yearbook | 1
March 2014
Dear Colleague:
We are delighted to present to you the NVCA 2014 Yearbook, prepared by Thomson Reuters. This is the
17th edition in a series launched in early 1998. Since then, much has changed in the industry. One thing
that has not changed, however, is our commitment to bring accurate and responsible transparency to this
powerful economic force called venture capital. You will find in this publication new and updated charts
that track investment activity in the United States. Reflecting our dynamic environment, for the first time
we provide a chapter on Growth Equity – an asset subclass that did not exist in its present form when we
printed the first edition of this publication.
More changes are already in the works. For example, in recognition of the strong and broad emergence of
corporate venture capital groups and direct corporate investment over the past few quarters, we will soon
be changing our methodology to be more inclusive of solo (i.e., without a traditional venture investor in
the round) and early corporate investment into companies. Further, we will also include corporate direct
investment from the corporation itself, not just from a separate or captive entity. Stay tuned.
The industry’s goal remains the same: to create fast-growing and sustainable companies, introduce new
technologies, and improve medical care and patient well-being, while providing an attractive return to
those who trust the industry with their capital. Whether by traditional venture capital, corporate venture
capital, growth equity, or a number of new and energized investment vehicles, we are here to report that
the beat goes on.
As always, your feedback and suggestions are welcome. Please feel free to contact us at research@nvca.
org or through any NVCA director or staff member.
Very truly yours,
Diana Frazier Bobby Franklin John S. Taylor

FLAG Capital Management NVCA President and CEO NVCA Head of Research
NVCA Director and
Chair, Research Committee
NVCA THOMSON REUTERS

2 | 2014 National Venture Capital Association Yearbook

NVCA BOARD OF DIRECTORS 2013-2014
EXECUTIVE COMMITTEE
Josh Green Scott Sandell

Mohr, Davidow Ventures New Enterprise Associates
Chair Chair-Elect
Anne Rockhold Jonathan Callaghan

Accel Partners True Ventures
Treasurer Executive Committee At-Large
Bruce Evans Jonathan Leff

Summit Partneer Deerfield Management
Executive Committee At-Large Executive Committee At-Large,
Research Committee
AT-LARGE
Diana Frazier Mark Leschly

FLAG Capital Rho Ventures
Research Chair Research Committee

John Backus Maria Cirino
New Atlantic Ventures .406 Ventures

David Douglass Claudia Fan Munce
Delphi Ventures IBM Venture Capital Group
Norm Fogelsong Venky Ganesan

Institutional Venture Partners Menlo Ventures

Robert Goodman Mark Gorenberg
Bessemer Venture Partners Zetta Venture Partners

Jason Green Adam Grosser
Emergence Capital Partners Silver Lake Kraftwerk

James Healy Ross Jaffe
Sofinnova Ventures Versant Ventures

Scott Kupor Ray Leach
Andreessen Horowitz Jumpstart, Inc

David Lincoln Robert Nelsen
Element Partners ARCH Venture Partners

Art Pappas Sue Siegel
Pappas Ventures GE Ventures

THOMSON REUTERS NVCA

2014
National Venture Capital Association Yearbook
For the National Venture Capital Association

Prepared by Thomson Reuters
Copyright 2014 Thomson Reuters
The information presented in this report has been gathered with the utmost care
from sources believed to be reliable, but is not guaranteed. Thomson Reuters disclaims
any liability including incidental or consequential damages arising from
errors or omissions in this report.

National Venture Capital Association 2014 Yearbook
National Venture Capital Association Thomson Reuters

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Telephone: 703-524-2549 Telephone: 646-223-4431
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www.nvca.org www.thomsonreuters.com
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Bobby Franklin Stephen N. Case II
President Emeritus Head of Deals and Private Equity Operations

Mark G. Heesen Katarzyna Namiesnik
Head of Research Global Business Manager – Private Equity

John S. Taylor Jim Beecher
Senior Vice President of Federal Policy and Political Advocacy Editor-in-Charge

Jennifer Connell Dowling David Toll
Vice President of Federal Life Science Policy Global Private Equity Operations Manager
Kelly Slone Anna Aquino-Chavez
Vice President of Federal Policy and Political Advocacy Press Management

Emily Baker Matthew Toole

Vice President of Communications Senior Content Specialist
Ben Veghte Michael D. Smith

Vice President of Membership and Member Firm Liaison Content Specialist
Janice Mawson Paul Pantalla
Vice President of Administration Data Specialist

Roberta Catucci Francis S. Tan

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TABLE OF CONTENTS
What is Venture Capital? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
Industry Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . 11
Investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
Exits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . 14
Industry Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . 17
Capital Commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23
Investments.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27
Exits: IPOs and Acquisitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .71
Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .71
Growth Equity Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .85
Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .85
Appendix A: Glossary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
Appendix B: MoneyTree Report Criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .105
Appendix C: MoneyTree Geographical Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .107
Appendix D: Industry Codes (VEICs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
Appendix E: Industry Sector VEIC Ranges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .113
Appendix F: Stage Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .115
Appendix G: Data Sources and Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
Appendix H: International Convergence. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .119
Appendix I: US Accounting Rulemaking and Valuation Guidelines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .121
Appendix J: Non-US Private Equity . . . . . . . . . . . . . . .. . . . . . . . . . . . . . .. . . . . . . . . . . . . . .. . . . . . . . . . . . . . .. . . . . . . . . 125

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WHAT IS VENTURE CAPITAL?
Venture Capital Backed Companies

Venture capital has enabled the United States to support its entrepreneur-
Known for Innovative Business Models
ial talent and appetite by turning ideas and basic science into products
Employment at IPO and Now
and services that are the envy of the world. Venture capital funds build
companies from the simplest form – perhaps just the entrepreneur and an Company As of IPO Current # Change
idea expressed as a businessplan – to freestanding, mature organizations. The Home Depot 650 331,000 330,350
Starbucks Corporation 2,521 160,000 157,479
Risk Capital for Business
Staples 1,693 89,019 87,326
Venture capital firms are professional, institutional managers of risk capi-
tal that enables and supports the most innovative and promising compa- Whole Foods Market, Inc. 2,350 69,500 67,150
nies. This money funds new ideas that could not be financed with tradi- eBay 138 31,500 31,362
tional bank financing, that threaten established products and services in a Venture Capital Backed Companies
corporation, and that typically require five to eight years to be launched. Known for Innovative Technology Products
Venture capital is quite unique as an institutional investor asset class. Employment at IPO and Now
When an investment is made in a company, it is an equity investment in a
company whose stock is essentially illiquid and worthless until a company Company As of IPO Current # Change
matures five to eight years down the road. Follow-on investment provides Microsoft 1,153 94,000 92,847
additional funding as the company grows. These “rounds,” typically oc-
Intel Corporation 460 100,100 99,640
curring every year or two, are also equity investment, with the shares al-
located among the investors and management team based on an agreed Medtronic, Inc. 1,287 45,000 43,713
“valuation.” But, unless a company is acquired or goes public, there is Apple Inc. 1,015 76,100 75,085
little actual value.Venture capital is a long-term investment. Google 3,021 53,861 50,840
JetBlue 4,011 12,070 8,059
More Than Money
The U.S. venture industry provides the capital to create some of the most Source: Global Insight; Updated fromThomsonOne 2/2013
innovative and successful companies. But venture capital is more than
money. Venture capital partners become actively engaged with a com- Many technologies currently under development by venture capital firms
pany, typically taking a board seat. With a startup, daily interaction with are truly disruptive technologies that do not lend themselves to being em-
the management team is common. This limits the number of startups in braced by larger companies whose current products could be cannibalized
which any one fund can invest. Few entrepreneurs approaching venture by this. Also, with the increased emphasis on public company quarterly
capital firms for money are aware that they essentially are asking for 1/6 results, many larger organizations tend to reduce spending on research and
of a person! Yet that active engagement is critical to the success of the development and product development when things get tight. Many tal-
fledgling company. Many one- and two-person companies have received ented teams have come to the venture capital process when their projects
funding but no one- or twoperson company has ever gone public!Along were turned down by their companies.
the way, talent must be recruited and the company scaled up. Ask any
venture capitalist who has had an ultra-successful investment and he or Common Structure — Unique Results
she will tell you that the company that broke through the gravity evolved While the legal and economic structures used to create a venture capi-
from the original business plan concept with the careful input of an expe- tal fund are similar to those used by other alternative investment asset
rienced hand. classes, venture capital itself is unique. Typically, a venture capital firm
will create a Limited Partnership with the investors as LPs and the firm
Deal Flows — Where The Buys Are itself as the General Partner. Each “fund,” or portfolio, is a separate part-
For every 100 business plans that come to a venture capital firm for fund- nership. A new fund is established when the venture capital firm obtains
ing, usually only 10 or so get a serious look, and only one ends up being necessary commitments from its investors, say $100 million. The money
funded. Theventure capital firm looks at the management team, the con- is taken from investors as the investments are made. Typically, an initial
cept, the marketplace, fit to the fund’s objectives, the value-added po- funding of a company will cause the venture fund to reserve three or four
tential for the firm, and the capital needed to build a successful business. times that first investment for follow-on financing. Over the next three to
A busy venture capital professional’s most precious asset is time. These eight or so years, the venture firm works with the founding entrepreneur to
days, a business concept needs to address world markets, have superb grow the company. The payoff comes after the company is acquired or
scalability, be made successful in a reasonable timeframe, and be truly goes public. Although the investor has high hopes for any company get-
innovative. A concept that promises a 10 or 20 percent improvement on ting funded, only one in six ever goes public and one in three is acquired.
something that already exists is not likely to get a close look.

Economic Alignment of all Stakeholders —

An American Success Story
Venture capital is rare among asset classes in that success is truly shared.
It is not driven by quick returns or transaction fees. Economic success
occurs when the stock price increases above the purchase price. When
a company is successful and has a strong public stock offering, or is ac-
quired, the stock price of the company reflects its success. The entrepre-
neur benefits from appreciated stock and stock options. The rank and file
employees throughout the organization historically also do well with their
stock options. The venture capital fund and its investors split the capi-
tal gains per a pre-agreed formula. Many college endowments, pension
funds, charities, individuals, and corporations have benefited far beyond
the risk-adjusted returns of the public markets.
What’s Ahead
Much of venture capital’s success has come from the entrepreneurial spirit
pervasive in theAmerican culture, financial recognition of success, access
to good science, and fair and open capital markets. It is dependent upon
a good flow of science, motivated entrepreneurs, protection of intellec-
tual property, and a skilled workforce. The nascent deployment of ven-
ture capital in other countries is gated by a country’s or region’s cultural
fit, tolerance for failure, services infrastructure that supports developing
companies, intellectual property protection, efficient capital markets, and
the willingness of big business to purchase from small companies.

EXECUTIVE SUMMARY
During 2013, many of the metrics describing the venture capital indus- com (formerly VentureXpert) database of Thomson Reuters, which has
try in the United States were similar to those of the prior three years, with been endorsed by the NVCA as the official industry activity database.
the exception of a pickup in the breadth of the IPO markets. The decline Subscribers to Thomson ONE can recreate most of the charts in this pub-
in capital managed continued as expected, but not as much as some were lication and report individual deal detail and more granular statistics than
anticipating. A record proportion of venture deals focused on companies those provided herein.
in the seed and early stages, while a number of companies long in the
portfolios finally went public, led by Biotechnology companies in the first Industry Resources
half of 2013. Investment in early-stage life science companies continued The activity level of the US venture capital industry is roughly half
to fall during the year, although a fourth-quarter increase in first fundings of what it was at the 2000-era peak. For example, in 2000, 1,050 firms
of Biotechnology companies was encouraging. each invested $5 million or more during the year. In 2013, the count was
Fundraising remained very challenging for the majority of venture roughly half that at 548.
firms. This is largely because of a dearth of healthy exits through 2012 Venture capital under management in the United States by the end of
that would have distributed yet-unrealized returns to current fund inves- 2013 decreased to $192.9 billion. However, looking behind the numbers,
tors. Aside from the Facebook IPO in 2012 ($16.0B of the $21.5B raised we know that the industry continues to contract from the circa 2004 high
in 2012), 2013 was a much-improved year with 81 venture-backed IPOs. of $288.9 billion. The peak capital under management that year was a
Remarkably, over half of them were Biotechnology companies. Early statistical anomaly caused when funds raised at the height of the 2000 tech
signs for 2014 suggest that IPO momentum carried forward into at least bubble were joined by new capital raised post bubble.
the first part of the year. The slight downtick in firms and capital managed (Fig. 1.04) in 2013
A healthy venture capital ecosystem requires its metrics to be in bal- understates a consolidating industry. The average venture capital firm
ance. And while the quality of new business opportunities, known as deal shrunk to 6.7 principals per firm from 8.7 just six years earlier. The corre-
flow, remains very high and the best opportunities are getting funded, sponding drop in headcount to under 6,000 principals is almost one-third
stresses remain. lower than 2007 levels. This meant that there was a general increase in the
average amount of capital managed by each principal. It is possible going
Introduction forward that the number of principals per firm will increase as the number
The National Venture Capital Association 2014 Yearbook provides of firms decreases. This is because the bulk of the capital being commit-
a summary of venture capital activity in the United States. This ranges ted today is being raised by larger, specialty, and boutique firms. For our
from investments into portfolio companies to capital managed by general purposes here, we define a principal to be someone who goes to portfolio
partners to fundraising from limited partners to valuations of companies company board meetings. That is, deal partners would be included and
receiving venture capital investments to exits of the investments by ei- firm CFOs would not be included.
ther IPOs or mergers and acquisitions. The statistics for this publication Contrary to some popular misconceptions, only 43 firms managed more
were assembled primarily from the MoneyTree™ Report by Pricewater- than $1 billion. By comparison, 277 firms managed less than $25 million.
houseCoopers and the National Venture Capital Association, based on
data from Thomson Reuters and analyzed through the Thomson ONE. Commitments
The year 2013 continued to be a very challenging fundraising year for
Figure 1.0 most venture capital firms in the United States. This was due to a lack of
Venture Capital Under Management Summary Statistics recent distributions caused by the tight exit markets, lackluster returns by
many venture funds over the past decade compared with the prior decade,
1993 2003 2013
and a challenge for the largest alternative asset investors to place money in
No. of VC Firms in Existence 370 951 874 many of the smaller funds in this asset class because of scale. Only $16.8
No. of VC Funds in Existence 613 1,788 1,331 billion was raised by 187 funds. This was considerably less than the $19.6
No. of Professionals 5,217 14,777 5,891
billion raised in 2012 or the $19.0 billion raised in 2011. The amount of
new commitments each year by venture capital funds continued to be less
No. of First Time VC Funds Raised 25 34 53
than the amount they invested in companies.
No. of VC Funds Raising Money This Year 93 160 187
VC Capital Raised This Year ($B) 4.5 9.1 16.8 Investments
Measuring industry activity by the total dollars invested in a given year
VC Capital Under Management ($B) 29.3 263.9 192.9
shows that the industry has remained generally in the $20 billion to $30
Avg VC Capital Under Mgt per Firm ($M) 79.2 277.5 220.7 billion range since 2002. In 2013, $29.5 billion was invested in 3,382
Avg VC Fund Size to Date ($M) 40.2 94.4 110.3 companies through 4,041 deals. The number of deals was 4% higher than
Avg VC Fund Size Raised This Year ($M) 48.3 102.9 89.7
2012 counts, but was essentially the same as 2011. The number of first-
time fundings increased in 2013 to 1,334 companies from the previous
Largest VC Fund Raised to Date ($M) 1,775.0 6,300.0 6,300.0
1,275, but it remains near the top of the healthy range of 1,000 to 1,400

first-time fundings in a year. Further parsing the data shows 50% of the in- dollars raised in 2012 was higher at $21.5 billion, it is important to re-
vestment dollars going to California companies, down from 53% in 2012 member that $16.0 billion of that came from the Facebook IPO alone.
but consistent with the previous three years. The year 2013 saw a record The remaining $5.5 billion was raised by the remaining 48 IPOs in 2012.
56% of the financing rounds going to seed and early stage companies, It was a very different story in 2013. $11.1 billion was raised by 81 com-
compared with a more typical one-third of deals. A carefully watched sta- panies. The increase in mean and median time to exit reflects the fact that
tistic is the investment in the life sciences. It is possible that the downward many of these IPOs were mature companies, and many of them were in
plummet in first-time life sciences investment is starting to reverse, led the life sciences space, which had been awaiting an IPO opportunity for
by Biotechnology, but it is still too early to be sure. Corporate Venture months, and in some cases, years.
investment continues to gain considerable strength and presence in the NVCA is encouraged by the increase in smaller IPOs and biotech IPOs
overall industry. in light of its 2012 legislative successes with the JOBS Act and creating a
Software was the leading sector in 2013, receiving 37.3% of the total pathway for FDA Reform.
dollars. The second largest sector was Biotechnology, which was less than The M&A space continued to soften in 2013, with the total number of
half that amount at 15.4% of total investment. Among first fundings, Soft- deals falling from 473 in the prior year to 376. Total proceeds fell by 27%.
ware led the way with 591 companies getting their initial venture capital Note that only 94 of the 376 acquisitions had reported deal values. Histori-
rounds. This is more than 46% of the first fundings. Again in 2013, the cally, deals with unreported sales prices are fairly diminutive, and in many
second most active first-funding sector is Media and Entertainment at 170 cases, fire sales. However, an increasing number of deal term sheets spec-
first fundings. ify a non-disclosure restriction on all parties. So going forward, all but the
California-domiciled venture capital firms made investments in 38 largest and most visible acquisitions may be hard to measure. Observers
states in 2013. Approximately 48% of all the money invested in Califor- have wondered why, given the huge amounts of cash on the balance sheets
nia came from California-domiciled firms. Conversely, California-based of technology and Biotechnology giants, more acquisitions are not occur-
firms concentrated 68% of their investment dollars within the state. ring. We did see a flurry of acquisitions in early 2014, perhaps signaling
The number and reach of corporate venture capital groups increased an increase in that kind of activity.
in 2013, along with the visibility of this group. These groups provided
an estimated 10.5% of the venture capital invested by all venture groups. Growth Equity
They were involved in 16.9% of the deals – the highest level in five years. This edition of the NVCA Yearbook, prepared by Thomson Reuters, for
Going forward, all signs suggest that these groups are becoming more the first time profiles US growth equity investment in its own chapter. The
involved alongside traditional venture firms in deals, as well as initiating NVCA believes growth equity investing is an important segment of the
corporate venture group syndicates to do deals in lieu of, or in advance of, overall venture capital industry. Venture capitalists help create and grow
investment rounds by traditional venture firms. companies; growth equity investors are strongly focused on the growth
component of that mission and help companies scale through fat part of
Exits their hiring curves. The NVCA also believes that growth equity invest-
Once successful portfolio companies mature, venture funds generally ing is a critical component of the emerging growth company financing
exit their positions in those companies by taking them public through an continuum and has become, in many respects, the private alternative to
initial public offering (IPO) or by selling them to presumably larger orga- the public markets for both emerging growth companies and their earlier
nizations (acquisition, “M&A”, or trade sale). This then lets the venture stage venture capital backers.
fund distribute the proceeds to investors, raise a new fund for future in- Growth equity really emerged as an asset class in 2000 and continues
vestment, and invest in the next generation of companies. We consider strong today. In 2013, we identified 342 growth equity deals in the United
each type of exit separately. States. This compares with 406 in 2012, but is very much in line with
During 2013, 81 venture-backed companies went public in the United the past several years. A disclosed $12.3 billion in equity investment was
States, marking the strongest full-year total for the number of new ven- reported for 2013. This does not count the approximately 105 deals for
ture-backed listings since 2007. Remarkably, more than half of them were which no dollar equity amounts were disclosed.
Biotechnology IPOs, many of those being modestly sized. While the total

Figure 2.0
Capital Under Management
U.S. Venture Funds ($ Billions)
350 1985 to 2013
300
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($ Billions)
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3
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Year
Figure 3.0
Capital Commitments
To U.S. Venture Funds ($ Billions)
120 1985 to 2013
100
80
($ Billions)
60
40
20
0
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Year

Figure 4.0
Venture Capital Investments ($ Billions)
1985 to 2013
120
100
80
($ Billions)
60
40
20
0
5
6
7
8
9
0
1
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Year
Figure 5.0
Venture Capital Investments in 2013 By Industry Group
All Investments Initial Investments
Industry Group # Companies # Deals Investment # Companies # Deals Investment

Amt ($Bil) Amt ($Bil)
Information Technology 2,360 2,784 20 1009 1009 3.5
Medical/Health/Life Science 649 816 6.9 167 167 1.2
Non-High Technology 373 440 2.7 157 157 0.4
Total 3,382 4,041 29.6 1,334 1,334 5.1

Figure 6.0
Venture Capital Investments in 2013
By Stage
Seed
3%
Later Stage
Early Stage
30%
34%
Expansion
33%
Figure 7.0
By Industry Sector
Telecommunications Other
2% 0.2% Biotechnology Business Products and
15% Services 0.4%
Computers and Peripherals 2%
Consumer Products and
Software Services 4%
37% Electronics/Instrumentation
1%
Financial Services
2%
Healthcare Services
1%
Semiconductors Industrial/Energy
2% 5%
IT Services
7%
Retailing/Distribution
1%
Media and Entertainment
Networking and Equipment 10%
2% Medical Devices and
Equipment
7%

Figure 8.0 2013 Investments By State

State Number of Pct of Investment Pct of
Companies Total ($ Millions) Total
California 1,280 40% 14,769.7 50%
Massachusetts 326 10% 3,079.3 10%
New York 287 9% 2,870.4 10%
Texas 101 3% 1,315.5 4%
Washington 134 4% 913.2 3%
Maryland 76 2% 664.5 2%
Virginia 85 3% 593.8 2%
Pennsylvania 154 5% 446.5 2%
Illinois 49 2% 434.9 1%
Colorado 62 2% 428.8 1%
All Others 676 21% 4,028.6 14%
Total 3,230 29,545.2
Figure 9.0 Venture-Backed IPOs

Year Num of IPOs Offer Amount Med Offer Amt Mean Offer Amt Post Offer Value Med Post Value Mean Post Value Median Age At Mean Age At IPO
($Mil) ($Mil) ($Mil) ($Mil) ($Mil) ($Mil) IPO (Years) (Years)
1985 48 763 13 16 2,020 37 48 3.0 4.0

1986 105 2,417 13 23 166,032 52 1866 4.0 4.0
1987 86 2,125 17 25 10,972 46 155 4.0 4.0
1988 43 769 15 18 21,117 51 571 3.0 4.0
1989 42 873 16 21 4,443 50 131 4.0 4.0
1990 47 1,108 20 24 5,886 60 178 4.0 4.0
1991 120 3,726 27 31 17,611 81 202 5.0 5.0
1992 150 5,443 24 36 15,955 68 146 5.0 5.0
1993 175 6,154 25 35 14,808 75 130 5.0 6.0
1994 138 3,952 24 29 10,344 68 94 5.0 5.0
1995 184 7,859 36 43 19,300 104 152 4.0 5.0
1996 256 12,716 35 50 51,511 112 240 3.0 4.0
1997 141 5,829 33 41 19,101 99 148 3.0 6.0
1998 78 4,125 43 53 24,655 164 324 3.0 3.0
1999 280 23,975 69 86 147,341 304 532 3.0 3.0
2000 238 27,443 83 115 108,783 325 494 3.0 4.0
2001 37 4,130 80 112 19,233 327 534 4.0 4.0
2002 24 2,333 89 97 8,322 266 347 3.0 5.0
2003 26 2,024 71 78 7,412 252 285 5.0 6.0
2004 82 10,032 70 122 50,268 254 613 6.0 6.0
2005 59 5,113 68 87 39,702 202 673 5.0 5.0
2006 67 7,065 86 105 71,124 283 1078 5.0 6.0
2007 91 12,339 98 136 68,203 365 749 6.0 6.0
2008 7 765 83 109 3,645 278 521 7.0 7.0
2009 13 1,980 123 152 9,192 548 707 6.0 7.0
2010 70 7,774 93 111 114,981 428 1643 5.0 6.0
2011 51 10,690 106 210 94,657 606 1856 6.0 7.0
2012 49 21,460 89 438 122,168 371 2493 7.0 8.0
2013 81 11,068 91 137 62,700 354 784 7.0 8.0
*Age at IPO is defined as time elapsed from first funding round until IPO date.

Figure 10.0
Venture-Backed Mergers & Acquisitions by Year
($ Millions)
Year Number Total Number Known Price Average

1985 7 3 300.2 100.1
1986 8 1 63.4 63.4
1987 11 4 667.2 166.8
1988 17 9 920.7 102.3
1989 21 10 746.9 74.7
1990 19 7 120.3 17.2
1991 16 4 190.5 47.6
1992 69 43 2119.1 49.3
1993 59 36 1332.9 37.0
1994 84 57 3208.4 56.3
1995 92 58 3801.8 65.5
1996 108 76 8230.8 108.3
1997 145 100 7798.0 78.0
1998 189 113 8002.0 70.8
1999 228 155 38710.6 249.7
2000 379 245 79996.4 326.5
2001 384 175 25115.6 143.5
2002 365 166 11913.2 71.8
2003 323 134 8240.8 61.5
2004 402 199 28846.1 145.0
2005 446 201 19717.3 98.1
2006 484 208 24291.0 116.8
2007 488 201 30745.5 153.0
2008 417 134 16236.9 121.2
2009 351 109 12364.9 113.4
2010 523 150 17707.3 118.0
2011 490 169 24093.2 142.6
2012 473 132 22694.2 171.9
2013 376 94 16586.5 176.5

Figure 11.0
Growth Equity Investments ($ Billions)
2000 to 2013*
30
25
20
($ Billions)
15
10
3
1
2
8
3
7
5
9
6
2
0
0
201
200
201
200
201
200
200
200
200
200
200
200
201
200
Year
Totals include only disclosed amounts. Many growth equity deal amounts are not reported.

INDUSTRY RESOURCES
The activity level of the US venture capital industry is roughly half of what it was at the 2000-era peak. For example, in 2000, 1,050 firms each invested
$5 million or more during the year. In 2013, the count was roughly half that at 548.
Venture capital under management in the United States by the end of 2013 decreased to $192.9 billion as calculated using the methodology described
below. However, looking behind the numbers, we know that the industry continues to contract from the circa 2006 high of $288.9 billion. The peak
capital under management that year was a statistical anomaly caused by funds raised at the height of the 2000 tech bubble were joined by new capital
raised post bubble.
The slight downtick in firms and capital managed (Fig. 1.04) in 2013 perhaps understates a consolidating industry. The average venture capital firm
shrunk to 6.7 principals per firm from 8.7 just six years earlier. The corresponding drop in headcount to under 6,000 principals is almost one-third
lower than 2007 levels. This meant that there was a general increase in the average amount of capital managed by each principal. It is possible going
forward that the number of principals per firm will increase as the number of firms decreases. This is because the bulk of the capital being committed
today is being raised by larger, specialty, and boutique firms. For our purposes here, we define a principal to be someone who goes to portfolio company
board meetings. That is, deal partners would be included and firm CFOs would not be included.
Geographic location of the largest venture firms is quite concentrated. 49% of the industry’s California-domiciled firms manage capital, although these
firms may be actively investing in other states and countries. This concentration has been consistent for several years and may increase going forward,
given the movement of some East Coast funds westward. Taken together, the top five states (California, Massachusetts, New York, Connecticut, and
Illinois) hold 81.1% of total venture capital in this country, essentially the same as a year ago.
Contrary to some popular misconceptions, only 43 firms managed more than $1 billion. By comparison, 277 firms managed less than $25 million.
Methodology For purposes of the analysis in this publication, we have tried to clarify
the industry definition of capital under management as the cumulative to-
Historically, we have calculated industry size using a “rolling eight tal of committed capital less liquidated funds or those funds that have
years of fundraising” proxy for capital managed, number of funds, num- completed their life cycle. Typically, venture capital firms have a stated
ber of firms, etc. The number of firms in existence will vary on a rolling 10-year fixed life span, except for life science funds, which are often
eight-year basis as firms raise new funds or do not raise funds for more established as 12-year funds. Figure 1.09 shows the reality of fund life.
than eight years. Currently, we know the industry is consolidating, but the Thomson Reuters calculates capital under management as the cumulative
eight-year model now includes fund vintage years 2006-2013. amount committed to funds on a rolling eight-year basis. Current capital
Under this methodology, we estimate that there are currently 874 firms under management is calculated by taking the capital under management
with limited partnerships “in existence.” To clarify, this is actually stating calculation from the previous year, adding in the current year’s funds’
that there are 874 firms that have raised a venture capital fund in the last commitments, and subtracting the capital raised eight years prior.
eight years. In reality, only 548 of them invested at least $5 million in For this analysis, Thomson Reuters classifies venture capital firms us-
companies in 2013, and 136 of them invested more than $5 million in first ing four distinct types: private independent firms, financial institutions,
rounds for a company. corporations, and other entities. ‘Private independent’ firms are made up
For this publication, we are primarily counting the number of firms with of independent private and public firms including both institutionally and
limited partnerships and are excluding other types of investment vehicles. non-institutionally funded firms and family groups. ‘Financial institu-
From that description, it may appear that the statistics for total industry tions’ refers to firms that are affiliates and/or subsidiaries of investment
resources may be underestimated. However, this must be balanced with banks and non-investment bank financial entities, including commercial
the fact that capital under management by captive and evergreen funds is banks and insurance companies. The ‘corporations’ classification includes
difficult to compare equitably to typical limited partnerships with fixed venture capital subsidiaries and affiliates of industrial corporations. In
lives. For this analysis only, the firms counted for capital under manage- 2013, we will modify the methodology to reflect virtually all direct cor-
ment include firms with fixed-life partnerships and venture capital funds porate investment because many of the corporate venture investors do not
they raised. If a firm raised both buyout and venture capital funds, only operate out of a separate fund or group. The capital under management
the venture funds would be counted in the calculation of venture capital statistics reported in this section consist primarily of venture capital firms
under management. investing through limited partnerships with fixed commitment levels and
Venture capital under management can be a complex statistic to esti- fixed lives and do not include non-vintage “evergreen funds” or true cap-
mate. Indeed, capital under management reported by firms can differ from tive corporate industrial investment groups without fixed commitment
firm to firm as there’s not one singular definition. For example, some firms levels. The term ‘evergreen funds’ refers to funds that have a continuous
include only cumulative committed capital, others may include commit- infusion of capital from a parent organization, as opposed to the fixed life
ted capital plus capital gains, and still other firms define it as committed and commitment level of a closed-end venture capital fund.
capital after subtracting liquidations. To complicate matters, it is difficult
to compare these totals to European private equity firms, which include
capital gains as part of their capital under management measurements.

Figure 1.01
Capital Under Management U.S. Venture Funds ($ Billions)
1985 to 2013
350
300
250
200
($ Billions)
150
100
50
0
5
6
7
8
9
0
1
2
3
5
6
7
8
9
0
1
2
3
5
6
7
8
9
0
1
2
3
4
201
198
198
198
198
198
199
199
199
199
199
199
199
199
199
200
200
200
200
200
200
200
200
200
201
201
201
199
200
Year

Figure 1.02
Total Capital Under Management By Firm Type 1985 to 2013
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Private Independent 11,766 14,721 17,459 18,850 22,369 22,722 21,893 22,643 25,162 28,490 33,308 40,201 51,940 76,560 119,121
Financial Institutions 3,388 3,520 3,447 3,190 2,719 2,793 2,384 2,214 2,431 2,873 3,688 5,070 7,061 10,238 15,291
Corporations 1,582 1,545 1,895 1,989 1,931 1,963 1,907 2,032 1,517 1,564 1,526 2,219 2,531 3,425 8,169
Other 864 914 900 871 781 722 616 312 190 273 378 410 667 877 1,119
Total 17,600 20,700 23,700 24,900 27,800 28,200 26,800 27,200 29,300 33,200 38,900 47,900 62,200 91,100 143,700
Figure 1.02 (Continued)

Total Capital Under Management By Firm Type 1985 to 2013
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Private Independent 187,356 221,327 222,028 224,828 233,595 241,637 255,315 239,643 194,573 171,016 174,722 186,032 186,676 179,202
Financial Institutions 22,980 24,459 23,945 23,015 21,659 21,110 18,325 13,914 6,034 4,708 5,620 7,734 7,970 6,615
Corporations 12,995 14,153 14,126 13,886 13,627 13,467 13,297 8,990 4,294 3,125 3,688 4,860 4,892 6,401
Other 1,469 2,061 2,201 2,170 2,219 1,986 1,963 1,754 1,399 851 670 674 662 682
Total 224,800 262,000 262,300 263,900 271,100 278,200 288,900 264,300 206,300 179,700 184,700 199,300 200,200 192,900
Figure 1.03
Distribution of Firms By Capital Managed 2013
200
164
150 132
113 114 107
100 82
53
43
50
0
10
00
50
00
+
-2
-5
00
0-
-1
-2
-5
10
10
25
10
50
0-
10
25
50
This chart shows capital committed to US venture firms in active funds. While much of the capital is managed by larger firms, of the 808 firms included in this calculation at the
end of 2013, roughly 62% of them (498) managed $100 million or less. By comparison, just 43 firms managed active funds totaling more than $1 billion.

Figure 1.04
Fund and Firm Analysis 2013
Fund Total Total Total Existing Firms That Raised Capital Avg Fund Avg Firm
Vintage Cumulative Cumulative Cumulative Funds Funds in the Last Managed Size ($M) Size ($M)
Year Funds Firms Capital ($B) 8 Vintage Years ($B)
1985 631 323 20 532 294 17.6 33.1 59.9
1986 707 353 23.4 590 324 20.7 35.1 63.9
1987 810 388 27.4 670 353 23.7 35.4 67.1
1988 888 406 30.9 701 365 24.9 35.5 68.2
1989 980 435 35.9 728 380 27.8 38.2 73.2
1990 1037 451 38.2 716 383 28.2 39.4 73.6
1991 1075 458 40.4 639 360 26.8 41.9 74.4
1992 1147 478 44.1 601 352 27.2 45.3 77.3
1993 1244 509 49.3 613 370 29.3 47.8 79.2
1994 1342 542 56.7 635 385 33.2 52.3 86.2
1995 1498 608 66.2 688 425 38.9 56.5 91.5
1996 1648 670 78.8 760 471 47.9 63.0 101.7
1997 1862 764 98.1 882 545 62.2 70.5 114.1
1998 2099 843 129.3 1062 616 91.1 85.8 147.9
1999 2435 969 184.1 1360 736 143.7 105.7 195.2
2000 2851 1111 268.9 1704 866 224.8 131.9 259.6
2001 3096 1194 311.3 1852 923 262 141.5 283.9
2002 3178 1211 319 1836 921 262.3 142.9 284.8
2003 3286 1264 330.1 1788 951 263.9 147.6 277.5
2004 3451 1332 349.9 1803 985 271.1 150.4 275.2
2005 3626 1402 376.3 1764 1009 278.2 157.7 275.7
2006 3815 1481 418.2 1716 1022 288.9 168.4 282.7
2007 4034 1567 448.4 1599 1016 264.3 165.3 260.1
2008 4221 1631 475.2 1370 886 206.3 150.6 232.8
2009 4327 1672 491 1231 823 179.7 146.0 218.3
2010 4456 1736 503.7 1278 853 184.7 144.5 216.5
2011 4621 1801 529.4 1335 881 199.3 149.3 226.2
2012 4785 1868 550 1334 883 200.2 150.1 226.7
2013 4957 1938 569.2 1331 874 192.9 144.9 220.7
The correct interpretation of this chart is that since the beginning of the industry to the end of 2013, 1,938 firms had been founded and
4,957 funds had been raised. Those funds totaled $569.2 billion. At the end of 2013, 874 firms as calculated using our eight-year methodol-
ogy managed 1,331 individual funds, with each fund typically being a separate limited partnership. Capital under management, again
calculated using a rolling eight years of fundraising, by those firms at the end of 2013 was $192.9 billion.

Figure 1.05 Figure 1.06

Number of Active Investors 1985 to 2013 Principals Information
Year # of Active # of Active First # of Active Life Year No. Estimated Avg Mgt
Investors Round Investors Science Investors Principals Industry Per Principal
Per Firm Principals ($M)
1985 92 11 1
2007 8.7 8665 30.0
1986 115 24 12
2008 8.5 7293 28.3
1987 112 29 13
2009 8.6 6760 26.4
1988 119 32 26
2010 8.0 6328 25.7
1989 116 22 23
2011 7.4 6231 28.6
1990 101 25 18
2012 7.0 5887 33.8
1991 81 14 15
2013 6.7 5891 32.8
1992 104 34 31
The correct interpretation of this chart is that since the beginning of the in-
1993 92 35 29 dustry to the end of 2013, 1,938 firms had been founded and 4,957 funds had
1994 110 46 33 been raised. Those funds totaled $569.2 billion. At the end of 2013, 874 firms
as calculated using our eight-year methodology managed 1,331 individual
1995 184 95 53 funds, with each fund typically being a separate limited partnership. Capital
under management, again calculated using a rolling eight years of fundrais-
1996 251 122 63 ing, by those firms at the end of 2013 was $192.9 billion.
1997 344 138 83
1998 411 169 87
Figure 1.07
1999 717 321 106
Top 5 States By Capital Under
2000 1,050 546 148 Management 2013
2001 760 220 155 State ($ Millions)
2002 534 137 147
CA 94,076.6
2003 509 136 165
MA 32,636.6
2004 579 202 201
NY 19,480.4
2005 562 183 193
CT 5,815.1
2006 572 192 197
IL 4,517.3
2007 630 238 236
Total* 156,526.1
2008 602 212 219
2009 463 105 173 *Total includes above 5 states only
2010 508 136 177

2011 549 159 195
2012 534 139 175
2013 548 136 179
Firms included in each count must have invested $5 million in that year in that
category. Life Sciences investor count includes investment in companies in
the two MoneyTree Categories: Biotechnology/Pharma and Medical Devices/
Equipment.

Figure 1.08
Capital Under Management By State 1985-2013
State 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
CA 5,024 5,974 6,815 7,051 8,318 8,192 8,257 8,258 9,062 9,978 12,015 15,379 20,289 27,452 51,226
MA 2,252 2,580 3,409 3,775 4,179 4,057 3,761 4,636 4,830 5,179 6,553 6,980 9,859 15,397 22,905
NY 3,382 4,428 4,370 4,160 5,598 5,805 5,455 5,308 5,904 6,968 8,246 9,995 10,311 19,676 26,659
CT 1,297 1,444 1,807 1,876 1,714 1,713 1,570 1,665 1,927 2,088 2,064 2,194 3,323 4,492 6,787
IL 474 493 725 907 863 876 840 944 1,202 1,275 1,419 1,263 1,939 2,191 3,693
TX 458 493 727 726 798 840 777 809 935 1,143 1,145 1,233 1,688 3,001 4,797
PA 281 347 376 396 564 601 604 598 569 738 822 1,332 1,750 2,105 3,090
NJ 616 713 752 740 736 954 885 549 511 695 958 1,489 1,563 2,177 2,715
DC 36 38 38 40 41 42 42 40 25 24 146 1,698 2,382 2,504 2,661
WA 316 409 387 425 398 385 199 243 227 178 299 463 680 1,081 1,796
MD 91 95 121 117 159 164 98 115 374 784 914 1,523 2,012 2,649 3,513
CO 365 431 399 518 618 575 557 531 616 565 475 552 867 1,165 3,337
VA 73 79 79 85 105 92 56 42 35 32 48 73 252 508 1,238
NC 34 55 87 90 125 114 110 111 108 146 123 294 620 806 1,009
MN 200 297 340 677 749 886 815 768 841 896 877 514 618 715 1,093
UT 9 19 20 15 15 16 16 10 10 25 31 31 94 96 131
MI 112 120 126 123 124 38 14 14 13 10 41 41 66 77 439
GA 89 95 176 260 263 276 264 263 433 432 434 361 765 1,077 1,164
TN 103 128 192 185 216 260 278 271 199 291 306 455 465 745 1,059
DE 39 41 40 39 47 41 41 14 41 51 100 122 115 117 116
MO 562 586 619 596 603 658 656 645 107 137 119 125 148 111 217
OH 860 897 976 838 256 259 275 305 427 469 447 377 692 766 1,247
FL 125 131 173 193 196 133 110 98 151 223 321 304 380 690 1,072
IN 45 56 56 78 97 88 80 97 99 109 111 194 176 192 207
WI 183 100 99 96 104 104 79 79 81 163 168 196 180 204 174
AL 126 132 132 128 135 137 137 138 6 6 6 6 5 24 33
AZ 41 44 44 73 75 76 75 34 44 43 44 10 10 38 38
LA 7 7 7 7 7 5 2 11 22 31 49 90 277 367 444
KY 15 16 16 16 0 0 0 0 0 7 21 21 21 21 21
ME 1 1 20 25 26 26 26 28 29 98 89 87 88 89 207
ID 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
ND 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
OK 1 29 29 28 37 38 37 37 38 9 10 32 23 67 66
OR 170 177 205 241 244 247 229 117 73 74 77 30 30 40 40
NM 71 100 136 133 170 257 244 232 205 179 154 152 121 12 12
SD 0 0 0 0 0 0 0 0 0 0 0 10 10 85 84
HI 2 2 2 2 2 2 2 0 0 0 2 2 2 2 11
KS 0 0 0 0 0 13 13 13 14 14 37 37 57 43 43
IA 50 52 105 102 81 82 62 62 54 55 5 5 16 17 16
VT 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0


State 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
NH 24 25 25 50 50 51 50 51 27 27 47 19 66 67 66
NE 0 0 0 1 1 1 1 1 11 11 105 137 139 141 140
MT 0 1 1 1 1 1 1 1 1 0 0 0 0 0 0
MS 0 0 0 0 0 0 0 0 0 0 11 11 11 12 11
PR 0 0 0 0 0 9 9 9 9 9 9 9 49 40 40
WY 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
SC 1 1 1 1 15 15 15 15 15 15 29 52 37 37 37
RI 15 16 16 36 37 37 36 36 22 22 23 0 2 2 2
NV 0 0 0 0 0 0 0 0 0 0 0 0 0 0 24
WV 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
AR 2 2 2 2 2 2 2 0 0 0 0 0 0 0 19
UNK 46 48 48 47 31 31 21 0 0 0 0 0 0 0 0
AK 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total 17,600 20,700 23,700 24,900 27,800 28,200 26,800 27,200 29,300 33,200 38,900 47,900 62,200 91,100 143,700
Figure 1.08b
State 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
CA 85,153 105,283 105,172 107,896 113,719 119,881 128,655 117,244 100,374 87,469 90,424 96,923 99,386 94,077
MA 37,341 45,970 47,440 47,019 47,553 48,784 53,712 50,417 37,146 30,861 30,528 30,209 32,914 32,637
NY 38,938 39,981 38,421 37,176 36,710 36,242 29,115 25,441 13,205 12,198 13,599 18,628 17,653 19,480
CT 8,260 10,623 10,462 10,431 12,066 11,984 13,336 11,699 10,426 7,428 8,201 8,940 6,928 5,815
IL 4,308 4,747 5,202 5,559 5,685 5,163 5,286 4,239 3,620 3,282 3,065 4,595 4,451 4,517
TX 6,881 8,001 7,932 7,806 8,259 8,486 8,242 6,589 5,467 4,193 4,057 4,735 4,455 4,215
PA 6,241 6,344 6,241 6,532 6,439 6,509 7,037 7,143 4,642 4,482 4,495 4,250 4,220 3,623
NJ 3,633 4,315 4,231 4,444 4,083 4,074 5,160 5,022 4,135 3,917 3,965 3,691 3,503 3,447
DC 3,899 4,172 4,739 4,616 3,401 3,582 4,641 5,047 4,833 4,632 4,049 4,527 4,193 3,369
WA 2,803 3,687 3,691 3,568 4,629 4,590 4,597 5,174 4,625 3,721 3,691 3,708 2,943 3,303
MD 5,119 5,383 5,165 5,047 4,811 4,762 4,744 4,433 2,934 3,005 2,927 3,134 3,282 2,854
CO 4,781 5,293 5,438 5,416 5,229 4,882 4,664 3,011 1,603 974 1,139 1,148 1,187 1,635
VA 2,524 2,638 2,652 2,822 2,868 3,338 3,367 3,014 1,801 2,226 2,271 2,081 2,056 1,583
NC 1,367 1,448 1,599 1,803 1,644 1,468 1,678 1,564 1,211 1,238 1,730 1,631 1,726 1,558
MN 2,238 2,189 2,366 2,359 2,361 2,441 2,593 2,473 1,639 1,657 1,319 1,323 1,426 1,531
UT 268 475 449 560 589 546 651 1,259 1,335 1,144 1,209 1,245 1,422 1,429
MI 588 591 590 631 859 912 946 685 919 976 1,065 1,263 1,045 1,203
GA 2,311 2,160 2,154 2,077 2,109 1,835 1,940 1,931 808 783 787 921 882 1,122
TN 1,237 1,281 1,162 1,174 1,043 1,089 887 716 624 614 840 857 845 795
DE 114 80 69 28 15 15 15 251 256 404 504 653 755 756
MO 307 450 418 407 504 1,232 1,293 1,385 1,317 1,182 1,189 1,192 1,324 561
OH 1,850 1,874 1,876 1,855 1,986 1,806 1,722 1,329 713 565 522 573 456 529
FL 1,785 1,751 1,684 1,592 1,577 1,802 1,525 1,284 557 801 875 832 834 529

Figure 1.08b (Continued)

State 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
IN 663 662 651 684 593 595 608 617 136 342 343 309 344 345
WI 246 245 152 152 133 105 207 254 182 185 212 237 309 339
AL 107 107 107 155 173 225 227 219 359 363 366 391 376 317
AZ 101 104 145 180 180 199 171 173 130 118 263 261 311 295
LA 476 651 648 631 663 502 431 353 336 196 265 282 217 249
KY 21 21 14 14 14 21 219 221 226 228 230 216 223 216
ME 202 290 218 219 214 215 310 194 198 108 109 109 110 110
ID 14 14 14 14 14 14 84 86 73 74 74 74 75 75
ND 0 0 0 0 0 0 0 0 13 13 14 14 14 58
OK 140 140 139 139 117 117 111 121 47 47 48 48 48 50
OR 100 100 112 83 85 85 76 78 34 40 29 29 38 46
NM 12 12 12 33 35 69 74 77 79 80 114 84 83 42
SD 178 178 177 177 175 175 103 113 32 32 48 48 40 40
HI 11 11 11 9 16 16 16 7 14 14 43 44 36 36
KS 42 42 42 19 19 0 0 0 0 0 0 14 14 34
IA 16 60 60 55 65 53 60 67 69 39 39 39 29 29
VT 16 43 43 43 43 43 43 57 41 14 19 19 19 29
NH 65 65 65 46 47 0 11 11 11 11 11 11 16 16
NE 175 165 164 71 38 38 38 38 0 0 2 2 3 3
MT 0 0 0 0 0 0 2 2 2 2 2 2 2 2
MS 11 39 39 28 28 28 29 30 30 1 1 1 1 1
PR 39 68 68 68 68 29 29 30 31 1 1 1 1 1
WY 118 117 117 117 117 118 118 119 0 0 0 0 0 0
SC 36 37 51 38 15 20 20 20 21 20 5 6 6 0
RI 2 26 26 35 35 33 33 33 34 10 10 0 0 0
NV 23 23 33 33 33 33 33 9 10 10 0 0 0 0
WV 21 21 21 21 21 21 21 21 0 0 0 0 0 0
AR 19 19 19 19 19 19 19 0 0 0 0 0 0 0
UNK 0 0 0 0 0 0 0 0 0 0 0 0 0 0
AK 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total 224,800 262,000 262,300 263,900 271,100 278,200 288,900 264,300 206,300 179,700 184,700 199,300 200,200 192,900
Figure 1.09
Life of IT Funds in Years
This chart tracks the year in which a 10-year fund is, in
Life of IT Funds In Years % of Funds fact, dissolved. These later periods are referred to as
“out years.” Historically, after the 10th year, only a few
<= 10 7% companies that typically do not have huge upside potential
11-12 20% remain in the portfolios. But the slow pace of exits in recent
years has resulted in a number of good, mature companies
13-14 27% remaining in portfolios well past the nominal 10-year mark.
Life science funds tend to have lives two years longer than
15-16 22% typical technology funds. In preparing this chart, partial
years are rounded to the nearest whole year. So 10.4 years
17-18 14%
would round to 10 years, and 10.5 years would round up to
Source: Adams Street Partners, based on 11 years. The median life span of a fund in this analysis is
2010 analysis of dissolved funds. >=19 10%
14.17 years.

