Results from the 2008 Global Venture Capital Survey fileResults from the 2008 Global Venture Capital Survey June 2, 2008

Results from the 2008 Global Venture Capital Survey

June 2, 2008

Copyright © 2008 Deloitte Development LLC. All rights reserved.

Presenters

• Mark Jensen, Deloitte & Touche LLP– Partner and National Director, Venture Capital Services

• Dixon Doll, DCM– Co-Founder and General Partner

• Jean-François Formela, Atlas Venture– Life Sciences Partner

• Emily Mendell, National Venture Capital Association– Vice President, Strategic Affairs


Agenda

• Overview• Survey results• VC commentary• Questions and answers


Responses and demographics

• 398 responses from around the globe– 41% from U.S.– 20% from Asia Pacific– 19% from Europe (excluding UK)– 10% from Americas (excluding U.S.)– 4% from Israel– 6% from UK

• Responses from large, mid-sized and small firms• 57% of U.S. and 58% of non-U.S. VCs are currently

investing outside of their home country


Percentage of venture capitalists currently investing outside their home country

46%

83%

29%

61%

20%

56%57% 55%

41%

83%

40%48%

0%10%20%30%40%50%60%70%80%90%

100%

U.S. UK The Americas(excl. U.S.)

Europe (excl. UK) Israel APAC

20072008

Investing abroad


Telecommunications

Telecommunications - primary and secondary countries with the best technology (all respondents)

9%

7%

12%

15%

14%

3%

6%

4%

12%

57%

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

S. Korea

Finland

Israel

Japan

U.S.

PrimarySecondary


Telecommunications (continued)

Telecommunications - countries with the best technology (total responses)

8%

6%

6%

16%

37%

5%

35%

6%

7%

8%

13%

36%

7%

9%

12%

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

S. Korea

Finland

Israel

Japan

U.S. Globalnon-U.S.U.S.


Semiconductors including electronics

Semiconductors including electronics - primary and secondary countries with the best technology (all respondents)

11%

13%

19%

21%

11%

3%

3%

7%

10%

70%

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

S. Korea

China

Japan

Taiwan

U.S.

Primary

Secondary


Semiconductors including electronics (continued)

Semiconductors including electronics - countries with the best technology (total responses)

5%

9%

14%

19%

43%

8%

7%

12%

13%

39%

7%

8%

13%

15%

41%

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

S. Korea

China

Japan

Taiwan

U.S.

Global

non-U.S.

U.S.


Software

Software - primary and secondary countries with the best technology (all respondents)

9%

11%

13%

35%

4%

0%

1%

0%

6%

87%

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

Germany

Israel

UK

India

U.S.

Primary

Secondary


Software (continued)

Software - countries with the best technology(total responses)

5%

5%

5%

23%

50%

4%

6%

7%

18%

45%

4%

6%

6%

20%

47%

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

Germany

Israel

UK

India

U.S.Global

non-U.S.

U.S.


Biopharmaceuticals

Biopharmaceuticals - primary and secondary countries with the best technology (all respondents)

9%

12%

16%

28%

9%

1%

3%

2%

3%

85%

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

France

Germany

Switzerland

UK

U.S.

Primary

Secondary


Biopharmaceuticals (continued)

Biopharmaceuticals - countries with the best technology(total responses)

4%

6%

9%

14%

53%

5%

8%

8%

15%

48%

5%

7%

8%

14%

50%

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

France

Germany

Switzerland

UK

U.S.Global

non-U.S.

U.S.


Medical devices and equipment

Medical devices and equipment - primary and secondary countries with the best technology (all respondents)

9%

12%

18%

33%

9%

1%

2%

2%

6%

85%

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

Japan

Israel

UK

Germany

U.S.

Primary

Secondary


Medical devices and equipment (continued)

Medical devices and equipment - countries with the best technology (total responses)

5%

9%

11%

14%

54%

4%

4%

8%

21%

47%

4%

6%

10%

19%

50%

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

Japan

Israel

UK

Germany

U.S. Global

non-U.S.

U.S.


Alternative / clean energy

Alternative / clean energy - primary and secondary countries with the best technology (all respondents)

6%

8%

8%

22%

23%

2%

1%

4%

21%

56%

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

Canada

UK

Japan

Germany

U.S.

