VentureSource

U.S. -- 4Q 2013

VentureSource The following report presents DJX VentureSource’s quarterly findings for U.S. venture

capital fundraising, investment, valuation, and liquidity. The included charts and graphs

offer a comprehensive view of the trends currently affecting the venture capital market.

Highlights for 4Q 2013 include:

U.S. venture capital fundraising experienced a decline in number of funds, but amount invested is on

the rise;

Venture capital investment into U.S. companies experienced a quarter over quarter increase;

Median pre-money valuation increased 40% from 3Q 2013 and it is at its highest for 2013;

Amounts raised through both Initial public offerings (IPOs) and mergers and acquisitions (M&As)

experienced an increase from the previous quarter.

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VentureSource

1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13

Amount Raised ($B) $7.12 $3.58 $2.92 $6.75 $7.43 $6.66 $5.01 $2.76 $4.40 $6.73 $4.08 $4.46

Number of Funds 39 43 50 52 55 47 51 46 53 56 68 52

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80

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$7.00

$8.00U.S. VC Fundraising (2011 – 2013) Based on multiple closings

Venture Fundraising Increases in U.S. during 4Q 2013

52 funds garnered $4.5 billion in 4Q 2013, a 9% increase in the amount raised, but a 24% decline in number of

funds from the prior quarter.

Venture capital funds have raised a total $19.7 billion across 229 funds in 2013, down 10% from the total

amount raised in 2012, but up 15% in number of funds.

OrbiMed Private Investments V LP was the largest U.S. venture capital fund of 4Q 2013 raising $735 million

and accounting for 16% of the total amount raised during the quarter.

Median U.S. fund size was $125 million in 2013.

FUNDRAISING

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VentureSource Largest VC Funds Raised in 4Q 2013

Firm Name Fund Name Amount

($M) City State Offering Status Fund Type Fund Category Closing Type

OrbiMed Advisors LLC OrbiMed Private Investments V LP

$735.00 New York NY Closed Multi-stage

venture capital

Venture Capital Final

General Catalyst Partners General Catalyst Group VII

LP $675.00 Cambridge MA Closed

Early-stage venture capital

Venture Capital

Final

SAP Ventures SAP Ventures Fund II $651.00 Palo Alto CA Closed Late-stage

venture capital

Venture Capital Final

Benchmark Capital Benchmark Capital Partners

VIII LP $425.00 Menlo Park CA Closed

Early-stage venture capital

Venture Capital

Final

5AM Ventures 5AM Ventures IV LP $250.00 Menlo Park CA Closed Early-stage venture

capital

Venture Capital Final

FUNDRAISING

4

VentureSource

FINANCING

Equity Financings into U.S. –

based, VC-backed Companies

(2011 – 2013)

U.S. Venture Investment on the Rise in 4Q 2013

U.S.-based companies raised $8.9 billion from 901 venture capital deals in 4Q 2013, an increase both in capital

(2%) and in number of deals (5%) from the previous quarter.

Compared to the same period in 2012, both number of deals and amount invested registered an increase, 3%

and 7% respectively.

Business and Financial Services and Healthcare are the strongest sectors, each having a 26% share of total

amount invested.

In 2013, 3480 deals have been completed raising $33 billion, a respective 5% decrease and 1% increase on

figures posted in 2012.

1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q13

Amount Raised ($B) $8.02 $9.17 $10.49 $8.52 $7.49 $9.15 $7.84 $8.29 $7.26 $8.22 $8.71 $8.89

Number of Deals 828 927 935 910 881 991 905 872 849 874 856 901

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800

1000

1200

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

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VentureSource

Equity Financings into U.S.–based, VC–backed Companies, by Round Class

(Quarter over Quarter, 2011 – 2013)

Number of Deals

1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q13

Restart 12 26 12 11 9 14 11 17 7 7 6 12

Later 270 285 293 296 252 305 281 275 257 276 262 268

Second 148 180 156 150 140 175 142 155 140 193 195 201

First 267 296 318 311 305 348 329 292 317 279 290 309

Seed 90 101 127 103 139 115 109 97 100 96 81 86

0

100

200

300

400

FINANCING

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VentureSource

Equity Financings into U.S.–based, VC–backed Companies, by Round Class

(Year over Year, 2004 – 2013 )

Number of Deals

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Restart 177 175 146 119 100 92 63 61 51 32