CAPITAL COMMITMENTS
The year 2013 continued to be a very challenging fundraising year for most venture capital firms in the United States. This is due to a lack of recent
distributions caused by the tight exit markets, lackluster returns by many venture funds over the past decade compared with the prior decade, and a
challenge for the largest alternative asset investors to place money in many of the smaller funds in this asset class because of scale. Only $16.8 billion
was raised by 187 funds. This is considerably less than the $19.6 billion raised in 2012 or the $19.0 billion raised in 2011. The amount of new commit-
ments each year by venture capital funds continues to be less than the amount they invested in companies.
The top fundraising state in 2013 was Massachusetts at $5.5 billion, which edged typical leader California at $5.3 billion. New York was third largest
at about half that amount. Much further behind, Washington state and Virginia rounded out the top five. Combined, Massachusetts and California funds
raised 64% of the total. Adding in New York, the top three states raised more than three-quarters (77%) of the total amount.
The Thomson Reuters taxonomy considers venture capital and buyout/mezzanine to be the two components of Private Equity. Figures 2.02 and 2.05
show venture capital’s decreasing share of the private equity dollars. Venture capital raised 24% of the asset class allocations in 2009 compared with
11% in 2013.
Methodology uters, and (3) verified industry press and press releases from venture firms.
The Thomson Reuters/National Venture Capital Association sample in- Capital commitments are stated on either (1) a calendar-year basis when
cludes US-based venture capital funds. Classifications are based on the committed (for example, throughout this chapter) or (2) a vintage-year
headquarters location of the fund, not the location of the venture capital basis, which is designated once the fund starts investing (for example,
firm. The sample excludes fund of funds. figure 1.04). The data in this chapter is by calendar year and incrementally
Effective November 1, 2010, Thomson Reuters venture capital fund measures how much in new commitments funds raised during the calen-
data has been updated in order to provide more consistent and relevant dar year. Consider, for example, a venture capital firm that announces it
categories for searching and reporting. As a result of these changes, there will begin raising a $200-million fund in late 2011, raises $75 million in
may be shifts in fundraising statistics from legacy editions of this publica- 2012, and subsequently raises the remaining $125 million in 2013. In this
tion due to reclassification of funds based on analysis of actual activity by chapter, nothing would be reflected in 2011, $75 million would be counted
primary market, nation, and/or fund stages. in 2012, and $125 million would be counted in 2013. Assuming it started
As defined by Thomson Reuters, capital commitments, also known as investing and made its first capital call in 2013, the entire fund would then
fundraising, are firm capital commitments to private equity/venture capi- be considered to be a vintage year 2013 fund. In Figure 1.04, for example,
tal limited partnerships by outside investors. For purposes of these statis- this hypothetical fund would show in the totals for 2013.
tics, the terms “capital commitments,” “fundraising,” and “fund closes” Note that fund commitments presented in this publication do not in-
are used interchangeably. There are three data sources for tracking capital clude those corporate captive venture capital funds that are funded by a
commitments: (1) SEC filings that are regularly monitored by our research corporate parent, which do not typically raise capital from outside inves-
staff, (2) surveys of the industry routinely conducted by Thomson Re- tors.

Figure 2.01
Capital Commitments To U.S. Venture Funds ($ Billions)
1985 to 2013
120
100
80
($ Billions)
60
40
20
0
5
6
7
8
9
0
1
2
3
5
6
7
8
9
0
1
2
3
5
6
7
8
9
0
1
2
3
4
201
198
198
198
198
198
199
199
199
199
199
199
199
199
199
200
200
200
200
200
200
200
200
200
201
201
201
199
200
Year

Figure 2.02
Capital Commitments To Private Equity Funds 1985-2013
Venture Capital Buyouts and Mezzanine Capital Total Private Equity
Year Sum ($Mil) % of Total PE No. Funds Sum ($Mil) No. Funds Sum ($Mil) No. Funds
1985 3,759.9 56% 118 2,971.8 21 6,731.7 139
1986 3,584.5 42% 101 5,043.7 32 8,628.2 133
1987 4,379.1 21% 116 16,234.6 47 20,613.6 163
1988 4,209.7 28% 104 10,946.4 54 15,156.1 158
1989 4,918.8 29% 106 12,068.5 78 16,987.3 184
1990 3,077.5 26% 85 8,831.5 64 11,909.0 149
1991 1,900.3 31% 40 4,242.1 27 6,142.4 67
1992 5,223.1 33% 80 10,752.5 58 15,975.6 138
1993 4,489.2 21% 93 16,961.7 81 21,451.0 174
1994 7,636.7 27% 136 20,157.0 99 27,793.7 235
1995 9,387.3 26% 161 27,040.7 108 36,428.0 269
1996 11,550.0 26% 168 32,789.4 104 44,339.3 272
1997 17,741.9 30% 242 42,165.3 134 59,907.2 376
1998 30,641.7 33% 290 61,636.4 172 92,278.1 462
1999 53,420.2 51% 428 51,363.2 164 104,783.4 592
2000 101,417.9 56% 634 79,164.8 170 180,582.7 804
2001 38,923.4 43% 324 51,388.3 137 90,311.7 461
2002 10,388.1 23% 203 35,123.3 124 45,511.4 327
2003 9,144.7 20% 160 35,946.4 123 45,091.1 283
2004 17,656.3 23% 211 59,837.4 158 77,493.7 369
2005 30,071.9 22% 233 107,746.6 206 137,818.6 439
2006 31,107.6 17% 236 152,899.7 219 184,007.3 455
2007 29,401.0 11% 235 234,460.4 266 263,861.4 501
2008 25,052.7 12% 214 176,340.7 232 201,393.5 446
2009 16,122.0 24% 159 50,145.9 149 66,267.9 308
2010 13,243.3 20% 173 51,901.5 177 65,144.8 350
2011 18,962.3 21% 186 70,344.2 210 89,306.5 396
2012 19,554.6 15% 208 108,076.4 226 127,631.0 434
2013 16,765.7 11% 187 130,256.2 214 147,021.9 401

Figure 2.03
Venture Capital Fund Commitments 1985-2013 ($ Millions)
State 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
MA 201.88 1,460.41 546.89 279.00 2,260.07 489.77 473.90 493.63 940.19 1,860.48 2,364.08 1,516.09 3,757.76 9,346.10 9,065.81 15,399.96 3,092.69 7,754.42 1,233.34 2,148.71
CA 1,249.69 972.35 1,268.36 966.91 1,523.51 1,010.69 549.12 1,331.19 1,388.50 1,829.06 3,106.99 3,724.04 5,717.43 8,525.24 21,928.12 44,218.83 14,166.13 2,767.31 5,634.15 8,731.29
NY 534.28 356.09 973.09 813.49 338.52 529.47 180.08 1,051.12 367.79 1,158.41 1,954.71 1,875.06 2,601.56 5,200.95 7,586.57 16,691.77 9,721.17 2,598.46 1,596.98 1,797.30
WA 37.41 33.48 231.25 40.69 161.45 142.81 55.43 381.89 137.00 282.50 193.64 326.00 393.97 1,406.64 1,802.52 3,687.77 2,232.20 185.50 75.63 893.91
VA 299.07 155.86 310.63 357.37 61.50 129.50 150.00 300.30 419.25 388.28 260.20 424.93 1,165.98 1,067.56 2,842.58 1,813.40 3,464.30 46.73 165.00 1,756.45
TN 253.67 61.34 119.67 0.35 125.00 243.46 75.00 110.00 176.58 401.30 213.13 605.75 117.61 1,001.84 569.79 1,040.86 651.68 392.11 560.62 196.70
CO 4.20 7.47 24.18 0.00 49.25 13.61 50.00 0.00 224.90 479.20 66.50 439.00 145.00 768.15 839.70 1,989.92 340.45 380.50 105.00 161.52
TX 89.43 47.02 324.62 157.79 26.20 57.20 94.40 247.17 277.82 182.81 229.68 295.21 575.13 466.35 1,298.59 964.19 1,103.18 477.86 701.08 432.30
PA 31.50 70.55 32.23 69.90 79.71 0.40 0.00 0.00 114.22 0.00 19.35 216.40 252.88 432.62 1,942.08 2,414.30 512.63 117.96 93.92 83.89
OH 25.00 126.13 37.40 59.51 0.00 0.00 5.00 48.00 39.90 36.87 128.50 239.32 179.99 408.79 640.30 1,174.61 888.01 83.03 1.20 955.27
MI 38.74 0.00 0.00 4.80 0.00 0.00 0.00 0.00 0.00 0.00 130.00 820.00 667.60 391.50 359.60 778.29 622.18 314.80 0.00 324.48
MN 20.00 23.45 72.50 0.00 34.07 0.00 0.00 40.00 0.00 115.90 83.77 149.00 109.07 266.36 254.81 261.55 36.93 22.40 93.25 0.00
IL 0.00 3.50 10.00 12.80 15.00 2.00 0.00 17.00 5.00 0.00 7.00 20.00 165.40 255.99 884.03 2,211.92 119.15 37.48 196.27 71.95
NC 9.70 0.00 36.00 10.70 29.30 0.00 35.00 0.00 133.28 105.00 106.00 0.00 77.70 250.00 325.88 954.75 25.75 7.95 56.00 1.00
UT 13.60 109.75 51.20 417.50 20.00 161.80 16.20 946.30 65.85 164.05 46.80 35.50 207.97 216.70 106.57 1,826.52 16.50 275.50 26.00 49.80
GA 0.00 0.00 15.10 65.00 0.00 14.00 0.00 0.00 56.00 0.00 74.19 34.30 40.85 181.00 30.00 917.90 19.00 0.00 0.00 55.00
MO 54.05 73.06 54.65 12.10 117.98 44.52 166.60 30.10 109.70 181.65 113.60 264.00 783.90 177.00 1,240.76 2,751.47 536.61 85.66 387.97 450.73
WI 6.50 7.00 31.48 22.80 38.12 0.60 0.00 0.00 0.00 63.45 10.10 183.50 349.00 173.68 180.41 613.41 119.64 74.90 275.86 17.31
ND 2.56 0.00 86.98 75.00 0.00 30.38 0.00 67.00 4.43 85.97 10.00 0.00 364.95 58.00 658.58 662.03 329.95 101.70 4.88 209.72
DC 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10.60 14.20 169.00 18.26 23.95 87.95 51.00 373.35 69.50 26.50 52.00 0.00 72.98
LA 0.00 10.50 0.80 0.00 0.00 0.00 0.00 0.00 0.00 27.00 0.00 0.00 17.00 50.00 61.50 126.00 231.65 0.00 34.30 40.30
KS 0.00 31.82 0.00 0.00 10.30 0.00 0.00 0.00 0.00 0.00 0.00 24.29 0.00 45.30 0.00 110.10 0.00 0.00 0.00 0.00
MS 150.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5.00 30.00 0.00 137.00 16.35 11.00 49.00 18.70
OR 643.50 0.00 33.26 0.00 0.00 53.13 0.00 0.00 63.60 0.00 11.30 6.00 45.40 25.03 79.63 64.77 286.20 0.00 0.00 80.30
VT 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 11.00 0.00 22.00 14.00 131.00 1.00 0.00 0.00 5.00
IN 0.00 10.00 0.00 27.30 16.30 4.70 0.00 49.00 0.00 20.00 0.00 116.11 0.00 12.80 20.00 103.30 0.00 10.00 35.56 17.00
FL 0.00 0.00 30.00 0.00 0.00 0.00 0.00 0.00 0.00 32.00 32.00 0.00 0.00 10.00 0.00 65.00 0.00 14.00 0.00 2.20
CT 10.73 0.00 60.05 0.00 0.00 0.00 0.00 56.00 0.00 0.00 5.00 0.00 10.50 1.78 5.00 21.00 26.00 0.00 0.00 10.00
NJ 5.00 0.00 6.70 32.50 0.00 0.00 0.00 0.00 3.00 13.50 0.00 26.00 11.30 0.30 320.80 241.00 8.00 0.00 64.84 63.33
MD 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 20.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
OK 16.60 0.00 0.00 24.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 25.00 0.00 0.00 0.00
AL 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.60 0.00 0.00 0.00 9.50 0.00 0.00 2.53 0.00 7.86
SD 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
IA 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 12.00 0.00 0.00 0.00 0.00 30.00 0.00 0.00 0.00 0.00
RI 49.42 0.00 0.00 40.00 0.00 0.00 15.00 0.00 0.00 0.00 20.00 0.00 50.00 0.00 0.00 0.00 0.00 11.20 8.80 0.00
HI 0.00 0.00 22.04 947.60 0.00 0.00 0.00 2.00 0.00 58.80 0.00 21.65 0.00 0.00 126.89 0.00 76.45 15.60 2.95 0.00
MT 0.00 0.00 0.00 37.00 0.00 0.00 0.00 0.00 10.10 0.00 0.00 0.00 0.00 0.00 29.40 60.00 20.70 42.61 40.80 0.00
NH 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5.50 4.00 12.75 2.00 0.00
ME 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 19.65 25.00 0.00 0.00 0.00
AZ 0.00 0.00 0.00 0.00 12.50 4.50 0.00 0.00 0.00 0.00 14.00 0.00 0.00 0.00 0.00 0.00 0.00 15.00 0.00 0.00
WV 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 15.00 27.00 0.00 0.00 0.00
SC 0.00 0.00 0.00 0.00 0.00 10.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 31.20 0.00 0.00 0.00
ID 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 50.00 25.00 0.00 0.00 25.00 0.00 0.00 10.00 0.00 0.00
PR 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
NV 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 111.01 36.00 0.00 0.00 0.00 40.60 0.00 0.00 0.00 0.00
NE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 25.00 31.00 64.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10.00
DE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 62.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
UN 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 26.00 0.00 0.00 0.00 0.00
WY 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 20.00 0.00 0.00 0.00 0.00
AR 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 40.00 0.00 31.00 30.15 0.00 16.60 82.00 14.00 0.00 0.00 10.68
NM 36.15 27.70 0.00 2.06 0.00 155.00 40.00 0.00 0.00 6.10 1.90 0.00 0.00 0.00 0.00 0.00 0.00 0.00 17.76 20.35
KY 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 14.00 7.40 15.00 0.00 42.00 0.00 0.00 0.00 135.00 8.00 2.14 0.00
Total 3,782.66 3,587.47 4,379.07 4,476.68 4,918.80 3,097.52 1,905.73 5,243.80 4,565.30 7,733.72 9,442.31 11,553.58 17,993.04 30,842.67 53,638.36 101,740.87 38,952.18 15,928.95 11,465.28 18,696.01


Venture Capital Fund Commitments 1985-2013 ($ Millions)
State 2005 2006 2007 2008 2009 2010 2011 2012 2013
MA 1,735.74 2,252.82 4,409.92 1,949.58 1,652.22 1,259.41 4,096.04 659.75 5,474.78
CA 13,319.31 13,635.99 12,533.51 13,972.15 8,635.34 6,337.42 9,678.38 14,708.16 5,315.87
NY 9,150.90 4,365.57 5,121.96 2,516.05 3,573.19 2,664.92 2,339.74 1,414.73 2,200.41
WA 629.84 379.48 263.77 1,037.91 26.79 82.72 209.64 51.34 561.77
VA 143.06 2,910.97 286.64 227.29 157.73 938.22 11.00 23.15 446.06
TN 204.27 1,812.38 235.17 52.79 503.67 112.40 100.27 64.78 310.39
CO 432.75 472.23 782.73 368.88 484.14 67.60 543.52 28.93 275.10
TX 80.46 421.96 544.90 258.01 215.60 237.65 215.05 131.67 274.35
PA 68.76 132.45 358.26 220.75 3.50 262.09 6.13 280.36 259.59
OH 280.57 562.85 1,376.20 492.38 5.28 0.00 0.00 398.81 240.19
MI 392.62 896.30 314.60 1,122.94 204.06 0.00 475.00 0.40 236.24
MN 83.75 61.83 99.50 133.96 88.79 56.95 160.93 277.79 222.01
IL 418.62 555.42 582.42 105.28 14.42 121.37 35.63 44.70 187.62
NC 313.00 11.20 109.26 25.20 32.25 74.55 1.57 268.00 154.98
UT 295.00 473.24 275.00 325.10 21.80 0.00 0.00 150.00 136.85
GA 103.50 361.70 203.00 18.73 18.75 30.00 25.55 17.15 126.45
MO 688.16 794.40 825.81 962.73 233.18 205.17 126.81 281.89 101.38
WI 108.01 401.37 185.28 102.93 5.37 457.40 109.58 479.98 67.50
ND 558.16 152.22 81.45 83.38 1.88 30.27 82.40 29.44 45.27
DC 4.00 12.00 0.00 0.00 0.00 0.00 0.00 0.00 44.80
LA 23.98 169.59 213.15 576.50 34.26 16.45 160.42 159.33 40.00
KS 12.00 37.96 10.50 0.00 0.00 0.00 0.00 0.14 25.86
MS 69.65 19.10 0.00 117.93 101.35 1.53 58.10 19.90 14.23
OR 828.70 39.65 210.30 53.94 0.00 72.00 0.00 155.00 12.02
VT 0.00 3.28 0.00 14.48 0.00 16.00 0.00 0.00 10.00
IN 6.00 24.49 1.16 28.80 1.00 28.05 0.00 38.95 8.00
FL 0.00 0.00 2.03 5.00 5.90 12.25 2.03 6.98 2.00
CT 0.00 42.91 0.00 0.00 15.35 0.00 0.00 0.00 0.00
NJ 122.44 23.00 49.00 255.56 84.00 176.51 193.98 20.11 0.00
MD 0.00 0.25 10.04 19.97 0.00 0.00 7.85 0.00 0.00
OK 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
AL 0.00 0.00 0.00 6.39 0.00 0.00 0.00 0.00 0.00
SD 0.00 1.75 0.00 0.00 0.00 0.00 0.00 0.00 0.00
IA 0.00 1.35 0.00 0.00 0.00 0.00 0.00 0.00 0.00
RI 0.00 5.00 6.66 0.00 0.00 0.00 0.00 4.50 0.00
HI 0.00 45.55 19.45 0.00 0.00 0.00 5.50 4.64 0.00
MT 19.00 0.00 0.00 20.00 0.00 0.00 222.18 57.16 0.00
NH 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
ME 0.00 0.00 11.00 3.00 0.00 0.00 0.00 0.00 0.00
AZ 5.60 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
WV 0.00 0.00 75.75 0.00 0.00 0.00 0.00 0.00 0.00
SC 0.00 0.00 1.00 0.00 0.00 0.00 0.00 0.00 0.00
ID 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
PR 0.00 0.00 0.00 13.20 0.00 0.48 0.00 0.18 0.00
NV 0.00 0.00 0.00 0.00 0.00 2.00 0.00 1.00 0.00
NE 0.00 0.00 0.00 0.00 0.00 100.00 100.00 0.00 0.00
DE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
UN 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
WY 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
AR 0.00 80.68 102.33 15.09 9.20 27.32 0.15 40.00 0.00
NM 25.65 5.20 1.27 0.00 0.00 35.00 1.14 0.00 0.00
KY 7.95 65.00 98.00 12.00 0.00 0.00 0.00 7.00 0.00
Total 30,131.45 31,231.10 29,400.99 25,117.84 16,128.99 13,425.72 18,968.57 19,825.91 16,793.70

Figure 2.04
Top 5 States
By Venture Capital Committed 2013
State No of Committed
Funds ($Mil)
Massachusetts 24 5,474.8
California 58 5,315.9
New York 25 2,200.5
Washington 5 561.8
Virginia 5 446.1
Subtotal 117 13,999.1
Remaining States 70 2,766.8
Total 187 16,765.9
Figure 2.5
Private Equity Annual Commitment ($ Billions)
1985 to 2013
280
260
240
220 Venture Capital Buyouts and Mezzanine
200
180
($ Billions)
160
140
120
100
80
60
40
20
-
5
6
7
8
9
0
1
2
3
5
6
7
8
9
0
1
2
3
5
6
7
8
9
0
1
2
3
4
201
198
198
198
198
198
199
199
199
199
199
199
199
199
199
200
200
200
200
200
200
200
200
200
201
201
201
199
200
Year

INVESTMENTS
Measuring industry activity by the total dollars invested in a given year shows that the industry has remained generally in the $20 billion to $30 billion
range since 2002. In 2013, $29.5 billion was invested in 3,382 companies through 4,041 deals. The number of deals is 4% higher than 2012 counts,
but is essentially the same as 2011. The number of first-time fundings increased in 2013 to 1,334 companies from the previous 1,275, but it remains
near the top of the healthy range of 1,000 to 1,400 first-time fundings in a year. Further parsing the data shows 50% of the investment dollars going to
California companies, down from 53% in 2012 but consistent with the previous three years. The year 2013 saw a record 56% of the financing rounds
going to seed and early stage companies, compared with a more typical one-third of deals. A carefully watched statistic is the investment in the life sci-
ences. It is possible that the downward plummet in first-time life sciences investment is starting to reverse, led by Biotechnology, but it is still too early
to be sure. Corporate Venture investment continues to gain considerable strength and presence in the overall industry.
Sectors ments were made at the seed and early stage.

Software was the leading sector in 2013, receiving 37.3% of the total
dollars. The second largest sector was Biotechnology, which was less than Geographical Spread Across the United States
half that amount at 15.4% of total investment. Media and Entertainment, The year 2013 provided an interesting contrast in geographic disper-
where much of the social networking is categorized, received 9.9% and sion. The slight majority of investment dollars went to California compa-
Medical Devices and Equipment received 7.2%. nies at 50.01%. This is down from the record 53.2% in 2012. Interestingly,
The life sciences share of the venture capital investment dollars de- companies in 48 states and DC received financing, which ties the 2012
creased in 2013 to its lowest level since 2001 at 23.6% of the total dollars. record high. Ranked by total dollars invested, the top five states (Califor-
(For purposes of this paragraph, life sciences is made up of all three life nia, Massachusetts, New York, Washington and Texas) received 78% of
science categories. Some industry observers choose to exclude the health- all the dollars invested nationally.
care services sector from the life sciences totals.) This is down from the This compares to 2011, when California companies received a then-
recent peak of 32.7% in 2009. (The all-time peak was 36.3% in 1992.) record 51.2% of the dollars. That year, companies in a record 47 states and
This recent downward life sciences trend is very visible when just DC received venture capital funding. Together, the top five states (Cali-
looking at first fundings. In 2013, only 155 life sciences (defined in this fornia, Massachusetts, New York, Texas, and Washington State) received
paragraph as Biotech/pharma and Medical Devices/therapeutics, but not 77% of the total dollars.
healthcare services) received first fundings, up just slightly form 148 in California-domiciled venture capital firms made investments in 38
2012. While the uptick driven by Biotechnology first fundings may be an states in 2013. Approximately 48% of all the money invested in Califor-
early indicator of a rebound, these last two years are the lowest counts nia came from California-domiciled firms. Conversely, California-based
since 1996. The possible recovery in Biotechnology investing may have firms concentrated 68% of their investment dollars within the state.
been driven in part by the success of recent efforts at FDA reform and the
strong number of Biotechnology company IPOs in 2013 (count = 42). Corporate Venture Group Involvement
Among first fundings, Software led the way with 591 companies get- The number and reach of corporate venture capital groups increased
ting their initial venture capital rounds. This is more than 46% of the first in 2013, along with the visibility of this group. These groups provided
fundings. Again in 2013, the second most active first-funding sector is an estimated 10.5% of the venture capital invested by all venture groups.
Media and Entertainment at 170 first fundings. They were involved in 16.9% of the deals – the highest level in five years.
Going forward, all signs suggest that these groups are becoming more
Stages and First-Time Fundings involved alongside traditional venture firms in deals, as well as initiating
Investment activity in the industry seems to be bifurcated by the large corporate venture group syndicates to do deals in lieu of, or in advance of,
number of later stage companies hoping to join fairly strong public mar- investment rounds by traditional venture firms.
kets at year end 2013 and the very large number of new companies being
funded by the industry. While many of the larger portfolio companies, Methodology
IPOs, and big acquisitions have gotten the headlines and visibility, 2013 As calculated by Thomson Reuters, venture capital investment data are
actually saw the highest percentage of seed- and early-stage deals ever at derived from several sources. Primarily, survey information is obtained
55.7% of all deals. This surpasses the prior record of 52.6% in 2012. This from the quarterly survey that drives the MoneyTree Report™ from Price-
certainly would challenge the suggestion that the industry’s attention is waterhouseCoopers and the National Venture Capital Association based
single-focused on later-stage companies. Despite the flurry of IPO activity on data from Thomson Reuters. This is the official industry database of
in 2013 and acquisitions announced for early 2014, there remains a record venture capital investment. Secondly, Thomson Reuters obtains data from
number of companies in portfolios in the later stage of development that SEC filings that are regularly monitored by our research staff. Finally,
in most other positions in the business cycle would have already gone publicly available sources such as press releases and trade publications
public or otherwise been acquired. are used.
With the rule of thumb that a healthy venture capital industry invests in
1,000-1,300 new companies each year, the 1,334 first fundings in 2013 is For detailed information on which transactions qualify as MoneyTree
very much in that range. Not surprisingly, 83% of those first round invest- deals and are therefore counted in this chapter, please refer to Appendix B.

Figure 3.01
Venture Capital Investments ($ Billions)
1985 to 2013
120
100
80
($ Billions)
60
40
20
0
5
6
7
8
9
0
1
2
3
5
6
7
8
9
0
1
2
3
5
6
7
8
9
0
1
2
3
4
201
198
198
198
198
198
199
199
199
199
199
199
199
199
199
200
200
200
200
200
200
200
200
200
201
201
201
199
200
Year
Figure 3.02
Venture Capital Investments in 2013 By Industry Group
All Investments Initial Investments
Industry Group # Companies # Deals Investment # Companies # Deals Investment

Amt ($Bil) Amt ($Bil)
Information Technology 2,360 2,784 20 1,009 1,009 3.5
Medical/Health/Life Science 649 816 6.9 167 167 1.2
Non-High Technology 373 441 2.7 158 158 0.4
Total 3,382 4,041 29.6 1,334 1,334 5.1
Figure 3.03
Venture Capital Investments
Top 5 States in 2013
State # Companies # Deals Invested
($Bil)
California 1,362 1,616 14.8
Massachusetts 307 364 3.1
New York 344 403 2.9
Texas 134 154 1.3
Washington 107 126 0.9
Total* 2,254 2,663 23.0
*Total includes top 5 states only

Figure 3.04
By Industry Sector (Dollars Invested)
Telecommunications Other
2% 0.2% Biotechnology Business Products and
15% Services 0.4%
Computers and Peripherals 2%
Consumer Products and
Software Services 4%
37% Electronics/Instrumentation
1%
Financial Services
2%
Healthcare Services
1%
Semiconductors Industrial/Energy
2% 5%
IT Services
7%
1%
Networking and Equipment 10%
2% Medical Devices and
Equipment
7%
Figure 3.05
By Stage (Dollars Invested)
Seed
3%
Later Stage
Early Stage
30%
34%
Expansion
33%

Figure 3.06
Amount of Capital Invested By State in 2013 ($ Millions)
USA 74
913
NH
WA
0
21 27
24
270
MT VT ME
138 ND
MN
OR 3,079
7 36 2,870
12 MA
ID WY WI 108 NY
SD 82
MI 447 RI
23 182
10
319 PA 322
NE IA 435 CT
7
25 286
315
14,770 429 OH NJ
NV 1
IN 594DC 71
UT 33 IL
CA 77
CO 11 WV
VA DE
KS MO
260 664
KY
109
86 NC
113 8 MD
26 TN 86
AR
AZ OK
NM 412 SC
1 5
GA
1,316 15 MS AL
TX
AK LA
421
GU
2 FL
HI PR
VI
Figure 3.07
Number of Companies Invested in By State in 2013
USA 13
107
NH
WA
1 8 4
1
32
MT VT ME
30 ND
MN
OR 307
2 18 344
1 MA
ID WY WI 58 NY
SD 11
2 MI 196 RI43
9
68 PA 38
NE IA CT
3
30 74 11 27
1,362 OH NJ
62 1
NV 58 DC 5
UT 6 IL IN
CA 32
CO 6 WV
VA DE
KS MO 63
40
35 KY
3 NC
19 8 MD
13 TN 12
AR
AZ OK
NM 35
4 SC
2
GA
134 6 MS AL
TX
AK LA
37
GU
2 FL
HI PR
VI

Figure 3.08
Venture Capital Investments in 1985-2013 By Region ($ Millions)
Region 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Silicon Valley 758.8 1,016.0 849.9 985.9 918.1 914.1 780.5 1,121.1 903.7 1,073.8 1,807.8 3,417.7 4,632.3 5,881.4 17,797.4
New England 435.4 436.6 524.3 496.9 404.7 424.9 287.0 417.0 358.4 440.4 796.6 1,159.4 1,611.8 2,353.4 5,622.0
NY Metro 221.2 215.2 273.9 308.0 360.4 190.1 181.5 239.0 221.3 275.8 509.7 743.2 1,289.4 1,817.3 4,611.8
LA/Orange County 196.5 186.9 276.9 222.5 242.1 174.7 119.4 179.4 176.4 189.1 1,004.1 702.9 875.2 1,230.6 3,593.7
DC/Metroplex 99.1 61.5 111.8 129.9 139.5 96.9 51.3 65.8 384.1 137.8 420.2 586.3 515.1 1,148.5 2,395.1
Texas 248.6 228.4 211.0 240.7 229.2 141.0 161.4 150.5 241.9 313.8 479.2 553.4 908.7 1,205.6 3,163.1
Southeast 166.4 237.6 269.5 272.1 235.4 145.9 109.1 346.9 408.2 362.3 878.6 1,166.0 1,396.7 1,794.8 4,831.0
Midwest 160.5 139.9 198.4 132.3 183.2 166.7 181.4 165.2 276.9 432.6 470.4 736.2 913.5 1,644.5 2,631.1
Northwest 142.2 142.9 153.3 141.2 118.0 88.2 59.9 252.1 118.4 164.7 379.7 557.6 564.4 820.3 2,874.6
San Diego 99.6 95.4 107.8 149.8 145.5 113.3 115.7 128.2 133.0 221.0 276.8 485.2 516.0 669.4 1,437.0
SouthWest 40.1 82.5 57.5 59.7 50.7 30.3 49.0 98.4 49.7 38.0 113.1 184.6 303.1 411.2 843.1
Colorado 77.0 113.8 111.4 107.8 157.8 93.7 54.2 129.7 135.0 197.4 325.1 321.2 405.0 838.9 1,832.9
Philadelphia Metro 52.6 63.3 79.2 71.8 65.3 105.9 40.6 168.9 111.4 138.1 220.9 356.2 534.2 703.9 1,732.6
North Central 37.0 44.5 73.6 41.4 51.2 92.2 44.9 77.1 109.6 87.4 223.8 208.5 341.6 429.6 770.0
South Central 13.7 11.4 19.8 11.7 14.5 11.6 4.2 6.5 8.6 15.2 45.2 81.1 67.4 196.7 360.1
Upstate NY 14.2 10.7 10.2 5.3 7.3 11.1 3.4 9.1 5.7 0.7 35.5 22.7 90.3 195.4 212.4
Sacramento/N.Cal 16.0 45.5 32.0 33.6 4.2 19.5 15.7 8.5 19.1 20.0 20.0 28.6 21.4 86.8 119.1
Unknown - - 0.5 0.8 6.1 13.0 0.2 30.8 0.8 0.1 0.3 2.2 4.4 39.1 2.4
AK/HI/PR - - - - - - 0.3 0.0 1.0 22.0 7.8 28.7 14.0 5.5 17.4
Total 2,779.0 3,132.3 3,361.3 3,411.3 3,333.0 2,833.1 2,259.7 3,594.2 3,663.2 4,130.1 8,014.8 11,341.6 5,004.6 21,473.0 54,846.7


Venture Capital Investments in 1985-2013 By Region ($ Millions)
Region 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Silicon Valley 33,430.9 12,618.7 7,249.2 6,766.5 8,021.2 8,133.6 9,806.9 11,610.0 11,551.3 8,263.4 9,436.2 12,037.2 11,237.6 12,225.7
New England 12,000.6 5,397.2 2,999.3 2,990.4 3,359.7 2,969.9 3,319.2 4,004.1 3,754.8 2,603.7 2,577.9 3,344.5 3,391.6 3,307.7
NY Metro 10,275.4 3,497.1 1,548.7 1,385.0 1,635.7 1,972.7 2,172.1 1,936.2 2,169.7 1,748.9 1,872.8 2,862.5 2,366.9 3,194.7
LA/Orange County 6,782.0 2,264.7 1,286.8 1,069.4 1,319.8 1,506.1 1,898.7 1,925.3 2,041.4 1,080.9 1,687.8 2,076.7 2,092.5 1,748.2
DC/Metroplex 5,795.2 2,103.1 1,095.6 797.4 1,086.6 1,208.3 1,356.3 1,423.7 1,167.9 684.3 973.9 1,014.0 756.8 1,545.9
Texas 6,270.8 3,137.3 1,191.6 1,221.0 1,212.3 1,170.7 1,518.2 1,493.8 1,127.7 678.2 1,079.4 1,622.4 948.9 1,315.5
Southeast 7,967.1 2,684.7 1,768.7 1,115.0 1,418.1 1,094.2 1,206.3 1,841.0 1,352.0 1,032.0 1,101.2 1,193.4 801.1 1,293.9
Midwest 5,776.7 2,184.5 976.9 913.6 712.5 916.5 1,009.7 1,159.2 1,369.5 952.3 1,368.2 1,554.1 1,436.8 1,107.3
Northwest 3,627.9 1,426.8 766.7 643.5 1,001.2 1,003.9 1,288.0 1,612.5 1,075.6 673.9 728.9 785.4 998.5 1,056.7
San Diego 2,297.6 1,579.1 997.4 825.8 1,197.8 1,203.9 1,231.0 1,846.4 1,209.4 939.5 881.2 928.0 1,191.6 767.7
SouthWest 1,387.5 515.1 393.8 220.5 393.6 524.8 526.6 589.0 545.7 291.2 275.9 571.5 600.4 455.4
Colorado 4,091.9 1,244.4 588.0 609.9 363.2 622.9 703.3 686.3 872.3 458.9 445.9 619.7 589.0 428.8
Philadelphia Metro 2,591.5 1,073.3 636.6 555.1 734.6 592.6 795.9 890.5 803.0 389.4 452.2 456.7 415.3 420.0
North Central 1,397.3 669.6 433.7 268.5 464.0 367.0 385.6 532.7 632.6 410.5 336.7 380.9 359.9 375.3
South Central 446.9 110.4 69.3 65.5 130.1 96.1 64.3 152.8 91.3 25.3 75.2 102.1 96.0 141.1
Upstate NY 293.9 159.1 104.5 122.7 104.8 60.1 156.1 136.5 92.3 26.9 44.8 112.7 48.6 112.5
Sacramento/N.Cal 372.3 203.0 65.4 32.2 38.4 37.7 29.4 82.0 71.3 18.8 16.5 67.8 20.0 25.2
Unknown 50.4 14.3 - - - - - - - 0.5 - - - 21.1
AK/HI/PR 248.6 69.8 4.9 17.9 15.1 43.3 47.1 20.9 21.3 7.4 14.0 0.6 0.7 2.5
Total 105,104.6 40,952.1 22,177.1 19,620.0 23,208.8 23,524.5 27,514.5 31,942.9 29,948.9 20,286.2 23,368.6 29,730.0 27,352.3 9,545.2

Figure 3.09
Venture Capital Investments in 1985-2013 By Region (Number of Deals)
Region 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Silicon Valley 323 339 343 362 395 398 337 422 315 335 509 771 869 1,045 1,687 2,159 1,106 819 879
NY Metro 89 101 131 108 121 90 89 81 79 84 136 158 240 273 491 816 446 231 192
New England 235 214 257 231 222 217 170 159 149 146 232 333 384 469 662 905 595 458 446
Midwest 100 116 133 101 127 103 99 93 85 83 132 190 237 249 309 515 276 243 174
LA/Orange County 90 101 114 106 112 97 89 97 63 54 92 134 166 216 355 516 250 164 149
Southeast 91 118 134 115 115 131 111 108 117 112 182 226 294 308 454 664 391 268 247
DC/Metroplex 45 46 65 59 51 62 54 48 41 47 72 113 135 162 272 509 261 198 183
Northwest 47 49 62 70 64 48 41 50 49 50 84 112 134 132 263 331 192 141 108
Texas 106 93 106 105 91 85 70 70 72 68 101 135 172 197 318 485 343 174 174
Philadelphia Metro 38 35 54 44 41 48 43 65 47 45 78 91 142 138 145 231 142 103 88
San Diego 43 35 54 56 56 47 43 47 49 61 77 109 100 124 162 235 156 114 125
Colorado 43 58 62 63 53 49 35 53 48 53 58 83 98 127 161 222 115 91 71
SouthWest 20 30 42 25 32 22 30 34 30 29 37 55 71 88 116 146 89 68 55
North Central 38 50 54 51 39 44 40 39 38 37 70 69 116 107 114 151 126 76 71
Upstate NY 17 10 10 10 12 6 4 9 10 5 8 9 21 31 31 36 29 24 22
South Central 11 10 12 6 7 5 4 5 6 9 15 22 25 27 30 50 28 24 21
Unknown - - 1 2 3 1 1 2 4 2 2 7 7 14 3 16 8 - -
Sacramento/N.Cal 11 18 12 10 6 10 9 9 8 10 7 9 7 17 19 36 27 7 11
AK/HI/PR 1 - - - - - 3 3 1 2 4 9 6 5 5 15 10 3 8
Total 1,348 1,423 1,646 1,524 1,547 1,463 1,272 1,394 1,211 1,232 1,896 2,635 3,224 3,729 5,597 8,038 4,590 3,206 3,024

