Jeremy Glaser - Current Trends in United States Venture Capital Investing

Current Trends in United States Venture Capital InvestingCurrent Trends in United States Venture Capital Investing

MIT Enterprise Forum of IsraelLooking for the Next BIG Thing: Israel's leading investors speak

February 8, 2011

Who We Are

• AM-Law 100 full service U.S. law firm

• Offices in Boston, London, UK, Los Angeles, New York, Palo-Alto, San Diego, Stamford, CT, Washington D.C.

• Israel liaison office in Herzelia

Israel Business Practice

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• Recognized leader in serving technology based companies in Industries such as high-tech, health, clean-tech and the life-sciences

• 40 years of experience in taking emerging technology companies public

• Over 10 years of experience in supporting Israeli businesses

• Over 80% of our firm’s attorneys have Israel-related work experience

• Commitment to working with clients to build long term success

Representative Israeli Clients

Israel Business Practice

• Alvarion

• American Well Corp

• Cheetah Medical

• Lumenis

• Medingo

• Mobile Access Networks

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• CellEra Technologies

• Elron

• Gamida Cell

• Glycominds

• IMDsoft

• Israel Discount Bank of NY

• NeuroPhage

• Nice Systems

• RDC

• Rosetta Genomics

• Scodix Ltd.

• Teva Pharmaceuticals

Venture Capital and Emerging Companies

• More than 200 completed venture capital transactions since 2008, with an aggregate transaction value of over $1.7 billion

• Represent founders, companies and venture capital and other investors

• All stages, from early or seed-stage investments through subsequent multi-investor and

Venture Capital and Emerging Companies

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late stage financing

• Frequently initiate introductions between our start-up clients and our network of “angel” investors and venture capital firms

Venture-Backed IPO’s and M&A Deals, 2005-2010

Current Trends in United States Venture Capital Investing

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. 5

Source: NVCA

Total Dollars Raised by VC Funds – 2005-2010

Current Trends in United States Venture Capital Investing

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. 6

Source: NVCA

Investment in Different Stages

Current Trends in United States Venture Capital Investing

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. 7

Source: PWC/NVCA MoneyTree Report, Q4 2010

VC Investments in IT, Biotech and Cleantech, 2005-2010

Current Trends in United States Venture Capital Investing

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Source: PWC/NVCA MoneyTree Report

Zynga Financings

• January 15, 2008: Zynga raises $10M from Avalon Ventures; Foundry Group; and Union Square Ventures

• July 23, 2008: Zynga raises $29M from Avalon Ventures; Foundry Group; Institutional Venture Partners; Kleiner Perkins; and Union Square Ventures

Current Trends in United States Venture Capital Investing

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

• December 15, 2009: Zynga raises $180M from Andreessen Horowitz; Institutional Venture Partners; Mail.ru Group; and Tiger Global Management

• June 14, 2010: Zynga raises $150M from SOFTBANK Corp.

• July 10, 2010: Zynga raises $200M from Google Inc.

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Twitter Financings

• July 25, 2007: Twitter raises $4.8M from Charles River Ventures and Union Square Ventures, among others

• January 8, 2008: Twitter receives an undisclosed amount from DG Incubation, Inc.

• May 21, 2008: Twitter raises $15M from Union Square Ventures

Current Trends in United States Venture Capital Investing

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

• June 24, 2008: Twitter raises an undisclosed amount from Bezos Expeditions; DG Incubation; Spark Capital; and Union Square Ventures

• February 12, 2009: In a Series C round, Twitter receives $21M from Benchmark Capital and $14M from Institutional Venture Partners, in addition to funds from DG Incubators, Charles River Ventures, Spark Capital and Union Square Ventures

• September 24, 2009: Twitter raises $100M from T. Rowe Price Group, Insight Venture Partners, Spark Capital and Institutional Venture Partners

• November 17, 2010: Kleiner Perkins and other existing investors raise $200M for Twitter; to date, Twitter has raised over $360M

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Facebook Financings

• April 15, 2005: Facebook raises $12.7M from Accel Partners in a Series A financing

• April 19, 2006: Facebook receives $27.5M in funding from Greylock Partners; MeriTech Capital Partners; Accel; and Peter Thiel

• October 24, 2007: Facebook raises $240M in an equity round from Microsoft, with

Current Trends in United States Venture Capital Investing

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

Microsoft holding a 1.6% stake in the company

• April 22, 2009: Facebook raises another round of funding from Millennium Technology Value Partners

• May 26, 2009: Facebook receives $200M in funding from Digital Sky Technologies Limited, which receives a 1.96% stake in the company, valuing it at $10B

• December 31, 2010: Facebook receives a $500M round of equity funding from Goldman Sachs, Merchant Banking Division and Mail.ru Group, valuing the company at $50B

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Groupon Financing

• December 2, 2009: Groupon raises $30M from Accel Partners and New Enterprise Associates

• April 16, 2010: Groupon raises $135M from Accel; Battery Ventures; and Mail.ru Group, and issues equity securities

Current Trends in United States Venture Capital Investing

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

• December 17, 2010: Groupon raises $950.09M from Fidelity Investments; Mail.ru Group; Morgan Stanley Private Equity; and T. Rowe Price Group

– As of January 10, 2011, a number of other VCs had joined the investment, including Kleiner Perkins; Andreessen Horowitz; Battery Ventures; Greylock Partners; Mail.ru Group; Maverick Partners; Silverlake Partners; and Technology Crossover Ventures, valuing the company at $4.75B

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Thank You!

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