1H 2013 Venture Capital ExitsPresentation Slide Deck

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VC investors have had a heightened focus on liquidity events in recent years. Capital exited increased for a fourth consecutive year in 2012, hitting $38.2 billion, which was the second highest total ever.

Source:PitchBook

Capital Exited has Jumped 68% from 2010 to 2012 while

Exit Volume has been Virtually UnchangedU.S. VC Annual Exit Flow

2004 2005 2006 2007 2008 2009 2010 2011 2012$0

$10

$20

$30

$40

$50

$60

0

100

200

300

400

500

600

$14.8 $11.6 $19.8 $49.0 $10.8 $11.0 $22.7 $26.1 $38.2

245 258328

389313

341

517 503 501

Capital Exited ($B) # of Exits

Source:PitchBook

VC Exit Activity has Held Fairly Steady From Quarter-to-Quarter Over the Last Three Years

U.S. VC Quarterly Exit Activity

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q2008 2009 2010 2011 2012

$0

$5

$10

$15

$20

$25

0

20

40

60

80

100

120

140

160

180

$2.1 $3.7 $2.2 $2.7 $0.7 $2.0 $2.2 $6.1 $6.4 $3.4 $5.4 $7.5 $6.0 $6.7 $5.9 $7.6 $4.9$21.1$7.5 $4.8

85 7186

71 78 7685

102117

111

136

153145

111

135

112

128131 131

111

Capital Exited ($B) # of Exits

Source:PitchBook

Unlike Their PE Counterparts, VC Investors Did Not Make a Push to Exit in 4Q Ahead of the

Fiscal Cliff Percent Change in Exits from 3Q to 4Q, PE vs. VC

Change in # of Exits Change in Capital Exited-50%

0%

50%

100%

150%

200%

-15%-36%

57%

179%

VCPE

Source:PitchBook

Capital Raised Prior to Exit has Been Steadily Declining Since 2007, Helping to Increase Exit

MultiplesExit Size/Total Capital Raised Prior to Exit

2006 2007 2008 2009 2010 2011 2012$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

x

.5x

1x

1.5x

2x

2.5x

3x

3.5x

4x

4.5x

5x

$14

$66

2.7x

3.5x

2x1.4x

3.4x4.1x

4.7x

Median Amount Raised ($M) Prior to Exit Median Exit Size ($M)

Source:PitchBook

Exits by Type Analysis

Source:PitchBook

IPOs Have Regained Some of the Prominence Lost in the Financial Crisis

VC-Backed Exits by Type

2004 2005 2006 2007 2008 2009 2010 2011 2012 -

100

200

300

400

500

600

Acquisition IPO Buyout

Source:PitchBook

Corporate Acquisitions Continue to Represent More than 70% of VC-Backed Exits

Percent of Exits by Type

06 07 08 09 10 11 120%

20%

40%

60%

80%

100%

Acquisition IPO Buyout

Source:PitchBook

Strategic Acquirers Tend to Acquire Younger Companies

Median Hold Time by Exit Type

2006 2007 2008 2009 2010 2011 20123

4

5

6

7

8

Acquisition IPO Buyout

Year of Exit

Num

ber o

f Yea

rs H

eld

Source:PitchBook

IPOs were the Source of More than Half of the Capital Exited from VC-Backed Companies in

2012Capital Exited ($B) by Type

2004 2005 2006 2007 2008 2009 2010 2011 2012 $-

$10

$20

$30

$40

$50

$60

Acquisition IPO Buyout

Source:PitchBook

IPOs Have Consistently Returned More Capital to Investors than Both Acquisitions and Buyouts

Median Exit Size ($M) by Exit Type

2006 2007 2008 2009 2010 2011 2012$0

$50

$100

$150

$200

$250

Acquisitions IPOs Buyouts

Source:PitchBook

More than 10% of Strategic Acquisitions in 2012 were for Companies that had Only Raised a

Seed/Angel RoundLast Financing Round Prior to Exit (2012)

Acquisition IPO Buyout0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Seed/Angel Early Stage Late Stage

Source:PitchBook

IPOs have Historically Required Significantly More Financing Prior to Liquidity than Other

Exit OptionsMedian VC Capital Raised ($M) Prior to Exit

2006 2007 2008 2009 2010 2011 2012$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

Acquisition IPO Buyout

Source:PitchBook

Exits by Size Analysis

Source:PitchBook

Liquidity Events Over $100M Have Steadily Increased Their Share of Exits Since 2008

Percentage of Exits (#) by Exit Size

2006 2007 2008 2009 2010 2011 20120%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

$500M+

$100M-$500M

$50M-$100M

$25M-$50M

$0-$25M

Source:PitchBook

$0-$25M

$25M-$50M

$50M-$100M

$100M-$500M

$500M+

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Acquisition IPO Buyout

The $50M to $100M Size Bucket was the Only Range Where Acquisitions were Not the

Preferred Exit StrategyPercentage of Exits (#) by Exit Size and Type

Source:PitchBook

Exits by Sector Analysis

Source:PitchBook

Software Expanded to More than 50% of Exits for the First Time in 2012

Percentage of Exits (#) by Sector

2006 2007 2008 2009 2010 2011 20120%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Other

Pharma & Biotech

HC Devices & Supplies

Media

Commercial Services

Software

Source:PitchBook

Software Represented an Even Larger Proportion of Exits in Terms of Capital Exited

Percentage of Exits ($) by Sector

2006 2007 2008 2009 2010 2011 20120%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Other

Pharma & Biotech

HC & Supplies

Media

Commercial Services

Software

Source:PitchBook

Software Exits have been Consistently Increasing, with Capital Exited More than

Doubling from 2011 to 2012Software Exits by Year

2006 2007 2008 2009 2010 2011 2012$0

$5

$10

$15

$20

$25

$30

0

50

100

150

200

250

$5.4 $6.2 $4.2 $2.7 $5.5 $10.5 $27.4

107121 127

151

199224 233

Capital Exited ($B) # of Exits

Source:PitchBook

Software Made Up a Significant 47% of Corporate Acquisitions in 2012Corporate Acquisitions (#) by Sector

47%

10%

9%

6%

3%

25%

SoftwareCommercial ServicesMediaHC Devices & SuppliesPharma & BiotechOther

Source:PitchBook

Pharmaceutical & Biotech Investors Lean Heavily on Public Markets for Liquidity

IPOs (#) by Sector

47%

2%2%

21%

28%

Software

Commercial Services

Media

HC Devices & Supplies

Pharma & Biotech

Other

Source:PitchBook

Private Equity Firms Seem to Favor Less Traditional

VC Sectors, Like Commercial ServicesSecondary Buyouts (#,%) by Industry Sector

42%

12%4%

9%2%

32% Software

Commercial Services

Media

HC Devices & Supplies

Pharma & Biotech

Other

Source:PitchBook

Exits by Region Analysis

Source:PitchBook

Exits by Region Remained Fairly Unchanged from 2011 to 2012

Percentage of Exits (#) by Region

17%

13%

4%5%2%5%3%

50%

18%

12%

5%

6%0%4%

5%

50%

Mid-Atlantic

New England

Southeast

South

Midwest

Great Lakes

Mountain

West Coast

2012

2011

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