Venture Capital Investments in 1985-2013 By Region (Number of Deals)
Region 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Silicon Valley 970 1,006 1,235 1,311 1,300 997 1,108 1,269 1,225 1,257
NY Metro 226 191 295 299 343 285 387 424 411 446
New England 430 441 458 524 508 388 414 457 466 418
Midwest 178 181 228 271 304 250 277 316 311 416
LA/Orange County 151 177 219 236 245 177 228 233 268 253
Southeast 244 198 235 247 230 158 215 209 172 211
DC/Metroplex 187 221 218 221 210 138 154 167 166 171
Northwest 148 159 182 217 201 128 156 165 154 165
Texas 176 181 201 188 162 126 168 172 163 154
Philadelphia Metro 104 96 116 135 150 97 127 123 126 135
San Diego 132 143 130 169 134 114 135 114 106 98
Colorado 72 91 112 114 116 91 84 109 105 81
SouthWest 58 84 92 107 86 71 60 85 84 79
North Central 77 66 73 94 87 69 59 70 53 73
Upstate NY 29 28 40 33 31 13 21 22 23 36
South Central 31 11 26 31 41 33 42 59 23 29
Unknown - - - 1 - 1 1 1 - 10
Sacramento/N.Cal 9 11 8 18 20 9 7 6 5 6
AK/HI/PR 6 8 14 10 9 3 4 3 4 3
Total 3,228 3,293 3,882 4,226 4,177 3,148 3,647 4,004 3,865 4,041

Figure 3.10
Venture Capital Investments in 1985-2013 By Stage
Stage 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Seed 528.9 759.7 623.4 670.2 559.3 396.6 241.8 557.7 629.6 781.2 1,273.0 1,275.0 1,366.6 1,769.3 3,617.8 3,150.4 803.5
Early Stage 506.8 624.0 748.8 714.6 737.9 684.8 548.4 577.9 574.9 839.7 1,733.1 2,636.8 3,455.1 5,460.1 11,480.6 25,292.6 8,591.3
Expansion 1,243.9 1,198.2 1,490.6 1,568.8 1,600.3 1,265.6 1,099.6 1,770.1 1,867.0 1,506.9 3,561.7 5,503.0 7,564.1 10,322.5 29,254.7 59,047.2 22,898.7
Later Stage 499.4 550.4 498.5 457.7 435.5 486.0 369.8 688.5 591.7 1,002.4 1,447.0 1,926.9 2,618.8 3,921.0 10,493.6 17,614.5 8,658.6
Total 2,779.0 3,132.3 3,361.3 3,411.3 3,333.0 2,833.1 ,259.7 3,594.2 3,663.2 4,130.1 8,014.8 11,341.6 15,004.6 21,473.0 54,846.7 105,104.6 40,952.1

Venture Capital Investments in 1985-2013 By Stage
Stage 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Seed 340.7 364.9 916.9 995.6 1,291.6 1,837.0 1,923.1 1,735.2 1,676.3 1,079.4 836.4 966.4
Early Stage 3,979.7 3,582.2 4,040.8 4,057.9 4,770.4 6,087.3 5,888.9 4,940.6 5,913.8 8,926.9 8,315.1 9,896.0
Expansion 12,122.6 9,764.9 9,053.6 8,521.7 11,123.5 1,065.7 10,725.1 6,841.2 8,706.9 9,829.3 9,446.6 9,814.2
Later Stage 5,734.1 5,908.0 9,197.5 9,949.3 0,329.0 2,952.9 11,411.9 6,769.2 7,071.6 9,894.4 8,754.2 8,868.7
Total 22,177.1 19,620.0 23,208.8 23,524.5 7,514.5 1,942.9 29,948.9 20,286.2 23,368.6 9,730.0 27,352.3 29,545.2
Figure 3.11
Venture Capital Investments in 1985-2013 By Stage (Number of Deals)
Stage 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Seed 358 388 387 370 355 258 193 252 290 332 431 503 542 672 811 705 281
Early Stage 290 333 411 358 338 371 277 292 181 255 519 751 897 1,019 1,735 2,852 1,298
Expansion 523 502 614 614 665 600 541 603 513 422 705 1,043 1,399 1,569 2,438 3,698 2,391
Later Stage 177 200 234 182 189 234 261 247 227 223 241 338 386 469 613 783 620
Total 1,348 1,423 1,646 1,524 1,547 1,463 1,272 1,394 1,211 1,232 1,896 2,635 3,224 3,729 5,597 8,038 4,590

Venture Capital Investments in 1985-2013 By Stage (Number of Deals)
Stage 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Seed 182 217 235 264 398 528 536 374 410 446 296 221
Early Stage 879 800 903 855 1,002 1,137 1,152 979 1,287 1,603 1,738 2,031
Expansion 1,580 1,352 1,203 1,113 1,381 1,269 1,240 894 1,077 1,026 987 991
Later Stage 565 655 887 1,061 1,101 1,292 1,249 901 873 929 844 798
Total 3,206 3,024 3,228 3,293 3,882 4,226 4,177 3,148 3,647 4,004 3,865 4,041

Figure 3.12a
Quarterly Venture Capital Investments 1985-2013 By Stage ($ Millions)
1985 1986 1987
Stage 1985-1Q 1985-2Q 1985-3Q 1985-4Q 1985 Total 1986-1Q 1986-2Q 1986-3Q 1986-4Q 1986 Total 1987-1Q 1987-2Q 1987-3Q 1987-4Q 1987 Total
Seed 153.0 149.3 93.7 133.0 528.9 185.6 270.0 114.7 189.4 759.7 145.7 199.4 142.0 136.3 623.4
Early Stage 95.9 185.3 95.2 130.4 506.8 129.6 139.5 176.6 178.2 624.0 170.7 183.9 204.2 190.0 748.8
Expansion 219.2 319.2 312.8 392.7 1,243.9 270.2 381.4 252.3 294.3 1,198.2 421.8 352.2 402.5 314.1 1,490.6
Later Stage 154.6 89.8 175.5 79.5 499.4 125.6 96.7 180.4 147.7 550.4 100.1 167.0 119.8 111.7 498.5
Total 622.6 743.6 677.2 735.6 2,779.0 711.0 887.5 724.1 809.6 3,132.3 838.2 902.4 868.5 752.2 3,361.3
Figure 3.12b
1988 1989 1990
Seed 164.5 150.0 240.6 115.2 670.2 138.1 174.6 116.3 130.3 559.3 81.9 116.7 114.3 83.8 396.6
Early Stage 144.0 216.6 184.7 169.4 714.6 255.9 128.0 163.1 190.9 737.9 139.7 199.1 133.1 212.9 684.8
Expansion 314.5 494.6 320.2 439.5 1,568.8 399.6 426.5 305.5 468.8 1,600.3 307.2 352.6 208.0 397.9 1,265.6
Later Stage 135.3 105.0 151.4 66.0 457.7 95.5 105.3 78.3 156.4 435.5 123.1 119.9 126.3 116.7 486.0
Total 758.3 966.1 896.9 790.0 3,411.3 889.1 834.4 663.1 946.4 3,333.0 651.9 788.2 581.6 811.3 2,833.1
Figure 3.12c
1991 1992 1993
Seed 45.8 84.6 53.4 58.0 241.8 67.6 210.4 71.8 207.8 557.7 139.7 144.1 164.3 181.5 629.6
Early Stage 137.7 130.3 140.4 140.0 548.4 134.0 187.6 102.7 153.6 577.9 164.0 136.1 106.6 168.2 574.9
Expansion 249.5 276.2 257.0 317.0 1,099.6 496.0 434.8 343.9 495.4 1,770.1 357.1 412.3 461.3 636.3 1,867.0
Later Stage 89.5 115.8 63.7 100.8 369.8 211.2 163.2 115.3 198.8 688.5 189.5 111.6 116.8 173.8 591.7
Total 522.5 606.9 514.5 615.7 2,259.7 908.8 996.1 633.8 1,055.5 3,594.2 850.3 804.1 849.0 1,159.8 3,663.2
Figure 3.12d
1994 1995 1996
Seed 190.0 225.8 160.2 205.1 781.2 316.8 396.6 229.9 329.8 1,273.0 330.0 427.9 200.6 316.5 1,275.0
Early Stage 177.6 196.4 157.8 307.9 839.7 408.8 393.6 366.8 563.8 1,733.1 596.2 712.9 573.6 754.1 2,636.8
Expansion 310.5 388.5 327.7 480.1 1,506.9 620.0 1,325.7 800.4 815.7 3,561.7 1,151.9 1,506.8 1,277.0 1,567.3 5,503.0
Later Stage 201.3 192.5 262.0 346.6 1,002.4 344.5 430.5 308.7 363.4 1,447.0 348.0 461.3 546.5 571.1 1,926.9
Total 879.4 1,003.3 907.8 1,339.7 4,130.1 1,690.0 2,546.4 1,705.8 2,072.6 8,014.8 2,426.1 3,109.0 2,597.6 3,208.9 11,341.6

Figure 3.12e
1997 1998 1999
Seed 392.9 330.8 323.4 319.5 1,366.6 405.4 426.4 459.9 477.6 1,769.3 591.5 799.7 990.1 1,236.5 3,617.8
Early Stage 773.5 846.8 760.1 1,074.7 3,455.1 1,164.7 1,014.5 1,290.4 1,990.6 5,460.1 1,302.0 2,026.8 2,661.8 5,489.9 11,480.6
Expansion 1,354.4 1,938.5 1,970.1 2,301.0 7,564.1 1,753.9 3,350.1 2,690.5 2,528.0 10,322.5 3,108.3 5,487.4 7,325.5 13,333.5 29,254.7
Later Stage 601.4 551.6 669.8 795.9 2,618.8 854.6 973.6 955.0 1,137.9 3,921.0 1,620.2 3,004.2 2,620.1 3,249.1 10,493.6
Total 3,122.3 3,667.8 3,723.4 4,491.2 15,004.6 4,178.5 5,764.5 5,395.7 6,134.2 21,473.0 6,622.0 11,318.1 13,597.5 23,309.1 54,846.7
Figure 3.12f
2000 2001 2002
Seed 808.6 984.1 870.9 486.8 3,150.4 256.6 265.6 128.5 152.7 803.5 76.4 94.0 84.2 86.1 340.7
Early Stage 7,137.5 6,937.9 5,903.8 5,313.5 25,292.6 3,447.7 2,104.5 1,720.2 1,318.9 8,591.3 1,209.5 1,138.0 827.7 804.5 3,979.7
Expansion 16,100.4 15,726.9 15,253.6 11,966.2 59,047.2 6,905.3 6,622.1 4,588.8 4,782.5 22,898.7 3,804.8 3,535.3 2,461.7 2,320.8 12,122.6
Later Stage 4,382.9 4,357.2 4,582.9 4,291.6 17,614.5 2,459.6 2,515.1 1,793.4 1,890.5 8,658.6 1,932.6 1,345.6 1,096.5 1,359.4 5,734.1
Total 28,429.3 28,006.1 26,611.1 22,058.1 105,104.6 13,069.2 11,507.4 8,230.9 8,144.7 40,952.1 7,023.4 6,112.9 4,470.0 4,570.8 22,177.1
Figure 3.12g
2003 2004 2005
Seed 83.3 95.3 100.3 86.0 364.9 104.8 124.3 118.1 569.7 916.9 139.3 529.0 165.0 162.2 995.6
Early Stage 676.2 1,011.5 806.8 1,087.7 3,582.2 904.9 1,030.3 1,028.5 1,077.0 4,040.8 907.8 992.9 1,186.2 971.0 4,057.9
Expansion 2,468.1 2,508.0 2,165.5 2,623.3 9,764.9 2,069.3 2,680.0 2,042.6 2,261.7 9,053.6 2,092.9 2,336.1 1,759.6 2,333.2 8,521.7
Later Stage 1,160.2 1,374.6 1,520.5 1,852.6 5,908.0 2,312.6 2,481.9 1,856.6 2,546.4 9,197.5 2,082.1 2,579.1 2,952.5 2,335.5 9,949.3
Total 4,387.8 4,989.4 4,593.1 5,649.7 19,620.0 5,391.6 6,316.6 5,045.8 6,454.8 23,208.8 5,222.1 6,437.1 6,063.2 5,802.0 23,524.5
Figure 3.12h
2006 2007 2008
Seed 249.2 367.6 372.1 302.7 1,291.6 315.8 500.0 462.4 558.7 1,837.0 459.3 528.3 557.7 377.9 1,923.1
Early Stage 930.6 1,022.2 1,143.1 1,674.5 4,770.4 1,341.1 1,706.4 1,259.8 1,780.0 6,087.3 1,401.6 1,571.4 1,382.2 1,533.6 5,888.9
Expansion 2,594.2 3,218.2 2,863.1 2,448.0 11,123.5 2,641.8 2,335.6 3,102.0 2,986.4 11,065.7 3,421.3 2,657.7 2,549.7 2,096.4 10,725.1
Later Stage 2,832.4 2,778.3 2,473.8 2,244.5 10,329.0 3,151.4 3,297.7 3,378.0 3,125.8 12,952.9 2,827.0 3,275.0 3,126.9 2,183.1 11,411.9
Total 6,606.5 7,386.3 6,852.0 6,669.7 27,514.5 7,450.1 7,839.8 8,202.2 8,450.9 31,942.9 8,109.1 8,032.4 7,616.5 6,191.0 29,948.9

Figure 3.12i
2009 2010 2011
Seed 319.7 536.0 511.0 368.5 1,735.2 416.7 689.0 338.7 231.9 1,676.3 219.6 424.4 227.4 208.1 1,079.4
Early Stage 768.2 1,178.5 1,240.7 1,753.2 4,940.6 1,149.7 1,732.4 1,457.3 1,574.5 5,913.8 1,861.1 2,307.7 2,244.0 2,514.1 8,926.9
Expansion 1,233.0 1,779.0 1,829.0 2,000.2 6,841.2 1,820.2 2,788.6 1,670.2 2,428.0 8,706.9 2,210.7 2,457.8 2,579.8 2,580.9 9,829.3
Later Stage 1,527.1 1,600.6 1,844.7 1,796.7 6,769.2 1,702.2 1,915.0 1,985.5 1,468.8 7,071.6 2,236.0 3,007.4 2,506.0 2,145.1 9,894.4
Total 3,848.0 5,094.2 5,425.5 5,918.6 20,286.2 5,088.8 7,125.0 5,451.7 5,703.2 23,368.6 6,527.4 8,197.3 7,557.2 7,448.2 29,730.0
Figure 3.12j
2012 2013
Stage 2012-1Q 2012-2Q 2012-3Q 2012-4Q 2012 Total 2013-1Q 2013-2Q 2013-3Q 2013-4Q 2013 Total
Seed 187.4 282.5 179.3 187.2 836.4 208.7 227.9 192.2 337.5 966.4
Early Stage 1,956.2 2,184.2 1,932.5 2,242.2 8,315.1 1,551.5 2,536.9 2,862.0 2,945.6 9,896.0
Expansion 1,810.0 2,763.6 2,580.5 2,292.5 9,446.6 2,057.7 2,215.5 2,537.0 3,004.0 9,814.2
Later Stage 2,356.5 2,170.9 1,985.2 2,241.6 8,754.2 2,190.4 2,125.8 2,333.2 2,219.3 8,868.7
Total 6,310.1 7,401.1 6,677.5 6,963.5 27,352.3 6,008.3 7,106.1 7,924.4 8,506.4 29,545.2

Figure 3.13a
Quarterly Venture Capital Investments 1985-2013 By Stage (Number of Deals)
1985 1986 1987
Seed 110 89 61 98 358 134 107 65 82 388 116 101 85 85 387

Early Stage 88 69 59 74 290 111 71 72 79 333 131 83 102 95 411
Expansion 138 121 114 150 523 166 136 95 105 502 182 138 158 136 614
Later Stage 66 41 38 32 177 61 56 31 52 200 64 65 52 53 234
Total 402 320 272 354 1,348 472 370 263 318 1,423 493 387 397 369 1,646
Figure 3.13b
1988 1989 1990
Seed 119 79 88 84 370 106 100 77 72 355 60 69 59 70 258

Early Stage 99 94 87 78 358 101 65 84 88 338 88 97 73 113 371
Expansion 158 181 133 142 614 216 158 127 164 665 148 151 144 157 600
Later Stage 54 48 42 38 182 52 35 38 64 189 55 59 49 71 234
Total 430 402 350 342 1,524 475 358 326 388 1,547 351 376 325 411 1,463
Figure 3.13c
1991 1992 1993
Seed 51 49 42 51 193 49 68 49 86 252 69 68 66 87 290

Early Stage 78 69 60 70 277 73 86 52 81 292 40 48 38 55 181
Expansion 137 127 124 153 541 155 160 103 185 603 144 121 116 132 513
Later Stage 49 69 56 87 261 77 46 45 79 247 68 54 52 53 227
Total 315 314 282 361 1,272 354 360 249 431 1,394 321 291 272 327 1,211
Figure 3.13d
1994 1995 1996
Seed 91 67 83 91 332 125 95 95 116 431 130 139 97 137 503

Early Stage 64 61 53 77 255 130 137 116 136 519 147 205 174 225 751
Expansion 101 110 96 115 422 187 178 164 176 705 235 246 245 317 1,043
Later Stage 53 69 43 58 223 61 56 58 66 241 72 83 86 97 338
Total 309 307 275 341 1,232 503 466 433 494 1,896 584 673 602 776 2,635

Figure 3.12e
1997 1998 1999
Seed 392.9 330.8 323.4 319.5 1,366.6 405.4 426.4 459.9 477.6 1,769.3 591.5 799.7 990.1 1,236.5 3,617.8
Early Stage 773.5 846.8 760.1 1,074.7 3,455.1 1,164.7 1,014.5 1,290.4 1,990.6 5,460.1 1,302.0 2,026.8 2,661.8 5,489.9 11,480.6
Expansion 1,354.4 1,938.5 1,970.1 2,301.0 7,564.1 1,753.9 3,350.1 2,690.5 2,528.0 10,322.5 3,108.3 5,487.4 7,325.5 13,333.5 29,254.7
Later Stage 601.4 551.6 669.8 795.9 2,618.8 854.6 973.6 955.0 1,137.9 3,921.0 1,620.2 3,004.2 2,620.1 3,249.1 10,493.6
Total 3,122.3 3,667.8 3,723.4 4,491.2 15,004.6 4,178.5 5,764.5 5,395.7 6,134.2 21,473.0 6,622.0 11,318.1 13,597.5 23,309.1 54,846.7
Figure 3.12f
2000 2001 2002
Seed 808.6 984.1 870.9 486.8 3,150.4 256.6 265.6 128.5 152.7 803.5 76.4 94.0 84.2 86.1 340.7
Early Stage 7,137.5 6,937.9 5,903.8 5,313.5 25,292.6 3,447.7 2,104.5 1,720.2 1,318.9 8,591.3 1,209.5 1,138.0 827.7 804.5 3,979.7
Expansion 16,100.4 15,726.9 15,253.6 11,966.2 59,047.2 6,905.3 6,622.1 4,588.8 4,782.5 22,898.7 3,804.8 3,535.3 2,461.7 2,320.8 12,122.6
Later Stage 4,382.9 4,357.2 4,582.9 4,291.6 17,614.5 2,459.6 2,515.1 1,793.4 1,890.5 8,658.6 1,932.6 1,345.6 1,096.5 1,359.4 5,734.1
Total 28,429.3 28,006.1 26,611.1 22,058.1 105,104.6 13,069.2 11,507.4 8,230.9 8,144.7 40,952.1 7,023.4 6,112.9 4,470.0 4,570.8 22,177.1
Figure 3.12g
2003 2004 2005
Seed 83.3 95.3 100.3 86.0 364.9 104.8 124.3 118.1 569.7 916.9 139.3 529.0 165.0 162.2 995.6
Early Stage 676.2 1,011.5 806.8 1,087.7 3,582.2 904.9 1,030.3 1,028.5 1,077.0 4,040.8 907.8 992.9 1,186.2 971.0 4,057.9
Expansion 2,468.1 2,508.0 2,165.5 2,623.3 9,764.9 2,069.3 2,680.0 2,042.6 2,261.7 9,053.6 2,092.9 2,336.1 1,759.6 2,333.2 8,521.7
Later Stage 1,160.2 1,374.6 1,520.5 1,852.6 5,908.0 2,312.6 2,481.9 1,856.6 2,546.4 9,197.5 2,082.1 2,579.1 2,952.5 2,335.5 9,949.3
Total 4,387.8 4,989.4 4,593.1 5,649.7 19,620.0 5,391.6 6,316.6 5,045.8 6,454.8 23,208.8 5,222.1 6,437.1 6,063.2 5,802.0 23,524.5
Figure 3.12h
2006 2007 2008
Seed 249.2 367.6 372.1 302.7 1,291.6 315.8 500.0 462.4 558.7 1,837.0 459.3 528.3 557.7 377.9 1,923.1
Early Stage 930.6 1,022.2 1,143.1 1,674.5 4,770.4 1,341.1 1,706.4 1,259.8 1,780.0 6,087.3 1,401.6 1,571.4 1,382.2 1,533.6 5,888.9
Expansion 2,594.2 3,218.2 2,863.1 2,448.0 11,123.5 2,641.8 2,335.6 3,102.0 2,986.4 11,065.7 3,421.3 2,657.7 2,549.7 2,096.4 10,725.1
Later Stage 2,832.4 2,778.3 2,473.8 2,244.5 10,329.0 3,151.4 3,297.7 3,378.0 3,125.8 12,952.9 2,827.0 3,275.0 3,126.9 2,183.1 11,411.9
Total 6,606.5 7,386.3 6,852.0 6,669.7 27,514.5 7,450.1 7,839.8 8,202.2 8,450.9 31,942.9 8,109.1 8,032.4 7,616.5 6,191.0 29,948.9

Figure 3.13i
2009 2010 2011
Seed 70 87 99 118 374 93 120 100 97 410 93 129 114 110 446
Early Stage 195 212 249 323 979 271 361 318 337 1,287 353 398 408 444 1,603
Expansion 186 220 219 269 894 253 305 242 277 1,077 223 277 282 244 1,026
Later Stage 229 242 199 231 901 207 237 228 201 873 237 281 214 197 929
Total 680 761 766 941 3,148 824 1,023 888 912 3,647 906 1,085 1,018 995 4,004
Figure 3.13j
2012 2013
Stage 2012-1Q 2012-2Q 2012-3Q 2012-4Q 2012 Total 2013-1Q 2013-2Q 2013-3Q 2013-4Q 2013 Total
Seed 65 88 72 71 296 53 47 53 68 221

Early Stage 359 445 428 506 1,738 420 512 564 535 2,031
Expansion 225 255 252 255 987 236 231 244 280 991
Later Stage 233 195 194 222 844 203 195 187 213 798
Total 882 983 946 1,054 3,865 912 985 1,048 1,096 4,041

Figure 3.14
Venture Capital Investments 1985-2013 By Industry ($ Millions)
Industry 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Biotechnology 136 223 290 369 336 316 292 599 483 578 832 1,192 1,368 1,554 2,104 4,293
Business Products and Services 29 81 64 53 52 94 77 39 70 30 188 291 437 715 2,561 4,661
Computers and Peripherals 450 473 392 370 312 245 174 205 164 178 316 358 394 383 958 1,636
Consumer Products and Services 69 135 176 153 86 169 126 123 162 176 522 507 742 692 2,715 3,221
Electronics/Instrumentation 119 118 120 72 104 57 72 51 50 63 151 200 307 198 272 779
Financial Services 81 92 62 209 233 63 25 120 102 124 181 319 383 843 2,128 4,131
Healthcare Services 81 129 138 97 155 92 72 191 204 202 460 734 939 959 1,495 1,396
Industrial/Energy 201 208 290 222 345 243 183 272 281 296 527 495 695 1,257 1,427 2,637
IT Services 21 45 51 52 47 38 38 29 54 119 175 534 641 1,076 4,319 8,863
Media and Entertainment 101 119 155 166 151 93 69 132 278 275 944 1,154 1,080 1,865 7,394 0,613
Medical Devices and Equipment 184 182 258 340 347 322 235 515 388 438 668 619 1,027 1,251 1,581 2,404
Networking and Equipment 225 164 143 137 197 174 140 250 516 250 372 628 962 1,436 4,604 1,557
Other 3 3 0 6 - 0 33 0 6 6 38 21 67 90 214 60
Retailing/Distribution 32 121 296 232 217 89 48 97 103 103 303 269 326 749 2,842 3,206
Semiconductors 255 296 257 299 171 191 92 156 93 159 214 346 597 631 1,378 3,802
Software 618 570 519 477 458 519 466 614 460 671 1,188 2,352 3,485 4,769 10,899 25,482
Telecommunications 177 174 148 159 124 128 117 201 250 463 937 1,321 1,556 3,006 7,957 16,364
Unknown - - - - - - - - - - - - - - - -
Total 2,779 3,132 3,361 3,411 3,333 2,833 ,260 3,594 3,663 4,130 8,015 11,342 15,005 21,473 54,847 105,105

Venture Capital Investments 1985-2013 By Industry ($ Millions)
Industry 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Biotechnology 3,503 3,331 3,675 4,402 3,987 4,876 5,843 5,138 3,909 3,970 4,777 4,191 4,562
Business Products and Services 1,076 475 673 466 372 593 596 466 252 437 194 130 218
Computers and Peripherals 709 457 362 530 551 394 569 419 341 375 490 436 517
Consumer Products and Services 702 256 157 331 385 420 441 400 492 661 1,432 1,335 1,245
Electronics/Instrumentation 366 300 194 375 397 669 542 605 379 390 423 250 324
Financial Services 1,204 331 413 532 907 524 574 481 381 391 317 276 536
Healthcare Services 556 380 234 382 379 380 344 165 141 250 299 333 286
Industrial/Energy 1,248 823 734 843 1,131 1,941 3,046 4,537 2,564 3,421 3,753 2,904 1,507
IT Services 2,520 1,017 731 771 999 1,510 1,924 2,106 1,257 1,699 2,627 1,893 1,993
Media and Entertainment 2,368 788 669 1,374 1,203 1,863 2,200 1,877 1,650 1,576 2,307 2,134 2,936
Medical Devices and Equipment 2,085 1,894 1,660 1,919 2,170 2,777 3,694 3,648 2,586 2,363 2,935 2,549 2,130
Networking and Equipment 5,714 2,627 1,726 1,537 1,661 1,222 1,388 776 697 564 370 317 670
Other 55 17 - 14 0 - 3 5 28 8 13 48 99
Retailing/Distribution 368 139 64 217 249 189 340 199 133 149 380 370 240
Semiconductors 2,473 1,655 1,761 2,157 1,851 2,307 2,058 1,586 808 1,110 1,350 894 597
Software 10,864 5,525 4,945 5,520 5,251 5,495 6,219 6,008 4,085 5,257 7,472 8,573 11,020
Telecommunications 5,142 2,163 1,620 1,841 2,032 2,355 2,162 1,533 582 746 590 718 644
Unknown - - - - - - - - - - - - 21
Total 40,952 22,177 19,620 23,209 23,524 27,515 31,943 29,949 20,286 23,369 29,730 27,352 29,545

Figure 3.15
Venture Capital Investments 1985-2013 By Industry (Number of Deals)
Industry 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Biotechnology 73 98 138 153 139 146 140 167 136 139 176 235 244 275 264
Business Products and Services 20 42 51 38 32 28 20 25 32 21 53 70 95 138 277
Computers and Peripherals 158 148 131 138 136 104 78 84 65 66 93 94 115 92 106
Consumer Products and Services 43 51 72 59 52 67 48 51 54 66 110 131 162 164 286
Electronics/Instrumentation 74 66 68 55 58 49 46 38 27 36 49 43 52 54 51
Financial Services 22 27 36 43 44 25 24 24 31 31 47 60 89 115 189
Healthcare Services 33 57 56 46 55 41 38 46 53 45 73 139 152 155 159
Industrial/Energy 122 138 162 138 144 158 124 131 102 101 128 155 211 185 202
IT Services 22 26 33 26 28 32 29 22 19 33 62 128 160 207 457
Media and Entertainment 56 68 92 75 71 58 54 79 82 97 138 191 217 263 701
Medical Devices and Equipment 129 117 166 151 184 189 159 187 147 128 179 213 273 297 290
Networking and Equipment 81 76 73 70 71 74 65 83 62 74 82 123 140 211 274
Other 2 2 2 1 2 2 2 3 2 10 9 10 9 20
Retailing/Distribution 19 34 71 81 73 46 38 34 35 27 54 70 91 120 231
Semiconductors 87 74 94 93 82 79 52 60 45 39 64 76 118 119 148
Software 322 322 307 279 297 302 288 296 243 252 436 688 829 988 1,420
Telecommunications 85 77 94 78 81 63 67 65 75 75 142 210 266 337 522
Total 1,348 1,423 1,646 1,524 1,547 1,463 1,272 1,394 1,211 1,232 1,896 2,635 3,224 3,729 5,597
Figure 3.15
Venture Capital Investments 1985-2013 By Industry (Number of Deals)
Industry 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Biotechnology 358 342 331 358 404 413 487 539 544 463 504 468 478 474
Business Products and Services 454 176 101 97 83 78 95 111 116 68 76 59 39 66
Computers and Peripherals 133 82 59 57 60 66 62 72 59 52 52 59 43 34
Consumer Products and Services 286 119 72 47 66 77 79 110 103 88 116 139 170 171
Electronics/Instrumentation 73 55 62 53 69 82 93 90 93 61 68 59 51 42
Financial Services 334 136 76 64 70 65 88 87 68 50 73 57 53 62
Healthcare Services 166 106 70 71 63 66 52 57 50 38 46 45 43 42
Industrial/Energy 254 201 128 136 157 152 224 306 358 262 303 320 257 240
IT Services 686 327 174 149 155 174 240 284 282 218 296 366 297 344
Media and Entertainment 950 372 168 129 142 210 330 402 411 279 346 436 410 455
Medical Devices and Equipment 296 259 236 250 284 279 356 395 400 343 345 372 322 311
Networking and Equipment 478 329 227 184 190 183 130 137 106 95 56 48 32 25
Other 12 11 3 1 6 3 2 10 4 6 11 10 13 22
Retailing/Distribution 282 84 49 31 38 40 40 41 39 35 32 64 57 49
Semiconductors 256 209 170 215 257 219 265 228 210 136 146 136 113 92
Software 2,168 1,303 1,006 969 952 952 1,031 1,078 1,115 831 1,066 1,256 1,391 1,547
Telecommunications 852 479 274 213 232 234 308 279 219 123 111 110 96 65
Total 8,038 4,590 3,206 3,024 3,228 3,293 3,882 4,226 4,177 3,148 3,647 4,004 3,865 4,041

Figure 3.16
Venture Capital Investments 1985-2013 By State ($ Millions)
State 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
California 1,070.9 1,343.8 1,266.7 1,391.8 1,309.8 1,221.6 1,031.3 1,437.2 1,232.1 1,503.8 3,108.7 4,634.4 6,044.9 7,868.2 22,947.2 42,882.9
Massachusetts 396.3 379.5 446.0 387.8 296.8 350.9 240.0 366.3 310.9 385.9 697.2 1,053.9 1,438.6 2,002.1 5,065.7 10,557.1
New York 114.5 75.4 100.5 112.1 158.7 48.8 45.0 143.8 103.9 69.9 303.3 293.3 786.2 1,402.1 3,508.1 6,690.8
Texas 248.6 228.4 211.0 240.7 229.2 141.0 161.4 150.5 241.9 313.8 479.2 553.4 908.7 1,205.6 3,163.1 6,270.8
Washington 55.4 66.1 98.3 73.3 74.8 55.2 29.2 191.5 85.4 137.6 325.9 466.9 434.2 736.5 2,340.7 2,792.3
Maryland 46.8 20.8 30.5 46.1 87.7 47.6 36.4 30.1 343.5 55.9 140.0 139.5 188.3 349.9 616.5 1,961.5
Virginia 32.3 23.5 76.4 66.6 51.8 46.7 14.0 30.9 39.5 77.6 279.4 440.1 297.9 749.7 1,238.9 3,320.9
Pennsylvania 48.8 43.3 78.0 68.4 56.2 119.6 41.1 154.0 107.9 149.4 128.0 305.6 540.9 644.9 1,763.5 2,911.7
Illinois 43.5 30.7 38.5 42.7 93.4 72.0 96.6 73.9 89.5 168.9 199.0 358.0 414.3 426.9 1,232.7 2,382.3
Colorado 77.0 113.8 111.4 107.8 157.8 93.7 54.2 129.7 135.0 197.4 325.1 321.2 405.0 838.9 1,832.9 4,091.9
Florida 31.1 34.5 70.8 80.0 44.3 34.6 22.5 71.9 127.7 102.8 270.9 398.9 467.1 625.3 1,697.4 2,691.1
Georgia 55.8 111.4 66.6 105.3 64.7 20.9 46.8 192.7 143.4 93.5 157.8 247.1 371.9 504.5 1,164.1 2,270.7
New Jersey 75.3 116.9 132.3 99.1 156.6 66.5 68.7 106.1 100.2 190.7 241.6 441.8 490.9 501.2 907.8 3,162.9
Ohio 34.7 55.7 44.8 53.4 32.7 27.9 19.6 27.1 34.3 67.3 68.7 160.5 180.9 319.1 421.0 1,013.6
Utah 6.0 32.8 8.3 11.9 4.4 1.0 9.1 24.4 7.3 1.2 23.2 57.5 90.7 116.2 418.4 666.9
D. of Columbia 18.9 15.2 4.7 17.2 0.0 2.5 0.8 4.8 1.1 4.3 0.8 6.7 5.2 46.9 539.7 508.3
Minnesota 24.4 29.9 35.4 25.8 37.6 78.7 38.7 52.0 37.1 55.4 192.3 149.9 256.8 340.0 616.5 951.7
North Carolina 17.3 20.9 21.0 15.7 26.1 36.9 12.1 48.8 22.2 63.6 210.7 180.9 271.8 326.9 853.6 1,821.8
Connecticut 71.6 76.9 101.3 167.7 89.6 134.9 86.5 57.8 33.3 82.5 141.3 146.0 270.0 345.2 889.2 1,550.8
Oregon 84.9 75.0 51.7 66.7 43.2 33.0 29.7 55.6 32.8 27.0 38.6 90.5 126.9 53.5 501.0 810.4
Arizona 15.2 38.1 38.6 43.9 37.8 27.5 33.3 64.9 41.9 35.7 83.4 95.5 170.2 226.1 365.5 668.6
Tennessee 43.5 53.5 74.5 42.7 73.8 38.8 21.1 7.2 46.7 40.6 157.7 178.2 106.6 107.3 581.0 466.3
Michigan 34.8 21.3 59.1 15.7 21.8 26.4 5.7 14.9 58.7 8.6 65.7 79.4 106.2 122.4 253.5 356.4
South Carolina 0.9 - 15.3 18.1 23.7 7.6 4.0 1.2 11.4 21.8 53.1 100.2 61.0 168.0 218.2 415.2
Arkansas - 1.2 - - - - - 1.0 - - 5.0 - 4.0 29.9 25.9 34.3
Rhode Island 12.6 9.9 6.6 14.2 30.9 2.7 0.4 5.1 10.5 - 3.5 20.3 11.5 26.0 35.4 92.6
Missouri 8.8 4.3 11.1 1.6 9.4 7.5 34.9 25.2 55.1 70.5 98.5 56.1 72.6 611.7 309.1 655.8
New Hampshire 5.3 14.8 15.1 27.7 29.5 16.2 29.2 6.8 31.7 7.9 30.5 42.9 53.3 167.8 233.8 767.9
Delaware 0.3 - 4.5 1.4 4.8 2.3 3.8 9.9 3.0 12.5 4.4 4.7 1.1 - 16.8 134.7
Wisconsin 11.4 13.6 16.4 12.8 11.7 10.9 5.5 23.3 32.5 8.5 9.1 26.0 62.9 51.3 88.5 259.7
Kansas 2.3 2.2 3.9 4.6 5.1 8.9 0.4 1.7 4.8 1.5 8.7 35.7 9.2 10.4 30.2 264.8
Maine 19.0 11.6 15.3 8.7 17.2 5.1 4.3 0.5 3.0 - 1.5 1.5 3.7 59.7 44.9 140.2
New Mexico 18.9 9.2 6.6 3.9 3.0 1.8 4.4 - 0.5 - 3.6 12.9 32.5 7.7 12.1 21.1
Indiana 16.0 16.7 17.7 6.4 10.1 10.5 8.3 0.0 16.6 56.3 15.2 20.8 29.7 44.0 46.7 273.3
North Dakota - - 14.0 - - - - - - 0.2 9.8 - 1.1 0.5 3.0 6.1
Iowa 0.7 0.9 7.8 1.3 2.0 2.5 0.7 1.6 2.0 19.8 12.1 22.1 17.1 8.8 3.9 16.4
Vermont - 6.6 8.0 4.5 7.4 7.2 1.3 3.8 - 5.3 13.0 1.8 4.5 4.2 - 46.4
Louisiana 9.9 3.3 1.9 1.9 - - 2.3 3.8 3.8 2.7 25.5 13.7 26.5 41.0 234.0 103.3
South Dakota - - - - - - - - - - - - - - 0.7 0.3
Nebraska 0.5 - - 1.5 - - - 0.1 38.0 3.5 0.5 10.4 3.7 29.1 57.3 163.1


State 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Kentucky 2.4 2.3 7.4 2.8 5.8 - 8.5 3.9 15.4 11.9 21.6 31.1 35.0 37.5 81.9 201.8
Nevada - 2.4 4.1 - 5.5 0.1 2.2 9.1 - 1.2 2.9 18.7 9.7 61.2 47.1 30.9
Oklahoma 1.5 4.7 14.1 5.3 9.3 2.6 1.5 - - 11.0 6.1 31.8 27.8 115.4 70.0 44.5
Idaho 0.3 - - - - - - 5.0 0.2 0.1 15.2 0.1 1.2 30.3 16.5 8.5
Alabama 15.5 17.3 21.3 9.6 2.0 2.3 0.3 10.6 55.1 25.0 28.5 50.2 109.9 58.3 65.9 278.5
Hawaii - - - - - - - - - - - 20.5 1.5 4.2 12.8 203.0
Mississippi 2.2 0.0 - 0.6 0.9 4.9 2.4 14.5 1.7 15.0 - 10.6 8.4 4.5 250.7 23.5
West Virginia 1.1 2.0 0.1 0.0 - 0.1 - - 0.0 - - - 23.8 2.0 - 4.5
Montana 1.6 1.7 3.3 1.1 - - 1.0 - - - - - - - 16.3 16.7
Alaska - - - - - - - - - - - - - - - 3.5
Puerto Rico - - - - - - 0.3 0.0 1.0 22.0 7.8 8.2 12.5 1.3 4.6 42.1
Unknown - - 0.5 0.8 6.1 13.0 0.2 30.8 0.8 0.1 0.3 2.2 4.4 39.1 2.4 50.4
Wyoming - 0.1 - - - - - - - - - - 2.0 - - -
Total 2,779.0 3,132.3 3,361.3 3,411.3 3,333.0 2,833.1 2,259.7 3,594.2 3,663.2 4,130.1 8,014.8 11,341.6 15,004.6 21,473.0 54,846.7 105,104.6
Figure 3.16b
State 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
California 16,665.4 9,598.7 8,693.9 10,577.2 10,881.4 12,965.9 15,463.7 14,873.4 10,302.7 12,021.7 15,109.7 14,541.6 14,769.7
Massachusetts 4,919.4 2,646.3 2,721.3 3,107.9 2,736.6 3,032.0 3,798.9 3,328.7 2,407.8 2,422.6 3,152.7 3,222.1 3,079.3
New York 1,935.1 746.3 669.8 773.7 1,068.9 1,444.6 1,350.0 1,538.6 1,080.4 1,391.8 2,474.8 1,899.3 2,870.4
Texas 3,137.3 1,191.6 1,221.0 1,212.3 1,170.7 1,518.2 1,493.8 1,127.7 678.2 1,079.4 1,622.4 948.9 1,315.5
Washington 1,150.7 591.0 450.8 854.9 830.3 1,116.9 1,335.2 883.5 565.2 575.8 539.2 853.1 913.2
Maryland 935.6 627.1 331.4 709.5 637.8 844.2 728.9 578.0 424.0 484.2 438.4 407.8 664.5
Virginia 1,004.2 429.0 397.3 291.1 534.8 460.9 626.4 534.6 209.4 376.7 520.1 273.6 593.8
Pennsylvania 1,084.2 526.5 537.6 624.9 518.3 898.7 977.3 787.0 433.6 525.4 515.6 524.4 446.5
Illinois 998.6 313.6 379.9 236.6 315.7 437.2 451.4 477.0 257.1 654.3 799.5 594.4 434.9
Colorado 1,244.4 588.0 609.9 363.2 622.9 703.3 686.3 872.3 458.9 445.9 619.7 589.0 428.8
Florida 937.3 401.7 323.2 422.6 329.2 282.0 599.3 265.2 337.7 234.2 335.5 203.9 421.0
Georgia 847.9 574.9 281.5 500.5 264.4 414.1 431.6 420.9 310.6 334.0 381.3 262.8 411.8
New Jersey 1,542.3 972.0 802.8 968.1 925.4 740.7 578.9 716.0 621.8 460.8 439.6 421.4 322.3
Ohio 249.2 266.0 193.9 89.9 136.5 91.2 228.1 273.6 122.7 199.4 188.1 304.5 319.2
Utah 220.1 135.7 111.8 249.8 248.8 198.1 196.0 254.8 176.3 150.5 249.3 318.4 315.0
D. of Columbia 161.8 23.5 56.1 80.2 25.1 46.2 57.7 25.3 49.1 109.3 53.4 60.8 286.5
Minnesota 475.2 345.5 208.2 388.2 274.0 304.5 413.1 485.0 284.8 145.1 291.4 254.1 270.0
North Carolina 585.6 554.2 379.4 311.1 346.9 422.5 555.4 511.6 254.9 421.6 303.6 180.9 259.6
Connecticut 608.2 191.9 223.6 251.6 209.6 289.0 271.0 236.1 190.2 133.2 157.8 152.6 181.7
Oregon 248.6 165.1 140.5 142.4 132.2 146.8 254.4 152.2 79.6 133.4 237.8 124.6 138.5
Arizona 247.5 212.4 81.9 72.2 134.7 276.7 238.2 228.5 94.0 84.2 230.4 237.4 113.3