Later 787 828 903 949 934 967 1109 1144 1113 1063

Second 492 486 591 599 628 641 623 634 612 729

First 717 860 900 1104 1077 784 960 1192 1274 1195

Seed 104 106 165 212 205 180 265 421 460 363

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FINANCING

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VentureSource

FINANCING

1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q13

Restart $0.09 $0.40 $0.22 $0.08 $0.09 $0.16 $0.23 $0.68 $0.08 $0.17 $0.08 $0.11

Later $4.80 $4.66 $5.95 $4.98 $4.14 $5.06 $4.57 $4.19 $4.31 $4.70 $4.99 $4.94

Second $1.45 $1.92 $1.96 $1.52 $1.01 $1.48 $1.25 $1.42 $1.22 $1.67 $2.03 $1.72

First $1.29 $1.54 $1.99 $1.59 $1.39 $2.07 $1.42 $1.54 $1.43 $1.25 $1.38 $1.65

Seed $0.07 $0.10 $0.11 $0.10 $0.10 $0.09 $0.11 $0.08 $0.06 $0.06 $0.07 $0.07

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

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Equity Financings into U.S.–based, VC–backed Companies, by Round Class

(2011 – 2013)

Amount Raised ($B)

VentureSource

FINANCING

Equity Financings into U.S.-based, VC-backed Companies, Median Deal Size ($M)

(2011 – 2013)

Median Equity Deal Size ($M)

1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13

Median Equity Deal Size ($M) $4.40 $5.00 $5.49 $4.03 $4.00 $4.71 $4.00 $4.30 $4.00 $5.00 $4.00 $4.30

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

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VentureSource

207

27

177

19 188

28

248

Business and Financial Services

Consumer Goods

Consumer Services

Energy & Utilities

Healthcare

Industrial Goods & Materials

Information Technology

Equity Financings into U.S.-based, VC-backed Companies, by Industry Group (4Q 2013)

Business and Financial Services saw the largest investment allocation, with 207 deals garnering $2.3 billion

and accounting for 26% of total equity investment.

The Healthcare sector raised the second highest proportion of investment for 4Q’13. Healthcare companies

drew $2.3 billion across 188 deals, up 20% and 11% from respective 3Q’13 figures.

Information Technology (IT) placed third with $1.7 billion in 248 deals, dropping significantly from the $2.4

billion accumulated in the previous quarter. The sector’s investment figure represents a 19% share of total

equity investment into U.S. VC-backed companies for the quarter.

$1.6 billion were raised by Consumer Services in 177 deals, an increase of 9% in deal flow, while capital

invested went up by 3%.

4Q'13 Industry Breakdown

By Number of Deals

4Q’13 Industry Breakdown

By Amount Raised ($B)

FINANCING

10

27%

4%

18%

2%

26%

4%

19%

Business and Financial Services

Consumer Goods

Consumer Services

Energy & Utilities

Healthcare

Industrial Goods & Materials

Information Technology

VentureSource

791

90

651

81 718

99

1034

Business and Financial Services

Consumer Goods

Consumer Services

Energy & Utilities

Healthcare

Industrial Goods & Materials

Information Technology

Equity Financings into U.S.-based, VC-backed Companies, by Industry Group (2013)

2013 Industry Breakdown

By Number of Deals

2013 Industry Breakdown

By Amount Raised ($B)

FINANCING

11

23%

3%

17%

3% 26%

2%

26%

Business and Financial Services

Consumer Goods

Consumer Services

Energy & Utilities

Healthcare

Industrial Goods & Materials

Information Technology

VentureSource

Co. Name Location Industry Group

Industry Segment

Industry Code Brief Description Close Date Round Type Raised ($M)

Round Investors (* denotes lead)

Dropbox Inc. San Francisco,

CA Business and

Financial Services Business Support

Services Data Management

Services Provider of online storage

services. 12/31/2013 3rd $250.00

Undisclosed Venture Investor(s)

Pinterest Inc. San Francisco,

CA Consumer Services

Consumer Information

Services

Online Communities

Provider of a social networking site.

10/23/2013 5th $225.00

Andreessen Horowitz, Bessemer Venture Partners,

Fidelity Growth Partners Europe*, Pequot Ventures

Nest Labs Inc. Palo Alto, CA Consumer Goods Household and Office Goods

Appliances/Durable Household Goods

Manufacturer of a digital thermostat.

