2014 Nvca Yearbook PDF

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 industrys 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
FLAG Capital Management
NVCA Director and
Chair, Research Committee
NVCA
Bobby Franklin
NVCA President and CEO
John S. Taylor
NVCA Head of Research
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
Accel Partners
Treasurer
Jonathan Callaghan
True Ventures
Executive Committee At-Large
Bruce Evans
Summit Partneer
Executive Committee At-Large

Jonathan Leff
Deerfield Management
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.
NVCA
THOMSON REUTERS
National Venture Capital Association 2014 Yearbook

National Venture Capital Association
1655 Fort Myer Drive, Suite 850
Arlington, Virginia 22209-3114
Telephone: 703-524-2549
Telephone: 703-524-3940
www.nvca.org
Thomson Reuters
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Telephone: 646-223-4431
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President and CEO

Bobby Franklin
Global Head of Deals & Private Equity

Stephen N. Case II
President Emeritus
Mark G. Heesen
Head of Deals and Private Equity Operations

Katarzyna Namiesnik
Head of Research
John S. Taylor
Global Business Manager Private Equity

Jim Beecher
Senior Vice President of Federal Policy and Political Advocacy

Jennifer Connell Dowling
Editor-in-Charge
David Toll
Vice President of Federal Life Science Policy

Kelly Slone
Global Private Equity Operations Manager

Anna Aquino-Chavez
Vice President of Federal Policy and Political Advocacy

Emily Baker

Vice President of Communications
Ben Veghte

Vice President of Membership and Member Firm Liaison
Janice Mawson
Press Management
Matthew Toole
Vice President of Administration

Roberta Catucci

Director of Business Development
Hannah Veith
Data Specialist
Francis S. Tan
Manager of Administration and Meetings

Allyson Chappell

Accounting Manager
Beverley Badley
Sales Manager Publications (Buyouts, VCJ, peHUB)

Greg Winterton (646-223-6787)
Senior Content Specialist

Michael D. Smith
Content Specialist
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1-877-365-1455
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NVCA
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
NVCA
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NVCA
WHAT IS VENTURE CAPITAL?

Venture capital has enabled the United States to support its entrepreneurial talent and appetite by turning ideas and basic science into products
and services that are the envy of the world. Venture capital funds build
companies from the simplest form perhaps just the entrepreneur and an
idea expressed as a businessplan to freestanding, mature organizations.
Risk Capital for Business

Venture capital firms are professional, institutional managers of risk capital that enables and supports the most innovative and promising companies. This money funds new ideas that could not be financed with traditional bank financing, that threaten established products and services in a
corporation, and that typically require five to eight years to be launched.
Venture capital is quite unique as an institutional investor asset class.
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
matures five to eight years down the road. Follow-on investment provides
additional funding as the company grows. These rounds, typically occurring every year or two, are also equity investment, with the shares allocated among the investors and management team based on an agreed
valuation. But, unless a company is acquired or goes public, there is
little actual value.Venture capital is a long-term investment.
Venture Capital Backed Companies

Known for Innovative Business Models
Employment at IPO and Now
Company
As of IPO
Current
# Change
650
331,000
330,350
Starbucks Corporation
2,521
160,000
157,479
Staples
1,693
89,019
87,326
Whole Foods Market, Inc.
2,350
69,500
67,150
138
31,500
31,362
The Home Depot
eBay
Venture Capital Backed Companies

Known for Innovative Technology Products
Employment at IPO and Now
Company
As of IPO
Current
# Change
Microsoft
1,153
94,000
92,847
Intel Corporation
460
100,100
99,640
Medtronic, Inc.
1,287
45,000
43,713
Apple Inc.
1,015
76,100
75,085
Google
3,021
53,861
50,840
More Than Money
JetBlue
4,011
12,070
8,059
The U.S. venture industry provides the capital to create some of the most
innovative and successful companies. But venture capital is more than
money. Venture capital partners become actively engaged with a company, typically taking a board seat. With a startup, daily interaction with
the management team is common. This limits the number of startups in
which any one fund can invest. Few entrepreneurs approaching venture
capital firms for money are aware that they essentially are asking for 1/6
of a person! Yet that active engagement is critical to the success of the
fledgling company. Many one- and two-person companies have received
funding but no one- or twoperson company has ever gone public!Along
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
she will tell you that the company that broke through the gravity evolved
from the original business plan concept with the careful input of an experienced hand.
Source: Global Insight; Updated fromThomsonOne 2/2013
Deal Flows Where The Buys Are

For every 100 business plans that come to a venture capital firm for funding, usually only 10 or so get a serious look, and only one ends up being
funded. Theventure capital firm looks at the management team, the concept, the marketplace, fit to the funds objectives, the value-added potential for the firm, and the capital needed to build a successful business.
A busy venture capital professionals most precious asset is time. These
days, a business concept needs to address world markets, have superb
scalability, be made successful in a reasonable timeframe, and be truly
innovative. A concept that promises a 10 or 20 percent improvement on
something that already exists is not likely to get a close look.
NVCA
Many technologies currently under development by venture capital firms

are truly disruptive technologies that do not lend themselves to being embraced by larger companies whose current products could be cannibalized
by this. Also, with the increased emphasis on public company quarterly
results, many larger organizations tend to reduce spending on research and
development and product development when things get tight. Many talented teams have come to the venture capital process when their projects
were turned down by their companies.
Common Structure Unique Results