Figure 3.16b
State 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Tennessee 193.3 122.5 82.6 96.2 101.5 43.2 126.7 84.3 75.0 69.3 108.6 81.3 109.3
Michigan 154.9 109.4 95.2 134.3 93.3 131.3 104.7 214.5 178.5 148.9 83.1 238.9 108.2
South Carolina 10.1 45.3 11.8 13.6 2.7 8.3 86.9 21.2 7.1 41.6 59.7 39.5 85.7
Arkansas 10.4 9.7 1.2 3.7 5.1 6.5 6.2 - - 5.0 - 5.0 85.5
Rhode Island 118.7 95.9 62.8 58.0 72.8 77.2 4.5 16.1 30.0 59.3 42.2 85.1 81.7
Missouri 267.4 81.0 79.5 26.0 127.7 57.8 47.6 92.5 17.4 97.0 134.4 21.5 76.7
New Hampshire 257.9 225.7 167.1 127.6 97.2 123.1 154.1 255.8 52.1 56.9 62.5 60.7 74.4
Delaware 14.6 19.4 0.4 2.1 11.1 5.3 7.3 79.0 20.6 32.2 26.2 9.6 70.8
Wisconsin 92.6 51.2 37.6 66.0 67.8 72.0 87.2 71.6 36.1 134.9 52.9 95.3 35.9
Kansas 40.3 8.9 27.0 48.7 7.2 31.5 123.4 59.5 7.5 39.1 53.8 47.6 32.9
Maine 3.9 16.9 2.7 26.0 5.1 39.9 7.8 5.4 11.4 4.3 38.6 12.8 26.8
New Mexico 14.2 13.9 3.6 24.0 76.4 32.1 131.1 49.8 5.5 12.4 64.9 36.3 25.9
Indiana 56.5 40.1 24.5 67.8 123.7 32.8 70.6 93.7 232.1 80.0 177.9 84.2 25.4
North Dakota 1.0 - 14.5 2.0 - - 0.2 5.5 4.7 3.2 4.0 2.4 24.1
Iowa 9.1 2.0 - 5.3 12.1 1.5 25.3 58.2 84.1 51.5 28.4 5.0 22.5
Vermont 11.6 1.2 0.5 4.5 34.8 24.1 17.6 42.2 47.1 33.1 24.8 4.4 21.4
Louisiana 46.0 17.7 2.3 9.6 3.0 11.4 15.1 14.6 13.3 18.1 21.2 9.4 14.8
South Dakota 1.6 18.1 3.5 2.2 - - 4.0 0.5 0.8 - 4.1 - 11.9
Nebraska 90.1 16.9 4.6 0.2 13.1 7.5 2.9 11.8 - 2.0 - 3.1 11.0
Kentucky 88.9 13.8 5.4 48.2 35.0 28.2 56.9 32.8 17.3 16.7 12.5 23.5 10.8
Nevada 33.3 31.8 23.2 47.6 64.9 19.6 23.7 12.6 15.4 28.8 27.0 8.3 9.6
Oklahoma 13.8 33.0 35.1 68.1 80.8 14.9 8.1 17.3 4.5 13.0 27.1 34.0 8.0
Idaho 2.7 10.6 52.2 2.5 10.0 17.8 18.7 22.8 14.6 7.8 5.1 15.2 6.5
Alabama 80.3 65.1 35.7 69.2 39.7 19.9 36.1 48.8 45.4 0.6 3.5 23.1 5.2
Hawaii 37.8 4.4 17.8 13.7 14.6 32.8 4.9 7.5 7.4 9.5 0.6 0.6 2.5
Mississippi 30.0 5.0 0.9 4.9 10.0 16.2 5.0 - 1.3 - 1.0 9.8 1.2
West Virginia 1.4 15.9 12.6 5.8 10.5 4.9 10.8 30.0 3.0 3.8 2.1 14.6 1.2
Montana 24.8 - - - 27.4 - 4.0 15.6 14.5 1.9 3.2 5.6 0.0
Alaska - - - - - - - - - - - - -
Puerto Rico 32.0 0.5 0.1 1.5 28.8 14.3 16.0 13.8 - 4.5 - 0.1 -
Unknown 14.3 - - - - - - - 0.5 - - - -
Wyoming - - - 1.5 4.1 6.5 0.2 1.5 - 10.0 - - -
Total 40,952.1 22,177.1 19,620.0 23,208.8 23,524.5 27,514.5 31,942.9 29,948.9 20,286.2 23,368.6 29,730.0 27,352.3 29,545.2

Figure 3.17
Venture Capital Investments 1985-2013 By State (Number of Deals)
State 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
California 467 493 523 534 569 552 478 575 435 460 685 1,023 1,142 1,402 2,223 2,946 1,539 1,104 1,164 1,262
New York 45 47 63 48 49 31 24 38 37 38 74 89 156 195 353 609 293 155 120 158
Massachusetts 215 187 224 195 182 172 136 135 131 127 197 289 334 398 591 791 518 388 384 385
Pennsylvania 35 45 59 54 41 44 37 61 44 38 64 85 139 149 153 261 155 109 106 113
Texas 106 93 106 105 91 85 70 70 72 68 101 135 172 197 318 485 343 174 174 176
Washington 20 21 29 30 37 26 26 37 32 36 66 83 89 111 207 258 146 111 80 114
Illinois 26 27 31 31 61 34 44 40 25 35 44 55 87 73 118 203 128 81 59 62
Ohio 26 21 26 21 18 21 20 21 20 20 36 56 53 66 52 82 45 51 32 37
Colorado 43 58 62 63 53 49 35 53 48 53 58 83 98 127 161 222 115 91 71 72
Michigan 20 24 25 12 16 15 9 6 12 3 12 21 28 29 44 55 22 27 18 17
Maryland 18 17 24 28 19 29 27 25 18 22 32 49 49 58 100 178 92 91 86 98
Virginia 22 22 31 26 30 27 24 20 20 21 39 59 82 99 154 284 145 92 86 78
Connecticut 33 33 41 46 48 41 36 33 26 35 43 45 66 73 96 123 78 41 37 38
North Carolina 14 21 15 11 18 28 20 20 22 20 36 60 80 82 104 153 88 79 76 56
Tennessee 16 22 28 31 27 22 24 11 8 12 21 29 25 24 47 51 30 25 24 27
Florida 21 20 29 23 22 32 19 25 26 19 61 57 74 70 117 189 113 64 66 64
New Jersey 45 43 54 42 55 44 48 44 37 39 56 68 85 83 118 188 156 96 85 94
Georgia 31 44 45 42 33 34 35 37 42 46 50 54 79 98 161 224 138 81 65 79
Minnesota 23 31 34 28 30 32 31 25 24 20 50 47 89 77 84 107 88 59 57 52
Missouri 5 7 13 8 11 11 9 9 13 8 19 26 18 23 29 54 18 29 19 9
Oregon 24 24 30 34 27 22 12 12 15 13 17 28 41 18 52 67 42 28 23 31
Utah 3 14 15 7 6 4 9 8 7 1 6 16 31 35 43 58 44 29 24 31
D. of Columbia 4 6 8 4 2 5 3 3 2 4 1 5 2 4 18 45 22 7 6 8
Arizona 15 11 20 13 24 14 15 22 21 25 27 30 29 38 57 70 35 27 19 12
Wisconsin 13 16 17 15 6 10 6 9 8 9 8 11 19 16 19 27 20 11 8 14
New Hampshire 3 9 11 10 13 18 17 10 10 4 10 17 17 24 31 60 39 41 34 22
New Mexico 2 3 5 5 1 3 2 - 2 1 2 5 4 4 6 8 4 6 5 8
Indiana 9 15 15 6 6 12 8 1 7 7 8 9 13 9 11 28 7 12 8 10
South Carolina 1 - 5 3 7 5 10 7 7 6 5 15 15 17 10 11 4 4 3 5
Rhode Island 6 4 7 6 7 7 4 2 3 - 3 2 4 5 11 11 11 14 10 8
Kansas 1 2 6 3 3 3 1 3 2 2 4 11 6 3 8 22 10 8 13 13
Vermont - 3 3 3 2 3 3 1 - 3 5 3 3 3 1 4 3 4 3 3
Nebraska 1 - - 5 1 - - 1 5 3 1 5 3 6 7 11 10 3 2 2
Oklahoma 4 5 4 1 4 2 1 - - 5 2 7 5 12 8 9 5 4 3 12
Louisiana 6 2 2 2 - - 2 1 4 2 7 4 12 9 9 14 10 7 2 4
Kentucky 2 4 7 4 5 - 2 2 2 3 9 7 15 16 16 14 5 3 3 6
Alabama 7 10 12 4 7 7 2 4 10 4 9 8 17 14 10 30 15 12 10 8
Delaware 1 1 1 4 3 5 4 3 1 3 4 4 4 - 3 5 1 2 1 1
Nevada - 2 2 - 1 1 4 4 - 2 2 4 7 11 10 10 6 6 7 7
Arkansas - 1 - - - - - 1 - - 2 - 2 3 5 5 3 5 3 2


State 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Maine 8 6 5 4 6 6 4 1 2 - 2 5 2 14 11 15 9 6 3 4
Hawaii 1 - - - - - - - - - - 3 4 3 3 3 5 2 7 5
Mississippi 1 1 - 1 1 3 1 4 2 5 - 3 4 3 5 6 3 3 3 5
North Dakota - - 1 - - - - - - 1 2 - 1 1 1 1 1 - 2 1
Idaho 1 - 1 - - - - 1 2 1 1 1 2 3 2 3 2 2 5 2
Iowa 1 3 2 3 2 2 3 4 1 4 9 6 4 7 2 4 5 1 1 4
Montana 2 3 2 6 - - 3 - - - - - - - 2 3 2 - - -
South Dakota - - - - - - - - - - - - - - 1 1 2 2 1 4
West Virginia 1 1 2 1 - 1 - - 1 - - - 2 1 - 2 2 8 5 3
Alaska - - - - - - - 1 - - - - - - - 1 - - - -
Puerto Rico - - - - - - 3 2 1 2 4 6 2 2 2 11 5 1 1 1
Unknown - - 1 2 3 1 1 2 4 2 2 7 7 14 3 16 8 - - -
Wyoming - 1 - - - - - - - - - - 2 - - - - - - 1
Total 1,348 1,423 1,646 1,524 1,547 1,463 1,272 1,394 1,211 1,232 1,896 2,635 3,224 3,729 5,597 8,038 4,590 3,206 3,024 3,228
Figure 3.17b
State 2005 2006 2007 2008 2009 2010 2011 2012 2013
California 1,337 1,592 1,735 1,699 1,297 1,478 1,622 1,604 1,616
New York 131 235 221 265 203 292 355 343 403
Massachusetts 392 409 475 452 343 378 402 426 364
Pennsylvania 107 149 176 193 136 163 156 190 233
Texas 181 201 188 162 126 168 172 163 154
Washington 122 142 168 159 107 116 122 114 126
Illinois 60 65 70 74 52 76 103 83 93
Ohio 38 46 69 68 60 64 74 61 86
Colorado 91 112 114 116 91 84 109 105 81
Michigan 21 24 22 45 36 31 35 49 72
Maryland 115 111 100 108 80 76 76 57 71
Virginia 91 94 103 88 49 58 77 79 67
Connecticut 34 30 36 41 42 62 57 50 52
North Carolina 48 58 70 58 39 57 47 34 50
Tennessee 25 14 23 27 17 31 41 33 50
Florida 52 57 60 43 35 45 55 35 47
New Jersey 81 93 100 92 77 70 63 58 43
Georgia 64 91 73 82 47 70 59 55 41
Minnesota 42 46 61 52 39 31 49 32 39
Missouri 11 14 18 25 12 15 22 12 38
Oregon 28 33 39 33 16 32 38 30 38
Utah 32 42 38 40 34 27 48 44 34
D. of Columbia 10 9 13 12 7 16 12 27 33

Figure 3.17b
Venture Capital Investments 1985-2013
By State (Number of Deals)
State 2005 2006 2007 2008 2009 2010 2011 2012 2013
Arizona 28 34 34 22 20 18 23 19 25
Wisconsin 18 20 22 20 15 23 14 14 19
New Hampshire 21 22 25 30 14 10 15 8 17
New Mexico 16 9 27 18 13 11 10 16 17
Indiana 13 14 17 14 15 16 14 17 15
South Carolina 1 2 10 10 5 10 4 5 15
Rhode Island 12 7 3 6 15 11 14 15 13
Kansas 5 10 16 25 17 35 47 12 10
Vermont 4 8 7 8 8 7 8 5 10
Nebraska 3 4 4 2 - 2 1 4 9
Oklahoma 1 8 6 5 4 2 4 7 8
Louisiana 3 2 7 11 12 4 8 3 7
Kentucky 4 10 10 10 9 15 9 7 6
Alabama 6 9 10 10 11 2 2 6 5
Delaware 5 4 5 9 6 9 10 7 5
Nevada 8 7 8 6 4 4 4 5 5
Arkansas 2 6 2 - - 1 - 1 4
Maine 3 7 8 4 4 7 5 6 4
Hawaii 6 11 6 7 3 3 3 3 3
Mississippi 2 4 1 - 4 - 1 4 3
North Dakota - - 1 4 3 1 1 1 3
Idaho 3 5 7 6 4 4 3 4 2
Iowa 3 2 3 8 9 2 3 1 2
Montana 2 1 1 2 1 3 2 6 1
South Dakota - 1 3 1 3 - 2 1 1
West Virginia 5 4 5 2 3 4 2 3 1
Alaska - - - - - - - - -
Puerto Rico 2 3 4 2 - 1 - 1 -
Unknown - - - - 1 1 1 - -
Wyoming 4 1 2 1 - 1 - - -
Total 3,293 3,882 4,226 4,177 3,148 3,647 4,004 3,865 4,041

Figure 3.18
First vs. Follow-on Deals
Total Dollars Invested ($ Millions)
120,000
100,000
Follow-on
First
80,000
($ Millions)
60,000
40,000
20,000
0
'85
'86
'87
'88
'89
'90
'91
'92
'93
'95
'96
'97
'98
'99
'00
'01
'02
'03
'05
'06
'07
'08
'09
'10
'11
'12
13
'94
'04
Year

Figure 3.19
First vs. Follow-on
Year First Follow-on Total
1985 727.3 2,051.7 2,779.0
1986 905.3 2,226.9 3,132.3
1987 1,008.4 2,352.9 3,361.3
1988 1,098.4 2,312.9 3,411.3
1989 907.4 2,425.6 3,333.0
1990 847.2 1,985.9 2,833.1
1991 551.7 1,707.9 2,259.7
1992 1,302.5 2,291.7 3,594.2
1993 1,274.8 2,388.4 3,663.2
1994 1,644.6 2,485.5 4,130.1
1995 3,976.7 4,038.0 8,014.8
1996 4,198.9 7,142.7 11,341.6
1997 4,869.1 10,135.5 15,004.6
1998 7,154.7 14,318.3 21,473.0
1999 16,333.3 38,513.4 54,846.7
2000 28,542.8 76,561.8 105,104.6
2001 7,300.7 33,651.4 40,952.1
2002 4,343.6 17,833.5 22,177.1
2003 3,692.1 15,927.9 19,620.0
2004 5,402.7 17,806.1 23,208.8
2005 5,885.4 17,639.1 23,524.5
2006 6,266.8 21,247.7 27,514.5
2007 7,721.4 24,221.5 31,942.9
2008 6,515.5 23,433.3 29,948.9
2009 3,506.0 16,780.2 20,286.2
2010 4,294.3 19,074.3 23,368.6
2011 5,498.2 24,231.8 29,730.0
2012 4,440.6 22,911.7 27,352.3
2013 5,104.7 24,440.5 29,545.2

Figure 3.20
Number of Companies Receiving
7,000
6,000
Follow-on
Series2
5,000 First
Series1
(Number of Companies)
4,000
3,000
2,000
1,000
0
'85
'86
'87
'88
'89
'90
'91
'92
'93
'95
'96
'97
'98
'99
'00
'01
'02
'03
'05
'06
'07
'08
'09
'10
'11
'12
'13
'94
'04
Year

Figure 3.21
First vs Follow-on
No. of Cos No. of Cos No. of Cos
Receiving Receiving Receiving
Initial Deals Follow-On Financing*
Year Financing Financing
1985 435 757 1,156
1986 507 760 1,228
1987 580 865 1,387
1988 510 801 1,262
1989 450 841 1,241
1990 351 788 1,072
1991 266 717 941
1992 394 716 1,047
1993 354 652 949
1994 428 626 989
1995 902 776 1,573
1996 1,145 1,170 2,116
1997 1,305 1,473 2,575
1998 1,430 1,831 3,030
1999 2,468 2,440 4,474
2000 3,391 3,692 6,423
2001 1,233 2,785 3,854
2002 847 1,977 2,713
2003 777 1,834 2,511
2004 975 1,847 2,715
2005 1,075 1,852 2,800
2006 1,277 2,128 3,229
2007 1,419 2,255 3,502
2008 1,309 2,348 3,479
2009 830 1,903 2,645
2010 1,091 2,052 3,022
2011 1,346 2,178 3,356
2012 1,275 2,148 3,269
2013 1,334 2,221 3,383
* No. of Cos receiving financing can be less than the sum
of the first two columns because any given company can
receive initial and follow-on financing in the same year

Figure 3.22
First Sequence by Stage of Development ($ Millions)
Stage 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Seed 309.0 437.6 353.4 377.9 258.3 178.2 102.7 214.3 356.5 528.1 742.6 639.1 798.3 1,003.4 2,790.6
Early Stage 101.4 88.8 318.5 291.8 215.7 292.6 214.3 266.5 260.1 390.8 898.0 1,356.4 1,722.4 2,700.2 6,367.9
Expansion 65.8 211.4 272.0 321.8 312.4 277.3 153.3 572.5 490.2 471.0 1,641.9 1,742.4 1,866.5 2,815.0 5,840.2
Later Stage 51.1 67.5 64.4 106.9 121.0 99.1 81.4 249.1 168.0 254.8 694.2 460.9 481.9 636.1 1,334.5
Total 727.3 905.3 1,008.4 1,098.4 907.4 847.2 551.7 1,302.5 1,274.8 1,644.6 3,976.7 4,198.9 4,869.1 7,154.7 16,333.3

First Sequence by Stage of Development ($ Millions)
Stage 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Seed 2,522.9 632.4 266.8 302.9 793.6 803.0 1,081.6 1,410.7 1,368.5 878.3 899.2 823.9 558.4 750.2
Early Stage 16,420.1 4,411.0 2,359.3 2,121.4 2,605.1 2,616.9 2,522.1 2,917.8 2,381.0 1,346.1 1,748.5 2,645.7 2,244.3 2,920.4
Expansion 8,673.1 1,891.8 1,333.1 953.4 1,292.3 1,572.6 1,923.0 2,477.3 1,698.1 786.3 946.6 1,047.6 945.7 789.1
Later Stage 926.8 365.4 384.4 314.5 711.6 892.9 740.1 915.5 1,068.0 495.3 700.0 981.0 692.2 644.9
Total 28,542.8 7,300.7 4,343.6 3,692.1 5,402.7 5,885.4 6,266.8 7,721.4 6,515.5 3,506.0 4,294.3 5,498.2 4,440.6 5,104.7
Figure 3.23
First Sequence by Stage of Development (Number of Deals)
Stage 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Seed 221 247 230 210 206 119 88 119 145 189 256 309 347 459 661
Early Stage 81 118 199 168 102 122 78 132 70 111 281 401 470 495 1116
Expansion 107 105 118 106 111 86 79 115 105 104 293 360 419 411 626
Later Stage 26 37 33 26 31 24 21 28 34 24 72 75 69 65 65
Total 435 507 580 510 450 351 266 394 354 428 902 1,145 1,305 1,430 2,468

First Sequence by Stage of Development (Number of Deals)
Stage 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Seed 587 221 130 165 178 210 324 426 381 224 281 356 213 177
Early Stage 1913 691 465 424 539 539 570 592 557 387 548 701 827 930
Expansion 799 279 199 142 183 252 275 295 228 142 169 177 149 150
Later Stage 92 42 53 46 75 74 108 106 143 77 93 112 86 77
Total 3,391 1,233 847 777 975 1,075 1,277 1,419 1,309 830 1,091 1,346 1,275 1,334

Figure 3.24
First Sequence by Industry ($ Millions)
Industry 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Software 97.8 110.6 94.6 130.1 94.3 167.9 106.8 149.8 123.0 296.0 542.1 923.8 1,060.5 1,375.8 2,980.7
Biotechnology 34.5 54.3 66.0 66.9 54.8 26.1 16.1 181.1 123.0 161.1 159.3 212.8 346.3 383.7 417.9
Media and Entertainment 69.8 43.2 100.3 114.1 80.4 63.7 13.9 81.3 195.6 115.3 775.1 364.3 419.3 686.4 2,466.9
IT Services 15.3 16.6 5.5 12.8 20.6 18.3 10.3 8.9 36.0 93.0 44.9 312.9 231.3 377.1 1,545.9
Medical Devices and Equipment 44.4 75.0 85.0 84.8 74.3 59.6 45.9 127.2 117.2 123.9 188.4 212.6 260.1 263.0 310.4
Healthcare Services 16.5 70.2 56.4 17.1 48.8 31.5 31.7 66.6 92.5 109.5 300.4 273.9 342.5 239.2 368.5
Consumer Products and Services 46.8 63.9 57.9 77.0 31.1 88.4 53.8 76.9 74.8 113.2 306.6 206.5 195.1 257.8 835.8
Financial Services 61.1 75.6 43.9 165.9 71.4 35.3 8.3 100.6 78.9 62.9 114.0 253.2 253.2 443.6 765.0
Industrial/Energy 93.6 81.3 114.5 123.5 222.5 108.0 68.2 148.9 150.2 156.4 434.1 274.5 352.3 782.4 708.2
Other 0.5 2.0 - 6.0 - 0.0 32.7 0.0 - 0.2 13.0 0.5 15.3 26.8 92.3
Computers and Peripherals 39.0 69.0 87.0 70.5 46.3 52.4 19.1 59.9 35.1 48.5 148.1 115.2 110.2 122.5 273.5
Business Products and Services 12.3 49.7 26.6 11.3 13.3 37.7 63.7 28.1 61.9 24.3 135.7 159.3 267.6 367.0 963.1
Telecommunications 64.2 45.0 38.6 30.9 44.2 53.6 10.8 93.5 64.2 192.8 365.2 416.4 387.1 955.6 1,960.1
Retailing/Distribution 19.7 64.6 137.8 63.3 22.4 13.2 25.1 52.7 28.4 60.5 217.7 131.0 114.2 335.3 698.7
Electronics/Instrumentation 42.1 27.6 31.9 25.7 12.7 14.7 15.1 14.2 16.0 6.6 67.1 85.7 123.8 47.5 79.2
Unknown - - - - - - - - - - - - - - -
Semiconductors 47.5 22.4 38.9 56.7 14.5 36.3 10.2 51.7 5.1 42.9 69.5 130.5 166.2 165.0 292.2
Networking and Equipment 22.2 34.1 23.5 41.8 55.9 40.4 19.9 61.0 73.0 37.7 95.5 125.7 224.3 325.9 1,574.8
Total 727.3 905.3 1,008.4 1,098.4 907.4 847.2 551.7 1,302.5 1,274.8 1,644.6 3,976.7 4,198.9 4,869.1 7,154.7 16,333.3
Figure 3.24
First Sequence by Industry ($ Millions)
Industry 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Software 6,120.9 1,649.4 1,270.5 936.3 1,236.5 1,170.4 1,320.9 1,492.4 1,184.3 817.8 1,006.2 1,687.9 1,883.0 2,279.1
Biotechnology 807.9 804.2 698.8 423.7 724.5 622.6 1,098.4 1,070.4 955.7 472.8 613.6 891.3 465.7 818.0
Media and Entertainment 2,848.6 344.6 208.5 223.3 680.5 525.5 649.4 652.7 495.6 247.8 378.1 568.1 518.4 433.9
IT Services 2,616.3 310.4 129.0 143.2 198.8 338.6 342.4 517.1 632.7 298.7 444.2 494.2 277.7 371.1
Medical Devices and Equipment 339.5 281.8 279.3 309.7 333.4 389.4 548.6 776.2 682.9 321.7 245.9 244.4 223.2 207.3
Healthcare Services 428.0 84.4 155.1 70.5 87.5 144.7 78.7 76.2 28.7 59.5 148.7 91.2 112.3 181.1
Consumer Products and Services 954.3 131.6 44.9 78.0 123.7 225.7 130.5 205.9 193.4 125.0 193.2 351.6 199.8 177.3
Financial Services 1,484.8 297.5 76.3 94.4 249.2 646.1 164.9 326.1 245.9 132.0 149.9 50.5 29.0 142.0
Industrial/Energy 1,106.8 472.8 433.0 251.0 308.9 525.3 698.0 1,262.0 1,218.3 584.9 443.9 597.0 264.4 127.9
Other 37.0 36.6 17.0 - 13.6 0.1 - 2.7 - 3.5 2.0 12.4 25.2 85.9
Computers and Peripherals 346.8 259.8 17.2 85.0 91.1 84.4 55.7 101.4 129.4 62.2 50.9 99.3 27.4 67.9
Business Products and Services 1,907.7 277.1 117.3 342.6 235.8 152.0 208.3 239.6 97.5 122.8 81.9 49.7 40.2 66.7
Telecommunications 4,755.3 796.6 189.5 180.6 285.9 342.0 410.0 423.4 304.1 84.2 158.2 71.1 136.4 55.3
Retailing/Distribution 869.8 59.1 34.7 12.4 118.3 135.9 39.9 84.5 34.6 21.5 56.1 79.0 43.0 25.0
Electronics/Instrumentation 144.1 103.3 82.3 45.4 98.8 130.1 134.9 114.2 65.7 37.9 66.2 30.0 70.6 23.8
Unknown - - - - - - - - - - - - - 19.7
Semiconductors 1,145.2 514.9 344.7 375.4 417.6 281.5 260.5 212.9 196.0 69.0 110.0 99.6 91.0 19.6
Networking and Equipment 2,629.8 876.5 245.4 120.5 198.4 171.2 125.6 163.7 50.7 44.6 145.3 80.8 33.2 3.0
Total 28,542.8 7,300.7 4,343.6 3,692.1 5,402.7 5,885.4 6,266.8 7,721.4 6,515.5 3,506.0 4,294.3 5,498.2 4,440.6 5,104.7

Figure 3.25
First Sequence by Industry (Number of Deals)
Industry 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Software 73 73 83 87 68 83 61 66 51 97 223 327 330 335 596
IT Services 11 9 6 9 11 7 5 5 8 20 28 67 62 90 230
Biotechnology 28 32 57 47 37 26 21 54 45 42 54 69 85 106 81
Consumer Products and Services 26 30 33 18 23 26 18 21 19 28 55 52 71 69 139
Medical Devices and Equipment 40 53 61 57 61 36 28 45 41 36 55 85 109 96 87
Business Products and Services 12 27 22 13 9 8 9 10 17 10 32 39 50 74 146
Semiconductors 25 13 17 21 13 14 7 11 6 12 25 29 54 43 51
Other 1 1 - 1 - 2 2 2 1 1 6 1 5 5 10
Total 435 507 580 510 450 351 266 394 354 428 902 1,145 1,305 1,430 2,468

First Sequence by Industry (Number of Deals)
Industry 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Software 877 315 269 232 249 285 300 329 319 228 338 469 517 591
IT Services 327 75 26 32 51 67 90 99 117 73 99 140 98 124
Biotechnology 123 109 115 91 110 121 149 149 149 93 117 113 87 100
Consumer Products and Services 100 29 24 20 30 41 43 58 52 32 41 58 81 79
Medical Devices and Equipment 70 63 63 77 80 84 126 123 108 79 70 71 61 55
Business Products and Services 223 52 25 29 37 36 40 55 47 26 29 29 16 34
Semiconductors 116 76 53 65 79 43 47 41 35 15 15 21 15 11
Other 9 8 2 1 6 3 - 9 3 5 9 8 12 18
Total 3,391 1,233 847 777 975 1,075 1,277 1,419 1,309 830 1,091 1,346 1,275 1,334

Figure 3.26
Internet-Related Investments By Year
Year # Companies ($ Millions)
1995 433 1,946.0
1996 763 4,236.4
1997 1,030 6,375.9
1998 1,492 11,875.9
1999 3,069 42,540.5
2000 4,615 80,915.1
2001 2,391 26,620.0
2002 1,473 11,394.5
2003 1,255 9,343.2
2004 1,278 10,991.5
2005 1,367 11,002.1
2006 1,680 13,007.0
2007 1,805 14,959.7
2008 1,860 13,444.9
2009 1,450 9,434.3
2010 1,725 11,061.2
2011 2,136 15,949.3
2012 2,170 16,067.8
2013 2,281 19,009.3
Total 15,177 330,174.5
Figure 3.27
Top 5 States by Internet-Related
Investments
State ($ Millions)
California 10,056.9
New York 2,320.1
Massachusetts 1,253.5
Texas 882.1
Washington 624.6
Total* 15,137.2
*Total includes above 5 states only

Figure 3.28 Internet-Related

Investments by Region in 2013
Stage Region ($ Millions)
Silicon Valley 8,735.3
NY Metro 2,406.6
New England 1,358.8
LA/Orange County 1,132.9
DC/Metroplex 911.2
Texas 882.1
Southeast 873.3
Northwest 742.3
Midwest 655.1
SouthWest 329.8
Colorado 259.2
Philadelphia Metro 211.5
North Central 166.9
San Diego 164.8
South Central 127.0
Upstate NY 28.6
Sacramento/N.Cal 23.9
Total 19,009.3

Figure 3.29
Sources and Targets of Invested Capital Investments 2013 ($ Millions)
SOURCE Target State
STATE AK AL AR AZ CA CO CT DC DE FL GA HI IA ID IL IND KS KY LA MA MD ME MI
AL 0.0 1.3 0.0 0.0 0.7 0.0 0.0 1.7 0.0 0.0 2.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
AR 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
AZ 0.0 0.0 0.0 5.1 1.9 0.0 0.0 0.0 0.0 5.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
CA 0.0 0.0 0.0 17.0 6,882.1 86.6 9.4 98.7 7.8 112.5 65.8 1.8 14.0 0.0 77.9 9.6 5.3 1.5 3.0 669.2 52.1 1.2 13.5
CO 0.0 0.0 0.0 4.7 65.0 115.0 0.0 10.0 0.0 0.0 0.0 0.0 0.0 0.0 2.0 0.0 0.0 0.0 0.0 4.3 9.0 0.0 0.0
CT 0.0 0.0 83.2 0.5 173.1 5.9 24.7 0.0 0.0 0.0 0.0 0.0 0.0 0.0 6.1 0.0 0.0 3.0 0.0 82.6 125.4 0.0 0.0
DC 0.0 0.0 0.0 0.0 16.3 2.2 0.0 27.0 0.0 12.0 6.7 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 7.3 11.6 0.0 0.0
DE 0.0 0.0 0.0 0.0 7.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
FF 0.0 0.0 0.0 11.2 1,386.5 87.8 7.2 3.1 0.6 45.0 2.7 0.4 0.0 0.0 20.2 0.0 9.1 0.0 0.0 229.3 12.7 0.0 0.1
FL 0.0 0.0 0.0 0.0 26.8 0.0 0.0 0.0 0.0 24.8 4.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.6 5.4 0.0 0.0 0.0
GA 0.0 1.6 0.0 0.0 14.2 1.1 0.0 0.0 0.0 2.0 43.3 0.0 0.0 0.0 0.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
IA 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
ID 0.0 0.0 0.0 0.1 0.0 3.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
IL 0.0 0.0 0.0 0.0 102.7 19.3 0.0 0.0 0.0 21.0 0.0 0.0 0.0 0.0 147.0 0.0 0.0 0.0 0.0 35.7 60.8 0.0 3.7
IN 0.0 0.0 0.0 0.0 13.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.7 3.5 0.8 0.0 0.0 7.2 0.0 0.0 0.0
KS 0.0 0.0 2.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.3 0.0 0.0 0.2 0.0 0.0 0.0
KY 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.9 0.0 1.5 0.0 0.0 0.0
LA 0.0 0.0 0.0 0.0 8.5 0.0 2.7 0.0 0.0 0.6 0.0 0.0 0.0 0.0 0.7 0.0 0.0 0.0 0.4 0.1 0.0 0.0 0.0
MA 0.0 0.0 0.0 3.8 938.4 21.7 42.3 0.3 30.0 21.8 4.8 0.0 0.8 5.0 36.9 0.1 0.8 2.3 6.0 976.1 2.2 19.5 1.9
MD 0.0 0.0 0.0 1.4 84.9 13.0 0.0 14.9 0.0 5.0 0.0 0.0 0.0 0.0 14.4 0.0 0.0 0.0 1.2 32.5 54.3 0.0 0.0
ME 0.0 0.0 0.0 0.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 4.4 0.0 1.1 0.0
MI 0.0 0.0 0.0 0.0 33.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 15.1 0.0 0.0 0.0 0.0 8.2 0.0 0.0 38.7
MN 0.0 0.0 0.0 0.0 55.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 5.0 0.0 0.0 0.0 0.0 3.6 0.0 0.0 0.0
MO 0.0 0.0 0.0 0.0 22.9 1.1 0.0 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.0 0.0 5.6 0.0 0.0 2.1 9.8 0.0 1.1
MT 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
NC 0.0 0.0 0.0 0.0 26.8 0.0 0.0 0.0 0.0 2.1 5.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 20.3 1.9 0.0 0.3
ND 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
NE 0.0 0.0 0.0 0.0 0.0 1.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.3 0.0 1.0 0.0 0.0 0.0 0.0 0.0 0.0
NH 0.0 0.0 0.0 0.0 0.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 6.8 0.0 1.0 0.0
NJ 0.0 0.0 0.0 9.1 139.9 2.5 4.8 6.7 2.3 1.2 2.0 0.0 0.0 0.0 11.8 0.0 0.0 0.0 0.0 43.5 0.0 0.0 0.0
NM 0.0 0.0 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.5 0.0 0.0 0.0 0.0 0.9 0.0 0.0 0.0
NV 0.0 0.0 0.0 0.0 4.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.4 0.0 0.0 0.0
NY 0.0 1.0 0.0 17.6 1150.1 14.8 14.3 5.5 9.5 65.5 168.7 0.0 1.7 0.0 7.5 4.7 4.5 0.0 0.9 183.5 22.7 3.5 1.8
OH 0.0 0.0 0.0 0.0 7.8 0.1 0.0 0.0 0.0 8.3 0.0 0.0 0.0 0.0 14.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2.0
OK 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.4 0.0 0.0 0.0 0.0 0.0 0.0
OR 0.0 0.0 0.0 0.0 1.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 5.0 0.0 0.0 0.0
PA 0.0 0.0 0.0 2.3 153.2 0.1 3.3 14.0 30.0 18.4 8.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 64.0 9.8 0.0 1.3
RI 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.4 0.0 0.0 0.0
SC 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
SD 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.6 0.0 0.0 0.0


SOURCE Target State
STATE AK AL AR AZ CA CO CT DC DE FL GA HI IA ID IL IND KS KY LA MA MD ME MI
TN 0.0 0.0 0.3 0.0 3.4 0.0 0.0 0.0 0.0 0.0 4.6 0.0 0.0 0.0 2.5 0.0 0.0 0.0 0.0 6.2 0.0 0.0 0.0
TX 0.0 0.0 1.1 0.0 238.4 1.6 0.0 0.0 0.0 46.6 0.0 0.0 0.0 0.0 4.2 0.0 0.0 0.0 0.0 1.1 0.0 0.0 1.9
UN 0.0 1.3 0.1 35.3 2,698.2 37.8 53.9 86.6 8.0 27.2 88.2 0.4 6.0 1.5 50.7 7.6 5.2 3.1 2.6 631.0 225.5 0.5 22.1
UT 0.0 0.0 0.0 5.0 28.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.4 0.0 0.0
VA 0.0 0.0 0.0 0.0 30.8 11.8 0.0 6.0 0.0 2.1 6.7 0.0 0.0 0.0 2.1 0.0 0.0 0.0 0.0 18.0 63.8 0.0 1.6
VT 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
WA 0.0 0.0 0.0 0.0 141.8 4.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.5 0.0 0.0 0.0 0.0 10.2 0.8 0.0 3.5
WI 0.0 0.0 0.0 0.0 12.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 5.8 0.0 0.0 0.0 0.0 0.8 0.0 0.0 6.4
WV 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Total 0.0 5.2 86.6 113.3 14,471.5 431.3 162.6 274.6 88.4 421.0 413.4 2.5 22.5 6.5 427.5 25.4 32.9 10.8 14.8 3,062.1 662.8 26.8 99.9
Figure 3.29b
SOURCE Target State
STATE MN MO MS MT NC ND NE NH NJ NM NV NY OH OK ORE PA PR RI SC SD TN TX UN
AL 0.0 0.0 0.0 0.0 1.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2.1 0.0 0.0 0.0 0.0
AR 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 3.5 0.0
AZ 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.6 0.0 0.0 0.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
CA 67.7 0.2 0.0 0.0 36.9 0.0 10.0 12.3 75.5 3.4 0.4 757.7 86.2 0.0 43.6 79.7 0.0 27.0 15.3 0.0 3.8 384.7 0.0
CO 2.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.0 5.6 0.0 0.0 3.3 0.0 0.0 0.5 0.0 0.0 0.0 2.6 0.0
CT 0.0 10.0 0.0 0.0 5.3 0.0 0.0 0.0 4.6 0.0 0.0 32.9 0.0 0.0 0.0 2.5 0.0 0.0 0.0 6.0 0.0 4.2 0.0
DC 11.0 0.0 0.0 0.0 5.3 0.0 0.0 0.0 0.0 0.0 0.0 5.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
DE 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0
FF 12.7 1.5 0.0 0.0 57.0 2.3 0.0 0.2 19.0 1.7 0.0 257.5 21.5 0.0 3.9 34.8 0.0 18.9 8.6 0.0 0.0 69.8 0.0
FL 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.3 0.0 0.0 3.7 3.5 0.0 0.0 5.9 0.0 0.0 0.0 0.0 0.4 9.5 0.0
GA 5.2 0.0 0.0 0.0 0.9 0.0 0.0 0.6 0.0 0.0 0.0 4.7 0.0 0.0 0.0 0.0 0.0 0.0 3.7 0.0 5.8 0.7 0.0
IA 0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
ID 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
IL 5.7 11.6 0.0 0.0 0.7 0.0 0.0 1.5 0.0 0.0 0.0 2.7 12.9 0.0 0.0 2.1 0.0 0.0 0.0 0.0 18.1 22.6 0.0
IN 2.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.9 0.0 0.0 1.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0
KS 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
KY 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
LA 0.0 0.2 0.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 4.7 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.0 0.0 6.7 0.0
MA 54.9 0.0 0.0 0.0 6.9 0.0 0.0 32.5 9.8 0.9 0.0 248.9 30.5 0.0 2.1 43.5 0.0 18.8 10.0 0.0 6.5 47.9 0.0
MD 0.0 0.0 0.0 0.0 11.3 0.0 0.0 0.0 6.0 0.0 8.0 37.1 0.0 0.0 0.0 9.5 0.0 0.0 0.0 0.0 0.0 0.2 0.0
ME 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
MI 12.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2.1 0.0 2.0 0.6 0.0 0.4 1.0 0.0 0.0 4.3 0.0 0.0 1.1 0.0
MN 17.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 3.5 0.0 0.0 0.0 0.8 0.0 6.0 0.0 0.0 0.0 0.0 0.0 5.4 0.0 0.0
MO 0.0 7.3 0.0 0.0 1.3 0.0 0.0 0.0 0.0 2.1 0.0 0.4 2.8 0.0 0.0 0.0 0.0 0.0 4.6 0.0 4.0 4.3 0.0
MT 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Figure 3.29b
SOURCE Target State
STATE MN MO MS MT NC ND NE NH NJ NM NV NY OH OK ORE PA PR RI SC SD TN TX UN
NC 0.0 0.0 0.0 0.0 53.4 0.0 0.0 0.0 0.0 0.0 0.0 2.0 0.0 0.0 0.0 3.0 0.0 0.0 4.0 0.0 0.9 20.5 0.0
ND 5.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
NE 0.0 0.2 0.0 0.0 0.0 0.0 3.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
NH 0.0 0.0 0.0 0.0 0.0 0.0 0.0 4.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
NJ 10.2 1.8 0.0 0.0 0.0 11.2 0.0 5.0 35.8 0.0 0.0 26.1 0.0 0.0 0.0 8.9 0.0 0.0 0.0 0.0 0.0 1.9 0.0
NM 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 10.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
NV 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 2.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
NY 0.0 0.2 0.0 0.0 16.4 0.0 0.1 7.0 83.8 0.0 0.0 519.0 21.9 0.0 2.0 28.8 0.0 5.0 8.6 6.0 0.0 199.3 0.0
OH 2.7 0.0 0.0 0.0 2.3 0.0 0.0 0.0 0.0 0.2 0.1 8.8 56.7 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
OK 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.7 0.0 4.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 4.2 0.0
OR 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 3.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
PA 3.0 5.2 0.0 0.0 0.1 0.0 0.0 6.0 13.9 0.0 0.0 81.8 1.6 0.0 2.3 82.6 0.0 3.7 0.0 0.0 0.0 9.6 0.0
RI 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2.6 0.0 0.0 0.0 0.0 0.0
SC 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
SD 0.0 0.0 0.0 0.0 0.0 0.0 1.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
TN 0.0 0.0 0.1 0.0 10.1 0.0 0.0 0.0 0.0 0.0 0.0 4.1 0.0 0.0 0.0 0.8 0.0 0.0 0.0 0.0 30.4 20.0 0.0
TX 0.0 6.6 0.0 0.0 0.0 0.0 0.0 0.0 5.0 1.6 0.0 2.7 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.0 0.3 275.6 0.0
UN 48.0 20.4 0.8 0.0 45.8 10.6 5.9 4.1 87.3 1.8 1.0 639.1 43.0 3.1 52.2 133.4 0.0 5.0 24.6 0.0 30.9 174.4 0.0
UT 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.7 0.0 14.9 0.0 0.0 0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
VA 5.0 0.0 0.0 0.0 0.7 0.0 0.0 0.0 0.0 0.0 0.0 12.3 0.0 0.0 0.0 3.1 0.0 0.0 0.0 0.0 2.8 0.2 0.0
VT 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
WA 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 6.3 0.0 0.0 8.6 13.5 0.0 11.1 0.0 0.0 0.0 0.0 0.0 0.0 9.0 0.0
WI 0.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 4.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
WV 0.0 0.0 0.0 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Total 267.0 65.0 1.2 0.0 255.6 24.1 21.0 74.4 351.3 25.9 9.6 2,686.3 301.8 8.0 130.3 441.1 0.0 81.7 85.7 11.9 109.3 1,272.4 0.0

Figure 3.29c
Sources and Targets of Invested Capital
Investments 2013 ($ Millions)
SOURCE Target State
STATE UT VA VI VT WA WI WV WY TOT
AL 0.0 4.7 0.0 0.0 0.0 0.0 0.0 0.0 14.2
AR 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 3.5
AZ 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 13.0
CA 96.7 50.0 0.0 0.0 176.6 6.1 0.0 0.0 10,062.8
CO 0.0 20.0 0.0 0.0 19.2 0.0 0.0 0.0 263.7
CT 0.1 0.0 0.0 0.0 21.2 0.0 0.0 0.0 591.1
DC 0.0 59.9 0.0 0.0 0.0 0.0 0.0 0.0 164.9
DE 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 7.8
FF 3.7 57.5 0.0 0.9 30.1 0.2 0.0 0.0 2,417.5
FL 0.0 0.0 0.0 0.0 5.7 0.0 0.0 0.0 90.4
GA 0.0 8.0 0.0 1.3 0.0 0.0 0.0 0.0 93.5
IA 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2
ID 1.5 0.0 0.0 0.0 0.1 0.0 0.0 0.0 4.8
IL 0.0 3.3 0.0 0.0 37.9 2.1 0.0 0.0 511.4
IN 1.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 32.7
KS 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2.4
KY 0.0 0.0 0.0 0.0 0.0 1.0 0.0 0.0 3.8
LA 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 25.1
MA 16.0 44.5 0.0 5.2 44.4 0.0 0.0 0.0 2,738.1
MD 1.0 11.1 0.0 0.0 25.0 0.0 0.0 0.0 331.0
ME 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 6.5
MI 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 119.0
MN 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.0 97.4
MO 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.0 69.5
MT 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.1