Primary

Secondary


Alternative / clean energy (continued)

Alternative / clean energy - countries with the best technology(total responses)

4%

4%

8%

17%

46%

4%

5%

5%

24%

35%

6%

8%

8%

22%

23%

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

Canada

UK

Japan

Germany

U.S. Global

non-U.S.

U.S.


Venture capital commentary –Dixon Doll

COFOUNDER AND GENERAL PARTNER, DCM

For more than 35 years, Dixon has influenced and guided entrepreneurs, investors and executives in the computer and communications industries. In recognition of his accomplishments in venture capital, Dixon was named by Forbes Magazine as one of the top 100 venture investors on its Midas List for the past four years, as well as one of the top 100 personalities involved in creating the information highway by Upside Magazine. In April, 2008, he was elected as chairman of the National Venture capitalAssociation.

Since the early 1980s, Dixon has been a telecom and Internet venture capital pioneer. In 1996 he launched DCM, an early stage technology venture capital firm which currently has more than $1.5 Billion under management, headquartered in Menlo Park, California. DCM has backed such well known entrepreneurial companies as About.com, @Motion,Clearwire, 51job, Foundry Networks, Internap, Ipivot, Neutral Tandem, PGP Corp., Recourse Technologies, Semiconductor Manufacturing International Corp, and Sling Media. DCM has become widely recognized as one of the top Silicon Valley venture firms actively investing in China and Japan. In the mid-1980’s, Dixon cofounded the venture capital industry’s first fund focused exclusively on telecommunications opportunities. Those funds he organized launched such noteworthy companies as Alantec, Bridge Communication, Centillion Networks, Network Equipment Technologies, Optilink, Picturetel, Polycom, and UUNet.

He received his B.S.E.E. degree (cum laude) from Kansas State University as well as M.S. and Ph.D. degrees in Electrical Engineering from the University of Michigan, where he was a National Science Foundation scholar.


Venture capital commentary –Jean-Francois Formela

PARTNER, ATLAS VENTURE

Jean-François Formela is a Partner in the life sciences group, and joined Atlas Venture in 1993 to help build the US life sciences franchise.

Previously, he was Senior Director, Medical Marketing and Scientific Affairs at Schering-Plough in the US. During his tenure there, he was responsible for the marketing of Intron A, Schering-Plough's alpha-interferon. In his last position at Schering-Plough, he directed the US Phase IV studies in all therapeutic areas, as well as the healtheconomics, medical information, and biotechnology pre-marketing groups. As a medical doctor, Jean-François practiced emergency medicine at Necker University Hospital in Paris.

Since joining Atlas Venture, Jean-François has been involved in the formation of companies such as Archemix, ArQule (NASDAQ: ARQL), Aureon Laboratories, Cellzome, deCODE (NASDAQ: DCGN), Exelixis (NASDAQ: EXEL), MorphoSys (Xetra: MOR.DE), NxStage (NASDAQ: NXTM), Resolvyx Pharmaceuticals and SGX Pharmaceuticals (NASDAQ: SGXP). He was also an investor in Ciphergen Biosystems (NASDAQ: CIPH) and Nuvelo (NASDAQ: NUVO). Jean-François currently serves on the boards of Atlas portfolio companies Achillion Pharmaceuticals (NASDAQ: ACHN), ARCA biopharma, Proprius Pharmaceuticals, Resolvyx Pharmaceuticals and SGX Pharmaceuticals (NASDAQ: SGXP).

Jean-François received his MD from Paris University School of Medicine, and his MBA from Columbia University.

Questions & Answers


Methodology• The Deloitte and NVCA 2008 Global Venture Capital Survey was conducted jointly by

Deloitte & Touche LLP and the National Venture Capital Association. It was administered to venture capitalists in the Americas, Asia Pacific (APAC), Europe, the Middle East. Deloitte received 398 responses from general partners with assets under management ranging from less than $100 million to greater than $1 billion. The survey was conducted during March 2008. Of the total number of respondents, 398, 41% were based in the U.S., 10% in The Americas (excluding U.S.), 19% in Europe (excluding UK), 4% in Israel, 6% in the UK and 20% in APAC.


This presentation contains general information only and is based on the experiences and research of Deloitte practitioners. Deloitte is not, by means of this presentation, rendering business, financial, investment, or other professional advice or services. This presentation is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte, its affiliates, and related entities shall not be responsible for any loss sustained by any person who relies on this presentation.

Documents

Results from the 2008 Global Venture Capital Survey fileResults from the 2008 Global Venture Capital Survey June 2, 2008