While the legal and economic structures used to create a venture capital fund are similar to those used by other alternative investment asset
classes, venture capital itself is unique. Typically, a venture capital firm
will create a Limited Partnership with the investors as LPs and the firm
itself as the General Partner. Each fund, or portfolio, is a separate partnership. A new fund is established when the venture capital firm obtains
necessary commitments from its investors, say $100 million. The money
is taken from investors as the investments are made. Typically, an initial
funding of a company will cause the venture fund to reserve three or four
times that first investment for follow-on financing. Over the next three to
eight or so years, the venture firm works with the founding entrepreneur to
grow the company. The payoff comes after the company is acquired or
goes public. Although the investor has high hopes for any company getting funded, only one in six ever goes public and one in three is acquired.
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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 acquired, the stock price of the company reflects its success. The entrepreneur 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 capital 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.
Whats Ahead
Much of venture capitals 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 intellectual property, and a skilled workforce. The nascent deployment of venture capital in other countries is gated by a countrys or regions 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.
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NVCA
EXECUTIVE SUMMARY
During 2013, many of the metrics describing the venture capital industry in the United States were similar to those of the prior three years, with
the exception of a pickup in the breadth of the IPO markets. The decline
in capital managed continued as expected, but not as much as some were
anticipating. A record proportion of venture deals focused on companies
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
half of 2013. Investment in early-stage life science companies continued
to fall during the year, although a fourth-quarter increase in first fundings
of Biotechnology companies was encouraging.
Fundraising remained very challenging for the majority of venture
firms. This is largely because of a dearth of healthy exits through 2012
that would have distributed yet-unrealized returns to current fund investors. Aside from the Facebook IPO in 2012 ($16.0B of the $21.5B raised
in 2012), 2013 was a much-improved year with 81 venture-backed IPOs.
Remarkably, over half of them were Biotechnology companies. Early
signs for 2014 suggest that IPO momentum carried forward into at least
the first part of the year.
A healthy venture capital ecosystem requires its metrics to be in balance. And while the quality of new business opportunities, known as deal
flow, remains very high and the best opportunities are getting funded,
stresses remain.
Introduction
The National Venture Capital Association 2014 Yearbook provides
a summary of venture capital activity in the United States. This ranges
from investments into portfolio companies to capital managed by general
partners to fundraising from limited partners to valuations of companies
receiving venture capital investments to exits of the investments by either IPOs or mergers and acquisitions. The statistics for this publication
were assembled primarily from the MoneyTree Report by PricewaterhouseCoopers and the National Venture Capital Association, based on
data from Thomson Reuters and analyzed through the Thomson ONE.
Figure 1.0
Venture Capital Under Management Summary Statistics
1993
2003
2013
No. of VC Firms in Existence
370
951
874
No. of VC Funds in Existence
613
1,788
1,331
No. of Professionals
5,217
14,777
5,891
No. of First Time VC Funds Raised
25
34
53
No. of VC Funds Raising Money This Year
93
160
187
VC Capital Raised This Year ($B)
4.5
9.1
16.8
VC Capital Under Management ($B)
29.3
263.9
192.9
Avg VC Capital Under Mgt per Firm ($M)
79.2
277.5
220.7
Avg VC Fund Size to Date ($M)
40.2
94.4
110.3
Avg VC Fund Size Raised This Year ($M)
48.3
102.9
89.7
Largest VC Fund Raised to Date ($M)
1,775.0
6,300.0
6,300.0
NVCA
com (formerly VentureXpert) database of Thomson Reuters, which has

been endorsed by the NVCA as the official industry activity database.
Subscribers to Thomson ONE can recreate most of the charts in this publication and report individual deal detail and more granular statistics than
those provided herein.
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. However, looking behind the numbers,
we know that the industry continues to contract from the circa 2004 high
of $288.9 billion. The peak capital under management that year was a
statistical anomaly caused when 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
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.
Contrary to some popular misconceptions, only 43 firms managed more
than $1 billion. By comparison, 277 firms managed less than $25 million.
Commitments
The year 2013 continued to be a very challenging fundraising year for
most venture capital firms in the United States. This was 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 was considerably less than the $19.6
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
than the amount they invested in companies.
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 was 4% higher than
2012 counts, but was essentially the same as 2011. The number of firsttime 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
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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 sciences. 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.
Software was the leading sector in 2013, receiving 37.3% of the total
dollars. The second largest sector was Biotechnology, which was less than
half that amount at 15.4% of total investment. Among first fundings, Software led the way with 591 companies getting their initial venture capital
rounds. This is more than 46% of the first fundings. Again in 2013, the
second most active first-funding sector is Media and Entertainment at 170
first fundings.
California-domiciled venture capital firms made investments in 38
states in 2013. Approximately 48% of all the money invested in California came from California-domiciled firms. Conversely, California-based
firms concentrated 68% of their investment dollars within the state.
The number and reach of corporate venture capital groups increased
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.
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
involved alongside traditional venture firms in deals, as well as initiating
corporate venture group syndicates to do deals in lieu of, or in advance of,
investment rounds by traditional venture firms.
Exits
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 distribute the proceeds to investors, raise a new fund for future investment, and invest in the next generation of companies. We consider
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
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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 technology 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.
Growth Equity
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
strong today. In 2013, we identified 342 growth equity deals in the United
States. This compares with 406 in 2012, but is very much in line with
the past several years. A disclosed $12.3 billion in equity investment was
reported for 2013. This does not count the approximately 105 deals for
which no dollar equity amounts were disclosed.
NVCA
Figure 2.0
Capital Under Management
U.S. Venture Funds ($ Billions)
1985 to 2013
350
300
($ Billions)
250
200
150
100
50
201
201
201
1
201
200
200
200
200
200
200
200
200
200
200
199
199
199
199
199
199
199
199
199
199
198
198
198
198
198
0
Year
Figure 3.0
Capital Commitments
To U.S. Venture Funds ($ Billions)
1985 to 2013
120
100
($ Billions)
80
60
40
20
201
201
1
201
2
201
200
200
200
200
200
200
200
200
199
9
200
0
200
1
199
199
199
199
199
199
199
199
199
198
198
198
198
198
Year
NVCA
THOMSON REUTERS
Figure 4.0
Venture Capital Investments ($ Billions)
1985 to 2013
120
100
($ Billions)
80
60
40
20
199
4
199
5
199
6
199
7
199
8
199
9
200
0
200
1
200
2
200
3
200
4
200
5
200
6
200
7
200
8
200
9
201
0
201
1
201
2
201
3
199
199
199
199
198
198
198
198
198
0
Year
Figure 5.0
Venture Capital Investments in 2013 By Industry Group
All Investments
Industry Group
Initial Investments
# Companies
# Deals
Investment
Amt ($Bil)
# Companies
# Deals
Investment
Amt ($Bil)
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
3,382
4,041
29.6
1,334
1,334
5.1
Information Technology
Total
THOMSON REUTERS
NVCA
Figure 6.0
Venture Capital Investments in 2013
By Stage
Seed
3%
Later Stage
30%
Early Stage
34%
Expansion
33%
Figure 7.0
By Industry Sector
Telecommunications
2%
Other
0.2%
Biotechnology Business Products and

15%
Services 0.4%
Computers and Peripherals 2%
Consumer Products and
Services 4%
Software
37%
Electronics/Instrumentation
1%
Financial Services
2%
Healthcare Services
1%
Semiconductors
2%
IT Services
7%
Retailing/Distribution
1%
Networking and Equipment
2%
NVCA
Industrial/Energy
5%
Media and Entertainment

10%
Medical Devices and
Equipment
7%
THOMSON REUTERS
Figure 8.0 2013 Investments By State

State
Number of
Companies
Pct of
Total
Investment
($ Millions)
Pct of
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
($Mil)
Med Offer Amt