Figure 3.29c
Sources and Targets of Invested Capital Investments
2013 ($ Millions)
SOURCE
STATE UT VA VI VT WA WI WV WY TOT
NC 2.2 0.1 0.0 0.0 3.3 0.0 0.0 0.0 146.0
ND 0.0 0.0 0.0 0.0 0.0 0.2 0.0 0.0 5.3
NE 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 6.7
NH 0.0 0.0 0.0 0.0 2.5 0.0 0.0 0.0 15.6
NJ 0.0 0.0 0.0 0.0 5.0 0.0 0.0 0.0 329.8
NM 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 12.0
NV 0.0 0.0 0.0 0.0 0.3 0.0 0.0 0.0 7.8
NY 34.1 37.5 0.0 0.0 43.3 4.3 0.0 0.0 2694.8
OH 0.0 0.0 0.0 0.0 0.4 0.0 0.0 0.0 103.3
OK 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 10.1
OR 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 9.3
PA 0.0 90.0 0.0 0.0 34.9 0.0 0.2 0.0 639.3
RI 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 3.1
SC 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
SD 2.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 3.7
TN 7.2 0.0 0.0 0.0 0.5 0.0 0.0 0.0 90.2
TX 1.0 4.7 0.0 0.0 2.8 0.0 0.0 0.0 595.2
UN 66.1 146.8 0.0 10.0 286.4 15.7 1.0 0.0 5,850.1
UT 60.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 111.3
VA 0.0 53.0 0.0 0.0 17.3 0.0 0.0 0.0 237.5
VT 0.0 0.0 0.0 3.6 0.0 0.0 0.0 0.0 3.6
WA 6.5 0.0 0.0 0.0 113.7 0.0 0.0 0.0 329.8
WI 13.1 0.0 0.0 0.0 3.3 6.2 0.0 0.0 53.8
WV 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2
Total 313.8 591.0 0.0 21.0 874.1 35.9 1.2 0.0 28,922.8
Figure 3.30 2013 Internet-Related

Investments By Stage
Company Stage ($ Millions)
Seed 348.75
Early Stage 6,036.86
Expansion 7,559.33
Later Stage 5,064.38
TOTAL 19,009.32

Figure 3.31
2013 Internet-Related Investments By Industry Sector
Industry Group ($ Millions)
Software 10,821.33
Media and Entertainment 2,771.45
IT Services 1,966.98
Consumer Products and Services 1,074.01
Networking and Equipment 669.55
Telecommunications 572.39
Financial Services 324.00
Retailing/Distribution 228.44
Computers and Peripherals 222.24
Semiconductors 132.53
Healthcare Services 107.14
Business Products and Services 53.76
Industrial/Energy 22.52
Biotechnology 16.23
Medical Devices and Equipment 15.65
Other 5.61
Electronics/Instrumentation 5.50
Total 19,009.32
Figure 3.32
2013 Internet-Related vs. Non Internet-Related By Industry Sector ($ Million)
Industry Internet Related Non-Internet Related Total
Biotechnology 16.2 4,545.7 4,561.9
Business Products and Services 53.8 164.2 218.0
Computers and Peripherals 222.2 295.0 517.2
Consumer Products and Services 1,074.0 171.5 1,245.5
Electronics/Instrumentation 5.5 318.8 324.3
Financial Services 324.0 212.4 536.4
Healthcare Services 107.1 179.0 286.1
Industrial/Energy 22.5 1,484.0 1,506.5
IT Services 1,967.0 25.9 1,992.9
Media and Entertainment 2,771.4 164.1 2,935.5
Medical Devices and Equipment 15.6 2,114.5 2,130.2
Networking and Equipment 669.6 - 669.6
Other 5.6 93.0 98.6
Retailing/Distribution 228.4 12.0 240.4
Semiconductors 132.5 464.9 597.4
Software 10,821.3 198.7 11,020.0
Telecommunications 572.4 71.2 643.6
Total 19,009.3 10,514.8 29,524.1

Figure 3.33
2013 Internet-Related vs. Non Internet-Related By Industry Sector
(Number of Companies)
Industry Internet Related Non-Internet Related Total
Biotechnology 4 367 371
Business Products and Services 17 41 58
Computers and Peripherals 18 11 29
Consumer Products and Services 114 35 149
Electronics/Instrumentation 2 31 33
Financial Services 26 25 51
Healthcare Services 13 24 37
Industrial/Energy 7 191 198
IT Services 292 5 297
Media and Entertainment 368 15 383
Medical Devices and Equipment 6 244 250
Networking and Equipment 22 22
Other 1 10 11
Retailing/Distribution 38 2 40
Semiconductors 13 60 73
Software 1,291 25 1,316
Telecommunications 49 6 55
Total 2,281 1,092 3,373
Figure 3.34
Top 5 States By Pecentage Invested Within State in 2013
Fund Domicile Pct. Invested
Within State
California 68%
Ohio 55%
Utah 55%
Texas 46%
Georgia 46%
*Minimum $20 million invested
Figure 3.35 Top 5 States By Portion Received From In-State

Firms 2013
Fund Domicile Pct. Invested Within State
California 48%
New Mexico 40%
Michigan 39%
Illinois 34%
Massachusetts 32%
*Minimum $20 million invested

Figure 3.36 Figure 3.37

Number of States Invested Into in 2013 Number of States California Venture Firms
By State of Venture Firm Into By Year
Location of Venture Firm No. of States Invested In Year No. of States Invested In
California 38 1993 32
Massachusetts 36 2003 34
New York 36 2013 38
Pennsylvania 27
Illinois 19
Connecticut 18
Maryland 18
New Jersey 18
Virginia 18
Texas 17
Georgia 16
Missouri 16
Figure 3.38
Corporate Investments By Year
Year # All Venture # Deals with CVC Calculated Percentage $M Average $M Average Total VC Total CVC Calculated Percentage
Capital Deals Involvement of Deals with Corporate Amount of All Amount of CVC Investment Investment $M of Dollars Coming from
VC Involvement VC Deals Participation $M CVCs
1995 1,896 140 7.4% 4.23 3.08 8,015 431 5.4%

1996 2,635 234 8.9% 4.30 3.37 11,342 787 6.9%
1997 3,224 324 10.0% 4.65 2.85 15,005 922 6.1%
1998 3,729 495 13.3% 5.76 3.63 21,473 1,795 8.4%
1999 5,597 1230 22.0% 9.80 6.43 54,847 7,908 14.4%
2000 8,038 1950 24.3% 13.08 7.63 105,105 14,877 14.2%
2001 4,590 964 21.0% 8.92 4.81 40,952 4,639 11.3%
2002 3,206 551 17.2% 6.92 3.33 22,177 1,837 8.3%
2003 3,024 439 14.5% 6.49 2.91 19,620 1,279 6.5%
2004 3,228 545 16.9% 7.19 2.76 23,209 1,505 6.5%
2005 3,293 565 17.2% 7.14 2.68 23,524 1,514 6.4%
2006 3,882 817 21.0% 7.09 3.16 27,515 2,581 9.4%
2007 4,226 846 20.0% 7.56 3.21 31,943 2,714 8.5%
2008 4,177 896 21.5% 7.17 2.99 29,949 2,679 8.9%
2009 3,148 405 12.9% 6.44 3.28 20,286 1,327 6.5%
2010 3,647 487 13.4% 6.41 3.86 23,369 1,879 8.0%
2011 4,004 590 14.7% 7.43 3.80 29,730 2,243 7.5%
2012 3,865 611 15.8% 7.08 3.69 27,352 2,256 8.2%
2013 4,041 683 16.9% 7.31 4.55 29,545 3,105 10.5%

Figure 3.39
Clean Technology Investments By Year
Year Clean Technology # Clean Technology Average Investment
Investments Deals Per Deal ($ Millions)
($ Millions)
1995 64.6 34 1.9

1996 141.5 44 3.2
1997 180.4 51 3.5
1998 170.2 40 4.3
1999 262.1 53 4.9
2000 592.7 49 12.1
2001 335.4 57 5.9
2002 350.3 49 7.1
2003 237.5 58 4.1
2004 417.5 78 5.4
2005 614.7 97 6.3
2006 1,772.8 152 11.7
2007 3,036.0 261 11.6
2008 4,225.7 306 13.8
2009 2,244.6 234 9.6
2010 3,944.8 305 12.9
2011 4,392.0 333 13.2
2012 3,081.0 246 12.5
2013 1,468.0 184 8.0
Figure 3.40 California Investments as a Percentage of

Overall Investment (Dollars Invested)
100%
90%
34.7%
80%
50.0% 50.0%
70% Other
63.4%
SoCal
60%
NoCal
50%
11.0% 8.5%
40%
55.7%
8.8%
30%
20% 39.0% 41.5%

27.8%
10%
9.7%
0%
1998 2003 2008 2013

EXITS
IPOs and Acquisitions
Once successful portfolio companies mature, venture funds generally exit their positions in those companies by taking them public through an initial
public offering (IPO) or by selling them to presumably larger organizations (acquisition, “M&A”, or trade sale). This then lets the venture fund dis-
tribute the proceeds to investors, raise a new fund for future investment, and invest in the next generation of companies. This chapter considers each
type of exit separately.
During 2013, 81 venture-backed companies went public in the United States, marking the strongest full year total for the number of new venture-backed
listings since 2007. Remarkably, more than half of them were biotechnology IPOs, many of those being modestly sized. While the total dollars raised in
2012 was higher at $21.5 billion, it is important to remember that $16.0 billion of that came from the Facebook IPO alone. The remaining $5.5 billion
was raised by the remaining 48 IPOs in 2012. It was a very different story in 2013. $11.1 billion was raised by 81 companies. The increase in mean and
median time to exit reflects the fact that many of these IPOs were mature companies, and many of them were in the life sciences space, which had been
awaiting an IPO opportunity for months, and in some cases, years.
NVCA is encouraged by the increase in smaller IPOs and biotech IPOs in light of its 2012 legislative successes with the JOBS Act and creating a
pathway for FDA Reform.
The M&A space continued to soften in 2013, with the total number of deals falling from 473 in the prior year to 376. Total proceeds fell by 27%. Note
that only 94 of the 376 acquisitions had reported deal values. Historically, deals with unreported sales prices are fairly diminutive, and in many cases,
fire sales. However, an increasing number of deal term sheets specify a non-disclosure restriction on all parties. So going forward, all but the largest
and most visible acquisitions may be hard to measure. Observers have wondered why, given the huge amounts of cash on the balance sheets of technol-
ogy and biotechnology giants, more acquisitions are not occurring. We did see a flurry of acquisitions in early 2014, perhaps signaling an increase in
that kind of activity.
Methodology In this chapter and throughout this Yearbook, we use the classic nomen-
This chapter focuses on company exits by venture funds through IPOs clature for describing the two main types of private equity:
and through acquisitions (trade sale, M&A). Some additional charts are Private Equity = Venture Capital + Buyout/Mezzanine
provided on private equity-backed acquisitions because of the venture in- Therefore, charts describing Private Equity in this chapter and through-
dustry’s interest in that data. With Thomson’s expansion of global deals out this Yearbook include both buyout/mezzanine activity and venture
coverage beginning in 2012, the criteria used to report these exits were capital activity.
redefined and refined. These are explained below. The Thomson Reuters venture capital (private equity) exits coverage
Figure 4.01
Venture-Backed IPOs
300 30.00
No of IPOs
250 Offer Amount ($B) 25.00
200 20.00 Offer ($ Billion)

No. of IPOs
150 15.00
100 10.00
50 5.00
0 0.00
'85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 13
Year

includes full history for the US and Canada as well as Global Exits from Specifically, venture capital IPO exits reported in this chapter are those
2005 to the present. Multiple exits per company are now tracked, includ- done on United States stock exchanges/markets with at least one United
ing IPOs (although secondary offerings are not tracked, since the first States domiciled venture fund investor.
IPO is considered the exit), Secondary Sales (sponsor to sponsor), Trade Specifically, venture capital (private equity) acquisition exits reported
Sales (VC (PE) Firm to Non-PE Firm), Buybacks, Reverse Takeovers in this chapter are completed secondary sales and trade sales where the
and Writeoffs. All values are sourced from the industry-leading Thomson company was domiciled in the United States and had at least one United
Reuters Deals database with hyperlinks to the Tearsheets to view the un- States domiciled venture capital (private equity) investor.
derlying details of the transactions. The private equity-backed exits com-
ponent in ThomsonONE.com can be used to further analyze all of the VC
and PE Exits content herein.
Fig. 4.02
Number of Venture-Backed IPOs
vs. All IPOs
Year # of All IPOs # of Venture-
Backed IPOs
2000 353 238
2001 84 37
2002 75 24
2003 70 26
2004 189 82
2005 171 59
2006 168 67
2007 164 91
2008 25 7
2009 39 13
2010 103 70
2011 98 51
2012 113 49
2013 169 81
Note: IPO counts reflect IPOs on US stock exchanges

and markets. Venture-backed IPOs are those with at
least one US-domiciled venture fund investor.

Fig. 4.03
Venture-Backed IPOs 1985 to 2013 Value and Age Characteristics
Year Num Offer Amount Med Offer Mean Offer Post Offer Med Post Mean Post Median Time Mean Time to
of IPOs ($Mil) Amt ($Mil) Amt ($Mil) Value ($Mil) Value ($Mil) Value ($Mil) to Exit (yrs) Exit (yrs)
1985 48 763 13 16 2,020 37 48 2.8 3.9

1986 105 2,417 13 23 166,032 52 1866 3.9 4.2
1987 86 2,125 17 25 10,972 46 155 3.7 3.9
1988 43 769 15 18 21,117 51 571 3.2 3.7
1989 42 873 16 21 4,443 50 131 3.9 4.2
1990 47 1,108 20 24 5,886 60 178 3.6 4.2
1991 120 3,726 27 31 17,611 81 202 4.7 5.0
1992 150 5,443 24 36 15,955 68 146 4.5 5.0
1993 175 6,154 25 35 14,808 75 130 5.4 5.7
1994 138 3,952 24 29 10,344 68 94 4.7 5.3
1995 184 7,859 36 43 19,300 104 152 3.8 4.8
1996 256 12,716 35 50 51,511 112 240 3.2 4.1
1997 141 5,829 33 41 19,101 99 148 3.0 6.4
1998 78 4,125 43 53 24,655 164 324 2.5 3.1
1999 280 23,975 69 86 147,341 304 532 2.9 3.1
2000 238 27,443 83 115 108,783 325 494 3.1 3.7
2001 37 4,130 80 112 19,233 327 534 4.0 4.4
2002 24 2,333 89 97 8,322 266 347 3.3 5.0
2003 26 2,024 71 78 7,412 252 285 5.4 5.6
2004 82 10,032 70 122 50,268 254 613 5.5 6.1
2005 59 5,113 68 87 39,702 202 673 5.2 5.3
2006 67 7,065 86 105 71,124 283 1078 5.3 5.6
2007 91 12,339 98 136 68,203 365 749 6.0 6.0
2008 7 765 83 109 3,645 278 521 7.4 7.3
2009 13 1,980 123 152 9,192 548 707 5.9 6.9
2010 70 7,774 93 111 114,981 428 1643 5.0 5.9
2011 51 10,690 106 210 94,657 606 1856 6.3 7.0
2012 49 21,460 89 438 122,168 371 2493 7.2 7.8
2013 81 11,068 91 137 62,700 354 784 7.4 8.1

Fig. 4.04
Venture-Backed IPOs by MoneyTree Industry Total Offering Size ($ Million)
Industry 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Biotechnology 38 349 217 26 51 66 964 860 486 257 437 1,250 575 197 562
Business Products and 58 33 0 2 0 44 66 70 193 70 35 496 185 58 1,137
Services
Consumer Products and 7 177 7 8 91 5 186 240 169 58 335 177 160 541 602
Services
Financial Services 0 91 39 10 47 0 21 1,248 51 237 273 1,597 209 45 521
Industrial/Energy 29 58 177 75 127 242 346 325 670 437 495 1,064 794 138 207
IT Services 15 4 32 27 0 0 163 48 41 68 308 396 151 239 2,141
Media and Entertainment 51 599 22 3 17 10 103 253 710 562 207 727 505 199 2,872
Medical Devices and 61 89 147 22 71 90 241 601 254 388 995 1,666 444 90 0
Equipment
Networking and Equipment 25 105 136 42 43 82 346 284 233 457 313 749 416 235 2,912
Other 0 54 0 0 0 0 0 12 0 0 0 0 203 0 46
Retailing/Distribution 154 67 48 146 35 18 29 265 718 71 111 358 159 344 1,736
Semiconductors 15 47 368 79 62 29 210 86 311 164 696 36 319 37 221
Software 52 270 206 134 135 192 476 409 846 447 2,366 1,851 912 870 5,618
Telecommunications 27 92 421 79 30 141 22 212 766 277 492 1,498 377 877 4,592
Total 763 2,417 2,125 769 873 1,108 3,726 5,443 6,154 3,952 7,859 12,716 5,829 4,125 23,975
Fig. 4.04 (Continued)

Venture-Backed IPOs by MoneyTree Industry Total Offering Size ($ Million)
Industry 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Biotechnology 4,211 353 342 442 1,616 897 895 1,292 6 153 1,155 997 854 3,507
Business Products and 594 0 248 62 0 507 0 1,202 0 0 190 322 152 0
Services
Consumer Products and 295 120 39 82 280 3 542 154 0 163 727 847 262 631
Services
Financial Services 50 771 231 353 1,447 706 551 1,178 0 0 558 0 185 253
Industrial/Energy 1,107 747 0 0 638 299 1,114 1,007 0 88 955 984 247 0
IT Services 2,030 0 0 0 49 140 207 836 0 0 379 163 636 576
Media and Entertainment 1,243 0 353 75 1,434 376 864 209 0 0 830 3,210 16,236 2,839
Medical Devices and 634 673 456 0 806 380 633 1,407 134 0 299 145 115 283
Equipment
Networking and Equipment 4,339 275 0 0 69 0 479 313 0 0 267 0 316 301
Other 177 100 0 0 0 0 0 0 0 0 0 0 0 0
Semiconductors 1,052 133 0 381 522 472 136 975 0 0 534 255 130 274
Software 4,924 405 259 330 2,506 570 768 1,471 344 604 1,368 2,500 2,022 2,022
Telecommunications 5,304 173 0 175 542 651 731 1,591 0 402 197 805 305 187
Total 27,443 4,130 2,333 2,024 10,032 5,113 7,065 12,339 765 1,980 7,774 10,690 21,460 11,068

Fig. 4.05
Venture-Backed IPOs by MoneyTree Industry Total Number of Companies
Industry 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Biotechnology 5 16 14 2 6 4 31 27 22 13 16 33 21 7 9
Business Products and 1 2 0 1 0 1 3 3 6 3 1 6 3 1 16
Services
Services
IT Services 1 1 3 1 0 0 5 1 1 3 5 9 4 5 28
Medical Devices and 3 10 8 4 5 8 12 27 14 17 20 44 13 2 0
Equipment
Other 0 1 0 0 0 0 0 1 0 0 0 0 1 0 1
Semiconductors 1 4 5 5 3 1 9 4 13 9 16 1 8 1 4
Software 3 15 10 7 8 9 14 13 26 19 56 53 26 20 80
Total 48 105 86 43 42 47 120 150 175 138 184 256 141 78 280
Fig. 4.05
Venture-Backed IPOs by MoneyTree Industry Total Number of Companies
Industry 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Biotechnology 47 4 4 7 26 15 16 20 1 2 13 11 12 42
Business Products and 8 0 1 1 0 4 0 4 0 0 1 2 1 0
Services
Services
IT Services 16 0 0 0 1 1 2 6 0 0 4 2 6 4
Media and Entertainment 11 4 1 7 4 6 2 0 0 6 9 4 6
Medical Devices and 11 7 4 0 13 8 11 11 2 0 4 2 1 4
Equipment
Other 1 1 0 0 0 0 0 0 0 0 0 0 0 0
Semiconductors 10 2 0 3 6 6 2 10 0 0 6 3 2 3
Software 58 5 5 4 10 6 7 13 2 5 12 9 9 13
Total 238 37 24 26 82 59 67 91 7 13 70 51 49 81

Fig. 4.06
Average and Median Age in Years by MoneyTree Industry Companies at IPO 2000-2013
2000 2001 2002 2003 2004 2005 2006
Industry Mean Median Mean Median Mean Median Mean Median Mean Median Mean Median Mean Median
Biotechnology 4.5 4.3 4.5 4.6 8.4 6.7 6.0 5.1 5.6 5.1 5.6 5.5 5.3 5.0
Business Products and Services 2.0 1.7 N/A N/A 2.7 2.7 5.7 5.7 N/A N/A 4.3 4.4 N/A N/A
Computers and Peripherals 4.3 2.8 N/A N/A 15.7 15.7 N/A N/A N/A N/A 0.8 0.8 N/A N/A
Consumer Products and Services 1.4 1.5 3.7 4.6 4.6 4.6 4.3 4.3 5.5 5.2 5.5 5.5 4.9 4.9
Electronics/Instrumentation 3.4 2.7 6.3 6.3 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Financial Services 1.0 1.0 12.9 12.9 1.9 1.9 5.0 4.7 5.5 5.3 3.0 3.0 4.7 4.8
Healthcare Services 3.3 3.3 5.2 5.2 7.1 7.1 5.7 5.7 8.9 8.9 3.9 3.9 N/A N/A
Industrial/Energy 3.4 3.2 1.1 0.4 N/A N/A N/A N/A 7.7 3.4 8.2 7.0 2.1 0.6
IT Services 1.9 1.8 N/A N/A N/A N/A N/A N/A 5.3 5.3 3.8 3.8 6.0 6.0
Media and Entertainment 4.3 3.2 N/A N/A 4.4 3.5 5.7 5.7 6.0 5.8 4.6 4.4 8.4 8.2
Medical Devices and Equipment 5.1 4.8 4.8 4.5 3.7 3.2 N/A N/A 8.1 7.3 6.6 7.1 6.9 5.3
Networking and Equipment 3.3 3.0 4.2 4.2 N/A N/A N/A N/A 6.1 6.1 N/A N/A 7.0 6.6
Other 1.3 1.3 2.6 2.6 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Retailing/Distribution 1.9 1.8 4.3 4.3 3.4 3.4 4.0 4.0 N/A N/A 6.1 6.1 1.5 1.5
Semiconductors 5.5 3.7 2.9 2.9 N/A N/A 5.3 4.1 6.5 6.4 4.3 5.0 6.7 6.7
Software 3.4 3.3 4.2 4.6 3.3 3.0 6.1 5.6 5.3 5.5 5.4 5.6 6.5 6.0
Telecommunications 3.6 3.1 1.4 1.4 N/A N/A 6.5 6.5 5.3 5.0 5.0 4.1 4.2 3.9

Average and Median Age in Years by MoneyTree Industry Companies at IPO 2000-2013
2007 2008 2009 2010 2011 2012 2013
Industry Mean Median Mean Median Mean Median Mean Median Mean Median Mean Median Mean Median
Biotechnology 5.1 5.1 7.0 7.0 10.4 10.4 5.7 4.8 6.6 5.5 5.9 6.0 8.2 7.5
Business Products and Services 6.1 5.2 N/A N/A N/A N/A 0.6 0.6 4.2 4.2 5.7 5.7 N/A N/A
Computers and Peripherals 6.7 6.7 8.7 8.7 N/A N/A N/A N/A 7.3 7.3 N/A N/A 5.0 5.0
Consumer Products and Services 17.8 17.8 N/A N/A 5.3 5.3 5.1 4.3 3.8 3.8 7.2 8.3 6.4 3.9
Electronics/Instrumentation N/A N/A N/A N/A 7.8 7.8 N/A N/A 12.5 12.5 N/A N/A N/A N/A
Financial Services 3.1 3.4 N/A N/A N/A N/A 7.0 8.9 N/A N/A 9.3 9.3 6.7 6.7
Healthcare Services 9.9 9.9 10.2 10.2 2.0 2.0 2.6 2.6 N/A N/A N/A N/A N/A N/A
Industrial/Energy 1.0 0.9 N/A N/A 1.4 1.4 2.8 3.1 7.0 7.2 5.2 5.4 N/A N/A
IT Services 6.1 6.5 N/A N/A N/A N/A 7.6 8.6 8.9 8.9 10.1 7.9 9.9 9.1
Media and Entertainment 6.4 6.4 N/A N/A N/A N/A 7.9 7.4 6.4 6.1 6.3 6.4 7.9 7.6
Medical Devices and Equipment 6.7 6.6 6.0 6.0 N/A N/A 5.2 5.2 5.5 5.5 4.9 4.9 7.5 7.7
Networking and Equipment 6.3 6.7 N/A N/A N/A N/A 7.4 7.4 N/A N/A 10.1 9.9 5.7 6.2
Other N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Retailing/Distribution 3.1 3.1 N/A N/A N/A N/A 2.2 2.2 N/A N/A N/A N/A N/A N/A
Semiconductors 7.9 7.2 N/A N/A N/A N/A 4.9 4.4 7.6 7.6 13.1 13.1 8.8 9.5
Software 6.5 5.9 6.7 6.7 6.4 7.3 7.1 6.1 8.0 9.0 8.5 7.6 8.0 6.8
Telecommunications 6.8 7.2 N/A N/A 10.4 10.4 8.7 9.1 8.0 9.8 9.4 8.8 16.9 16.9

Fig. 4.07 Fig. 4.08

Venture-Backed Merger & Acquisitions by Years Private Equity-Backed Merger & Acquisitions by Years
Year Number Number ($ Millions) Average Mean Time Median Time Year Number Number ($ Millions) Average Mean Time Median Time
Total Known Price To Exit To Exit Total Known Price To Exit To Exit
(Years) To Exit (Years) (Years) To Exit (Years)
1985 7 3 300.2 100.1 7.0 4.8 1985 8 3 300.2 100.1 7.2 5.3
1986 8 1 63.4 63.4 3.4 3.5 1986 13 4 246.4 61.6 3.6 4.0
1987 11 4 667.2 166.8 4.9 3.5 1987 17 8 1422.2 177.8 4.1 3.3
1988 17 9 920.7 102.3 4.7 4.1 1988 35 21 4139.2 197.1 3.8 3.4
1989 21 10 746.9 74.7 4.3 3.6 1989 30 17 2594.8 152.6 4.4 3.6
1990 19 7 120.3 17.2 5.8 5.5 1990 29 12 929.7 77.5 6.1 5.3
1991 16 4 190.5 47.6 6.0 5.0 1991 29 11 774.5 70.4 5.2 4.7
1992 69 43 2119.1 49.3 4.7 4.0 1992 92 59 3652.8 61.9 4.7 4.0
1993 59 36 1332.9 37.0 5.3 4.7 1993 101 61 4355.5 71.4 5.1 4.7
1994 84 57 3208.4 56.3 5.8 5.3 1994 110 71 7848.2 110.5 5.6 5.0
1995 92 58 3801.8 65.5 4.6 4.1 1995 144 90 11057.4 122.9 5.1 4.8
1996 108 76 8230.8 108.3 5.2 4.1 1996 160 117 19587.9 167.4 4.8 3.9
1997 145 100 7798.0 78.0 4.5 3.1 1997 221 150 31562.5 210.4 5.0 3.8
1998 189 113 8002.0 70.8 4.5 2.8 1998 276 182 35578.7 195.5 4.5 3.0
1999 228 155 38710.6 249.7 3.6 2.8 1999 307 204 62827.4 308.0 3.8 3.0
2000 379 245 79996.4 326.5 3.2 2.7 2000 475 304 136325.6 448.4 3.5 2.8
2001 384 175 25115.6 143.5 3.0 2.2 2001 462 219 64564.5 294.8 3.4 2.4
2002 365 166 11913.2 71.8 3.5 2.9 2002 443 221 36264.2 164.1 3.8 3.0
2003 323 134 8240.8 61.5 4.3 3.6 2003 428 201 26264.8 130.7 4.5 3.8
2004 402 199 28846.1 145.0 5.0 4.6 2004 560 290 56179.7 193.7 5.2 4.6
2005 446 201 19717.3 98.1 5.4 5.2 2005 685 316 68468.5 216.7 5.4 5.2
2006 484 208 24291.0 116.8 5.7 5.7 2006 777 337 112915.0 335.1 5.6 5.5
2007 488 201 30745.5 153.0 5.8 6.3 2007 879 362 183217.8 506.1 5.6 5.2
2008 417 134 16236.9 121.2 5.8 5.6 2008 672 226 64078.8 283.5 5.3 4.6
2009 351 109 12364.9 113.4 5.7 5.5 2009 495 163 57883.9 355.1 5.5 4.9
2010 523 150 17707.3 118.0 5.8 5.0 2010 849 288 101808.3 353.5 5.7 4.7
2011 490 169 24093.2 142.6 5.8 5.0 2011 846 297 95368.7 321.1 5.8 5.0
2012 473 132 22694.2 171.9 6.2 5.6 2012 968 302 134158.0 444.2 5.9 5.3
2013 376 94 16586.5 176.5 5.9 5.0 2013 802 203 91618.3 451.3 5.9 5.4
Average acquisition price is calculated by dividing total known acquisition proceeds Average acquisition price is calculated by dividing total known acquisition proceeds
by the number of transactions where the proceeds are known, not the total number by the number of transactions where the proceeds are known, not the total number of
of transactions. transactions. Note: Private Equity includes venture capital, buyouts, mezzanine, and
other private equity financed companies. Therefore, data from fig. 4.07 is included
here.

Fig. 4.09
Fig. 4.09 Venture-Backed Acquisitions by MoneyTree Industry Total Transaction Values 1985 to 2013
Industry 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Biotechnology 0 0 0 0 0 0 68 33 25 9 89 388 265 141 846
Services
Services
Financial Services 0 0 0 140 0 0 0 1,204 91 144 734 67 34 459 1,299
Industrial/Energy 99 63 0 238 59 20 0 203 122 764 53 1,127 193 381 962
IT Services 0 0 0 0 0 0 0 0 0 0 15 315 80 523 699
Media and Entertainment 0 0 0 0 0 0 30 0 119 29 38 2,160 2,106 343 10,878
Equipment
Networking and Equipment 0 0 0 18 250 0 0 0 317 352 1,024 1,090 178 981 11,521
Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Semiconductors 0 0 0 0 0 0 0 0 0 59 84 54 11 627 1,903
Software 0 0 25 0 0 22 83 264 116 455 617 1,228 2,176 2,888 5,621
Telecommunications 0 0 0 0 0 0 0 4 298 790 328 381 1,133 521 2,241
Total 300 63 667 921 747 120 190 2,119 1,333 3,208 3,802 8,231 7,798 8,002 38,711

Fig. 4.09 Venture-Backed Acquisitions by MoneyTree Industry Total Transaction Values 1985 to 2013
Industry 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Biotechnology 1,206 679 115 259 688 2,462 2,104 6,050 1,266 843 3,720 3,948 2,967 3,075
Business Products and 1,637 157 870 151 3,024 132 409 2,124 570 314 181 315 697 0
Services
Computers and Peripherals 4,610 357 51 47 680 248 492 6 49 500 348 557 764 945
Consumer Products and 2,611 519 343 418 444 582 486 245 284 0 141 1,143 615 0
Services
Electronics/Instrumentation 3,456 167 71 6 116 72 38 87 80 0 0 510 0 115
Financial Services 1,355 617 557 98 250 890 985 1,896 988 0 812 466 435 0
Healthcare Services 286 177 818 37 6,227 624 968 542 27 5 755 601 756 250
Industrial/Energy 1,396 858 182 1,006 2,128 1,117 1,425 1,799 832 886 1,276 1,674 1,141 455
IT Services 2,384 491 612 1,002 1,999 1,066 795 2,482 745 203 1,415 2,084 2,077 898
Media and Entertainment 3,227 6,315 999 324 3,355 2,980 2,599 3,039 2,251 892 1,051 1,013 2,430 1,382
Medical Devices and 433 932 414 465 1,168 1,268 1,704 1,832 499 2,569 1,571 3,809 1,779 1,528
Equipment
Networking and Equipment 18,359 5,425 818 813 1,311 1,290 628 549 609 643 678 24 146 430
Other 0 0 350 0 0 212 0 246 0 0 95 0 0 0
Semiconductors 7,210 2,099 2,703 359 688 575 1,029 964 664 628 1,047 743 1,284 1,601
Software 23,475 3,689 1,886 2,098 4,972 4,886 7,879 6,923 5,575 1,745 3,775 6,756 5,623 5,328
Telecommunications 7,528 2,630 1,125 301 1,678 1,313 2,287 1,785 1,789 2,205 826 451 1,980 550
Total 79,996 25,116 11,913 8,241 28,846 19,717 24,291 30,746 16,237 12,365 17,707 24,093 22,694 16,587

Fig. 4.10
Venture-Backed Acquisitions by MoneyTree Industry Number of Companies 1985 to 2013
Industry 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Biotechnology 0 0 0 0 1 1 1 4 2 4 10 10 9 11 12
Services
Services
IT Services 0 1 0 1 1 1 0 0 0 0 2 5 7 11 16
Equipment
Other 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0
Semiconductors 0 0 0 0 0 1 2 1 1 3 3 2 2 8 9
Software 1 3 3 0 1 6 1 11 15 24 29 21 44 62 59
Total 7 8 11 17 21 19 16 69 59 84 92 108 145 189 228

Venture-Backed Acquisitions by MoneyTree Industry Number of Companies 1985 to 2013
Industry 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Biotechnology 16 21 9 15 24 29 32 32 24 19 38 34 33 22
Services
Services
IT Services 23 31 38 25 33 22 30 38 27 22 46 48 51 26
Equipment
Other 0 0 1 1 1 1 0 2 2 0 1 2 0 1
Semiconductors 21 14 14 11 17 17 20 19 24 22 27 15 18 14
Software 118 94 129 120 133 163 177 157 148 120 171 171 162 162
Total 379 384 365 323 402 446 484 488 417 351 523 490 473 376

Fig. 4.11
Private Equity-Backed Acquisitions by MoneyTree Industry Total Transaction Values 1985 to 2013
Industry 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Biotechnology 0 0 0 0 766 0 68 33 25 93 448 412 472 498 904
Services
Services
IT Services 0 0 0 7 0 0 0 0 0 0 15 485 1620 533 2820
Equipment
Other 0 0 0 0 0 0 0 0 0 0 0 0 0 229 0
Semiconductors 0 0 0 0 0 0 0 0 0 67 97 54 11 640 3066
Software 0 0 25 16 0 22 83 686 128 467 629 1228 2357 3196 10115
Total 300 246 1422 4139 2595 930 775 3653 4356 7848 11057 19588 31563 35579 62827

Private Equity-Backed Acquisitions by MoneyTree Industry Total Transaction Values 1985 to 2013
Industry 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Biotechnology 2102 801 2584 986 1805 3047 2384 7904 1830 6963 9043 6488 15784 7207
Services
Services
IT Services 3138 533 674 1312 2135 2192 935 5362 5604 373 3717 2172 3960 4426
Equipment
Other 0 176 350 200 143 1676 630 426 8358 0 2865 871 3521 635
Semiconductors 7493 2224 3248 422 805 1276 1272 1591 850 628 1789 890 1408 1799
Software 25737 3796 2134 4087 5761 5603 10034 21470 7546 2327 15871 14993 13333 9841
Total 136326 64565 36264 26265 56180 68468 112915 183218 64079 57884 101808 95369 134158 91618

Fig. 4.12
Private Equity-Backed Acquisitions by MoneyTree Industry Number of Companies 1985 to 2013
Industry 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Biotechnology 0 0 0 0 3 1 1 4 3 7 13 11 10 15 14
Services
Services
IT Services 0 1 0 3 1 1 0 1 0 0 3 6 12 12 21
Equipment
Other 0 0 0 0 0 0 0 0 0 0 1 0 0 1 0
Semiconductors 0 0 0 0 0 1 2 1 1 3 4 2 2 10 11
Software 1 3 3 1 1 6 2 13 17 26 30 21 45 66 67
Total 8 13 17 35 30 29 29 92 101 110 144 160 221 276 307

Private Equity-Backed Acquisitions by MoneyTree Industry Number of Companies 1985 to 2013
Industry 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Biotechnology 18 22 11 17 28 34 33 36 28 26 48 42 46 31
Services
Services
IT Services 26 32 41 27 36 26 42 49 30 24 56 52 65 39
Equipment
Other 0 1 1 3 4 10 4 8 14 1 8 8 7 7
Semiconductors 26 15 16 11 19 19 21 23 30 22 30 19 20 16
Software 126 98 133 127 143 171 200 184 165 132 203 206 200 196
Total 475 462 443 428 560 685 777 879 672 495 849 846 968 802
*Note: Private Equity includes venture capital, buyouts, mezzanine, and other private equity-financed companies. Therefore, transactions from Figure 4.10 are included here.

Fig. 4.13 Fig. 4.14

Venture-Backed M&A Transaction Values vs. Venture-Backed IPOs Cos In Registration vs.
Amount Invested Number of Venture-Backed IPOs
Year < TVI 1x-4x TVI 4x-10x TVI >10x TVI Year # of Venture Backed # of Moneytree Cos. in
IPOs Registration
1995 14% 26% 22% 38%
2003 26 31
1996 8% 27% 30% 34%
2004 82 57
1997 10% 41% 15% 34%
2005 59 16
1998 15% 22% 31% 32%
2006 67 36
1999 14% 15% 26% 45%
2007 91 31
2000 8% 23% 22% 46%
2008 7 20
2001 41% 19% 23% 17%
2009 13 23
2002 50% 26% 13% 11%
2010 70 31
2003 45% 38% 11% 5%
2011 51 60
2004 36% 33% 20% 11%
2012 49 27
2005 30% 37% 19% 14%
2013 81 22
2006 29% 37% 18% 16%
*Beginning in 2012, companies could elect confidential registration.
2007 22% 30% 24% 23%
Those, of course, cannot be counted in the number in registration.
2008 28% 29% 25% 18% As of this writing, it appears that half or more of companies
seeking to go public are electing confidential registration.
2009 44% 21% 25% 10%
2010 31% 31% 22% 16%
2011 15% 27% 34% 24% Fig. 4.15
Post-Offer Value Ranges by Number of Companies
2012 18% 25% 29% 28%
Year $10B or >$1B $500M-$1B $100M-$500M <$100M
2013 18% 37% 29% 16% Greater
1995 - 2 4 59 62
This chart is prepared by analyzing all deals where total venture investment and ac-
quisition price are confirmed. Each deal is classified as a ratio of company acquisi- 1996 - 5 11 110 89
tion (exit) price to total venture investment from all rounds. This chart compares the
number of deals in each category. An acquisition where deal price is less than the 1997 - 1 4 58 66
total venture investment (“<TVI”) clearly did not result in a good return. Four times 1998 - 6 3 50 17
the investment to 10 times the investment can be a good outcome. An acquisition
for more than 10 times venture investment is usually a nice outcome. 1999 1 28 46 181 22
2000 - 27 37 138 18
2001 - 5 7 18 6
2002 - - 7 15 2
2003 - - 2 22 2
2004 1 4 10 64 4
2005 1 4 7 35 13
2006 1 7 11 44 4
2007 1 15 16 57 3
2008 - 2 - 4 1
2009 - 3 4 6 -
2010 2 21 6 41 2
2011 2 17 13 19 2
2012 2 9 9 29 2
2013 1 13 12 50 5
* Count only includes IPOs with disclosed post-offer values

Fig. 4.16
Deal Value Ranges by Number of Companies
Year >$1B $500M-$1B $100M-$500M <$100M
1995 - 1 10 47
1996 1 2 17 56
1997 - 1 22 77
1998 - - 27 86
1999 2 12 58 84
2000 15 23 101 106
2001 3 4 43 125
2002 1 3 28 134
2003 - 2 29 103
2004 5 6 45 143
2005 1 3 58 139
2006 2 3 62 141
2007 1 15 74 112
2008 2 4 42 87
2009 - 8 34 68
2010 - 11 49 90
2011 1 12 63 93
2012 5 10 53 64
2013 3 8 45 39
* Count only includes transactions with disclosed values
Fig. 4.17
Venture-Backed US Company IPOs by Year by Country
2005 2006 2007 2008 2009 2010 2011 2012 2013 Total
Offer Offer Offer Offer Offer Offer Offer Offer Offer Offer
# Amt # Amt # Amt # Amt # Amt # Amt # Amt # Amt # Amt # Amt
Country Exits ($ Mil) Exits ($ Mil) Exits ($ Mil) Exits ($ Mil) Exits ($ Mil) Exits ($ Mil) Exits ($ Mil) Exits ($ Mil) Exits ($ Mil) Exits ($ Mil)
Argentina - - - - 1 332.8 - - - - - - - - - - - - 1 332.8
Bahamas - - 1 137.5 - - - - - - - - - - - - - - 1 137.5
Bermuda - - - - - - - - - - - - 1 621.3 - - - - 1 621.3
Canada 1 91.1 - - 1 57.5 - - - - - - - - - - - - 2 148.6
China 5 621.1 5 624.7 12 2,482.5 - - 2 220.0 21 2,838.3 8 1,739.7 2 165.7 4 556.3 59 9,248.2
France - - - - - - - - - - - - 1 77.0 - - 1 288.1 2 365.1
Hong Kong - - - - - - - - - - 1 103.3 - - - - - - 1 103.3
India - - - - - - - - - - 1 80.5 - - - - - - 1 80.5
Israel 2 67.5 1 78.0 - - - - - - - - - - - - 2 208.2 5 353.7
Netherlands - - - - - - - - - - - - 1 304.6 - - 1 89.7 2 394.3
Norway - - 1 43.8 - - - - - - - - - - - - - - 1 43.8
Russia - - 1 380.5 - - - - - - - - 1 1,434.8 - - - - 2 1,815.3
South Korea 2 190.8 1 144.1 - - - - - - - - - - - - - - 3 334.9
Taiwan 1 70.4 - - - - - - - - - - - - - - - - 1 70.4
United - - - - - - - - - - - - - - - - 1 74.0 1 74.0

Kingdom
United 48 4,072.5 57 5,655.9 77 9,466.5 7 765.026 11 1,759.8 47 4,752.3 39 6,512.1 47 21,294.2 72 9,852.0 405 64,130.4
States
*To be included in this chart, non-US based companies must be trading on a U.S. exchange/market and have at least 1 U.S. venture fund investor.