12/31/2013 3rd $150.00 Undisclosed Venture

Investor(s)

MongoDB Inc. New York, NY Business and

Financial Services Business Support

Services Data Management

Services

Provider of an open-source, non-relational

database. 10/2/2013 6th $150.00

Altimeter Capital Management, Intel Capital, New Enterprise Associates,

Red Hat Linux, Salesforce.com, Sequoia

Capital, T. Rowe Price Associates*

Juno Therapeutics

Inc. Seattle, WA Healthcare Biopharmaceuticals

Biotechnology Therapeutics

Developer of immunotherapy products

for cancer. 12/4/2013 First Round $145.00

ARCH Venture Partners LP, Bezos Expeditions, Venrock

Top 5 Deals into VC-backed Companies (4Q 2013)

FINANCING

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VentureSource

20

17 16 16

15

0

5

10

15

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25

Andreessen Horowitz First Round CapitalLLC

Battery Ventures Google Ventures Accel Partners

Most Active Investors for U.S.-based, VC-backed Companies (4Q 2013)

FINANCING

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VentureSource

Amount Raised ($B) in 4Q 2013

by Primary Region

Number of Deals

by Primary Region

4Q 2013

3

209

17

64

37

103

250

47

51

44

67

Alaska/ Islands

Mid-Atlantic

Midwest Central

Midwest East

Mountain

New England

Northern California

Pacific Northwest

South Central

South East

Southern California

Amount Raised ($B)

by Primary Region

4Q 2013

$0.003

$1.51

$0.06

$0.35

$0.22

$1.21

$3.10

$0.53

$0.48

$0.46

$0.57

Alaska/Islands

Mid-Atlantic

Midwest Central

Midwest East

Mountain

New England

Northern California

Pacific Northwest

South Central

South East

Southern California

Alaska/Islands

Mid-Atlantic

Midwest Central

Midwest East

Mountain

New England

Northern California

Pacific Northwest

South Central

South East

Southern California

Number of Deals in 4Q 2013

by Primary Region

FINANCING

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VentureSource

$0.22

$0.16

$0.23

$0.49

$0.16

$0.10

$0.25

$0.18

$1.18

$1.13

$3.10

Chicago Metro

Dallas-Fort Worth

Austin Metro

Seattle Metro

Orange County

San Diego Metro

Los Angeles Metro

Potomac

New York Metro

Boston Metro

San Francisco Bay Area

Amount Raised ($B) by subregion

Subregion Breakout Amount Raised ($B)

Number of Deals

by subregion

4Q 2013

Amount Raised ($B)

by subregion

4Q 2013

Subregion Breakout

Number of Deals

24

10

25

36

8

20

35

38

129

90

250

Chicago Metro

Dallas-Fort Worth

Austin Metro

Seattle Metro

Orange County

San Diego Metro

Los Angeles Metro

Potomac

New York Metro

Boston Metro

San Francisco Bay Area

Number of Deals by Subregion

FINANCING

15

San Francisco Bay Area 250 $3.10

Boston Metro 90 $1.13

New York Metro 129 $1.18

Potomac 38 $0.18

Los Angeles Metro 35 $0.25

San Diego Metro 20 $0.10

Orange County 8 $0.16

Seattle Metro 36 $0.49

Austin Metro 25 $0.23

Dallas-Fort Worth 10 $0.16

Chicago Metro 24 $0.22

VentureSource

VALUATIONS

1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13

Median Pre-money Valuation ($M) $20.00 $22.30 $29.25 $18.00 $19.15 $14.35 $27.05 $40.00 $8.16 $21.25 $18.40 $25.70

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

Equity Financings into U.S. – based, VC-backed Companies, Median Pre-money Valuation ($M)

(2011 – 2013)

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VentureSource

LIQUIDITY

Exit Opportunities for U.S.

VC-backed Companies

(2011 – 2013)

Venture M&A and IPO Market Activity in the U.S. during 4Q 2013

Mergers and acquisitions (M&As) of venture-backed companies increased by 17% from 3Q 2013, with 115

deals garnering almost $12 billion.

Initial public offering (IPO) activity increased in 4Q 2013 raising $3.6 billion, up 60% from the previous quarter.