($Mil)
Mean Offer Amt Post Offer Value

($Mil)
($Mil)
Med Post Value

($Mil)
Mean Post Value

($Mil)
Median Age At
IPO (Years)
Mean Age At IPO

(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
4.0
1990
47
1,108
20
24
5,886
60
178
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
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.
THOMSON REUTERS
NVCA
Figure 10.0
Venture-Backed Mergers & Acquisitions by Year
($ Millions)
NVCA
Year
Number Total
Number Known
Price
Average
1985
300.2
100.1
1986
63.4
63.4
1987
11
667.2
166.8
1988
17
920.7
102.3
1989
21
10
746.9
74.7
1990
19
120.3
17.2
1991
16
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
THOMSON REUTERS
Figure 11.0
Growth Equity Investments ($ Billions)
2000 to 2013*
30
25
($ Billions)
20
15
10
5
3
201
2
201
1
201
0
201
9
200
8
200
7
200
6
200
5
200
4
200
3
200
2
200
1
200
200
Year
Totals include only disclosed amounts. Many growth equity deal amounts are not reported.
THOMSON REUTERS
NVCA
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 industrys 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
Historically, we have calculated industry size using a rolling eight
years of fundraising proxy for capital managed, number of funds, number of firms, etc. The number of firms in existence will vary on a rolling
eight-year basis as firms raise new funds or do not raise funds for more
than eight years. Currently, we know the industry is consolidating, but the
eight-year model now includes fund vintage years 2006-2013.
Under this methodology, we estimate that there are currently 874 firms
with limited partnerships in existence. To clarify, this is actually stating
that there are 874 firms that have raised a venture capital fund in the last
eight years. In reality, only 548 of them invested at least $5 million in
companies in 2013, and 136 of them invested more than $5 million in first
rounds for a company.
For this publication, we are primarily counting the number of firms with
limited partnerships and are excluding other types of investment vehicles.
From that description, it may appear that the statistics for total industry
resources may be underestimated. However, this must be balanced with
the fact that capital under management by captive and evergreen funds is
difficult to compare equitably to typical limited partnerships with fixed
lives. For this analysis only, the firms counted for capital under management include firms with fixed-life partnerships and venture capital funds
they raised. If a firm raised both buyout and venture capital funds, only
the venture funds would be counted in the calculation of venture capital
under management.
Venture capital under management can be a complex statistic to estimate. Indeed, capital under management reported by firms can differ from
firm to firm as theres not one singular definition. For example, some firms
include only cumulative committed capital, others may include committed capital plus capital gains, and still other firms define it as committed
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.
NVCA
For purposes of the analysis in this publication, we have tried to clarify

the industry definition of capital under management as the cumulative total of committed capital less liquidated funds or those funds that have
completed their life cycle. Typically, venture capital firms have a stated
10-year fixed life span, except for life science funds, which are often
established as 12-year funds. Figure 1.09 shows the reality of fund life.
Thomson Reuters calculates capital under management as the cumulative
amount committed to funds on a rolling eight-year basis. Current capital
under management is calculated by taking the capital under management
calculation from the previous year, adding in the current years funds
commitments, and subtracting the capital raised eight years prior.
For this analysis, Thomson Reuters classifies venture capital firms using four distinct types: private independent firms, financial institutions,
corporations, and other entities. Private independent firms are made up
of independent private and public firms including both institutionally and
non-institutionally funded firms and family groups. Financial institutions refers to firms that are affiliates and/or subsidiaries of investment
banks and non-investment bank financial entities, including commercial
banks and insurance companies. The corporations classification includes
venture capital subsidiaries and affiliates of industrial corporations. In
2013, we will modify the methodology to reflect virtually all direct corporate investment because many of the corporate venture investors do not
operate out of a separate fund or group. The capital under management
statistics reported in this section consist primarily of venture capital firms
investing through limited partnerships with fixed commitment levels and
fixed lives and do not include non-vintage evergreen funds or true captive corporate industrial investment groups without fixed commitment
levels. The term evergreen funds refers to funds that have a continuous
infusion of capital from a parent organization, as opposed to the fixed life
and commitment level of a closed-end venture capital fund.
THOMSON REUTERS
Figure 1.01
Capital Under Management U.S. Venture Funds ($ Billions)
1985 to 2013
350
300
($ Billions)
250
200
150
100
50
198
5
198
6
198
7
198
8
198
9
199
0
199
1
199
2
199
3
199
4
199
5
199
6
199
7
199
8
199
9
200
0
200
1
200
2
200
3
200
4
200
5
200
6
200
7
200
8
200
9
201
0
201
1
201
2
201
3
0
Year
THOMSON REUTERS
NVCA
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
241,637
255,315
239,643
194,573
171,016
174,722
186,032
186,676
179,202
Private Independent
187,356
221,327 222,028 224,828 233,595
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
278,200
288,900
264,300
184,700
199,300
200,200
192,900
262,000 262,300 263,900 271,100
206,300 179,700
Figure 1.03
Distribution of Firms By Capital Managed 2013
200
164
150
113
132
114
107
82
100
53
43
50
00
+
10
0
10
0
50
0-
00
-5
25
0
50
-2
10
0
00
-1
50
0
25
-5
5
10
-2
0-
10
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 $1 billion.
NVCA
THOMSON REUTERS
Figure 1.04
Fund and Firm Analysis 2013
Fund
Vintage
Year
Total
Cumulative
Funds
Total
Cumulative
Firms
Total
Cumulative
Capital ($B)
Existing
Funds
Firms That Raised

Funds in the Last
8 Vintage Years
Capital
Managed
($B)
Avg Fund
Size ($M)
Avg Firm
Size ($M)
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 methodology 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 $192.9 billion.
THOMSON REUTERS
NVCA
Figure 1.05
Number of Active Investors 1985 to 2013
Figure 1.06
Principals Information
Year
# of Active
Investors
# of Active First
Round Investors
# of Active Life
Science Investors
1985
92
11
1986
115
24
12
1987
112
29
13
1988
119
32
26
1989
116
22
23
1990
101
25
18
1991
81
14
15
1992
104
34
31
1993
92
35
29
1994
110
46
33
1995
184
95
53
1996
251
122
63
1997
344
138
83
1998
411
169
87
1999
717
321
106
2000
1,050
546
148
2001
760
220
155
2002
534
137
147
2003
509
136
165
2004
579
202
201
2005
562
183
193
2006
572
192
197
2007
630
238
236
2008
602
212
219
2009
463
105
173
2010
508
136
177
2011
549
159
195
2012
534
139
175
2013
548
136
179
Year
No.
Principals
Per Firm
Estimated
Industry
Principals
Avg Mgt
Per Principal
($M)
2007
8.7
8665
30.0
2008
8.5
7293
28.3
2009
8.6
6760
26.4
2010
8.0
6328
25.7
2011
7.4
6231
28.6
2012
7.0
5887
33.8
2013
6.7
5891
32.8
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 methodology 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 $192.9 billion.
Figure 1.07
Top 5 States By Capital Under
Management 2013
State
($ Millions)
CA
94,076.6
MA
32,636.6
NY
19,480.4
CT
5,815.1
IL
4,517.3
Total*
156,526.1
*Total includes above 5 states only
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.
NVCA
THOMSON REUTERS
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
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
24
33
AZ
41
44
44
73
75
76
75
34
44
43
44
10
10
38
38
LA
11
22
31
49
90
277
367
444
KY
15
16
16
16
21
21
21
21
21
ME
20
25
26
26
26
28
29
98
89
87
88
89
207
ID
ND
OK
29
29
28
37
38
37
37
38
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
10
10
85
84
HI
11
KS
13
13
13
14
14
37
37
57
43
43
IA
50
52
105
102
81
82
62
62
54
55
16
17
16
VT
THOMSON REUTERS
NVCA