Fig. 4.18 Fig. 4.19

Ratio of IPO Pre-Money Valuation to Amount 2013 Venture-Backed IPOs Valuations as of IPOs
Invested Year Avg Val Max Upper Median Lower Min
Year Post Offer Offer Amt IPO Pre Total Ratio of ($ Mil) ($ Mil) Quartile ($ Mil) Quartile ($ Mil)
Value ($ Billion) Money Venture Inv. IPO ($ Mil) ($ Mil)
($ Billion) Valuation ($ Billion) 1995 152.0 2,128.6 144.8 104.2 61.4 10.4
1995 19.3 7.9 11.4 2.2 5.2 1996 239.6 9,989.8 183.4 111.6 65.2 9.5
1996 51.5 12.7 38.8 3.7 10.5 1997 148.1 1,106.3 161.1 99.3 57.2 6.6
1997 19.1 5.8 13.3 2.7 4.9 1998 324.4 4,623.9 288.0 163.9 106.9 7.1
1998 24.7 4.1 20.5 2.4 8.6 1999 531.9 10,203.2 537.0 303.7 186.7 5.9
1999 147.3 24.0 123.4 11.0 11.2 2000 494.5 4,227.7 550.7 325.4 185.0 1.7
2000 108.8 27.4 81.3 13.0 6.3 2001 534.2 3,464.1 617.7 326.6 158.6 46.6
2001 19.2 4.1 15.1 2.6 5.8 2002 346.7 822.4 537.8 266.2 175.6 36.8
2002 8.3 2.3 6.0 1.7 3.5 2003 285.1 821.9 353.2 251.9 171.2 41.9
2003 7.4 2.0 5.4 2.4 2.2 2004 613.0 23,053.7 389.2 254.1 152.3 21.6
2004 50.3 10.0 40.2 6.7 6.0 2005 672.9 22,422.9 392.2 201.9 136.6 4.6
2005 39.7 5.1 34.6 3.1 11.2 2006 1,077.6 39,248.4 529.2 283.2 179.9 70.9
2006 71.1 7.1 64.1 4.3 14.9 2007 749.5 14,035.4 762.8 364.7 274.1 50.0
2007 68.2 12.3 55.9 6.7 8.3 2008 520.7 1,443.1 713.2 278.5 210.7 75.8
2008 3.6 0.8 2.9 0.4 8.0 2009 707.1 1,622.0 852.5 547.9 313.0 212.9
2009 9.2 2.0 7.2 0.6 12.0 2010 1,642.6 23,725.8 1,419.9 428.1 222.7 23.4
2010 115.0 7.8 107.2 5.9 18.2 2011 1,856.0 16,465.6 1,496.6 606.3 336.2 94.8
2011 94.7 10.7 84.0 6.6 12.7 2012 2,493.2 81,247.2 704.0 371.0 247.3 75.2
2012 122.2 21.5 100.7 6.7 15.0 2013 783.8 14,435.1 587.8 354.1 212.7 42.9
2013 62.7 11.1 51.6 9.4 5.5
Note: To be included in this chart, non-US based companies must be

trading on a US exchange/market and have at least one US venture fund
investor.

GROWTH EQUITY INVESTMENTS

This edition of the NVCA Yearbook, prepared by Thomson Reuters, for the first time profiles US growth equity investment in its own chapter. The NVCA
believes growth equity investing is an important segment of the overall venture capital industry. Venture capitalists help create and grow companies;
growth equity investors are strongly focused on the growth component of that mission and help companies scale through fat part of their hiring curves.
The NVCA also believes that growth equity investing is a critical component of the emerging growth company financing continuum and has become,
in many respects, the private alternative to the public markets for both emerging growth companies and their earlier stage venture capital backers.
Growth equity really emerged as an asset class in 2000 and continues While still nascent in its application, our 2014 Yearbook methodology
strong today. In 2013, we identified 342 growth equity deals in the United for tagging growth equity transactions from the full venture capital/buy-
States. This compares with 406 in 2012, but is very much in line with out database bears some explanation. We expect these criteria to mature
the past several years. A disclosed $12.3 billion in equity investment was over time as we gain more experience defining the asset class. For now:
reported for 2013. This does not count the approximately 105 deals for • Date: 1/1/2000 and later
which no dollar equity amounts were disclosed. • Equity dollar amount invested: Zero (not disclosed) or more than$15
An analysis of the charts in this chapter helps profile the growth equity million
activity. Approximately 38% of disclosed equity dollars went to Califor- • Geographic location of company: United States
nia companies. This compares with 50% of traditional venture capital dol- ª Deal stage: expansion, later stage, acquisition for expansion, ac-
lars going to California companies. quisition, LBO, mezzanine, MBO, recap or turnaround, secondary
As with traditional venture capital, the sector receiving the most dol- buyout, secondary purchase
lars through the most deals is Software. By count, 148 of the 342 deals, • Firms investing: Must include at least one firm from a list of 65
or 43%, were into software companies. By contrast, no other MoneyTree known, active growth equity investors
sector garnered more than 10% of the total number of deals.
The definition of a growth equity company: It should also be noted that the dollar value of many of these growth
equity transactions are not disclosed, so therefore the dollar amounts re-
• Company’s revenues are growing rapidly ported in the charts will understate the amount of equity investment made
• Company is cash flow positive, profitable or approaching profit- by growth equity firms. For this chapter, we have excluded equity invest-
ability ment reported from $1 to $14.99 million, because growth equity deals
• Company is often founder-owned and/or managed tend to be larger in size.
• Investor is agnostic about taking a controlling position and usually Also, unlike traditional venture capital portfolio companies that enter
purchases minority ownership position the portfolios with smaller and earlier stage rounds and exit with an IPO,
• Industry investment mix is similar to that of earlier stage venture acquisition, or failure, growth equity-backed companies enter those port-
capital investors folios with more maturity, and, presumably, with a shorter track to liquid-
• Capital is used for company needs or shareholder liquidity ity.
• Additional financing rounds are not usually expected until exit
• Investments are unlevered or use light leverage at purchase
• Investment returns are primarily a function of growth, not leverage
Methodology
The growth equity asset class really emerged after the 2000 tech bubble.
Therefore, our statistics begin in 2000. These growth equity transactions
for the most part were already captured in the Thomson One database. But
they were, and still are, reported under the respective venture capital or
buyout categories. For purposes of this chapter, they are aggregated and
reported as if they were a standalone dataset.

Figure 5.01
Growth Equity Investments ($ Billions)
2000 to 2013*
30
25
20
($ Billions)
15
10
3
1
2
8
3
7
5
9
6
2
0
0
201
200
201
200
201
200
200
200
200
200
200
200
201
200
Year
Figure 5.02
Growth Equity Investments By Industry Sector
Financial Services Retailing/Distribution 1%

Business Products and Services 3% Telecommunications
1% 2%
Electronics/Instrumentation Semiconductors
1% Networking and Equipment
1% 1%
Healthcare Services
1%
Biotechnology
2%
Medical Devices and Equipment
2% Software
34%
IT Services
5%
Consumer Products and Services

6%
Industrial/Energy
8%

10%
Computers and Peripherals

21%

Fig. 5.03
Growth Equity Investments
By Company State*
State # Companies # Deals Amt. Invested ($Bil)
California 153 141 4,677.6
Texas 27 25 3,368.8
New York 35 33 1,060.6
Massachusetts 21 20 650.4
Georgia 11 10 300.3
Total* 247 229 10,057.8
*Total includes top 5 states only
Figure 5.04
Growth Equity Investments 2000-2013 By Industry ($ Millions)*
Industry 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Biotechnology 797.01 361 551 743 781 959 829 1,098 819 298 398 409 489 240
Business Products and 612.08 222 444 75 154 139 158 368 2,451 94 83 41 - 137
Services
Computers and 778.08 136 196 88 187 122 83 97 55 - 73 118 261 2,549
Peripherals
Consumer Products 839.55 186 221 176 739 61 1,224 448 93 228 442 987 924 747
and Services
Electronics/ 197.00 83 30 96 96 110 164 251 212 164 115 123 129 72
Instrumentation
Financial Services 1,304.76 224 66 296 672 914 464 316 482 249 1,904 94 198 410
Healthcare Services 221.88 48 99 175 270 145 149 274 129 383 194 287 161
Industrial/Energy 728.69 53 312 121 325 2,519 622 1,304 1,239 996 1,147 1,856 1,162 927
IT Services 2,678.90 595 323 71 178 3,700 528 785 814 670 457 1,151 685 666
Media and 2,007.22 607 215 458 589 297 487 1,020 713 1,061 1,127 1,848 794 1,277
Entertainment
Medical Devices and 395.22 571 482 240 447 485 531 1,050 875 469 963 1,217 284 290
Equipment
Networking and 4,240.43 2,500 1,226 570 532 654 414 590 268 176 441 199 696 100
Equipment
Other - - 46 - 130 266 - 350 306 - 52 - - -
Retailing/Distribution 860.80 79 193 - 55 103 - 207 107 44 30 392 154 143
Semiconductors 944.95 622 407 461 478 528 3,049 665 357 89 365 504 289 161
Software 6,409.81 2,298 825 1,011 2,079 1,471 2,526 1,358 3,034 1,058 1,316 3,645 3,695 4,229
Telecommunications 5,727.49 1,471 1,008 619 781 1,375 1,268 913 430 531 285 185 325 220
Total 28,743.86 10,055.40 6,643.83 5,200.68 8,490.98 13,848.92 12,493.56 11,094.65 12,384.40 6,127.02 9,579.65 12,961.99 10,370.76 12,329.17

Figure 5.05
Growth Equity Investments 2000-2013 By Industry (Number of Deals)*
Industry 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Biotechnology 22 11 16 22 32 30 25 37 32 12 17 13 18 14
Services
Computers and 12 4 6 3 8 5 4 6 2 3 7 7 9
Peripherals
Consumer Products 27 6 7 5 10 11 13 23 10 10 14 24 27 16
and Services
Electronics/ 6 1 1 3 4 4 6 10 7 5 6 5 6 3
Instrumentation
IT Services 76 24 15 6 12 17 27 54 43 33 33 53 35 33
Media and 65 15 4 13 17 12 23 32 35 27 30 35 41 31
Entertainment
Equipment
Networking and 80 63 32 25 21 23 16 21 14 8 20 11 8 3
Equipment
Other - - 1 - 4 5 4 11 4 1 1 - - -
Semiconductors 27 21 17 16 23 27 27 28 16 5 14 19 10 8
Software 203 86 42 32 62 58 64 83 87 57 91 117 168 148
Total 713 317 205 183 286 281 308 454 386 235 353 388 406 342

Figure 5.06
Growth Equity Investments 2000-2013 By MoneyTree Region ($ Millions)*
State 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Silicon Valley 11,021 2,966 1,852 1,347 1,988 2,121 2,060 2,849 3,385 2,675 3,396 5,207 4,151 4,062
Texas 1,968 1,072 594 522 1,246 1,048 3,121 738 521 101 432 1,974 332 3,369
NY Metro 2,342 808 320 270 920 3,415 1,404 1,233 815 455 750 1,274 679 1,112
New England 3,976 1,811 556 742 890 576 846 1,329 950 285 1,882 585 709 828
Southeast 1,773 426 674 571 478 481 2,127 464 1,293 828 644 365 581 656
LA/Orange County 1,421 417 284 323 630 658 1,036 1,076 651 200 659 1,398 1,149 496
DC/Metroplex 1,239 786 307 278 375 463 229 341 436 98 278 515 435 377
Midwest 1,163 428 862 210 375 253 320 645 272 362 588 849 555 377
SouthWest 197 89 153 30 480 128 217 727 212 55 60 181 345 255
Northwest 993 320 113 159 300 254 276 427 134 243 420 105 394 219
North Central 310 96 20 113 153 160 109 123 2,409 70 56 - 68 181
San Diego 404 229 137 119 182 277 441 286 241 233 106 198 98 120
Philadelphia Metro 453 212 416 287 261 3,674 139 345 234 218 229 94 143 109
South Central 42 36 - - - 45 - - - 150 17 35 173 83
Colorado 1,232 331 138 230 126 245 139 446 831 154 38 105 560 70
Upstate NY - - 190 - 85 - 30 47 - - 24 63 - 16
AK/HI/PR 190 - - - - - - - - - - - - -
Sacramento/N.Cal 19 30 27 - - 50 - 19 - - - 16 - -
Total 28,743 10,055 6,644 5,201 8,491 13,849 12,494 11,095 12,384 6,126 9,580 12,963 10,371 12,329

Figure 5.07
Growth Equity Investments 2000-2013 By MoneyTree Region (Number of Deals)*
State 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Silicon Valley 274 98 69 53 85 82 83 121 141 70 136 144 143 125
NY Metro 44 23 10 12 16 30 32 49 36 25 36 49 41 41
Southeast 38 15 21 17 18 20 25 29 30 19 22 19 22 28
Texas 46 33 16 18 24 15 23 33 24 16 25 29 21 27
LA/Orange County 38 12 13 8 15 21 26 39 24 11 26 27 26 25
New England 108 57 22 32 40 28 32 53 32 21 19 30 33 25
Midwest 29 11 9 8 13 9 19 33 17 17 21 27 37 17
DC/Metroplex 38 22 11 6 19 15 13 21 21 12 18 17 22 11
SouthWest 6 3 5 2 12 7 8 10 9 6 5 2 13 10
Colorado 16 6 4 4 4 6 5 14 9 7 9 6 10 7
North Central 12 4 3 5 6 8 4 7 9 5 8 2 6 7
Northwest 30 11 6 5 16 11 11 12 10 9 11 12 14 7
Philadelphia Metro 16 9 6 7 9 13 12 13 14 8 7 12 9 5
San Diego 13 9 6 6 7 13 10 12 8 8 6 7 4 3
South Central 3 2 - - - 1 3 2 1 1 3 2 3 3
Upstate NY - - 2 - 2 1 1 2 - - 1 2 - 1
AK/HI/PR 1 1 - - - - - 2 1 - - - - -
Sacramento/N.Cal 1 1 2 - - 1 1 2 - - - 1 2 -
Total 713 317.0 205.0 183.0 286.0 281.0 308.0 454.0 386.0 235.0 353.0 388.0 406.0 342.0
*Data used for the Growth Equity charts is based on the following criteria: The investment dollar totals include investments in US-based companies
that are relevant to Growth Equity (Expansion, Later Stage, Acq. for Expansion, Acquisition, LBO, Mezzanine, MBO, Recap or Turnaround, Second-
ary Buyout, Secondary Purchase), with a total equity investment amount of $15 million and up, and participation from at least one firm classified as a
Growth Equity investor. Participating firms include the following: 3i, 3i Group PLC, ABS Capital Partners, Inc., Accel Partners & Co Inc, Adams Street
Partners LLC, Andreessen Horowitz LLC, Apax Partners LLP, Austin Ventures LP, Bain Capital Venture Partners LLC, Battery Ventures LP, Bessemer
Venture Partners LP, Bregal Capital LLP, Carrick Capital Management Company LLC, Catalyst Investors LLC, Catterton Partners Corp, Chicago
Growth Partners, Columbia Capital, Columbia Capital Group, Inc., Edison Ventures, Francisco Partners LP, Frazier Healthcare, FTV Capital, General
Atlantic LLC, General Catalyst Partners LLC, GGV Capital, Great Hill Equity Partners LLC, Highland Capital Partners LLC, Insight Venture Partners
LLC, Institutional Venture Partners, JMI Equity, Kennet Venture Partners Ltd, Kleiner Perkins Caufield & Byers LLC, Level Equity, LLR Partners Inc,
M/C Partners, Mainsail Partners LP, Meritech Capital Partners, New Enterprise Associates, Inc., Newspring Capital, Noro-Moseley Partners, North
Bridge Venture Partners L P, Norwest Venture Partners, Oak Investment Partners, Pine Brook Road Partners LLC, Polaris Partners, Redpoint Ventures,
Rho Capital Partners Inc, Sequoia Capital, Serent Capital LLC, Silver Lake Partners LP, Spectrum Equity, Stripes Group LLC, Summit Partners LP,
Susquehanna Growth Equity LLC, Symmetric Capital, TA Associates Management, L.P., Trident Capital, Updata Partners, Volition Capital LLC,
Weston Presidio Capital, WestView Capital Partners, Duff Ackerman & Goodrich LLC, Draper Fisher Jurvetson International Inc, Draper Fisher Jur-
vetson Gotham Venture Partners, Draper Fisher Jurvetson New England (AKA DFJ/NE), Technology Crossover Ventures, Revolution Ventures LLC,
Element Partners, Riveria Investment Group. Company and deal counts include ‘Growth Equity’ transactions with disclosed and undisclosed equity
investment totals.

APPENDIX A
Glossary
“A” round – a financing event whereby angel groups and / or financing. Subsequent rounds are called “C”, “D” and so on.
venture capitalists become involved in a fast growth company that
was previously financed by founders and their friends and families. Basis point (“bp”) – one one-hundredth (1/100) of a percentage
unit. For example, 50 basis points equals one half of one percent.
Accredited investor – a person or legal entity, such as a company Banks quote variable loan rates in terms of an index plus a margin
or trust fund, that meets certain net worth and income qualifications and the margin is often described in basis points, such as LIBOR
and is considered to be sufficiently sophisticated to make investment plus 400 basis points (or, as the experts say, “beeps”).
decisions in private offerings. Regulation D of the Securities Act of
1933 exempts accredited investors from protection of the Securities Beta – a measure of volatility of a public stock relative to an index
Act. The Securities and Exchange Commission has proposed or a composite of all stocks in a market or geographical region.
revisions to the accredited investor qualifying rules, which may or A beta of more than one indicates the stock has higher volatility
may not result in changes for venture investors. The current criteria than the index (or composite) and a beta of one indicates volatility
for a natural person are: $1 million net worth or annual income equivalent to the index (or composite). For example, the price of
exceeding $200,000 individually or $300,000 with a spouse. a stock with a beta of 1.5 will change by 1.5% if the index value
Directors, general partners and executive officers of the issuer are changes by 1%. Typically, the S&P500 index is used in calculating
considered to be accredited investors. the beta of a stock.
Alternative asset class – a class of investments that includes Beta product – a product that is being tested by potential customers
venture capital, leverage buyouts, hedge funds, real estate, and oil prior to being formally launched into the marketplace.
and gas, but excludes publicly traded securities. Pension plans,
college endowments and other relatively large institutional investors Board of directors – a group of individuals, typically composed of
typically allocate a certain percentage of their investments to managers, investors and experts who have a fiduciary responsibility
alternative assets with an objective to diversify their portfolios. for the well being and proper guidance of a corporation. The board
is elected by the shareholders.
Alpha – a term derived from statistics and finance theory that is
used to describe the return produced by a fund manager in excess of Book – see Private placement memorandum.
the return of a benchmark index. Manager returns and benchmark
returns are measured net of the risk-free rate. In addition, manager Bootstrapping – the actions of a startup to minimize expenses and
returns are adjusted for the risk of the manager’s portfolio relative to build cash flow, thereby reducing or eliminating the need for outside
the risk of the benchmark index. Alpha is a proxy for manager skill. investors.
Angel – a wealthy individual that invests in companies in relatively Bp – see Basis point.
early stages of development. Usually angels invest less than $1
million per startup. Bridge financing – temporary funding that will eventually be
replaced by permanent capital from equity investors or debt lenders.
Anti-dilution – a contract clause that protects an investor from a In venture capital, a bridge is usually a short term note (6 to 12
substantial reduction in percentage ownership in a company due to months) that converts to preferred stock. Typically, the bridge lender
the issuance by the company of additional shares to other entities. has the right to convert the note to preferred stock at a price that is
The mechanism for making an adjustment that maintains the same a 20% to 25% discount from the price of the preferred stock in the
percentage ownership is called a Full Ratchet. The most commonly next financing round. See Mezzanine and Wipeout bridge.
used adjustment provides partial protection and is called Weighted
Average. Broad-based weighted average anti-dilution – A weighted
average anti-dilution method adjusts downward the price per
“B” round – a financing event whereby investors such as venture share of the preferred stock of investor A due to the issuance of
capitalists and organized angel groups are sufficiently interested new preferred shares to new investor B at a price lower than the
in a company to provide additional funds after the “A” round of price investor A originally received. Investor A’s preferred stock is

repriced to a weighted average of investor A’s price and investor Capital gap – the difficulty faced by some entrepreneurs in trying to
B’s price. A broad-based anti-dilution method uses all common raise between $2 million and $5 million. Friends, family and angel
stock outstanding on a fully diluted basis (including all convertible investors are typically good sources for financing rounds of less than
securities, warrants and options) in the denominator of the formula $2 million, while many venture capital funds have become so large
for determining the new weighted average price. See Narrow-based that investments in this size range are difficult.
weighted average anti-dilution.
Capitalization table – a table showing the owners of a company’s
Burn rate – the rate at which a startup with little or no revenue uses shares and their ownership percentages as well as the debt holders.
available cash to cover expenses. Usually expressed on a monthly It also lists the forms of ownership, such as common stock, preferred
or weekly basis. stock, warrants, options, senior debt, and subordinated debt.
Business Development Company (BDC) – a publicly traded Capital gains – a tax classification of investment earnings resulting
company that invests in private companies and is required by from the purchase and sale of assets. Typically, a company’s
law to provide meaningful support and assistance to its portfolio investors and founders have earnings classified as long term capital
companies. gains (held for a year or longer), which are taxed at a lower rate than
ordinary income.
Business plan – a document that describes a new concept for
a business opportunity. A business plan typically includes the Capital stock – a description of stock that applies when there is only
following sections: executive summary, market need, solution, one class of shares. This class is known as “common stock”.
technology, competition, marketing, management, operations, exit
strategy, and financials (including cash flow projections). For most Capital Under Management – A frequently-used metric for sizing
venture capital funds fewer than 10 of every 100 business plans total funds managed by a venture capital or buyout firm. In practice,
received eventually receive funding. there are several ways of calculating this. In the US, this is the
total committed capital for all funds managed by a firm on which it
Buyout – a sector of the private equity industry. Also, the purchase collects management fees. This calculation ignores whether portions
of a controlling interest of a company by an outside investor (in a of the committed capital have not yet been called and whether
leveraged buyout) or a management team (in a management buyout). portions of the fund have been liquidated and distributed. It typically
does not include aging funds in their “out years” on which fees are
Buy-sell agreement – a contract that sets forth the conditions under not being collected. For purposes of this book in calculating capital
which a shareholder must first offer his or her shares for sale to the managed in figure 1.04, because direct data is not available, the last
other shareholders before being allowed to sell to entities outside eight vintage years of capital commitments is considered a proxy for
the company. the industry’s total capital under management.
C Corporation – an ownership structure that allows Capped participating preferred stock – preferred stock whose
any number of individuals or companies to own shares. A C participating feature is limited so that an investor cannot receive
corporation is a stand-alone legal entity so it offers some protection more than a specified amount. See Participating preferred stock.
to its owners, managers and investors from liability resulting from
its actions. Carried interest – the share in the capital gains of a venture capital
fund which is allocated to the General Partner. Typically, a fund must
Capital Asset Pricing Model (CAPM) – a method of estimating return the capital given to it by limited partners plus any preferential
the cost of equity capital of a company. The cost of equity capital rate of return before the general partner can share in the profits of
is equal to the return of a risk-free investment plus a premium that the fund. The general partner will typically receive a 20% carried
reflects the risk of the company’s equity. interest, although some successful firms receive 25%-30%. Also
known as “carry” or “promote.”
Capital call – when a private equity fund manager (usually a
“general partner” in a partnership) requests that an investor in the Clawback – a clause in the agreement between the general partner
fund (a “limited partner”) provide additional capital. Usually a and the limited partners of a private equity fund. The clawback gives
limited partner will agree to a maximum investment amount and the limited partners the right to reclaim a portion of disbursements to a
general partner will make a series of capital calls over time to the general partner for profitable investments based on significant losses
limited partner as opportunities arise to finance startups and buyouts. from later investments in a portfolio.

Closing – the conclusion of a financing round whereby all necessary stock automatically converts to common stock if the company
legal documents are signed and capital has been transferred. makes an initial public offering (IPO). Convertible preferred is the
most common tool for private equity funds to invest in companies.
Club deal – the act of investing by two or more entities in the same
target company, usually involving a leveraged buyout transaction. Co-sale right – a contractual right of an investor to sell some of the
investor’s stock along with the founder’s or majority shareholder’s
Co-investment – the direct investment by a limited partner alongside stock if either the founder or majority shareholder elects to sell stock
a general partner in a portfolio company. to a third-party. Also known as Tag-along right.
Collateral – hard assets of the borrower, such as real Cost of capital – see Weighted average cost of capital.
estate or equipment, for which a lender has a legal interest until a
loan obligation is fully paid off. Cost of revenue – the expenses generated by the core operations of
a company.
Commitment – an obligation, typically the maximum amount that a
limited partner agrees to invest in a fund. See Capital call. Covenant – a legal promise to do or not do a certain
thing. For example, in a financing arrangement, company
Common stock – a type of security representing ownership rights management may agree to a negative covenant,
in a company. Usually, company founders, management and whereby it promises not to incur additional debt. The
employees own common stock while investors own preferred stock. penalties for violation of a covenant may vary from repairing the
In the event of a liquidation of the company, the claims of secured mistake to losing control of the company.
and unsecured creditors, bondholders and preferred stockholders
take precedence over common stockholders. See Preferred stock. Coverage ratio – describes a company’s ability to pay debt from
cash flow or profits. Typical measures are EBITDA/Interest,
Comparable – a private or public company with similar (EBITDA minus Capital Expenditures)/Interest, and EBIT/Interest.
characteristics to a private or public company that is being valued.
For example, a telecommunications equipment manufacturer whose Cram down round – a financing event upon which new investors
market value is 2 times revenues can be used to estimate the value with substantial capital are able to demand and receive contractual
of a similar and relatively new company with a new product in the terms that effectively cause the issuance of sufficient new shares by
same industry. See Liquidity discount. the startup company to significantly reduce (“dilute”) the ownership
percentage of previous investors.
Control – the authority of an individual or entity that
owns more than 50% of equity in a company or owns the largest Cumulative dividends – the owner of preferred stock with
block of shares compared to other shareholders. cumulative dividends has the right to receive accrued (previously
unpaid) dividends in full before dividends are paid to any other
Consolidation – see Rollup. classes of stock.
Conversion – the right of an investor or lender to force a company Current ratio – the ratio of current assets to current liabilities.
to replace the investor’s preferred shares or the lender’s debt with
common shares at a preset conversion ratio. A conversion feature Data room – a specific location where potential buyers / investors
was first used in railroad bonds in the 1800’s. can review confidential information about a target company. This
information may include detailed financial statements, client
Convertible debt – a loan which allows the lender to contracts, intellectual property, property leases, and compensation
exchange the debt for common shares in a company at a preset agreements.
conversion ratio. Also known as a “convertible note.”
Deal flow – a measure of the number of potential investments that a
Convertible preferred stock – a type of stock that gives an owner fund reviews in any given period.
the right to convert to common shares of stock. Usually, preferred
stock has certain rights that common stock doesn’t have, such Defined benefit plan – a company retirement plan in which the
as decision-making management control, a promised return on benefits are typically based on an employee’s salary and number of
investment (dividend), or senior priority in receiving proceeds from years worked. Fixed benefits are paid after the employee retires. The
a sale or liquidation of the company. Typically, convertible preferred employer bears the investment risk and is committed to providing

the benefits to the employee. Defined benefit plan managers can board of directors, to owners of preferred stock.
invest in private equity funds.
Down round – a round of financing whereby the valuation of the
Defined contribution plan – a company retirement plan in which company is lower than the value determined by investors in an
the employee elects to contribute some portion of his or her salary earlier round.
into a retirement plan, such as a 401(k) or 403(b). The employer
may also contribute to the employee’s plan. With this type of plan, Drag-along rights – the contractual right of an investor in a
the employee bears the investment risk. The benefits depend solely company to force all other investors to agree to a specific action,
on the amount of money made from investing the employee’s such as the sale of the company.
contributions.
Drawdown schedule – an estimate of the gradual transfer of
Demand rights – a type of registration right. Demand rights give an committed investment funds from the limited partners of a private
investor the right to force a startup to register its shares with the SEC equity fund to the general partners.
and prepare for a public sale of stock (IPO).
Due diligence – the investigatory process performed by investors to
Dilution – the reduction in the ownership percentage of current assess the viability of a potential investment and the accuracy of the
investors, founders and employees caused by the issuance of new information provided by the target company.
shares to new investors.
Dutch auction – a method of conducting an IPO where-by newly
Dilution protection – see Anti-dilution and Full ratchet. issued shares of stock are committed to the highest bidder, then, if
any shares remain, to the next highest bidder, and so on until all
Direct secondary transaction – A transaction in which the buyer the shares are committed. Note that the price per share paid by all
purchases shares of an operating company from an existing seller. buyers is the price commitment of the buyer of the last share.
While the transaction is a secondary sale of shares, the transacted
interest is a primary issue purchase directly into an operating Early stage – the state of a company after the seed (formation)
company. Sellers are often venture capitalists selling their ownership stage but before middle stage (generating revenues). Typically, a
stake in a portfolio company. Buyers are often funds that specialize company in early stage will have a core management team and a
in such investments. proven concept or product, but no positive cash flow.
Disbursement – an investment by a fund in a company. Earnings before interest and taxes (EBIT) – a measurement of the
operating profit of a company. One possible valuation methodology
Discount rate – the interest rate used to determine the present value is based on a comparison of private and public companies’ value as
of a series of future cash flows. a multiple of EBIT.
Discounted cash flow (DCF) – a valuation methodology whereby Earnings before interest, taxes, depreciation and amortization
the present value of all future cash flows expected from a company (EBITDA) – a measurement of the cash flow of a company. One
is calculated. possible valuation methodology is based on a comparison of private
and public companies’ value as a multiple of EBITDA.
Distressed debt – the bonds of a company that is either in or
approaching bankruptcy. Some private equity funds specialize Earn out – an arrangement in which sellers of a business receive
in purchasing such debt at deep discounts with the expectation of additional future payments, usually based on financial performance
exerting influence in the restructuring of the company and then metrics such as revenue or net income.
selling the debt once the company has meaningfully recovered.
Elevator pitch – a concise presentation, lasting only a few minutes
Distribution – the transfer of cash or securities to a limited partner (an elevator ride), by an entrepreneur to a potential investor about an
resulting from the sale, liquidation or investment opportunity.
IPO of one or more portfolio companies in which a general partner
chose to invest. Employee Stock Ownership Program (ESOP) – a plan established
by a company to reserve shares for employees.
Dividends – payments made by a company to the owners of certain
securities. Typically, dividends are paid quarterly, by approval of the Entrepreneur – an individual who starts his or her own business.

Entrepreneurship – the application of innovative leadership to rate used is the cost of equity.
limited resources in order to create exceptional value.
Free cash flow to the firm (FCFF) – the operating cash flow
Enterprise Value (EV) – the sum of the market values of the available after operating expenses, taxes, reinvestment needs and
common stock and long term debt of a company, minus excess cash. changes in working capital, but before any interest payments on
Equity – the ownership structure of a company represented by debt are made. In a discounted cash flow model to determine the
common shares, preferred shares or unit interests. Equity = Assets enterprise value of a firm using FCFF, the discount rate used is the
– Liabilities. weighted average cost of capital (WACC).
ESOP – see Employee Stock Ownership Program. Friends and family financing – capital provided by the friends
and family of founders of an early stage company. Founders should
Evergreen fund – a fund that reinvests its profits in order to ensure be careful not to create an ownership structure that may hinder the
the availability of capital for future investments. participation of professional investors once the company begins to
achieve success.
Exit strategy – the plan for generating profits for owners and
investors of a company. Typically, the options are to merge, be Full ratchet – an anti-dilution protection mechanism whereby
acquired or make an initial public offering (IPO). An alternative is the price per share of the preferred stock of investor A is adjusted
to recapitalize (releverage the company and then pay dividends to downward due to the issuance of new preferred shares to new investor
shareholders). B at a price lower than the price investor A originally received.
Investor A’s preferred stock is repriced to match the price of investor
Expansion stage – the stage of a company characterized by a B’s preferred stock. Usually as a result of the implementation of
complete management team and a substantial increase in revenues. a ratchet, company management and employees who own a fixed
amount of common shares suffer significant dilution. See Narrow-
Fair value – a financial reporting principle for valuing assets and based weighted average anti-dilution and Broad-based weighted
liabilities, for example, portfolio companies in venture capital fund average anti-dilution.
portfolio. In 2008, more defined rules took effect. See FAS 157.
Fully diluted basis – a methodology for calculating any per share
Fairness opinion – a letter issued by an investment bank that ratios whereby the denominator is the total number of shares issued
charges a fee to assess the fairness of a negotiated price for a merger by the company on the assumption that all warrants and options are
or acquisition. exercised and preferred stock.
FAS 157 – the original designation of an accounting Fund-of-funds – a fund created to invest in private equity funds.
standard effective in 2008 for private companies for the fair Typically, individual investors and relatively small institutional
value measurement of portfolio holdings. Literally, “Financial investors participate in a fund-offunds to minimize their portfolio
Accounting Standard number 157,” this standard is now officially management efforts.
Accounting Standard Codification Topic 820 (“ASC 820”) but
it is more widely known by its original name. In 2013-2014, the Gatekeepers – intermediaries which endowments, pension funds
Financial Accounting Foundation conducted a post-implementation and other institutional investors use as advisors regarding private
review of this standard to determine if it is working as intended. equity investments.
First refusal – the right of a privately owned company to purchase General partner (GP) – a class of partner in a partnership. The
any shares that employees would like to sell. general partner retains liability for the actions of the partnership.
Historically, venture capital and buyout funds have been structured
Founders stock – nominally priced common stock issued to as limited partnerships, with the venture firm as the GP and limited
founders, officers, employees, directors, and consultants. partners (LPs) being the institutional and high net worth investors
that provide most of the capital in the partnership. The GP earns a
Free cash flow to equity (FCFE) – the cash flow available after management fee and a percentage of gains (see Carried interest).
operating expenses, interest payments on debt, taxes, net principal
repayments, preferred stock dividends, reinvestment needs and GP – see General partner.
changes in working capital. In a discounted cash flow model to
determine the value of the equity of a firm using FCFE, the discount GP for hire – In a spin-out or a synthetic secondary, a GP for hire

refers to the professional investor who may be hired by a purchasing to impress potential investors.
firm to manage the new fund created from the orphaned assets
purchased. In past cases, the GP has often expanded its role to Holding period – amount of time an investment remains in a
fundraise for and run new funds aside from the initial fund. portfolio.
Going-private transaction – when a public company chooses to Hot issue – stock in an initial public offering that is in high demand.
pay off all public investors, delist from all stock exchanges, and
become owned by management, employees, and select private Hot money – capital from investors that have no tolerance for lack
investors. of results by the investment manager and move quickly to withdraw
at the first sign of trouble.
Golden handcuffs – financial incentives that discourage founders
and / or important employees from leaving a company before a Hurdle rate – a minimum rate of return required before an investor
predetermined date or important milestone. will make an investment.
Grossing up – an adjustment of an option pool for management Incorporation – the process by which a business receives a state
and employees of a company which increases the number of shares charter, allowing it to become a corporation. Many corporations
available over time. This usually occurs after a financing round choose Delaware because its laws are business-friendly and up to date.
whereby one or more investors receive a relatively large percentage
of the company. Without a grossing up, managers and employees Incubator – a company or facility designed to host startup
would suffer the financial and emotional consequences of dilution, companies. Incubators help startups grow while controlling costs by
thereby potentially affecting the overall performance of the company. offering networks of contacts and shared backoffice resources.
Growth stage – the state of a company when it has received one or Indenture – the terms and conditions between a bond issuer and
more rounds of financing and is generating revenue from its product bond buyers.
or service. Also known as “middle stage.”
Initial public offering (IPO) – the first offering of stock by a
Hart-Scott-Rodino Act – a law requiring entities that acquire certain company to the public. New public offerings must be registered
amounts of stock or assets of a company to inform the Federal Trade with the Securities and Exchange Commission. An IPO is one of
Commission and the Department of Justice and to observe a waiting the methods that a startup that has achieved significant success can
period before completing the transaction. use to raise additional capital for further growth. See Qualified IPO.
Hedge fund – an investment fund that has the ability to use In-kind distribution – a distribution to limited partners of a private
leverage, take short positions in securities, or use a variety of equity fund that is in the form of publicly trades shares rather than
derivative instruments in order to achieve a return that is relatively cash.
less correlated to the performance of typical indices (such as the
S&P 500) than traditional long-only funds. Hedge fund managers Inside round – a round of financing in which the investors are
are typically compensated based on assets under management as the same investors as the previous round. An inside round raises
well as fund performance. liability issues since the valuation of the company has no third
party verification in the form of an outside investor. In addition, the
High yield debt – debt issued via public offering or public terms of the inside round may be considered self-dealing if they are
placement (Rule 144A) that is rated below investment grade by S&P onerous to any set of shareholders or if the investors give themselves
or Moody’s. This means that the debt is rated below the top four additional preferential rights.
rating categories (i.e. S&P BB+, Moody’s Ba2 or below). The lower
rating is indicative of higher risk of default, and therefore the debt Institutional investor – professional entities that invest capital on
carries a higher coupon or yield than investment grade debt. Also behalf of companies or individuals. Examples are: pension plans,
referred to as Junk bonds or Sub-investment grade debt. insurance companies and university endowments.
Hockey stick – the general shape and form of a chart showing Intellectual property (IP) – knowledge, techniques, writings and
revenue, customers, cash or some other financial or operational images that are intangible but often protected by law via patents,
measure that increases dramatically at some point in the future. copyrights, and trademarks.
Entrepreneurs often develop business plans with hockey stick charts Interest coverage ratio – earnings before interest and taxes (EBIT)

divided by interest expense. This is a key ratio used by lenders to as a “Term Sheet”.
assess the ability of a company to produce sufficient cash to pay its
debt obligation. Leverage – the use of debt to acquire assets, build operations and
increase revenues. By using debt, a company is attempting to achieve
Internal rate of return (IRR) – the interest rate at which a certain results faster than if it only used its cash available from pre-leverage
amount of capital today would have to be invested in order to grow operations. The risk is that the increase in assets and revenues does
to a specific value at a specific time in the future. not generate sufficient net income and cash flow to pay the interest
costs of the debt.
Investment thesis / Investment philosophy – the fundamental
ideas which determine the types of investments that an investment Leveraged buyout (LBO) – the purchase of a company or a
fund will choose in order to achieve its financial goals. business unit of a company by an outside investor using mostly
borrowed capital.
IPEV – Stands for International Private Equity Valuation guidelines
group. This group is made up of representatives of the international Leveraged recapitalization – the reorganization of a company’s
and US venture capital industry and has published guidelines for capital structure resulting in more debt added to the balance sheet.
applying US GAAP and international IFRS valuation rules. See Private equity funds can recapitalize a portfolio company and then
www.privateequityvaluation.com. Widely regarded in the US as the direct the company to issue a one-time dividend to equity investors.
global successor to the US-focused PEIGG group. This is often done when the company is performing well financially
and the debt markets are expanding.
IPO – see Initial public offering.
Leverage ratios – measurements of a company’s debt as a multiple
IRR – see Internal rate of return. of cash flow. Typical leverage ratios include Total Debt / EBITDA,
Total Debt / (EBITDA minus Capital Expenditures), and Seniore
Issuer – the company that chooses to distribute a portion of its stock Debt / EBITDA.
to the public.
L.I.B.O.R. – see The London Interbank Offered Rate.
J curve – a concept that during the first few years of a private equity
fund, cash flow or returns are negative due to investments, losses, License – a contract in which a patent owner grants to a company the
and expenses, but as investments produce results the cash flow or right to make, use or sell an invention under certain circumstances
returns trend upward. A graph of cash flow or returns versus time and for compensation.
would then resemble the letter “J”.
Limited liability company (LLC) – an ownership structure
Later stage – the state of a company that has proven its concept, designed to limit the founders’ losses to the
achieved significant revenues compared to its competition, and is amount of their investment. An LLC itself does not pay taxes, rather
approaching cash flow break even or positive net income. Typically, its owners pay taxes on their proportion of the LLC profits at their
a later stage company is about 6 to 12 months away from a liquidity individual tax rates.
event such as an IPO or buyout. The rate of return for venture
capitalists that invest in later stage, less risky ventures is lower than Limited partnership – a legal entity composed of a general partner and
in earlier stage ventures. various limited partners. The general partner manages the investments
and is liable for the actions of the partnership while the limited partners
LBO – see Leveraged buyout. are generally protected from legal actions and any losses beyond their
original investment. The general partner collects a management fee
Lead investor – the venture capital investor that makes the largest and earns a percentage of capital gains (see Carried interest), while the
investment in a financing round and manages the documentation and limited partners receive income, capital gains and tax benefits.
closing of that round. The lead investor sets the price per share of the
financing round, thereby determining the valuation of the company. Limited partner (LP) – an investor in a limited partnership. The
general partner is liable for the actions of the partnership while the
Letter of intent – a document confirming the intent of an investor limited partners are generally protected from legal actions and any
to participate in a round of financing for a company. By signing this losses beyond their original investment. The limited partner receives
document, the subject company agrees to begin the legal and due income, capital gains and tax benefits.
diligence process prior to the closing of the transaction. Also known