0 20 40 60 80 100 120 140 160

1Q'11

2Q'11

3Q'11

4Q'11

1Q'12

2Q'12

3Q'12

4Q'12

1Q'13

2Q'13

3Q'13

4Q'13

1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13

IPOs 11 14 11 10 20 12 10 8 9 20 25 20

M&As 140 115 145 141 110 120 102 124 95 89 114 115

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VentureSource

1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13

Amount Paid ($B) $11.79 $11.88 $13.63 $9.65 $10.46 $11.96 $11.79 $8.78 $5.49 $9.21 $10.21 $11.99

Number of M&As 140 115 145 141 110 120 102 124 95 89 114 115

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$16.00U.S. VC-backed M&A Activity

(2011 - 2013)

U.S. VC-backed M&As (2011-2013)

U.S. venture capital acquisition activity still on the rise in the fourth quarter of 2013, ending with the highest

number of exits for 2013.

115 M&As raised almost $12 billion during 4Q 2013, a 17% increase in M&A valuations despite the number of

deals only increasing 1% compared to the previous quarter, when 114 M&As garnered $10.2 billion.

The largest M&A of the quarter was The Climate Corp., which was acquired by Monsanto Co. (NYSE: MON) for

$930 million.

LIQUIDITY

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VentureSource Top 3 U.S. M&As (4Q 2013)

Company Name

Location Brief Description Industry Code Industry Segment

Industry Group

Close Date Round Type Amount

Paid ($M) Acquirer

The Climate Corp. San Francisco,

CA Provider of weather coverage services.

Insurance Financial

Institutions and Services

Business and Financial Services

10/2/2013 Acquisition $930.00 Monsanto

Passport Health Communications

Inc. Franklin, TN

Provider of Internet-based solutions for

healthcare organizations.

Healthcare Administration

Software

Medical Software and Information

Services Healthcare 11/6/2013 Acquisition $850.00 Experian

Braintree Payment Solutions LLC

Chicago, IL Provider of credit card payments gateway for

businesses.

Business Applications Software

Software Information Technology

12/19/2013 Acquisition $800.00 eBay

LIQUIDITY

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VentureSource

U.S. VC-backed IPO Activity (2011 - 2013)

U.S. VC-backed IPOs (2011-2013)

20 venture-backed companies raised $3.6 billion through public offerings in 4Q 2013. Number of deals

decreased by 20%, while capital raised registered a 60% increase from the previous quarter.

The largest IPO of the quarter was Twitter Inc. (NYSE: TWTR), which completed a $1.8 billion IPO.

1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13

Raised ($B) through IPO $0.77 $1.71 $0.43 $2.37 $1.42 $7.75 $0.81 $1.22 $0.64 $1.80 $2.22 $3.55

Number of IPOs 11 14 11 10 20 12 10 8 9 20 25 20

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LIQUIDITY

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VentureSource

Company Name

Location Brief Description Industry Code Industry Segment

Industry Group

Close Date Round Type

Raised through IPO

($M) Exchange

Twitter Inc. San Francisco,

CA

Provider of an online platform for public self-

expression and conversation in real-time.

Online Communities Consumer

Information Services Consumer Services

11/7/2013 IPO $1820.00 NYSE: TWTR

Veeva Systems Inc.

Pleasanton, CA

Provider of cloud-based software solutions for the

life sciences industry.

Healthcare Administration

Software

Medical Software and Information

Services Healthcare 10/16/2013 IPO $194.40 NYSE: VEEV

Chegg Inc. Santa Clara,

CA Provider of a learning

platform. Shopping Facilitators

Consumer Information Services

Consumer Services

11/13/2013 IPO $180.00 NYSE: CHGG

Top 3 U.S. IPOs (4Q 2013)

LIQUIDITY

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VentureSource

ABOUT US

DJX VentureSource helps venture capitalists, corporate development executives, investment bankers and service providers find deal and partnership opportunities, perform comprehensive due diligence and examine trends in venture capital investment, fund-raising and liquidity. It provides accurate, comprehensive data on venture-backed companies – including their investors and executives – in every region, industry and stage of development throughout the world. The investment figures included in this release are based on aggregate findings of Dow Jones' proprietary research and are contained in VentureSource. This data was collected through surveys of professional firms, interviews with company executives, and from secondary sources. These venture capital statistics cover equity investments into early stage, innovative companies and do not include companies receiving funding solely from corporate, individual, and/or government investors. Figures contained throughout the report current at time of editorial but are subject to change without notice. No statement herein is to be construed as a recommendation to buy or sell securities or to provide investment advice.

About Dow Jones

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MEDIA CONTACT:

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212.416.4874

Erin.Carpenter@dowjones.com

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