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
11
11
105
137
139
141
140
MT
MS
11
11
11
12
11
PR
49
40
40
WY
SC
15
15
15
15
15
15
29
52
37
37
37
RI
15
16
16
36
37
37
36
36
22
22
23
NV
24
WV
AR
19
UNK
46
48
48
47
31
31
21
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
AK
Total
Figure 1.08b
State
NVCA
2000
2001
2002
2003
2004
CA
85,153
105,283
105,172
107,896
MA
37,341
45,970
47,440
47,019
NY
38,938
39,981
38,421
CT
8,260
10,623
IL
4,308
TX
2005
2006
2007
2008
2009
113,719
119,881 128,655
117,244
100,374
87,469
47,553
48,784
53,712
50,417
37,146
30,861
37,176
36,710
36,242
29,115
25,441
13,205
12,198
10,462
10,431
12,066
11,984
13,336
11,699
10,426
4,747
5,202
5,559
5,685
5,163
5,286
4,239
6,881
8,001
7,932
7,806
8,259
8,486
8,242
PA
6,241
6,344
6,241
6,532
6,439
6,509
NJ
3,633
4,315
4,231
4,444
4,083
4,074
DC
3,899
4,172
4,739
4,616
3,401
3,582
WA
2,803
3,687
3,691
3,568
4,629
MD
5,119
5,383
5,165
5,047
CO
4,781
5,293
5,438
VA
2,524
2,638
NC
1,367
1,448
MN
2,238
UT
2010
2011
2012
2013
90,424
96,923
99,386
94,077
30,528
30,209
32,914
32,637
13,599
18,628
17,653
19,480
7,428
8,201
8,940
6,928
5,815
3,620
3,282
3,065
4,595
4,451
4,517
6,589
5,467
4,193
4,057
4,735
4,455
4,215
7,037
7,143
4,642
4,482
4,495
4,250
4,220
3,623
5,160
5,022
4,135
3,917
3,965
3,691
3,503
3,447
4,641
5,047
4,833
4,632
4,049
4,527
4,193
3,369
4,590
4,597
5,174
4,625
3,721
3,691
3,708
2,943
3,303
4,811
4,762
4,744
4,433
2,934
3,005
2,927
3,134
3,282
2,854
5,416
5,229
4,882
4,664
3,011
1,603
974
1,139
1,148
1,187
1,635
2,652
2,822
2,868
3,338
3,367
3,014
1,801
2,226
2,271
2,081
2,056
1,583
1,599
1,803
1,644
1,468
1,678
1,564
1,211
1,238
1,730
1,631
1,726
1,558
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
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
THOMSON REUTERS
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
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
16
16
16
14
14
43
44
36
36
KS
42
42
42
19
19
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
11
11
11
11
11
11
16
16
NE
175
165
164
71
38
38
38
38
MT
MS
11
39
39
28
28
28
29
30
30
PR
39
68
68
68
68
29
29
30
31
WY
118
117
117
117
117
118
118
119
SC
36
37
51
38
15
20
20
20
21
20
RI
26
26
35
35
33
33
33
34
10
10
NV
23
23
33
33
33
33
33
10
10
WV
21
21
21
21
21
21
21
21
AR
19
19
19
19
19
19
19
UNK
AK
224,800
262,000
262,300
263,900
184,700 199,300 200,200
192,900
Total
271,100 278,200 288,900 264,300
Figure 1.09
Life of IT Funds in Years
Source: Adams Street Partners, based on

2010 analysis of dissolved funds.
THOMSON REUTERS
Life of IT Funds In Years
% of Funds
<= 10
7%
11-12
20%
13-14
27%
15-16
22%
17-18
14%
>=19
10%
206,300 179,700
This chart tracks the year in which a 10-year fund is, in