Liquidation – the sale of a company. This may occur in the context Market capitalization – the value of a publicly traded company as
of an acquisition by a larger company or in the context of selling off determined by multiplying the number of shares outstanding by the
all assets prior to cessation of operations (Chapter 7 bankruptcy). current price per share.
In a liquidation, the claims of secured and unsecured creditors,
bondholders and preferred stockholders take precedence over MBO – see Management buyout.
common stockholders.
Mezzanine – a layer of financing that has intermediate priority
Liquidation preference – the contractual right of an investor to (seniority) in the capital structure of a company. For example,
priority in receiving the proceeds from the mezzanine debt has lower priority than senior debt but usually has a
liquidation of a company. For example, a venture capital investor higher interest rate and often includes warrants. In venture capital, a
with a “2x liquidation preference” has the right to receive two times mezzanine round is generally the round of financing that is designed
its original investment upon liquidation. to help a company have enough resources to reach an IPO. See
Bridge financing.
Liquidity discount – a decrease in the value of a private company
compared to the value of a similar but publicly traded company. MoneyTree™ Report – Officially known as The MoneyTree Report
Since an investor in a private company cannot readily sell his or her from PricewaterhouseCoopers and the National Venture Capital
investment, the shares in the private company must be valued less Association based on data provided by Thomson Reuters. This report
than a comparable public company. provides much of the data in this report. It is used for investment
statistics in United States based companies. Specific definition
Liquidity event – a transaction whereby owners of a significant information is available in several of the appendices of this Yearbook.
portion of the shares of a private company sell their shares in
exchange for cash or shares in another, usually larger company. For Multiples – a valuation methodology that compares public and
example, an IPO is a liquidity event. private companies in terms of a ratio of value to an operations figure
such as revenue or net income. For example, if several publicly
Lock-up agreement – investors, management and employees often traded computer hardware companies are valued at approximately
agree not to sell their shares for a specific time period after an IPO, 2 times revenues, then it is reasonable to assume that a startup
usually 6 to 12 months. By avoiding large sales of its stock, the computer hardware company that is growing fast has the potential to
company has time to build interest among potential buyers of its achieve a valuation of 2 times its revenues. Before the startup issues
shares. its IPO, it will likely be valued at less than 2 times revenue because
of the lack of liquidity of its shares. See Liquidity discount.
London Interbank Offered Rate (L.I.B.O.R.) – the average rate
charged by large banks in London for loans to each other. LIBOR is Narrow-based weighted average anti-dilution – a type of anti-
a relatively volatile rate and is typically quoted in maturities of one dilution mechanism. A weighted average
month, three months, six months and one year. anti-dilution method adjusts downward the price per share of the
preferred stock of investor A due to the issuance of new preferred
Management buyout (MBO) – a leveraged buyout controlled by shares to new investor B at a price lower than the price investor
the members of the management team of a company or a division. A originally received. Investor A’s preferred stock is repriced to
Often an MBO is conducted in partnership with a buyout fund. a weighed average of investor A’s price and investor B’s price. A
narrow-based anti-dilution uses only common stock outstanding in
Management fee – a fee charged to the limited partners in a fund the denominator of the formula for determining the new weighted
by the general partner. Management fees in a private equity fund average price.
usually range from 0.75% to 3% of capital under management,
depending on the type and size of fund. For venture capital funds, NDA – see Non-disclosure agreement.
2% is typical.
No-shop clause – a section of an agreement to purchase a company
Management rights – the rights often required by a venture whereby the seller agrees not to market the company to other
capitalist as part of the agreement to invest in a company. The potential buyers for a specific time period.
venture capitalist has the right to consult with management on key
operational issues, attend board meetings and review information Non-cumulative dividends – dividends that are payable to owners
about the company’s financial situation. of preferred stock at a specific point in time only if there is sufficient
cash flow available after all company expenses have been paid. If

cash flow is insufficient, the owners of the preferred stock will not Participating preferred stock – a unit of ownership composed of
receive the dividends owed for that time period and will have to wait preferred stock and common stock. The preferred stock entitles the
until the board of directors declares another set of dividends. owner to receive a predetermined sum of cash (usually the original
investment plus accrued dividends) if the company is sold or has an
Non-interference – an agreement often signed by employees and IPO. The common stock represents additional continued ownership
management whereby they agree not to interfere with the company’s in the company.
relationships with employees, clients, suppliers and sub-contractors
within a certain time period after termination of employment. PEIGG – acronym for Private Equity Industry Guidelines
Group, an ad hoc group of individuals and firms involved in the
Non-solicitation – an agreement often signed by employees and private equity industry for the purpose of establishing valuation
management whereby they agree not to solicit other employees of and reporting guidelines. With the implementation of FAS 157 in
the company regarding job opportunities. 2008, the group’s mission was essentially complete. Several of its
members then joined IPEV, which is viewed by US VCs as the
Non-disclosure agreement (NDA) – an agreement issued by international successor to PEIGG.
entrepreneurs to protect the privacy of their
ideas when disclosing those ideas to third parties. Piggyback rights – rights of an investor to have his or her shares
included in a registration of a startup’s shares in preparation for an
Offering memorandum – a legal document that provides details IPO.
of an investment to potential investors. See Private placement
memorandum. PIK dividend – a dividend paid to the holder of a stock, usually
preferred stock, in the form of additional stock rather than cash. PIK
OID – see Original issue discount. refers to payment in kind.
Operating cash flow – the cash flow produced from the operation PIPEs – see Private investment in public equity.
of a business, not from investing activities (such as selling assets)
or financing activities (such as issuing debt). Calculated as net Placement agent – a company that specializes in finding institutional
operating income (NOI) plus depreciation. investors that are willing and able to invest in a private equity fund.
Sometimes a private equity fund will hire a placement agent so the
Option pool – a group of options set aside for long term, phased fund partners can focus on making and managing investments in
compensation to management and employees. companies rather than on raising capital.
Outstanding shares – the total amount of common shares of a Portfolio company – a company that has received an
company, not including treasury stock, convertible preferred stock, investment from a private equity fund.
warrants and options.
Post-money valuation – the valuation of a company including the
Pay to play – a clause in a financing agreement whereby any capital provided by the current round of financing. For example, a
investor that does not participate in a future round agrees to suffer venture capitalist may invest $5 million in a company valued at $2
significant dilution compared to other investors. The most onerous million “pre-money” (before the investment was made). As a result,
version of “pay to play” is automatic conversion to common shares, the startup will have a post-money valuation of $7 million.
which in essence ends any preferential rights of an investor, such as
the right to influence key management decisions. PPM – see Private placement memorandum.
Pari passu – a legal term referring to the equal treatment of two or Preemptive rights – the rights of shareholders to maintain their
more parties in an agreement. For example, a venture capitalist may percentage ownership of a company by buying shares sold by the
agree to have registration rights that are pari passu with the other company in future financing rounds.
investors in a financing round.
Preference – seniority, usually with respect to dividends and
Participating dividends – the right of holders of certain preferred proceeds from a sale or dissolution of a company.
stock to receive dividends and participate in additional distributions
of cash, stock or other assets. Preferred return – a minimum return per annum that must be

generated for limited partners of a private equity fund before the should act with prudence, discretion, intelligence and regard for
general partner can begin receiving a percentage of profits from the safety of capital as well as income.” In the 1970s a favorable
investments. interpretation of this rule enabled pension fund managers to invest
in venture capital for the first time.
Preferred stock – a type of stock that has certain rights that common
stock does not have. These special rights may include dividends, Qualified IPO – a public offering of securities valued at or above
participation, liquidity preference, anti-dilution protection and veto a total amount specified in a financing agreement. This amount is
provisions, among others. Private equity investors usually purchase usually specified to be sufficiently large to guarantee that the IPO
preferred stock when they make investments in companies. shares will trade in a major exchange (NASDAQ or New York
Stock Exchange). Usually upon a qualified IPO preferred stock is
Pre-money valuation – the valuation of a company prior to the forced to convert to common stock.
current round of financing. For example, a venture capitalist may
invest $5 million in a company valued at $2 million pre-money. As a Quartile – one fourth of the data points in a data set. Often, private
result, the startup will have a “post-money” valuation of $7 million. equity investors are measured by the results of their investments
during a particular period of time. Institutional investors often prefer
Primary shares – shares sold by a corporation (not by individual to invest in private equity funds that demonstrate consistent results
shareholders). over time, placing in the upper quartile of the investment results for
all funds.
Private Equity Growth Capital Council (PEGCC) – an advocacy,
communications and research organization for the buyout industry Ratchet – a mechanism to prevent dilution. An antidilution clause
in the United States. in a contract protects an investor from a reduction in percentage
ownership in a company due to the future issuance by the company
Private equity – equity investments in non-public companies, of additional shares to other entities.
usually defined as being made up of venture capital funds and
buyout funds. Real estate, oil and gas, and other such partnerships Realization ratio – the ratio of cumulative distributions to paid-in
are sometimes included in the definition. capital. The realization ratio is used as a measure of the distributions
from investment results of a private equity partnership compared to
Private investment in public equity (PIPEs) – investments by the capital under management.
a private equity fund in a publicly traded company, usually at a
discount and in the form of preferred stock. Recapitalization – the reorganization of a company’s capital
structure.
Private placement – the sale of a security directly to a limited
number of institutional and qualified individual investors. If Red herring – a preliminary prospectus filed with the Securities
structured correctly, a private placement avoids registration with the and Exchange Commission and containing the details of an IPO
Securities and Exchange Commission. offering. The name refers to the disclosure warning printed in red
letters on the cover of each preliminary prospectus advising potential
Private placement memorandum (PPM) – a document explaining investors of the risks involved.
the details of an investment to potential investors. For example, a
private equity fund will issue a PPM when it is raising capital from Redemption rights – the right of an investor to force
institutional investors. Also, a startup may issue a PPM when it the startup company to buy back the shares issued as a result of the
needs growth capital. Also known as “Offering Memorandum”. investment. In effect, the investor has the right to take back his/her
investment and may even negotiate a right to receive an additional
Private securities – securities that are not registered with the sum in excess of the original investment.
Securities and Exchange Commission and do not trade on any
exchanges. The price per share is negotiated between the buyer and Registration – the process whereby shares of a company are
the seller (the “issuer”). registered with the Securities and Exchange
Commission under the Securities Act of 1933 in preparation for a
Prudent man rule – a fundamental principle for professional sale of the shares to the public.
money management which serves as a basis for the Prudent Investor
Act. The principle is based on a statement by Judge Samuel Putnum Regulation D – Often referred to as simply “Reg D,” an SEC
in 1830: “Those with the responsibility to invest money for others regulation that governs private placements. Private placements

are investment offerings for institutional and accredited individual rather its owners pay taxes on their proportion of the corporation’s
investors, but not the general public. profits at their individual tax rates.
Restricted shares – shares that cannot be traded in the public SBIC – see Small Business Investment Company.
markets.
Scalability – a characteristic of a new business concept that entails
Return on investment (ROI) – the proceeds from an investment, the growth of sales and revenues with a much slower growth of
during a specific time period, calculated as a percentage of the organizational complexity and expenses. Venture capitalists look for
original investment. Also, net profit after taxes divided by average scalability in the startups they select to finance.
total assets.
Scale-down – a schedule for phased decreases in management fees
Rights offering – an offering of stock to current shareholders that for general partners in a limited partnership as the fund reduces its
entitles them to purchase the new issue, usually at a discount. investment activities toward the end of its term.
Rights of co-sale with founders – a clause in venture capital Scale-up – the process of a company growing quickly while
investment agreements that allows the VC fund to sell shares at the maintaining operational and financial controls in place. Also, a
same time that the founders of a startup chose to sell. schedule for phased increases in management fees for general
partners in a limited partnership as the fund increases its investment
Right of first refusal – a contractual right to participate in a activities over time.
transaction. For example, a venture capitalist may participate in
a first round of investment in a startup and request a right of first Secondary market – a market for the sale of limited partnership
refusal in any following rounds of investment. interests in private equity funds. Sometimes limited partners chose
to sell their interest in a partnership, typically to raise cash or because
Risk-free rate – a term used in finance theory to describe the return they cannot meet their obligation to invest more capital according to
from investing in a riskless security. In practice, this is often taken to the takedown schedule. Certain investment companies specialize in
be the return on US Treasury Bills. buying these partnership interests at a discount.
Road show – presentations made in several cities to potential Secondary shares – shares sold by a shareholder (not by the
investors and other interested parties. For example, a company will corporation).
often make a road show to generate interest among institutional
investors prior to its IPO. Securities and Exchange Commission (SEC) – the regulatory
body that enforces federal securities laws such as the Securities Act
ROI – see Return on investment. of 1933 and the Securities Exchange Act of 1934.
Rollup – the purchase of relatively smaller companies in a sector Seed capital – investment provided by angels, friends and family to
by a rapidly growing company in the same sector. The strategy is to the founders of a startup in seed stage.
create economies of scale. For example, the movie theater industry
underwent significant consolidation in the 1960’s and 1970’s. Seed stage – the state of a company when it has just been incorporated
and its founders are developing their product or service.
Round – a financing event usually involving several
private equity investors. Senior debt – a loan that has a higher priority in case
of a liquidation of the asset or company.
Royalties – payments made to patent or copyright owners in
exchange for the use of their intellectual property. Seniority – higher priority.
Rule 144 – a rule of the Securities and Exchange Commission that Series A preferred stock – preferred stock issued by a fast growth
specifies the conditions under which the holder of shares acquired company in exchange for capital from investors in the “A” round
in a private transaction may sell those shares in the public markets. of financing. This preferred stock is usually convertible to common
shares upon the IPO or sale of the company.
S corporation – an ownership structure that limits its
number of owners to 100. An S corporation does not pay taxes, Shareholder agreement – a contract that sets out, for example, the

basis on which the company will be operated and the shareholders’ Takedown – a schedule of the transfer of capital in phases in order
rights and obligations. It provides protection to minority shareholders. to complete a commitment of funds. Typically, a takedown is used
by a general partner of a private equity fund to plan the transfer of
Sharpe Ratio – a method of calculating the risk-adjusted return of capital from the limited partners.
an investment. The Sharpe Ratio is calculated by subtracting the
risk-free rate from the return on a specific investment for a time Tender offer – an offer to public shareholders of a company to
period (usually one year) and then dividing the resulting figure by purchase their shares.
the standard deviation of the historical (annual) returns for that
investment. The higher the Sharpe Ratio, the better. Term loan – a bank loan for a specific period of time, usually up to
ten years in leveraged buyout structures.
Small Business Investment Company (SBIC) – a company
licensed by the Small Business Administration to receive government Term sheet – a document confirming the intent of an
capital in the form of debt or equity in order to use in private equity investor to participate in a round of financing for a company. By
investing. signing this document, the subject company agrees to begin the legal
and due diligence process prior to the closing of the transaction.
Stock option – a right to purchase or sell a share of stock at a specific Also known as “Letter of Intent”.
price within a specific period of time. Stock purchase options are
commonly used as long term incentive compensation for employees Tranche – a portion of a set of securities. Each tranche may have
and management of fast growth companies. different rights or risk characteristics. When venture capital firms
finance a company, a round may be disbursed in two or three
Strategic investor – a relatively large corporation that agrees to tranches, each of which is paid when the company attains one or
invest in a young or a smaller company in order to have access to its more milestones.
proprietary technology, product or service.
Turnaround – a process resulting in a substantial increase in a
Subordinated debt – a loan that has a lower priority than a senior company’s revenues, profits and reputation.
loan in case of a liquidation of the asset or company. Also known as
“junior debt”. Under water option – an option is said to be under water if the
current fair market value of a stock is less
Success rate – the proportion of venture funded companies that are than the option exercise price.
considered successful. A study of companies funded by VCs during
the 1990s indicated that 14% of the companies went public and Underwriter – an investment bank that chooses to be responsible
another 11%were acquired. for the process of selling new securities to the public. An underwriter
usually chooses to work with a syndicate of investment banks in
Sweat equity – ownership of shares in a company resulting primarily order to maximize the distribution of the securities.
from work rather than investment of capital.
Venture capital – a segment of the private equity industry which
Syndicate – a group of investors that agree to participate in a round focuses on investing in new companies with high growth potential
of funding for a company. Alternatively, a syndicate can refer to a and accompanying high risk.
group of investment banks that agree to participate in the sale of
stock to the public as part of an IPO. Venture capital method – a pricing valuation method whereby an
estimate of the future value of a company is discounted by a certain
Synthetic secondary – A popular method of completing a direct interest rate and adjusted for future anticipated dilution in order to
secondary transaction in which the buyer becomes a limited partner determine the current value. Usually, discount rates for the venture
(LP) in a special purpose vehicle (SPV) or similar entity which has capital method are considerably higher than public stock return rates,
been set up out of the underlying investments in order to create a representing the fact that venture capitalists must achieve significant
limited partnership interest. The term arose because of the synthetic returns on investment in order to compensate for the risks they take
nature of the direct purchase through the LP secondary transaction. in funding unproven companies.
Tag-along right – the right of a minority investor to receive the Vesting – a schedule by which employees gain ownership over time
same benefits as a majority investor. Usually applies to a sale of of a previously agreed upon amount of retirement funding or stock
securities by investors. Also known as Co-sale right. options.

Vintage – the year that a private equity fund stops accepting the number of shares in a company. Without anti-dilution protection,
new investors and begins to make investments on behalf of those an investor would suffer from a reduction of his or her percentage
investors. Venture funds are generally benchmarked to funds of the ownership. Usually as a result of the implementation of a weighted
same vintage year. average anti-dilution, company management and employees who
own a fixed amount of common shares suffer significant dilution,
Voting rights – the rights of holders of preferred and common stock but not as badly as in the case of a full ratchet.
in a company to vote on certain acts affecting the company. These
matters may include payment of dividends, issuance of a new class Write-down – a decrease in the reported value of an asset or a
of stock, merger or liquidation. company.
Warrant – a security which gives the holder the right to purchase Write-off – a decrease in the reported value of an asset or a company
shares in a company at a pre-determined price. A warrant is a long to zero.
term option, usually valid for several years or indefinitely. Typically,
warrants are issued concurrently with preferred stocks or bonds Write-up – an increase in the reported value of an asset or a company.
in order to increase the appeal of the stocks or bonds to potential
investors. Zombie – a company that has received capital from investors but
has only generated sufficient revenues and cash flow to maintain
Washout round – a financing round whereby previous investors, its operations without significant growth. Sometimes referred to as
the founders and management suffer significant dilution. Usually “walking dead.” Typically, a venture capitalist has to make a difficult
as a result of a washout round, the new investor gains majority decision as to whether to liquidate a zombie or continue to invest
ownership and control of the company. funds in the hopes that the zombie will become a winner.
Weighted average cost of capital (WACC) – the average of the cost These definitions were graciously provided by the Center for Private
of equity and the after-tax cost of debt. This average is determined Equity and Entrepreneurship at the Tuck School of Business at
using weight factors based on the ratio of equity to debt plus equity Dartmouth. Please refer to the Center’s website for additional
and the ratio of debt to debt plus equity. definitions and information at http://mba.tuck.dartmouth.edu/pecenter/
resources/glossary.html. Used by permission. Thomson Reuters and
Weighted average anti-dilution – an anti-dilution protection National Venture Capital Association are grateful to the Center for its
mechanism whereby the conversion rate of preferred stock is support.
adjusted in order to reduce an investor’s loss due to an increase in


APPENDIX B
MoneyTree Report Criteria
PricewaterhouseCoopers/National Venture Capital Association
MoneyTree Report™, Data: Thomson Reuters
The MoneyTree Report is a quarterly study of venture capital investment even if substantial portions of their activities are outside the United States.
activity in the United States. As a collaboration between Pricewater-
houseCoopers and the National Venture Capital Association, based upon Specific Methodology
data from Thomson Reuters, it is the only industry-endorsed research of The focus of the report is on cash received by the company. Therefore,
its kind. The MoneyTree Report is the definitive source of information on tranches not term sheets are the determining factor. Drawdowns on com-
emerging companies that receive financing and the venture capital firms mitments are recognized at the time the company receives the money
that provide it. The study is a staple of the financial community, entrepre- rather than recorded as a lump sum amount at the time the term sheet is
neurs, government policymakers and the business press worldwide. executed. Convertible debt and bridge loans are recognized only when
converted to equity.
Report Criteria Once a company has received a qualifying venture capital financing round,
The MoneyTree™ Report records cash for equity investments as the cash all subsequent equity financing rounds are included regardless of whether
is actually received by the company (also called a tranche) as opposed the round involved a venture capital firm as long as all other investment
to when financing is committed (often referred to as a “term sheet”) to a criteria are met (e.g. cash-for-equity, not buyout or services in kind).
company. Accordingly, the amount reported in a given quarter may be less Angel, incubator and similar investments are considered pre-venture fi-
than the total round amount committed to the company at the time when nancing if the company has received no prior qualifying venture capital
the round of financing closed. investment and are not included in the MoneyTree™ results. Angel, incu-
The type of financing as it is used in the MoneyTree™ Report refers to bator and similar investments that are part of a qualifying venture capital
the number of tranches a company has received. The number designation round or follow a qualifying venture capital round are included to the ex-
(1, 2, 3, etc.) does not refer to the round of financing. Rounds are usually tent that such investments can be fully verified as meeting all other criteria
designated alphabetically, e.g. Series A, Series B, and so on. The Money- (e.g. cash for equity, not buyout or services in kind).
Tree™ Report does not track rounds. Direct investment by corporations (not through a corporate venture capital
arm) is excluded unless (a) the investment is clearly demonstrated to be
Summary Description primarily a financial investment rather than outsourced R&D or market
The MoneyTree™ Report measures cash-for-equity investments by the development, (b) it is a co-investment in an otherwise qualifying round, or
professional venture capital community in private emerging companies in (c) it follows a qualifying venture round in a company and meets all other
the U.S. It is based on data provided by Thomson Reuters. criteria (e.g. cash-for-equity, not buyout or services in kind).
Data is primarily obtained from a quarterly survey of venture capital prac-
General Definition titioners conducted by Thomson Reuters. Information is augmented by
The report includes the investment activity of professional venture capital other research techniques including other public and private sources. All
firms with or without a US office, SBICs, venture arms of corporations, data is subject to verification with the venture capital firms and/or the
institutions, investment banks and similar entities whose primary activity investee companies.
is financial investing. Where there are other participants such as angels, Only professional independent venture capital firms, institutional venture
corporations, and governments in a qualified and verified financing round capital groups, and recognized corporate venture capital groups are in-
the entire amount of the round is included. cluded in venture capital industry rankings.
Qualifying transactions include cash investments by these entities either
directly or by participation in various forms of private placement. All re- Disclaimer
cipient companies are private, and may have been newly-created or spun- PricewaterhouseCoopers and the National Venture Capital Association
out of existing companies. have taken responsible steps to ensure that the information contained in
The report excludes debt, buyouts, recapitalizations, secondary purchases, the MoneyTree™ Report has been obtained from reliable sources. How-
IPOs, investments in public companies such as PIPES (private invest- ever, neither of the parties nor Thomson Reuters can warrant the ultimate
ments in public entities), investments for which the proceeds are primarily validity of the data obtained in this manner. Results are updated periodi-
intended for acquisition such as roll-ups, change of ownership, and other cally. Therefore, all data is subject to change at any time.
forms of private equity that do not involve cash such as services-in-kind
and venture leasing.
Investee companies must be domiciled in one of the 50 US states or DC


APPENDIX C
MoneyTree Geographical Definitions
The Geographical Regions identified in the MoneyTree™ Report by PricewaterhouseCoopers and the National Venture Capital Association based on
data provided by Thomson Reuters and used in this NVCA Yearbook are as follows:
Alaska/Hawaii/Puerto Rico: Alaska, Hawaii, and Puerto Rico Northwest: Washington, Oregon, Idaho, Montana, and Wyoming
Colorado: The state of Colorado Philadelphia Metro: Eastern Pennsylvania, southern New Jersey,
and Delaware
DC/Metroplex: Washington, D.C., Virginia, West Virginia, and
Maryland Sacramento/Northern California: Northeastern California
LA/Orange County: Los Angeles, Ventura, Orange, and Riverside San Diego: San Diego area
Counties (i.e., southern California, except San Diego)
Silicon Valley: Northern California, bay area and coastline
Midwest: Illinois, Missouri, Indiana, Kentucky, Ohio, Michigan,
and western Pennsylvania South Central: Kansas, Oklahoma, Arkansas, and Louisiana
New England: Maine, New Hampshire, Vermont, Massachusetts, Southeast: Alabama, Florida, Georgia, Mississippi, Tennessee,
Rhode Island, and parts of Connecticut (excluding Fairfield South Carolina, and North Carolina
county)
Southwest: Utah, Arizona, New Mexico, and Nevada
New York Metro: Metropolitan NY area, northern New Jersey, Texas: The state of Texas
and Fairfield County, Connecticut
Upstate New York: Northern New York state, except Metropolitan
North Central: Minnesota, Iowa, Wisconsin, North Dakota, New York City area
South Dakota, and Nebraska

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APPENDIX D
Industry Codes (VEIC)
1000 Communications and Media 1800 Other Communications Related 2512 Portable Terminals
1100 Commercial Communications 1810 Defense Communications 2513 Graphics Terminals
1110 Radio & TV Broadcasting Stations 1825 Other Communications Services NEC 2519 Other Terminals
1120 CATV & Pay TV Systems 1899 Other Communications Products (not yet 2520 Printers
1125 Cable Service Providers classified) 2521 Laser Printers
1130 Radio & TV Broadcasting & Other Related 2522 Color Printers
Equipment 2000 Computer Related 2523 Inkjet Printers
1135 Services to Commercial Communications 2100 Computers and Hardware 2524 Dot Matrix Printers
1199 Other Commercial Communications 2110 Mainframes & Scientific Computers 2529 Other Printers
1200 Telecommunications 2111 Mainframes 2530 Data I/O Devices
1210 Long Distance Telephone Services 2112 Supercomputers and Scientific Computers 2531 Mouse Input Devices
1215 Local Exchange Carriers (LEC) 2119 Other Mainframes and Scientific Computers 2532 TouchPad Input Devices
1220 Telephone Interconnect & Other Equip- 2120 Mini & Personal/Desktop Computers 2533 Pen based computing
ment 2121 Fail Safe Computers 2539 Other Data I/O Devices
1230 Telephone answering and/or manage- 2122 Mini Computers 2540 Disk Related Memory Devices
ment systems,PBXs 2123 Personal Computers (micro/personal) 2541 Floppy Disks & Drives
1299 Other Telephone Related 2124 Other Mini and Personal Computers 2542 Winchester Hard Disks and Drives
1300 Wireless Communications 2125 Portable Computers (notebooks/laptops) 2543 Optical Disks & Drives,CD-ROM DVD
1310 Mobile Communications, Pagers & Cel- 2126 Handheld Computing (PDA) 2546 Disk Drive Components
lular Radio 2130 Optical computing 2549 Other Disk Related
1320 Wireless Communications Services 2140 Servers and Workstations 2550 Tape Related Devices
1325 Messaging Services 2141 Servers 2551 Magnetic Tapes
1330 Wireless Communications Components 2142 Web Servers 2552 Tape Heads & Drives
1399 Other Wireless Communications 2143 Workstations 2553 Continuous Tape Backup Systems
1400 Facsimile Transmission 2144 Thin Client Hardware 2559 Other Tape Related Devices
1500 Data Communications 2149 Other Servers and Workstations 2560 Other Memory Devices (excl. semicon-
1510 Local Area Networks (incl. voice/data 2200 Computer Graphics and Digital Imaging ductors)
PBX systems) 2210 CAD/CAM, CAE,EDA Systems 2561 PC or PMCIA cards
1515 Wide Area Networks 2220 Graphic Systems 2562 Memory Cards
1520 Data Communications Components 2230 Scanning Hardware 2563 Sound Cards
1521 Communications Processors/Network 2234 OCR (Optical Character Recognition) 2564 Communications Cards
Management 2236 OBR (Optical Bar Recognition) 2569 Other Peripheral Cards
1522 Protocol Converters & Emulators 2238 MICR (Magnetic Ink Character Recognition) 2590 Other Peripherals (not yet classified)
1523 Modems and Multiplexers 2239 Other Scanning Related 2600 Computer Services
1524 Other Data Communication Components 2250 Graphics Printers/Plotters 2630 Time Sharing Firms
1525 Switches/Hubs/Routers/Gateways/ATM 2255 Graphics/Enhanced Video Cards 2640 Computer Leasing & Rentals
1530 Network test, monitor and support equip- 2260 Other Graphics Peripherals 2650 Computer Training Services
ment 2280 Other Multimedia NEC 2655 Backup and Disaster Recover
1549 Other Data Communications 2290 Digital Imaging Hardware and Equipment 2660 Data Processing,Analysis & Input Services
1550 Internet Communications and Infrastruc- 2295 Digital Imaging Services 2665 Computer Repair Services
ture NEC 2299 Other Computer Graphics 2670 Computerized Billing & Accounting Services
1551 Internet Access Services and Service 2300 Integrated Turnkey Systems and Solutions 2675 Computer Security Services
Providers 2311 Business and Office 2691 Data communications systems manage-
1552 Internet Multimedia Services 2312 Consumer ment
1553 Internet Backbone Infrastructure 2313 Retailing 2699 Other Computer Services
1559 Other Internet Communications NEC 2315 Transportation 2700 Computer Software
1560 E-Commerce Technology 2316 Finance/Insurance/Real Estate 2710 Systems Software
1561 Internet Security and Transaction Services 2317 Agriculture 2711 Database & File Management
1562 Ecommerce Services 2318 Recreation/Entertainment 2712 Operating Systems & Utilities
1563 Ecommerce Enabling Software 2319 Manufacturing/Industrial/Construction 2713 Program Development Tools/CASE/Lan-
1569 Other Ecommerce 2320 Medical/Health guages
1600 Satellite Microwave Communications 2321 Computer related 2716 Graphics and Digital Imaging Software
1610 Satellite Services/Carriers/Operators 2322 Communications Products/Services 2719 Other Systems Software
1620 Satellite Ground (and other) Equipment 2323 Education 2720 Communications/Networking Software
1630 Microwave Service Facilities 2324 Reference 2721 Security/Firewalls,Encryption software
1640 Microwave & Satellite Components 2325 Scientific 2722 Email Software
1699 Other Satellite & Microwave 2399 Other Intergrated Systems and Solutions 2723 Groupware
1700 Media and Entertainment 2500 Peripherals 2724 Multimedia software
1710 Entertainment 2510 Terminals 2729 Other Communications/Networking
1720 Publishing 2511 Intelligent Terminals Software

2730 Applications Software 2835 Transportation Services 3499 Other Electronics Related Equipment
2731 Business and Office Software 2836 Finance/Insurance/Real Estate Services 3500 Laser Related
2732 Home Use Software 2837 Agricultural Services 3510 Laser Components (incl. beamsplitters,
2733 Educational Software 2838 Recreation/Entertainment/Music/Movies excimers)
2734 Manufacturing/Industrial Software 2839 Manufacturing/Industrial/Construction 3599 Other Laser Related
2735 Medical/Health Software 2840 Medical/Health Services 3600 Fiber Optics
2736 Banks/Financial Institutions Software 2841 Computer Related services 3610 Fiber Optic Cables
2737 Retailing Software 2842 Communications Products/Services 3620 Fiber Optic Couplers and Connectors
2738 Integrated Software 2843 Education Services 3630 Fiber Optic Communication Systems (see
2739 ERP/Inventory Software 2844 Reference 1510)
2740 Recreational/Game Software 2845 Scientific 3699 Other Fiber Optics
2741 Scientific Software 2846 Legal 3700 Analytical & Scientific Instrumentation
2743 Agricultural Software 2848 Recreation/Entertainment Services 3710 Chromatographs & Related Laboratory
2744 Transportation Software 2849 Other Ecommerce Selling Services Equipment
2748 Other Industry specific Software 2850 Web Aggregration/Portal Sites/Exchanges 3720 Other Measuring Devices
2749 Other Applications Software 2851 Business and Office Info/content 3799 Other Analytical & Scientific Instrumenta-
2750 Artificial Intelligence Related Software 2852 Consumer Info/Content tion
2751 Expert Systems 2853 Retailing Info/Content 3800 Other Electronics Related
2752 Natural Language 2854 Publishing Info/Content 3810 Military Electronics (excluding communi-
2753 Computer-Aided Instruction 2855 Transportation Info/Content cations)
2754 Artificial Intel. Programming Aids 2856 Finance/Real Estate/Insurance Info/ 3820 Copiers
2755 Other Artificial Intelligence Related Content 3830 Calculators
2760 Software Services 2857 Agriculture Info/Content 3835 Security/Alarm/Sensors
2761 Programming Services/Systems Engi- 2858 Recreation/Entertainment/Music/Movies 3899 Other Electronics Related (incl. alarm
neering 2859 Manufac/Industrial/Constr. Info/Content systems)
2762 Software Consulting Services 2860 Medical/Health Info/Content 3900 Optoelectronics
2763 Software Distribution/Clearinghouse 2861 Computer Related Info/Content 3910 Photo diodes
2765 Internet/Web Design and programming 2862 Communications Info/Content 3920 Optoelectronics fabrication equipment
services 2863 Education Info/Content 3930 Lenses with Optoelectronics applications
2766 Internet Graphics Services 2864 Reference Info/Content 3940 Advanced photographic processes (incl
2768 Other Internet Software Services 2865 Scientific Info/Content lithographs)
2769 Other Software Services 2866 Legal Info/Content 3989 Other Optoelectrinics Related
2780 Internet Systems Software 2869 Other Aggregation/Portal/Exchange Sites 3990 Other Electronc Semiconductor
2781 Site Development and Administration 2870 Internet Services
Software 2871 Internet Marketing Services 4000 Biotechnology and Pharmacology
2782 Internet Search Software and Engines 2873 Data Warehousing Services 4100 Human Biotechnology
2783 WebServer Software 2879 Other Internet and Online Services NEC 4110 Medical Diagnostic Biotechnology Products
2784 Web Languages (Java/ActiveX/HTML/XML) 2900 Other Computer Related 4111 In Vitro Monoclonal Antibody Diagnostics
2785 Web Authoring/Development Software 2910 Voice Synthesis 4112 In Vivo Monoclonal Antibody Diagnostics/
2798 Other Internet Systems Software 2911 Voice Recognition Imaging
2799 Other Software Related 2990 Other Computer Related (not yet classified) 4113 DNA/RNA Probes
2800 Internet and Online Related 4119 Other Medical Diagnostic Biotechnology
2810 E-Commerce--Selling products Online or 3000 Other Electronics Related 4120 Therapeutic Biotechnology Products
Internet 3100 Electronic Components 4121 Therapeutic Monoclonal Antibodies
2811 Business and Office Products 3110 Semiconductors 4122 Immune Response Effectors
2812 Consumer Products 3111 Customized Semiconductors (interferons,vaccines)
2813 Retailing Products 3112 Standard Semiconductors 4123 Other Therapeutic Proteins (incl. hor-
2814 Publishing Products 3114 Flash Memory mones & TPA)
2815 Transportation Products 3115 Optoelectronics semiconductors (incl 4129 Other Therapeutic Biotechnology
2816 Finance/Insurance/Real Estate products laser diodes) 4130 Genetic Engineering
2817 Agricultural Products 3119 Other Semiconductors 4200 Agricultural/Animal Biotechnology
2818 Recreation/Entertainment/Music/Movies 3120 Microprocessors 4210 Genetically Engineered Plants
2819 Manufacturing/Industrial/Construction 3130 Controllers and Sensors 4220 Genetic. Eng. Microorganisms to raise
2820 Medical/Health 3132 Controllers plant yield
2821 Computer Related 3135 Sensors 4230 Other Plant Related Biotechnology
2822 Communications Products 3139 Other Controllers/Sensors 4240 Biotech Related Animal Health & Nutri-
2823 Education Products 3140 Circuit Boards tion Products
2824 Reference Products 3160 Display Panels 4250 Genetically Engineered Animals
2825 Scientific Products 3170 Other Electronics Related (including 4290 Other Animal Related Biotechnology
2826 Legal Products keyboards) 4300 Industrial Biotechnology
2829 Other Ecommerce Selling Products 3200 Batteries 4310 Biochemical Products
2830 Ecommerce--Selling Services Online/ 3300 Power Supplies 4311 Biotech Related Fine Chemicals (NOT
Internet 3310 Uninterruptible Power Supply (UPS) Pharmaceuts.)
2831 Business and Office Services 3400 Electronics Related Equipment 4312 Biotech Related Commodity Chemicals
2832 Consumer Services 3410 Semiconductor Fabrication Equip. & 4319 Other Biochemical Products
2833 Retailing Services Wafer Products 4320 Biotech Processes for Food Industrial Ap-
2834 Publishing Services 3420 Component Testing Equipment plications

4321 Biotech Related Food Enzymes and 5530 Pharmaceutical Services 7340 Food Supplements/Vitamins
Cultures 5540 Pharmaceutical Equipment 7350 General Food Products
4322 Biotech Related Food Diagnostics 5550 Pharmaceuticals/Fine Chemicals (non- 7399 Other Food and Beverages
4329 Other Biotech Process for Food/Industrial biotech) 7400 Consumer Products
Products 5599 Other Pharmaceutical NEC 7410 Clothing,Shoes & Accessories (incl. jew-
4330 Biotech Processes for Pollution/Toxic elry)
Waste Contrl 6000 Energy Related 7420 Health & Beauty Aids
4340 Biotech Processes for Enhanced Oil 6100 Oil & Gas Exploration and Production 7430 Home Furnishing & Housewares
Recovery/Mining 6200 Oil & Gas Exploration Services 7431 Housewares
4390 Other Industrial Biotechnology 6300 Oil & Gas Drilling & Support Services 7432 Furnishings & Furniture
4400 Biosensors 6400 Oil & Gas Drilling,Exploration & Extrac- 7433 Garden and Horticultural Products
4410 Biosensors for Medical Diagnostic Ap- tion Equip. 7434 Other Home Furnishings (NEC)
plications 6410 Oil & Gas Drilling & Extraction Equipment 7450 Mobile Homes
4420 Biosensors for Industrial Applications 6420 Oil & Gas Drilling Instrumentation 7499 Other Consumer Products
4490 Other Biosensors 6430 Oil & Gas Exploration Equip. Instrumen- 7500 Consumer Services
4500 Biotech Related Research & Production tation 7510 Fast Food Restaurants
Equipment 6499 Other Oil & Gas (NEC) 7520 Other Restaurants
4510 Biotech Related Analytical Instruments & 6500 Alternative Energy 7530 Hotels and Resorts
Apparatus 6510 Solar Energy 7540 Auto Repair Shops
4520 Biotech Related Production Equipment 6511 Photovoltaic Solar 7550 Education & Educational Products and
4525 Biotech laser and optronic applications 6512 Other Solar Materials
4599 Other Biotech Research & Production 6520 Wind Energy 7560 Travel Agencies and Services
Equipment 6530 Geothermal Energy 7599 Other Consumer Services
4600 Biotech Related Research & Other Services 6540 Energy Co-Generation 7999 Other Consumer Related (not yet classified)
4610 Pure & Contract Biotechnology Research 6599 Other Alternative Energy (incl. nuclear
4699 Other Biotechnology Services energy) 8000 Industrial Products
4900 Other Biotechnology Related 6600 Enhanced Oil Recovery/Heavy Oil/Shale 8100 Chemicals & Materials
6700 Coal Related 8110 Plastic Fabricators
5000 Medical/Health Related 6710 Coal Mining 8111 Homogeneous Injections/Extrusions
5100 Medical Diagnostics 6720 Coal Related Equipment 8112 Non-Homogeneous Injections/Extrusions
5110 Diagnostic Services 6799 Other Coal Related 8113 Fiber-Reinforced (Plastic) Composites
5120 Medical Imaging 6800 Energy Conservation Related 8114 Other Fabricated Plastics
5121 X-Rays 6900 Other Energy Related 8115 Processes for Working with Plastics
5122 CAT Scanning 8119 Other Plasti Fabricators
5123 Ultra Sound Imaging 7000 Consumer Related 8120 Coatings & Adhesives Manufacturers
5124 Nuclear Imaging 7100 Entertainment and Leisure 8121 Optical coatings
5125 Other Medical Imaging 7110 Movies,Movie Products & Theater Opera- 8129 Other Coatings & Adhesives
5130 Diagnostic Test Products & Equipment tions 8130 Membranes & Membrane-Based Products
5140 Other Medical Diagnostics 7120 Amusement & Recreational Facilities 8140 Specialty/Performance Materials
5200 Medical Therapeutics 7125 Casino and Gambling 8141 Semiconductor Materials (eg. silicon wafers)
5210 Therapeutic Services 7130 Toys & Electronic Games 8142 III/V Semiconductor Mater. (eg. gallium
5220 Surgical Instrumentation & Equipment 7140 Sporting Goods,Hobby Equipment & arsenide)
5221 Surgical lasers (including laser delivery Athletic Clothes 8143 Specialty Metals (incl. coatings, alloys, clad)
fibers) 7150 Sports Facilities (Gyms and Clubs) 8144 Ceramics
5230 Pacemakers & Artificial Organs 7155 Sports 8145 Lubricants & Functional Fluids
5240 Drug Delivery & Other Equipment 7160 TVs,Radio,Stereo Equipment & Consumer 8146 Other Specialty Materials
5299 Other Therapeutic (including defibrillators) Electronics 8147 Specialty materials for laser generation
5300 Medical Health Related Products 7170 Music,Records,Production and Instruments 8148 Superconducting materials
5310 Disposable Medical Products 7199 Other Leisure/Recreational Products and 8149 Other Special Performance Materials
5340 Handicap Aids Services 8150 Commodity Chemicals & Polymers
5350 Medical Monitoring Equipment 7200 Retailing Related 8151 Industrial Chemicals
5380 Health related optics (including glasses, 7210 Drug Stores 8152 Polymer (Plastics) Materials
lenses) 7220 Clothing and Shoe Stores 8160 Specialty/Performance Chemicals
5399 Other Medical/Health (NEC) 7230 Discount Stores 8161 Electronic Chemicals
5400 Medical Health Services 7240 Computer Stores 8162 Other Industrial Chemicals
5410 Hospitals/Clinics/Primary Care 7245 Retail Publishing (books,magazines, 8170 Agricultural Chemicals
5412 Long Term Care/Home Care/Elder Care newspapers) 8189 Other Commidity Chemicals and Polymers
5414 Dependent Care (child care/assisted living 7246 Office Supply Stores 8199 Other Chemicals & Materials (not yet
5420 Managed care (including PPO/PPM) 7247 Music/Electronics classified)
5429 Other Healthcare Facilities 7248 Specialty Department and retail stores 8200 Industrial Automation
5430 Emergency Services/Ambulance 7250 Franchises(NEC) 8210 Energy Management
5440 Hospital & Other Institutional Management 7299 Other Retailing Related 8220 Industrial Measurement & Sensing Equip-
5499 Other Medical/Health Services 7300 Food and Beverages ment
5500 Pharmaceuticals 7310 Wine & Liquors 8221 Laser related measuring & sensing equip-
5510 Pharmaceutical Research 7320 Health Food ment
5520 Pharmaceutical Production 7330 Soft Drinks & Bottling Plants 8230 Process Control Equipment & Systems

8240 Robotics 9150 Motor Vehicles,Transporation Equipment 9499 Other Manufacturing (not elsewhere clas-
8250 Machine Vision Software & Systems & Parts sified)
8260 Numeric & Computerized Control of 9160 Airfield and Other Transportation Services 9500 Agriculture,Forestry,Fishing,Animal
Machine Tools 9180 Advanced Aircraft/Aerospace Husbandry,etc.
8299 Other Industrial Automation (NEC) 9199 Other Transportation 9510 Agriculture related
8300 Industrial Equipment and Machinery 9200 Financial Services 9520 Forestry related
8310 Machine Tools, Other Metalworking 9210 Insurance Related 9530 Fishing related
Equipment 9220 Real Estate 9540 Animal husbandry
8320 Hoists,Cranes & Conveyors 9230 Banking 9599 Other Agriculture,Forestry,Fishing
8330 Pumps,Ball Bearings,Compressors,Indus. 9235 Non Bank Credit 9600 Mining and Minerals (non-energy related)
Hardware 9240 Securities & Commodities Brokers and 9700 Construction & Building Products
8340 Mining Machinery Services 9710 Construction
8350 Industrial Trucks and Tractors 9250 Investment Groups 9720 Manufacture of Building Products
8360 Other Industrial Process Machinery 9254 Venture Capital and Private Equity Investors 9730 Manufacture of Pre-Fabricated Buildings
8370 Power Transmission Equipment (genera- 9255 Financial Transactions Services & Systems
tors & motors) 9299 Financial Services,0ther 9740 Distribution of Building Products & Systems
8399 Other Industrial Equipment & Machinery 9300 Services 9750 Construction Services
8500 Environmental Related 9310 Engineering Services 9799 Other Construction & Building Products
8510 Air Filters & Air Purification & Monitoring 9320 Advertising and Public Relations Related
Equip. 9330 Leasing (not elsewhere classified) 9800 Utilities and Related Firms
8520 Chemical and Solid Material Recycling 9340 Distributors,Importers and Wholesalers 9810 Electric Companies
8530 Water Treatment Equipment & Waste 9350 Consulting Services 9820 Water,Sewage,Chem. & Solid Waste
Disposal Systems 9360 Media Related Services Treatment Plants
8599 Other Environmental Related 9399 Other Services NEC 9830 Gas Transmission & Distribution
8600 Other Industrial Products (not yet classified) 9400 Product Manufacturing 9899 Other Utilities & Related Firms
8700 Industrial Services 9410 Business Products and Supplies 9900 Other Products and Services
9415 Office Automation Equipment 9910 Conglomerates
9000 Other Services and Manufacturing 9420 Office Furniture & Other Professional 9912 Socially Responsible
9100 Transportation Furnishings 9914 Environment Responsible
9110 Airlines and Aviation Related 9430 Textiles (Synthetic & Natural) 9915 Women-Owned
9120 Trucking 9440 Hardware, Plumbing Supplies 9918 Minority-Owned
9125 Railway related 9450 Publishing 9920 Holding Companies
9130 Leasing of Railcars,Buses and Cars 9460 Packaging Products & Systems 9999 Other Products and Services
9140 Mail and Package Shipment 9470 Printing & Binding