fact, dissolved. These later periods are referred to as
out years. Historically, after the 10th year, only a few
companies that typically do not have huge upside potential
remain in the portfolios. But the slow pace of exits in recent
years has resulted in a number of good, mature companies
remaining in portfolios well past the nominal 10-year mark.
Life science funds tend to have lives two years longer than
typical technology funds. In preparing this chart, partial
years are rounded to the nearest whole year. So 10.4 years
would round to 10 years, and 10.5 years would round up to
11 years. The median life span of a fund in this analysis is
14.17 years.
NVCA
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 commitments 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 capitals decreasing share of the private equity dollars. Venture capital raised 24% of the asset class allocations in 2009 compared with
11% in 2013.
Methodology
The Thomson Reuters/National Venture Capital Association sample includes US-based venture capital funds. Classifications are based on the
headquarters location of the fund, not the location of the venture capital
firm. The sample excludes fund of funds.
Effective November 1, 2010, Thomson Reuters venture capital fund
data has been updated in order to provide more consistent and relevant
categories for searching and reporting. As a result of these changes, there
may be shifts in fundraising statistics from legacy editions of this publication due to reclassification of funds based on analysis of actual activity by
primary market, nation, and/or fund stages.
As defined by Thomson Reuters, capital commitments, also known as
fundraising, are firm capital commitments to private equity/venture capital limited partnerships by outside investors. For purposes of these statistics, the terms capital commitments, fundraising, and fund closes
are used interchangeably. There are three data sources for tracking capital
commitments: (1) SEC filings that are regularly monitored by our research
staff, (2) surveys of the industry routinely conducted by Thomson Re-
NVCA
uters, and (3) verified industry press and press releases from venture firms.
Capital commitments are stated on either (1) a calendar-year basis when
committed (for example, throughout this chapter) or (2) a vintage-year
basis, which is designated once the fund starts investing (for example,
figure 1.04). The data in this chapter is by calendar year and incrementally
measures how much in new commitments funds raised during the calendar year. Consider, for example, a venture capital firm that announces it
will begin raising a $200-million fund in late 2011, raises $75 million in
2012, and subsequently raises the remaining $125 million in 2013. In this
chapter, nothing would be reflected in 2011, $75 million would be counted
in 2012, and $125 million would be counted in 2013. Assuming it started
investing and made its first capital call in 2013, the entire fund would then
be considered to be a vintage year 2013 fund. In Figure 1.04, for example,
this hypothetical fund would show in the totals for 2013.
Note that fund commitments presented in this publication do not include those corporate captive venture capital funds that are funded by a
corporate parent, which do not typically raise capital from outside investors.
THOMSON REUTERS
Figure 2.01
Capital Commitments To U.S. Venture Funds ($ Billions)
1985 to 2013
120
100
($ Billions)
80
60
40
20
201
0
201
1
201
2
201
7
200
8
200
9
200
200
4
200
5
200
6
200
200
199
9
200
0
200
1
199
199
4
199
5
199
6
199
199
1
199
2
199
3
199
198
198
198
198
198
Year
THOMSON REUTERS
NVCA
Figure 2.02
Capital Commitments To Private Equity Funds 1985-2013
Venture Capital
NVCA
Buyouts and Mezzanine Capital
Total Private Equity
Year
Sum ($Mil)
% of Total PE
No. Funds
Sum ($Mil)
No. Funds
1985
3,759.9
56%
118
2,971.8
21
Sum ($Mil)
6,731.7
No. Funds
1986
3,584.5
42%
101
5,043.7
32
8,628.2
133
1987
4,379.1
21%
116
16,234.6
47
20,613.6
163
1988
4,209.7
28%
104
10,946.4
54
15,156.1
158
1989
4,918.8
29%
106
12,068.5
78
16,987.3
184
1990
3,077.5
26%
85
8,831.5
64
11,909.0
149
1991
1,900.3
31%
40
4,242.1
27
6,142.4
67
1992
5,223.1
33%
80
10,752.5
58
15,975.6
138
1993
4,489.2
21%
93
16,961.7
81
21,451.0
174
1994
7,636.7
27%
136
20,157.0
99
27,793.7
235
1995
9,387.3
26%
161
27,040.7
108
36,428.0
269
1996
11,550.0
26%
168
32,789.4
104
44,339.3
272
1997
17,741.9
30%
242
42,165.3
134
59,907.2
376
1998
30,641.7
33%
290
61,636.4
172
92,278.1
462
1999
53,420.2
51%
428
51,363.2
164
104,783.4
592
2000
101,417.9
56%
634
79,164.8
170
180,582.7
804
2001
38,923.4
43%
324
51,388.3
137
90,311.7
461
2002
10,388.1
23%
203
35,123.3
124
45,511.4
327
2003
9,144.7
20%
160
35,946.4
123
45,091.1
283
2004
17,656.3
23%
211
59,837.4
158
77,493.7
369
2005
30,071.9
22%
233
107,746.6
206
137,818.6
439
2006
31,107.6
17%
236
152,899.7
219
184,007.3
455
2007
29,401.0
11%
235
234,460.4
266
263,861.4
501
2008
25,052.7
12%
214
176,340.7
232
201,393.5
446
2009
16,122.0
24%
159
50,145.9
149
66,267.9
308
2010
13,243.3
20%
173
51,901.5
177
65,144.8
350
2011
18,962.3
21%
186
70,344.2
210
89,306.5
396
2012
19,554.6
15%
208
108,076.4
226
127,631.0
434
2013
16,765.7
11%
187
130,256.2
214
147,021.9
401
139
THOMSON REUTERS
Figure 2.03
Venture Capital Fund Commitments 1985-2013 ($ Millions)
State
1985
1986
1987
1988
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
4,379.07
4,476.68
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
Total
3,782.66 3,587.47
THOMSON REUTERS
1989
1990
4,918.80 3,097.52
1991
1,905.73 5,243.80 4,565.30 7,733.72
NVCA

Venture Capital Fund Commitments 1985-2013 ($ Millions)
NVCA
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
THOMSON REUTERS
Figure 2.04
Top 5 States
By Venture Capital Committed 2013
State
No of
Funds
Committed
($Mil)
Massachusetts
24
5,474.8
California
58
5,315.9
New York
25
2,200.5
Washington
561.8
Virginia
446.1
Subtotal
117
13,999.1
Remaining States
70
2,766.8
Total
187
16,765.9
199
4
199
5
199
6
199
7
199
8
199
9
200
0
200
1
200
2
200
3
200
4
200
5
200
6
200
7
200
8
200
9
201
0
201
1
201
2
201
3
199
199
Buyouts and Mezzanine
199
198
198
198
198
198
Venture Capital
199
280
260
240
220
200
180
160
140
120
100
80
60
40
20
5
($ Billions)
Figure 2.5
Private Equity Annual Commitment ($ Billions)
1985 to 2013
Year
THOMSON REUTERS
NVCA
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 sciences. 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
Software was the leading sector in 2013, receiving 37.3% of the total
dollars. The second largest sector was Biotechnology, which was less than
half that amount at 15.4% of total investment. Media and Entertainment,
where much of the social networking is categorized, received 9.9% and
Medical Devices and Equipment received 7.2%.
The life sciences share of the venture capital investment dollars decreased in 2013 to its lowest level since 2001 at 23.6% of the total dollars.
(For purposes of this paragraph, life sciences is made up of all three life
science categories. Some industry observers choose to exclude the healthcare services sector from the life sciences totals.) This is down from the
recent peak of 32.7% in 2009. (The all-time peak was 36.3% in 1992.)
This recent downward life sciences trend is very visible when just
looking at first fundings. In 2013, only 155 life sciences (defined in this
paragraph as Biotech/pharma and Medical Devices/therapeutics, but not
healthcare services) received first fundings, up just slightly form 148 in
2012. While the uptick driven by Biotechnology first fundings may be an
early indicator of a rebound, these last two years are the lowest counts
since 1996. The possible recovery in Biotechnology investing may have
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).
Among first fundings, Software led the way with 591 companies getting their initial venture capital rounds. This is more than 46% of the first
fundings. Again in 2013, the second most active first-funding sector is
Media and Entertainment at 170 first fundings.
Stages and First-Time Fundings
Investment activity in the industry seems to be bifurcated by the large

number of later stage companies hoping to join fairly strong public markets at year end 2013 and the very large number of new companies being
funded by the industry. While many of the larger portfolio companies,
IPOs, and big acquisitions have gotten the headlines and visibility, 2013
actually saw the highest percentage of seed- and early-stage deals ever at
55.7% of all deals. This surpasses the prior record of 52.6% in 2012. This
certainly would challenge the suggestion that the industrys attention is
single-focused on later-stage companies. Despite the flurry of IPO activity
in 2013 and acquisitions announced for early 2014, there remains a record
number of companies in portfolios in the later stage of development that
in most other positions in the business cycle would have already gone
public or otherwise been acquired.
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
very much in that range. Not surprisingly, 83% of those first round invest-
NVCA
ments were made at the seed and early stage.
Geographical Spread Across the United States