APPENDIX E
Industry Codes (VEIC)
Industry analysis is based upon the following industry sectors: Biotechnology, Business Products and Services,Computers and Peripherals, Consumer
Products and Services, Computer Software, Electronics/Instrumentation, Financial Services, Healthcare Services, Industrial/Energy, IT Services, Me-
dia and Entertainment, Medical Devices and Equipment, Networking and Equipment, Retailing/Distribution, Semiconductors, Telecommunications
and Other. These sectors are based on the 17 industry classifications of the MoneyTree™ Report by PricewaterhouseCoopers and the National Venture
Capital Association based on data from Thomson Reuters.
Biotechnology
4000, 4100, 4110, 4111, 4112, 4113, 4119, 4120, 4121, 4122, 4123, 4129, 4130, 4200, 4210, 4220, 4230, 4240, 4250, 4290, 4300, 4310, 4311, 4312,
4319, 4320, 4321, 4322, 4329, 4330, 4340, 4390, 4400, 4410, 4420, 4490, 4500, 4510, 4520, 4525, 4599, 4600, 4610, 4699, 4900, 5500, 5510, 5520,
5530, 5540, 5550, 5599
Business Products and Services

2811, 2824, 2831, 2844, 9300, 9310, 9320, 9330, 9340, 9350, 9360, 9399
Computers and Peripherals

2000, 2100, 2110, 2111, 2112, 2119, 2120, 2121, 2122, 2123, 2124, 2125, 2126, 2130, 2140, 2141, 2142, 2143, 2144, 2149, 2220, 2230, 2234, 2236,
2238, 2239, 2250, 2255, 2260, 2280, 2290, 2295, 2299, 2500, 2510, 2511, 2512, 2513, 2519, 2520, 2521, 2522, 2523, 2524, 2529, 2530, 2531, 2532,
2533, 2539, 2540, 2541, 2542, 2543, 2546, 2549, 2550, 2551, 2552, 2553, 2559, 2560, 2561, 2562, 2563, 2564, 2569, 2590, 3170
Consumer Products and Services

2812, 2832, 7000, 7300, 7310, 7320, 7330, 7340, 7399, 7400, 7410, 7420, 7430, 7431, 7432, 7433, 7434, 7450, 7499, 7500, 7510, 7520, 7530, 7540,
7550, 7560, 7599, 7999
Computer Software
1563, 2200, 2210, 2300, 2311, 2312, 2313, 2315, 2316, 2317, 2318, 2319, 2320, 2321, 2322, 2323, 2324, 2325, 2399, 2700, 2710, 2711, 2712, 2713,
2716, 2719, 2720, 2721, 2722, 2723, 2724, 2729, 2730, 2731, 2732, 2733, 2734, 2735, 2736, 2737, 2738, 2739, 2740, 2741, 2743, 2744, 2748, 2749,
2750, 2751, 2752, 2753, 2754, 2755, 2780, 2781, 2782, 2783, 2784, 2785, 2798, 2799, 2900, 2910, 2911, 2990, 8250
Electronics/Instrumentation
3000, 3100, 3160, 3200, 3300, 3310, 3400, 3420, 3499, 3500, 3510, 3599, 3700, 3710, 3720, 3799, 3800, 3810, 3820, 3830, 3835, 3899
Financial Services
2816, 2836, 9200, 9210, 9220, 9230, 9235, 9240, 9250, 9254, 9255, 9299
Healthcare Services
2820, 2840, 5400, 5410, 5412, 5414, 5420, 5429, 5430, 5440, 5499
Industrial/Energy
2819, 2837, 2839, 6000, 6100, 6200, 6300, 6400, 6410, 6420, 6430, 6499, 6500, 6510, 6511, 6512, 6520, 6530, 6540, 6599, 6600, 6700, 6710, 6720,
6799, 6800, 6900, 8000, 8100, 8110, 8111, 8112, 8113, 8114, 8115, 8119, 8120, 8121, 8129, 8130, 8140, 8143, 8144, 8145, 8146, 8147, 8148, 8149,
8150, 8151, 8152, 8160, 8161, 8162, 8170, 8189, 8199, 8200, 8210, 8220, 8221, 8230, 8240, 8260, 8299, 8300, 8310, 8320, 8330, 8340, 8350, 8360,
8370, 8399, 8500, 8510, 8520, 8530, 8599, 8600, 8700, 9000, 9100, 9110, 9120, 9125, 9130, 9140, 9150, 9160, 9180, 9199, 9400, 9410, 9415, 9420,
9430, 9440, 9460, 9470, 9499, 9500, 9510, 9520, 9530, 9540, 9599, 9600, 9700, 9710, 9720, 9730, 9740, 9750, 9799, 9800, 9810, 9820, 9830, 9899
IT Services
1560, 1561, 1562, 1569, 2600, 2630, 2640, 2650, 2655, 2660, 2665, 2670, 2675, 2691, 2699, 2760, 2761,
2762, 2763, 2765, 2766, 2768, 2769, 2800, 2870, 2871, 2873, 2879


1110, 1120, 1125, 1130, 1135, 1199, 1700, 1720, 2814, 2818, 2834, 2838, 2843, 2848, 2850, 2851, 2852, 2853, 2854, 2855, 2856, 2857, 2858, 2859,
2860, 2861, 2862, 2863, 2864, 2865, 2866, 2869, 7100, 7110, 7120, 7125, 7130, 7140, 7150, 7155, 7160, 7170, 7199, 9450
Medical Devices and Equipment

5000, 5100, 5110, 5120, 5121, 5122, 5123, 5124, 5125, 5130, 5140, 5200, 5210, 5220, 5221, 5230, 5240, 5299, 5300, 5310, 5340, 5350, 5380, 5399
Networking and Equipment

1400, 1500, 1510, 1515, 1520, 1521, 1522, 1523, 1524, 1525, 1530, 1549, 3600, 3610, 3620, 3630, 3699
2810, 2813, 2815, 2817, 2821, 2823, 2825, 2826, 2829, 2830, 2833, 2835, 2841, 2845, 2846, 2849, 7200, 7210, 7220, 7230, 7240, 7245, 7246, 7247,
7248, 7250, 7299, 7350
Semiconductors
3110, 3111, 3112, 3114, 3115, 3119, 3120, 3130, 3132, 3135, 3139, 3140, 3410, 3900, 3910, 3920, 3930, 3940, 3989, 3990, 8141, 8142
Telecommunications
1000, 1100, 1200, 1210, 1215, 1220, 1230, 1299, 1300, 1310, 1320, 1325, 1330, 1399, 1550, 1551, 1552, 1553, 1559, 1600, 1610, 1620, 1630, 1640,
1699, 1710, 1800, 1810, 1825, 1899, 2822, 2842
Other
9900, 9910, 9912, 9914, 9915, 9918, 9920, 9999

APPENDIX F
Stage Definitions
SEED STAGE FINANCING

This stage is a relatively small amount of capital provided to an inventor or entrepreneur to prove a concept.
This involves product development and market research as well as building a management team and developing a business plan, if the
initial steps are successful. This is a pre-marketing stage.
EARLY STAGE FINANCING

This stage provides financing to companies completing development where products are mostly in testing or pilot production. In some
cases, product may have just been made commercially available. Companies may be in the process of organizing or they may already
be in business for three years or less. Usually such firms will have made market studies, assembled the key management, developed a
business plan, and are ready or have already started conducting business.
EXPANSION STAGE FINANCING

This stage involves working capital for the initial expansion of a company that is producing and shipping and has growing accounts
receivables and inventories. It may or may not be showing a profit. Some of the uses of capital may include further plant expansion, mar-
keting, working capital, or development of an improved product. More institutional investors are more likely to be included along with
initial investors from previous rounds. The venture capitalist’s role in this stage evolves from a supportive role to a more strategic role.
LATER STAGE
Capital in this stage is provided for companies that have reached a fairly stable growth rate; that is, not growing as fast as the rates at-
tained in the expansion stages. Again, these companies may or may not be profitable, but are more likely to be than in previous stages
of development. Other financial characteristics of these companies include positive cash flow. This also includes companies considering
IPO.
ACQUISITION FINANCING
An acquisition of 49% stake or less. Firm acquires minority shares of a company. Thomson Reuters includes these deals in standard
venture capital disbursement data when calculating venture capital disbursements where the funding is by a venture capital firm.
ACQUISITION FOR EXPANSION
Funds provided to a company to finance its acquisition of other companies or assets. A consolidator of companies in specific indus-
tries.
MANAGEMENT/LEVERAGED BUYOUT
These funds enable an operating management group to acquire a product line or business, at any stage of development, from either a
public or private company. Often these companies are closely held or family owned. Management/leveraged buyouts usually involve
revitalizing an operation, with entrepreneurial management acquiring a significant equity interest.

RECAP/TURNAROUND
Financing provided to a company at a time of operational or financial difficulty with the intention of improving the company’s perfor-
mance.
SECONDARY BUYOUT
A buyout deal on top of a buyout deal. Secondary buyouts are distinguished when the initial firm investor is different from the current
investing firm.

APPENDIX G
Data Sources and Resources
For this publication, the main source for data was ThomsonONE.com, the online research database of Thomson Reuters. ThomsonONE.com (which
replaced VentureXpert™, and Thomson One Banker) is endorsed by the NVCA as the official United States venture capital activity database. By using
data gathered through the MoneyTree™ Report by PricewaterhouseCoopers and the National Venture Capital Association based on data from Thom-
son Reuters, ThomsonONE.com contains investment, fund raising, portfolio company information, and Reuters News along with other statistical data.
Over 950,000 global private companies can be analyzed within ThomsonONE.com, including historical revenue figures on over 670,000 companies
and detailed financials on over 200,000 companies. Through a partnership withVC Experts.com, Inc.the historical breadth and depth of the Thomson
Reuters venture capital content is integrated with private company valuation and deal terms. ThomsonONE.com includes blogs, events, and articles
from the peHUB and the Venture Capital Journal, two of the industry’s most widely-read publications. Other information contained in this database is
gathered through a variety of public and proprietary source. This publication is produced on an annual basis primarily using year-end data. However,
the underlying databases can be accessed online to provide the most up-to-date and comprehensive global private equity statistics and profile informa-
tion available.
DATA SOURCES AND RESOURCES VERIFICATION AND UPDATING OF DATA

MONEYTREE™ DATA Collectively, PricewaterhouseCoopers, Thomson Reuters, and the
PricewaterhouseCoopers, Thomson Reuters, and the National Venture NVCA have the utmost commitment to provide an accurate historical
Capital Association joined forces in December 2001 to produce what was record of venture capital activity. On a daily basis, the database is con-
then known as the PricewaterhouseCoopers/Thomson Venture Econom- stantly analyzed for consistency, crosschecked with other data sources,
ics/National Venture Capital Association MoneyTree™ Survey. Conduct- and updated as new information comes in. On a quarterly basis, we have
ed on a quarterly basis, the designated PwC/NVCA MoneyTree Report worked with many venture firms to ensure that that their current and past
allows Thomson Reuters unparalleled access to primary sources of infor- data is correct. Primarily for this reason, the private equity news releases
mation from general partners. of Thomson Reuters will often restate statistics from prior news releases.
With the availability of the online data access, users are encouraged to
SOURCES OF DATA always use the most current numbers even regarding historical activity so
The online database of Thomson Reuters is ThomsonONE.com (Ven- as to maintain accuracy and comparability.
tureXpert), the foremost information provider for private equity profes-
sionals worldwide. The private equity portion of Thomson Reuters of- REPORTING FUNCTIONALITY OF
fers an incomparable range of products from directories to conferences, THOMSONONE.COM
journals, newsletters, research reports, and the ThomsonONE.com Private Users can access information in terms of profiles on private equity com-
Equity database. As of January 2014, the database included over 110,000 panies, funds, firms, executives, IPOs, and limited partners. In addition,
portfolio companies, over 18,000 private equity firms, over 31,000 private users can access the analytics portion of the database, which contains in-
equity funds, and nearly 250,000 financing rounds. By establishing work- vestment, valuation, IPO analytics, merger analytics, fund performance,
ing relationships with private equity and venture capital firms, institutional and fund raising information along with venture capital information such
investors, and industry associations such as the NVCA, Pricewaterhouse- as aggregate fund raising, investments, and IPOs broken out into state and
Coopers and other such entities around the world, Thomson Reuters has nation profiles.
been able to gather, on a timely basis, complete and accurate information.
COMPREHENSIVENESS OF
TIMELINESS OF DATA THOMSONONE.COM
Many of the tables and charts presented in this reportcan be produced Both the breadth and depth of ThomsonONE.com can perhaps best be
by using ThomsonONE.com. One of advantages of using ThomsonONE. shown in that it, among other types of information, the user can find the
com is that the reader can customize a report to better fit the needs of answers to the following questions:
what they are seeking. In addition, because the online database is con- • Which venture firms actively co-invest with a firm I am considering
tinuously updated, the information available is more up-to-date than what co-investing with?
can be presented in this report. Readers should note that timely industry • Which venture firms are most active in funding online financial ser-
information on details concerning venture capital investment is available vices companies in the Ohio Valley?
from other sources such as PricewaterhouseCoopers at www.pwcmoney- • What does Yearbook Figure 3.15 look like for just biotech?
tree.com, the ‘Industry Stats’ section of the NVCA website, www.nvca. • How much money was raised by each fund stage in 2010?
org, and the Private Equity section ofThomson Reuters’ Deals Intelligence • What was a particular venture-backed IPO’s one year return at the
found at http://dmi.thomsonreuters.com/PrivateEquity. end of 2010?
• As of December 2011, was the 10-year return to small buyout funds
larger than that of large buyout funds?

• Who are the most active acquirers of ecommerce security companies? • Compile valuation reports for comparable portfolio companies
• How much money was committed to mezzanine funds from 1997 to • Identify prospective investors and their investment histories
2011? • Benchmark valuations among recent transactions and obtain valuation
• How much money was invested in the venture capital industry from comparables
1987 to 2011? • Analyze investment trends by industry
• What is the performance at quarter end for private equity funds that • Utilize returns information to limited partners using appropriate
were formed from 1998 to 2011? benchmarks
• In 2011, how much money was invested at each development stage in • Tailor your pitch to investor focus size and limited partner type
Research Triangle Pharmaceutical companies? In addition, there are
also advantages of using the database for a general partner as well. ACCESSING THOMSONONE.COM AND OTHER
Although this is not an inclusive list, utilizing the database by general SERVICES
partners can be helpful to them for among the following reasons: For more information on ThomsonONE.com, please visit http://thom-
• Plan your companies’ exits with data on both venture-backed IPOs sonreuters.com/private-equity-venture-capital/ or by phone at 1-877-365-
and mergers and acquisitions 1455. For information on NVCA membership, which can include a free
• Aid in recruiting talented executives from otherventure-backed com- trial and discounts on an annual subscription, please contact Hannah Veith
panies at the NVCA. You may contact her online through the link on the mem-
• Quickly spot venture-backed companies in competition with your ber benefits section of the NVCA website or at 703-524-2549. For infor-
own portfolio companies mation on services PricewaterhouseCoopers provides for venture capital
• Create industry analyses to benchmark both performance and portfo- firms as well as emerging companies, please visit their website at www.
lio investments pwcmoneytree.com.
• Find other venture capitalists likely to support follow-on rounds
• Provide clarity to investment decisions by comparingthem to current
market conditions

APPENDIX H
International Convergence
The discussions and work focused on moving toward one high quality set of standards for financial reporting have begun to provide a picture of the
future. While that picture is more gray scale than vivid color, the following facts and expectations highlight the current state of play at this point in time:
• The SEC issued a report in 2012, without a recommendation, on whether to adopt international accounting rules, or a modification thereof, as
the accepted accounting practice in the United States.
It appears increasingly unlikely that the SEC will move 100% into the International Financial
Reporting Standards (IFRS) camp;
• FASB’s parent, the Financial Accounting Foundation, created a new Private Company Council (PCC) to advise them on private company ac-
counting. Their work is just beginning;
• The AICPA is considering whether the PCC will provide an appropriate framework for private companies or if the AICPA should continue with
efforts to develop an alternative non-GAAP basis of accounting for private companies;
• The International Accounting Standards Board (IASB) modified IFRS consolidation rules to effectively create Investment Company accounting
substantially similar to that used under U.S. GAAP; and
• While Fair Value accounting rules are now virtually identical under U.S. GAAP and IFRS, auditors are raising questions related to “unit of
account” and valuing minority positions that could impact how venture capital and private equity funds estimate Fair Value.
The Dialogue and SEC Decision: Should international United States venture capital industry are matters specifically affecting
rules become accepted as U.S. GAAP? fund reporting, the financial statements provided by GPs to LPs under the
For years, the United States has been developing generalized accounting eventual rules. Because of the recent change in IFRS consolidation rules,
principles referred to as United States venture capital firms would conceptually not be impacted
Generally Accepted Accounting Principles (“GAAP”). The keeper/arbiter/ by a change to IFRS.
decider of GAAP is the Financial Accounting Standards Board (“FASB”).
The FASB develops and updates GAAP and the SEC has adopted these How United States GAAP and International IFRS
accounting rules for public company reporting and other situations over Compare – Never Generalize
which the SEC has jurisdiction. In recent years, on a parallel track, a sep- Even viewed from 30,000 feet, it is difficult to generalize on how the two
arate set of rules emerged from the International Accounting Standards systems compare. First, while the IASB produces plain vanilla IFRS stan-
Board (“IASB”), which was Europe-centric. These rules became known dards, there is no one flavor of IFRS in use. Much like the original UNIX
as the International Financial Reporting Standards (“IFRS,” pronounced kernel, each country/jurisdiction has been able to create its own version
“EYE-fers”). IFRS has now been adopted by most developed and many of IFRS. But unlike UNIX, sometimes the differences among the local-
developing countries around the world, with the exception of the United ized IFRS versions are large. So apples-to apples comparison of “IFRS-
States. compliant” financials from different jurisdictions can be difficult. Second,
it is true that IRFS itself is a very thin document compared to GAAP,
Over recent years, a large number of multinational corporations com- which has grown to roughly a two-foot stack of written rules. However, to
plained that they had to endure keeping two sets of books and this prompt- implement IFRS, you need the implementation guide that combines with
ed the concept of convergence. In early September 2008, the the original document to create its own two-foot stack. Again, much of the
SEC and the FASB announced steps to pave the way for United States surface comparisons are not useful. Until now, United States venture capi-
public companies to convert from tal firms have been using U.S. GAAP accounting standards exclusively.
U.S. GAAP to IFRS. The SEC “roadmap” provided for a three-year run-
up to an SEC “go-no go” decision in 2011, but the decision was deferred. While seemingly distant from the United States venture capital industry,
At about the same time, the FASB and the IASB met to review and re- it is important that all business constituencies weigh in on which system
orient their convergence plan to be consistent with the SEC’s proposed (current U.S. GAAP vs. International vs. neither) is the best system over-
schedule. The 2008-2009 world financial crisis deferred and deprioritized all for the United States business community going forward.
much of the work in this area.
GP-to LP Reporting – Can Meaningful
The SEC’s 2012 staff report on adopting IFRS did not make a recom- Statements Continue?
mendation, but raised questions about consistent application, transpar- A key priority for the United States venture capital industry is being
ency, reliability, relevance, comparability, and ongoing costs in addition able to continue producing quarterly financial statements using invest-
to any conversion costs, which might be significant. More relevant to the ment company (IC) accounting. Virtually all LP agreements (or accom-

panying documents) require GPs to provide GAAP-compliant financial tioning whether Fair Value should be determined based on the “invest-
reports to LPs. Annual audits include testing to ensure GAAP compliance. ment” or on a “single share” basis. While the reasons for such a question
Under GAAP, the United States venture capital industry now provides are beyond the scope of this document, the question and potential results
Fair Value portfolio reports under the special rules of “investment compa- could mean that IFRS and U.S. GAAP, though identical in principle,
ny reporting.” In 2012, IFRS was modified to effectively create a financial would result in different Fair Value estimates (as an aside, this is an ex-
reporting framework substantially similar to U.S. GAAP. ample of one situation that concerns the SEC in moving the United States
towards IFRS).
GP’s should not lose sight of the fact their LP’s who pre-
pare financial statements using either U.S. GAAP At the same time, many auditors of U.S. GAAP, as a reaction to their
or IFRS, in almost all cases, must report their LP fund positions on a regulators the PCAOB, and because of pressure from the SEC, which now
Fair Value basis. LPs are increasingly awakening to the specific condi- regulates private equity funds, are questioning whether or not the sale or
tions outlined in a change to U.S. GAAP from 2009, which codified an exit of an enterprise can be assumed when determining the Fair Value of
LP’s ability to use Net Asset Value (NAV) as an LP’s estimate of the Fair minority positions. Some auditors have gone so far as to indicate that they
Value of their fund interest. These conditions include that the LP must may require the use of option pricing models for determining the Fair
satisfy themselves that the GP reported NAV is based on the Fair Value Value of all minority positions.
of underlying investments, that NAV is “in-phase” (no time lag, unless
deemed insignificant), and that the LP interest is in a fund as defined by Going Forward
ASC Topic 946. If these three conditions are not met, or if the LP chooses With questions regarding whether or not IFRS should be interpreted as
not to use NAV, then Fair Value would be determined using other tech- requiring all Fair Value estimates to be on a single share basis, and with
niques. The point here for GPs is that LPs need robustly determined Fair U.S. auditors appearing to feel some pressure to use mathematical models
Value on a timely basis, generally at least quarterly. to document their audit conclusions, both GPs and LPs in the venture
capital and private equity industry could be faced with financial report-
How the Same Words have Different Meanings ing that is either very costly and/or is not representative of how deals are
The 2012 change in IFRS consolidation rules for Investment Entities done in the industry. In December 2012, the International Private Equity
and the 2011 adoption of a common definition of Fair Value for U.S. & Venture Capital Valuation (IPEV) Board updated its Valuation Guide-
GAAP and IFRS should have created a framework where financial report- lines. The updated valuation guidelines address both the “unit of account”
ing to investors would be identical for funds using IFRS and funds using and mathematical model questions. In addition, IPEV released Investor
U.S. GAAP. If it were only that easy! Reporting Guidelines in October 2012. While each fund manager must
decide both what information to report and how to estimate Fair Value, the
While we enter 2013 with a consistent framework under U.S. GAAP IPEV Valuation Guidelines and the IPEV Investor Reporting Guidelines
and IFRS where venture capital and private equity funds report all invest- provide balanced, and industry created, assistance in dealing with report-
ments at Fair Value; and while we now have an identical definition of Fair ing and valuation questions.
Value (the amount a market participant would pay in an orderly transac-
tion), schisms are developing. NVCA and Thomson Reuters acknowledge and appreciate the assis-
tance of David Larsen of Duff and Phelps in updating and refocusing the
Because of nuances in the way IFRS is drafted, IFRS auditors are ques- material in this Appendix.

APPENDIX I
US Accounting Rulemaking and Valuation Guidelines
In the United States, a venture capital fund is usually organized as a limited partnership. The institutional investors providing capital to a fund typically
become the limited partners (LPs). The venture firm itself becomes a general partner (GP) in the limited partnership. In most of the limited partnership
agreements defining the GP-LP relationship, the GPs are required to provide financial reports quarterly (unaudited) and annually (audited) prepared
according to United States Generally Accepted Accounting Principles (“GAAP”). GAAP calls for the use of investment company accounting, which
mandates that a Fair Value be assigned to the individual investments (portfolio companies). This is consistent with the LP’s need for Fair Value of
their investments, as well as third-party or regulatory requirements, e.g., ERISA-regulation. In recent years, the GP-to-LP financial statements have
been subject to numerous rule “clarifications,” convergence with non-U.S. accounting, expanded disclosures, and more formal presentations. Industry
groups (PEIGG a decade ago and IPEV today) have released guidelines that, if adopted, can reduce questions from LPs and provide a basis to respond
to questions posed by auditors.
Guidelines fall into two categories. The first is portfolio performance require the venture firm to provide quarterly and annual financial state-
presentation formats, calculations, and disclosure. Examples of such ments using Generally Accepted Accounting Principles (GAAP). GAAP
Guidelines are the Private Equity Provisions of the Global Investment requires Fair Value measurement for portfolio positions. Therefore, most
Performance Standards (GIPS), developed by the CFA Institute and the GPs must issue financial statements using Fair Value.
IPEV Investor Reporting Guidelines. While many of the specifications
and terminology line up with current practice in the United States, the Most important, if industry-created valuation guidelines are not used,
NVCA has not endorsed or otherwise commented on these Guidelines. those outside the industry, such as auditors or regulators could impose
Neither NVCA nor Thomson Reuters has determined how widespread the their view on the industry. A non-industry view could adversely impact
adoption of those guidelines is or will likely be. These documents and ac- the LPs desire and ability to invest if interim values are not representative
companying guidance can be currently found at http://www.cfainstitute. of the way the industry sees value, and costs for determining valuation
org/centre/codes/gips/ and www.privateequityvaluation.com. could increase.
The second important category of guidelines is focused on valuation. The Evolution of Reporting and Valuation Guidelines
To understand the pressure on valuation and reporting in today’s environ-
Why Valuation Guidelines Matter ment, a historical background review is instructive.
What ultimately matters to investors and private equity practitioners is the • 1940 – United States Investment Company legislation (“the 40 Act”)
cash that has been distributed to the investors during the life of the fund required investment companies to report the Fair Value of investments.
compared with the original money put in. However, the specified life of a While the application of accounting standards has evolved over the past
typical venture fund is at least 10 years and often longer in the life scienc- 70+ years, the underlying basis of reporting has always been Fair Value.
es arena. During that period, the venture capital fund reports progress to
the limited partners. In many cases, this means quarterly portfolio updates • 1989-90 – A group of investors, private equity fund managers, and
and a complete annual audited financial statement. For a typical venture fund-of-fund managers formed a group to develop a set of portfolio
fund, very little money is paid out in the first four or five years. Also, while company valuation guidelines for financial reporting. Contrary to a very
every portfolio company receives funding with high expectations, it can persistent rumor, the NVCA did not endorse, adopt, bless, publish, or
take several years to determine if a particular company is a likely winner. otherwise opine on the guidelines. Using the principle of conservatism,
Therefore, understanding progress in the portfolio requires some estimate these non-endorsed guidelines used cost or the value of the last round of
of the success of the investee companies by the venture capital or private financing to approximate Fair Value.
equity firm. While many investors and fund managers agree that financial
measurements mean little for the first three or so years of a fund, investors • Decade of the 1990s – Two noteworthy developments occurred in the
are required to report the Fair Value of their fund positions on a quarterly 1990s. Despite no endorsement by the NVCA, these guidelines became
or annual basis. This is where specific valuation rules and processes be- accepted practice by much of the United States industry, especially in the
come important. The agreed valuation procedures for individual portfolio venture capital side of private equity. These guidelines were referred to
companies become the basis for progress assessment as the fund matures by many as being issued by the NVCA but in fact they were not. The sec-
and ultimately distributes cash to the investors. ond development is that international venture associations created local-
ized guidelines based heavily on these guidelines. These were created in
Thus, while portfolio company valuations are more of an art than a sci- Europe and other international regions. In fact, by 2005, there had been
ence, especially for pre-revenue or even pre-EBITDA companies, most multiple iterations of the European and British guidelines, again gener-
limited partner agreements (LPAs) establishing a venture capital fund ally focused on cost or the value of the last round of financing.

• December 2003/September 2004 – The Private Equity Industry Guide- • February 25, 2014 – The Financial Accounting Foundation (FASB’s
lines Group (PEIGG), a self-appointed group of private equity practitio- parent organization) issues its findings of a Post Implementation Re-
ners, fund managers, LPs and others, issued U.S. Private Equity Valu- view of the fair value measurement standard (Topic 820) which is better
ation Guidelines. The Guidelines were issued after extensive input and known by its original nomenclature: FAS 157. FAF’s overall finding was
review soliciting feedback and input from a number of industry groups that overall the FASB got the standard basically correct, a point with
that included NVCA. which NVCA does not disagree. However, the findings acknowledged
concerns raised by NVCA, LPs, and others while simultaneously declar-
• 2 005 – In part as a reaction to the PEIGG Guidelines, three Europe- ing no unintended consequences.
based venture capital associations (AFIC, BVCA, EVCA) created the
International Private Equity and Venture Capital (IPEV) Valuation NVCA Position on Portfolio Company Valuation
Board. Guidelines
While publicly supportive of prior peer and eco-system generated valua-
• April 2006 – IPEV released its Valuation Guidelines. tion guidance (for example, PEIGG), NVCA’s endorsement of IPEV valu-
ation guidelines in May 2013 is the first such action it has taken.
• September 2006 – Financial Accounting Standards Board (FASB)
issued its long-awaited and long anticipated Fair Value measurement NVCA Member Alert –Fair Value Considerations for
standard as FAS 157. Only a few of its 145 pages relate directly to typi- Venture Capitalists–December 2008
cal venture capital and private equity funds. Because the FASB main- In 2008, as a response to the economic crisis at the time, the NVCA issued
tains that this is a clarification and further definition of Fair Value that a membership alert. Much of that alert remains relevant today. The fol-
was already required for portfolio accounting, some auditors began re- lowing alert was sent to the NVCA membership to highlight certain issues
quiring selective compliance in advance of the 2008 effective date. and considerations to be explored in the application of FAS 157, the Fair
Value measurement standard. The NVCA thanks David Larsen of Duff
• March 2007 – PEIGG issued a revised portfolio company valuation and Phelps and several members of the NVCA CFO Task Force for their
guidelines document to reflect the Fair Value Measurement standard role in drafting this document:
(FAS 157). “We are operating in a severely distressed investment environment that
has deteriorated rapidly in the past few months. What does this mean for
• September 2007 – NVCA board reaffirmed its prior position on the venture capital investors as they attempt to value privately-held invest-
PEIGG guidelines to refer to the most recent version. ments at December 31, 2008? The short answer is: despite the current
very challenging economic environment, fund managers must continue to
• March 2008 – the IPEV Board reconstituted and re-launched itself and exercise their sound judgment in estimating the Fair Value of each portfo-
adds five practitioners from the United States. The initial focus of the lio company after considering the relevant facts, including current market
group was on convergence of U.S. PEIGG and IPEV valuation guide- conditions. The valuation process does not change, but much more judg-
lines. Details at www.privateequityvaluation.com. ment is required when we are in a period of economic discontinuity. Virtu-
ally all LP agreements require GPs to use U.S. GAAP for financial report-
• July 2009 – Effective July 1, authoritative GAAP became contained in ing. U.S. GAAP requires Fair Value reporting for virtually all VC firms
a single codification and the prior nomenclature went away. Existing because they are “investment companies.” U.S. GAAP continues to define
U.S. GAAP was recast into 90 topics, which include all related FASB Fair Value as: “the price that would be received to sell an asset…in an
pronouncements, AICPA guidance and EITFs under single “Topics.” orderly transaction between market participants at the measurement date.”
Familiar standards would no longer exist. For example, FAS 157 be-
came Topic 820 Fair Value Measurements and Disclosure. Investment Fund managers need to establish Fair Values even though they may not
Company accounting became ASC Topic 946. currently need to sell, or cannot sell, their private investments in this mar-
ket. GPs must use their judgment in estimating the current Fair Values
• May 2011 – FASB amended ASC Topic 820 and the IASB issues IFRS of their investments, even though “exit markets” may have few buyers,
13, resulting in nearly identical Fair Value guidance. IPO markets appear closed, and there are few, if any, relevant compa-
rable transactions. Such judgment should take into account all relevant
• October 2012 – IPEV released Investor Reporting Guidelines information, including a financing round’s specific terms and conditions.
There are no easy outs, rules of thumb or safe harbors for establishing
• December 2012 – IPEV updated its Valuation Guidelines to harmonize Fair Value. As always, best considerations for Fair Value determination
with ASC Topic 820 and IFRS 13. include the following:
• May 28, 2013 – In an unprecedented action, the NVCA Board formal- • T

he Fair Value of an investment portfolio is the sum of the Fair Value
ly endorsed the IPEV valuation guidelines issued in December 2012. determined for each portfolio company using a “bottoms up” approach.
NVCA was joined in doing this by the Private Equity and Growth Capi- Applying a “top-down” overall percentage adjustment to the aggregate
tal Council (PEGCC). portfolio’s value is not compliant with U.S. GAAP.

• V
aluations should reflect specific factors in a buy/sell context. For ex- a. LPs are revisiting their internal valuation policies.
ample, a GP could ask: “Given my portfolio company’s current cash b. LPs are asking more detailed valuation questions of the GP.
position, cash burn rate, performance compared to plan, probability of
meeting forecasts, the projected environment for its product or technol- 2. T
he IASB has created “investment company accounting” by requiring
ogy, etc., as a board member, what is the lowest price that I would sell venture capital and private equity funds to report all investments at Fair
the company’s stock today in an orderly sale with a willing buyer?” Value rather than consolidating control positions.
[Footnote: A fund manager should not assume a “fire sale” of the stock,
but should assume “exposure to the market for a period prior to the 3. A
uditors of IFRS have raised questions concerning the level of aggre-
measurement date to allow for marketing activities that are usual and gation (unit of account) that should be used to value venture capital and
customary …” from SFAS 157, Paragraph 7]. private equity investments.
a. Some auditors believe that unit of account is a single share of an
• T
he valuations set by the most recent financing round – perhaps even investee company.
one in the third quarter of 2008 – may be stale and inappropriate for b. Single share valuations would likely result in reporting understated
determining Fair Value, especially given current market conditions. Fair Values.
c. Reporting understated Fair Values would exacerbate the “J” curve,
• T
he Fair Value at December 31 in many cases will likely be different and could cause some LPs to reduce investments in the industry be-
from the value at September 30, given the deterioration of the macro- cause of lower interim returns.
economic environment. d. IFRS could deviate from U.S. GAAP even though the Fair Value
principles are identical.
• E
ach valuation should reflect a company’s degree of progress from the
prior reporting date to the current one. 4. A
uditors of U.S. GAAP have raised questions concerning how to esti-
mate the Fair Value of non-control positions.
• T
o determine a portfolio company’s Fair Value, GPs should apply their a. Is it appropriate to assume that the entire enterprise is being sold when
judgment in a consistent manner and evaluate the same data they use for estimating Fair Value?
monitoring a company’s performance and progress. There is no magic b. For non-control positions, is it appropriate or required to use option
formula or weighting of factors. pricing models and theory to estimate Fair Value?
In summary, determining Fair Value continues to require the exercise of The IASB is expected to address the Unit of Account question during
judgment based on objective evidence, such as calibrating the original early 2013. The AICPA has formed a task force to provide guidance on
investment decision with the current performance of the company and investments of venture capital and private equity funds. Part of the reason
the current economic environment. The fact that the macro market is dis- the AICPA has formed a task force is because the IPEV guidelines have
tressed probably adversely impacts the value of most companies. This not been as widely accepted or acknowledged in the U.S. as they have
negative impact may be compounded by disappointing company perfor- been in Europe. Further, while some parties have voiced concern that the
mance or mitigated by tangible and sustainable company progress. If you AICPA task force conclusions may be relatively auditor-friendly, several
need more details about Fair Value, you might consider the IPEV Valua- members of that task force are from NVCA members.
tion Guidelines at www.privateequityvaluation.com.”
All of this raises the question: could GPs reduce LP questions and increase
2014 Headwinds LP valuation comfort by stating that they comply with the IPEV Valuation
As noted above, new pressure is emerging that could impact how venture Guidelines? Will current efforts at non-authoritative accounting guidance
capital and private equity managers estimate Fair Value. Key factors in- provide a framework with which the great compliance community will be
clude: comfortable? Over the next year, greater clarity should emerge.
1. L
Ps are awakening to the fact that they need to obtain more information NVCA and Thomson Reuters acknowledge and appreciate the assistance
from the GP about how the GP estimates Fair Value so the LP can use of David Larsen of Duff and Phelps in updating and refocusing the mate-
NAV to estimate the Fair Value of their LP interest. rial in this Appendix


APPENDIX J
Non-US Private Equity
As interest in globalization increases with each year, private equity investors have continued to broaden their investment criteria to include overseas
ventures so as to increase portfolio diversification and search for higher returns. As such, Appendix J is produced for readers to analyze non-US private
equity data. All data is reported in US dollars.
INTRODUCTION $19.9 billion or 15% of the total. Venture Capital funds represented 8%
This appendix highlights various aspects of private equity activity out- ($10.2 billion). Private Real Estate funds raised $13.5 billion or 10% of
side of the United States and provides valuable information for compari- the share. Fund of funds, Generalist, and Mezzanine funds raised $6 bil-
son to the United States private equity environment. However, this appen- lion, $10 billion, and $3.1 billion, respectively. It should be noted that
dix is not directly comparable to domestic data found in this Yearbook these totals reflect not only the amount raised by independent funds, but
due to differences in definitions between the regions and variations in the also include capital gains and the amount raised by captive funds.
currencies of each region. Additionally, this appendix provides a brief
overview of non-US private equity; data herein is not as comprehensive INVESTMENTS
as the United States data presented elsewhere in this publication. Despite Overall, private equity investing outside of the United States reached
this, the reader can use this appendix to analyze trends in private equity $46.6 billion. Buyout stage financing led investment activity, accounting
outside of the United States. All data is provided by Thomson Reuters. As for 43% of the total dollars. The Venture Capital investments followed
mentioned previously, readers should note the differences in methodol- with 32% of the total. By number of deals, Venture Capital investments
ogy and definitions of private equity between United States and other re- led with 56% and the Buyouts investments followed with 37% of the total
gions before analyzing the data. For example, private equity outside of the deal activity outside of the United States. Canada received the biggest
United States provides equity capital for entities not publicly traded and share of private equity outside the United States in 2013 with $9 billion
consists of buyouts and venture capital. The category of buyouts includes worth of investments or 19% of the total value. The United Kingdom fol-
management buyouts (management from inside the company investing lowed with $5.2 billion. China comes in at third with $4.9 billion or 10%
with private equity investors), leveraged buyouts (the target taking on a of the total. Private equity commitments experienced an increase while
high level of debt secured by assets), institutional buyouts (outside inves- investments saw a decrease outside of the United States in 2013. Commit-
tors buying a business from existing shareholders), and management buy- ments saw an increase of 16% from $113 billion in 2012. Private equity
ins (management from outside the company investing with private equity investments dropped 21% from $59 billion of the previous year.
investors). On the other hand, venture capital describes the process of fi-
nancing companies at the seed, start-up, or expansion stages. The United
Figure J1
States places more emphasis on the early stages of development than do
Private Equity Commitments Outside of the United States
other regions, based on historical analysis of investments by stage. Like in
in 2013
the United States, non-US venture capital is considered a subset of private
equity. For ease of analysis and to avoid differences in definitions between Fund World Location # Funds Amount Raised in Range (USD Mil)
venture capital and buyouts inside and outside of the United States, it is Europe 170 77,544.94
perhaps most comparable to analyze aggregate private equity in the two
Asia 116 30,943.34
regions as opposed to any classifications contained within.
**Special Note: The methodology used to generate the data within this Other Regions 88 22,354.11
appendix differs slightly from the methodology used in previous years, Total 374 130,842.38
causing data to vary slightly from previous Yearbook issues. However,
trends reported in the past remain intact. Additionally, most data is now
replicable on ThomsonONE.com.
COMMITMENTS
Private equity commitment levels, outside of the United States, totaled
$130.8 billion in 2013. European-based funds raised the bulk, raising
$77.5 billion, equal to 59% of this amount. Meanwhile, Asian funds had
$30.9 billion in fundraising commitments which is 24% of the total. Funds
in the Other Regions raised the remaining $22.4 billion or 17% of the to-
tal. In the stage level, Buyout commitments outside the United States ac-
counted for $68.3 billion or 52% of the total. The second largest part of the
commitments was Other Private Equity/Special Situations which raised

Figure J2
Private Equity Commitments Outside of the United States
by Fund Stage in 2013
Fund Stage # Funds Amount Raised in Range (USD Mil)
Buyouts 98 68,253.15
Venture Capital 137 10,181.76
Generalist 47 9,952.74
Mezzanine Stage 9 3,065.56
Fund of Funds 22 5,984.68
Other Private Equity/ 19 19,856.58
Special Situations
Real Estate 42 13,547.92
Total 374 130,842.38
Figure J3
Private Equity Investments Outside of the United States
By Location in 2013
Company Nation # Deals # Companies Sum of Equity Invested
(USD Mil)
Canada 845 747 9,018.66
United Kingdom 742 696 5,223.91
China 310 291 4,862.14
Germany 442 405 4,821.09
India 355 321 3,169.58
Other Nations 2343 2215 19,455.95
Total 5037 4675 46,551.33
Figure J4
Private Equity Investments Outside of the United States
By Stage in 2013
Company Stage # Deals # Companies Sum of Equity Invested
(USD Mil)
Buyout/Acquisition 1881 1769 20,119.97
Venture Capital 2805 2609 14,752.98
Other 351 327 11,678.38
Total 5037 4675 46,551.33

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NATIONAL VENTURE

NATIONAL VENTURE CAPITAL ASSOCIATION 2014

INCLUDING STATISTICS FROM THE

Very truly yours,

Diana Frazier Bobby Franklin John S. Taylor

NVCA THOMSON REUTERS

Josh Green Scott Sandell

Anne Rockhold Jonathan Callaghan

Bruce Evans Jonathan Leff

Diana Frazier Mark Leschly

Norm Fogelsong Venky Ganesan

THOMSON REUTERS NVCA

For the National Venture Capital Association

Copyright 2014 Thomson Reuters

NVCA THOMSON REUTERS

National Venture Capital Association 2014 Yearbook

National Venture Capital Association Thomson Reuters

President and CEO Global Head of Deals & Private Equity

President Emeritus Head of Deals and Private Equity Operations

Head of Research Global Business Manager – Private Equity

Senior Vice President of Federal Policy and Political Advocacy Editor-in-Charge

Vice President of Federal Policy and Political Advocacy Press Management

Vice President of Administration Data Specialist

THOMSON REUTERS NVCA

What is Venture Capital? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

NVCA THOMSON REUTERS

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THOMSON REUTERS NVCA

WHAT IS VENTURE CAPITAL?

Venture Capital Backed Companies

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Economic Alignment of all Stakeholders —

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NVCA THOMSON REUTERS

THOMSON REUTERS NVCA

NVCA THOMSON REUTERS

Industry Group # Companies # Deals Investment # Companies # Deals Investment

THOMSON REUTERS NVCA

NVCA THOMSON REUTERS

Figure 8.0 2013 Investments By State

Figure 9.0 Venture-Backed IPOs

1985 48 763 13 16 2,020 37 48 3.0 4.0

THOMSON REUTERS NVCA

Year Number Total Number Known Price Average

NVCA THOMSON REUTERS

THOMSON REUTERS NVCA

NVCA THOMSON REUTERS

THOMSON REUTERS NVCA

Figure 1.02 (Continued)

NVCA THOMSON REUTERS

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Figure 1.05 Figure 1.06

2010 508 136 177

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Figure 1.08 (Continued)

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Figure 1.08b (Continued)

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