The year 2013 provided an interesting contrast in geographic dispersion. The slight majority of investment dollars went to California companies at 50.01%. This is down from the record 53.2% in 2012. Interestingly,
companies in 48 states and DC received financing, which ties the 2012
record high. Ranked by total dollars invested, the top five states (California, Massachusetts, New York, Washington and Texas) received 78% of
all the dollars invested nationally.
This compares to 2011, when California companies received a thenrecord 51.2% of the dollars. That year, companies in a record 47 states and
DC received venture capital funding. Together, the top five states (California, Massachusetts, New York, Texas, and Washington State) received
77% of the total dollars.
California-domiciled venture capital firms made investments in 38
states in 2013. Approximately 48% of all the money invested in California came from California-domiciled firms. Conversely, California-based
firms concentrated 68% of their investment dollars within the state.
Corporate Venture Group Involvement

The number and reach of corporate venture capital groups increased
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.
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
involved alongside traditional venture firms in deals, as well as initiating
corporate venture group syndicates to do deals in lieu of, or in advance of,
investment rounds by traditional venture firms.
Methodology
As calculated by Thomson Reuters, venture capital investment data are
derived from several sources. Primarily, survey information is obtained
from the quarterly survey that drives the MoneyTree Report from PricewaterhouseCoopers and the National Venture Capital Association based
on data from Thomson Reuters. This is the official industry database of
venture capital investment. Secondly, Thomson Reuters obtains data from
SEC filings that are regularly monitored by our research staff. Finally,
publicly available sources such as press releases and trade publications
are used.
For detailed information on which transactions qualify as MoneyTree
deals and are therefore counted in this chapter, please refer to Appendix B.
THOMSON REUTERS
Figure 3.01
Venture Capital Investments ($ Billions)
1985 to 2013
120
100
($ Billions)
80
60
40
20
198
5
198
6
198
7
198
8
198
9
199
0
199
1
199
2
199
3
199
4
199
5
199
6
199
7
199
8
199
9
200
0
200
1
200
2
200
3
200
4
200
5
200
6
200
7
200
8
200
9
201
0
201
1
201
2
201
3
0
Year
Figure 3.02
Venture Capital Investments in 2013 By Industry Group
All Investments
Industry Group
Initial Investments
# Companies
# Deals
Investment
Amt ($Bil)
# Companies
# Deals
Investment
Amt ($Bil)
2,360
2,784
20
1,009
1,009
3.5
649
816
6.9
167
167
1.2
Information Technology
Medical/Health/Life Science
Non-High Technology
Total
373
441
2.7
158
158
0.4
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
THOMSON REUTERS
NVCA
Figure 3.04
By Industry Sector (Dollars Invested)
Telecommunications
2%
Other
0.2%
Biotechnology Business Products and

15%
Services 0.4%
Computers and Peripherals 2%
Services 4%
Software
37%
1%
Financial Services
2%
Healthcare Services
1%
Semiconductors
2%
IT Services
7%
1%
2%
Industrial/Energy
5%

10%
Medical Devices and
Equipment
7%
Figure 3.05
By Stage (Dollars Invested)
Seed
3%
Later Stage
30%
Early Stage
34%
Expansion
33%
NVCA
THOMSON REUTERS
Figure 3.06
Amount of Capital Invested By State in 2013 ($ Millions)
USA
913
WA
0
24
MT
138
74
NH
ND
27
21
270
ME
VT
MN
3,079
OR
7
ID
WY
315
NV
23
IA
435
33
CO
KS
319
25
113
26
AZ
NM
1,316
MS
AL
CT
NJ
594DC
WV
71
DE
VA
664
260
NC
TN
15
TX
AK
KY
109
AR
OK
286
11
86
322
PA
OH
MO
82
RI
182
447
IN
IL
77
MA
NY
108
MI
429
UT
CA
2,870
WI
SD
10
NE
7
14,770
36
12
MD
86
412
SC
GA
LA
421
GU
FL
PR
HI
VI
Figure 3.07
Number of Companies Invested in By State in 2013
USA
107
13
NH
WA
1
MT
30
ND
32
ME
VT
MN
307
OR
2
ID
WY
WI
SD
9
1,362
30
NV
62
UT
CA
74
6
CO
32
KS
19
AZ
OK
NM
134
TX
AK
LA
NJ
58 DC
WV
VA
MS
AL
63
NC
TN
CT
DE
40
35 KY
AR
38
27
RI43
PA
OH
MO
8
13
11
IN
IL
11
196
68
IA
MA
NY
58
MI
NE
344
18
MD
12
35
SC
GA
37
GU
HI
FL
PR
VI
THOMSON REUTERS
NVCA
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
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
Total
NVCA
11,341.6 5,004.6 21,473.0 54,846.7
THOMSON REUTERS

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
THOMSON REUTERS
29,948.9 20,286.2 23,368.6 29,730.0
27,352.3 9,545.2
NVCA
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
NY Metro
89
101
131
108
121
90
89
81
79
84
509
771
869
1,045
1,687
2,159
1,106
819
879
136
158
240
273
491
816
446
231
192
New England
235
214
257
231
222
217
170
159
149
Midwest
100
116
133
101
127
103
99
93
85
146
232
333
384
469
662
905
595
458
446
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
Southeast
91
118
134
115
115
131
111
108
117
112
182
226
166
216
355
516
250
164
149
294
308
454
664
391
268
247
DC/Metroplex
45
46
65
59
51
62
54
48
41
47
72
113
135
Northwest
47
49
62
70
64
48
41
50
49
50
84
112
134
162
272
509
261
198
183
132
263
331
192
141
108
Texas
106
93
106
105
91
85
70
70
72
68
101
135
172
Philadelphia Metro
38
35
54
44
41
48
43
65
47
45
78
91
142
197
318
485
343
174
174
138
145
231
142
103
88
San Diego
43
35
54
56
56
47
43
47
49
61
77
109
100
124
Colorado
43
58
62
63
53
49
35
53
48
53
58
83
98
127
162
235
156
114
125
161
222
115
91
71
SouthWest
20
30
42
25
32
22
30
34
30
29
37
55
71
North Central
38
50
54
51
39
44
40
39
38
37
70
69
116
88
116
146
89
68
55
107
114
151
126
76
71
Upstate NY
17
10
10
10
12
10
21
31
31
South Central
11
10
12
15
22
25
27
30
36
29
24
22
50
28
24
21
Unknown
14
16
Sacramento/N.Cal
11
18
12
10
10
10
17
19
36
27
11
AK/HI/PR
15
10
1,348
1,423
1,646
1,524
1,547
1,463
1,272
1,394
1,211
1,232
1,896
8,038
4,590
Total
2,635 3,224 3,729 5,597
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
10
Sacramento/N.Cal
11
18
20
AK/HI/PR
14
10
3,228
3,293
3,882
4,226
4,177
3,148
3,647
4,004
3,865
4,041
Total
NVCA
THOMSON REUTERS
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
Later Stage
499.4
688.5
Total
550.4
498.5
457.7
435.5
486.0
369.8
2,779.0 3,132.3 3,361.3 3,411.3 3,333.0 2,833.1 ,259.7
591.7
1,002.4 1,447.0 1,926.9
7,564.1 10,322.5 29,254.7
59,047.2 22,898.7
2,618.8
17,614.5
3,921.0
10,493.6
8,658.6
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
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
2011
2012
2013
Total

Venture Capital Investments in 1985-2013 By Stage (Number of Deals)
Stage
2002
2003
2004
2005
2006
2007
2008
Seed
182
217
235
264
398
528
Early Stage
879
800
903
855
1,002
1,137
Expansion
1,580
1,352
1,203
1,113
1,381
Later Stage
565
655
887
1,061
Total
3,206
3,024
3,228
3,293
THOMSON REUTERS
2009
2010
536
374
410
446
296
221
1,152
979
1,287
1,603
1,738
2,031
1,269
1,240
894
1,077
1,026
987
991
1,101
1,292
1,249
901
873
929
844
798
3,882
4,226
4,177
3,148
3,647
4,004
3,865
4,041
NVCA
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
Early Stage
95.9
185.3
95.2
130.4
506.8
129.6
139.5
176.6
178.2
624.0
Expansion
219.2
319.2
312.8
392.7
1,243.9
270.2
381.4
252.3
294.3
1,198.2
Later Stage
154.6
89.8
175.5
79.5
499.4
125.6
96.7
180.4
147.7
550.4
Total
622.6
743.6
677.2
735.6
2,779.0
711.0
887.5
724.1
809.6
3,132.3
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
170.7
183.9
204.2
190.0
748.8
421.8
352.2
402.5
314.1
1,490.6
100.1
167.0
119.8
111.7
498.5
838.2
902.4
868.5
752.2
3,361.3
Figure 3.12b
1988
1989
1988-2Q
1990
Stage
1988-1Q
1988-3Q 1988-4Q 1988 Total 1989-1Q 1989-2Q 1989-3Q 1989-4Q 1989 Total 1990-1Q 1990-2Q 1990-3Q 1990-4Q 1990 Total
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
Stage
1991-1Q
1991-2Q
1991-3Q
Seed
45.8
84.6
53.4
58.0
1993
1991-4Q 1991 Total 1992-1Q 1992-2Q 1992-3Q 1992-4Q 1992 Total 1993-1Q 1993-2Q 1993-3Q 1993-4Q 1993 Total
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
Stage
1994-1Q
1994-2Q
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
NVCA
THOMSON REUTERS
Figure 3.12e
1997
1998
1999
Stage
1997-1Q
1997-2Q
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
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
Total
Figure 3.12f
2000
Stage
2000-1Q
Seed
808.6
2001
2002
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
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
Total
Figure 3.12g
2003
2004
2005
Stage
2003-1Q
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
Stage
2006-1Q
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
THOMSON REUTERS
NVCA
Figure 3.12i
2009
Stage
2009-1Q
Seed
319.7
2010
2011
2009-2Q 2009-3Q 2009-4Q 2009 Total 2010-1Q 2010-2Q 2010-3Q 2010-4Q 2010 Total 2011-1Q 2011-2Q 2011-3Q 2011-4Q
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
2011 Total
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
NVCA
2013
Stage
2012-1Q
2012-2Q
Seed
187.4
282.5
2012-3Q 2012-4Q 2012 Total 2013-1Q 2013-2Q 2013-3Q 2013-4Q 2013 Total
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
THOMSON REUTERS
Figure 3.13a
Quarterly Venture Capital Investments 1985-2013 By Stage (Number of Deals)
1985
1986
Stage
1985-1Q
1985-2Q
1985-3Q
Seed
110
89
61
1987
1985-4Q 1985 Total 1986-1Q 1986-2Q 1986-3Q 1986-4Q 1986 Total 1987-1Q 1987-2Q 1987-3Q 1987-4Q
98
358
134
107
65
82
388
116
101
85
85
1987 Total
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
Stage
1988-1Q
1988-2Q
1988-3Q
Seed
119
79
88
1990
84
370
106
100
77
72
355
60
69
59
70
1990 Total
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
Stage
1991-1Q
1991-2Q
1991-3Q
1993 Total
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
Stage
1994-1Q
1994-2Q
1994-3Q 1994-4Q 1994 Total 1995-1Q 1995-2Q 1995-3Q 1995-4Q 1995 Total 1996-1Q 1996-2Q 1996-3Q 1996-4Q
1996 Total
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
THOMSON REUTERS
NVCA
Figure 3.12e
1997
1998
1999
Stage
1997-1Q
1997-2Q
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
Total
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
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
Stage
2000-1Q
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
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
Total
Figure 3.12g
2003
2004
2005
Stage
2003-1Q
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
Stage
2006-1Q
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
NVCA
THOMSON REUTERS
Figure 3.13i
2009
2010
2011
Stage
2009-1Q
2009-2Q 2009-3Q 2009-4Q 2009 Total 2010-1Q 2010-2Q 2010-3Q 2010-4Q 2010 Total 2011-1Q 2011-2Q 2011-3Q 2011-4Q
2011 Total
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
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
THOMSON REUTERS
2012-3Q 2012-4Q 2012 Total 2013-1Q 2013-2Q 2013-3Q 2013-4Q 2013 Total
NVCA
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
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
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
201
208
290
222
345
243
183
272
281
296
527
495
695
1,257
1,427
2,637
21
45
51
52
47
38
38
29
54
119
175
534
641
1,076
4,319
8,863
101
119
155
166
151
93
69
132
278
275
944
1,154
1,080
1,865
7,394
0,613
Computers and Peripherals
Industrial/Energy
IT Services
Medical Devices and Equipment
184
182
258
340
347
322
235
515
388
438
668
619
1,027
1,251
1,581
2,404
225
164
143
137
197
174
140
250
516
250
372
628
962
1,436
4,604
1,557
33
38
21
67
90
214
60
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
,260 3,594
3,663
4,130
8,015
11,342
15,005
21,473
54,847
105,105
Other
Unknown
Total
2,779
3,132
3,361
3,411
3,333 2,833

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
1,076
475
673
466
372
593
596
466
252
437
194
130
218
709
457
362
530
551
394
569
419
341
375
490
436
517
702
256
157
331
385
420
441
400
492
661
1,432
1,335
1,245
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
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
2,368
788
669
1,374
1,203
1,863
2,200
1,877
1,650
1,576
2,307
2,134
2,936
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
5,714
2,627
1,726
1,537
1,661
1,222
1,388
776
697
564
370
317
670
Industrial/Energy
Other
Semiconductors
Software
Telecommunications
Unknown
Total
NVCA
55
17
14
28
13
48
99
368
139
64
217
249
189
340
199
133
149
380
370
240
2,473
1,655
1,761
2,157
1,851
2,307
2,058
1,586
808
1,110
1,350
894
597
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
5,142
2,163
1,620
1,841
2,032
2,355
2,162
1,533
582
746
590
718
644
21
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
THOMSON REUTERS
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
20
42
51
38
32
28
20
25
32
21
53
70
95
138
277
158
148
131
138
136
104
78
84
65
66
93
94
115
92
106
43
51
72
59
52
67
48
51
54
66
110
131
162
164
286
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
56
68
92
75
71
58
54
79
82
97
138
191
217
263
701
129
117
166
151
184
189
159
187
147
128
179
213
273
297
290
81
76
73
70
71
74
65
83
62
74
82
123
140
211
274
10
10
20
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
322
322
307
279
297
302
288
296
243
252
436
688
829
988
1,420
85
77
94
78
81
63
67
65
75
75
142
210
266
337
522
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

Other
Software
Telecommunications
Total
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
454
176
101
97
83
78
95
111
116
68
76
59
39
66
133
82
59
57
60
66
62
72
59
52
52
59
43
34
286
119
72
47
66
77
79
110
103
88
116
139
170
171
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
950
372
168
129
142
210
330
402
411
279
346
436
410
455
296
259
236
250
284
279
356
395
400
343
345
372
322
311
478
329
227
184
190
183
130
137
106
95
56
48
32
25
Other
12
11
10
11
10
13
22
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
2,168
1,303
1,006
969
952
952
1,031
1,078
1,115
831
1,066
1,256
1,391
1,547
852
479
274
213
232
234
308
279
219
123
111
110
96
65
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
Software
Telecommunications
Total
THOMSON REUTERS
NVCA
Figure 3.16
Venture Capital Investments 1985-2013 By State ($ Millions)
State
1985
1986
1,070.9
1,343.8
Massachusetts
396.3
379.5
446.0
387.8
296.8
350.9
240.0
366.3
310.9
385.9
697.2
New York
114.5
75.4
100.5
112.1
158.7
48.8
45.0
143.8
103.9
69.9
248.6
228.4
211.0
240.7
229.2
141.0
161.4
150.5
241.9
California
Texas
1987
1988
1,266.7 1,391.8
1989
1990
1,309.8 1,221.6
1991
1992
1,031.3 1,437.2
1993
1994
1995
1996
1997
1998
1999
2000
1,232.1 1,503.8 3,108.7 4,634.4
6,044.9
7,868.2
22,947.2
42,882.9
1,053.9
1,438.6
2,002.1
5,065.7
10,557.1
303.3
293.3
786.2
1,402.1
3,508.1
6,690.8
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
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
1.2
1.0
5.0
4.0
29.9
25.9
34.3
South Carolina
Arkansas
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
14.0
0.2
9.8
1.1
0.5
3.0
6.1
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
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
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
0.7
0.3
0.5
1.5
0.1
38.0
3.5
0.5
10.4
3.7
29.1
57.3
163.1
North Dakota
Iowa
Vermont
Louisiana
South Dakota
Nebraska
NVCA
THOMSON REUTERS

State
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
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
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
20.5
1.5
4.2
12.8
203.0
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
2,779.0
3,132.3
3,594.2 3,663.2 4,130.1 8,014.8 11,341.6
15,004.6
Kentucky
Nevada
Hawaii
Mississippi
Total
3,361.3 3,411.3
3,333.0 2,833.1 2,259.7
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
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
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
California
Maryland
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
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
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
Colorado
New Jersey
THOMSON REUTERS
NVCA
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
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
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
Idaho
Alabama
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
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
24.8
27.4
4.0
15.6
14.5
1.9
3.2
5.6
0.0
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
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
West Virginia
Montana
Alaska
Total
NVCA
THOMSON REUTERS
Figure 3.17
Venture Capital Investments 1985-2013 By State (Number of Deals)
State
1985
1986
California
467
493
523
New York
45
47
Massachusetts
215
Pennsylvania
Texas
1987 1988
1989
1990
1991
1992
1993
1994 1995
1996
1997 1998
1999
2000
2001
2002
2003 2004
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
63
48
49
31
24
38
37
38
74
89
156
195
353
609
293
155
120
158
187
224
195
182
172
136
135
131
127
197
289
334
398
591
791
518
388
384
385
35
45
59
54
41
44
37
61
44
38
64
85
139
149
153
261
155
109
106
113
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
12
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
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
13
11
11
13
19
26
18
23
29
54
18
29
19
Oregon
24
24
30
34
27
22
12
12
15
13
17
28
41
18
52
67
42
28
23
31
14
15
16
31
35
43
58
44
29
24
31
Utah
D. of Columbia
18
45
22
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
10
11
19
16
19
27
20
11
14
New Hampshire
11
10
13
18
17
10
10
10
17
17
24
31
60
39
41
34
22
New Mexico
Indiana
15
15
12
13
11
28
12
10
South Carolina
10
15
15
17
10
11
Rhode Island
11
11
11
14
10
Kansas
11
22
10
13
13
Vermont
Nebraska
11
10
Oklahoma
12
12
Louisiana
12
14
10
Kentucky
15
16
16
14
Alabama
10
12
10
17
14
10
30
15
12
10
Delaware
Nevada
11
10
10
Arkansas
THOMSON REUTERS
NVCA

State
1985
1986
Maine
Hawaii
Mississippi
North Dakota
Idaho
Iowa
Montana
South Dakota
West Virginia
Alaska
Puerto Rico
Unknown
Wyoming
1,348
1,423
Total
1987 1988
1989
1990
1991 1992
1993
1994 1995
1996
1997 1998
1999
2000
2001
2002
1,646 1,524
1,547
1,463
2003 2004
14
11
15
11
14
16
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
NVCA
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
13
12
16
12
27
33
THOMSON REUTERS
Figure 3.17b
Venture Capital Investments 1985-2013
By State (Number of Deals)
State
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
17
New Mexico
16
27
18
13
11
10
16
17
Indiana
13
14
17
14
15
16
14
17
15
South Carolina
10
10
10
15
Rhode Island
12
15
11
14
15
13
Kansas
10
16
25
17
35
47
12
10
Vermont
10
Nebraska
Oklahoma
Louisiana
11
12
Kentucky
10
10
10
15
Alabama
10
10
11
Delaware
10
Nevada
Arkansas
Maine
Hawaii
11
Mississippi
North Dakota
Idaho
Iowa
Montana
South Dakota
West Virginia
Alaska
Puerto Rico
Unknown
Wyoming
3,293
3,882
4,226 4,177
3,148
3,647 4,004
3,865
4,041
Total
THOMSON REUTERS
2005
NVCA
Figure 3.18
First vs. Follow-on Deals
Total Dollars Invested ($ Millions)
120,000
100,000
Follow-on
First
($ Millions)
80,000
60,000
40,000
20,000
NVCA
13
'11
'12
'10
'09
'08
'07
'06
'05
'03
'04
'02
Year
'01
'00
'99
'98
'97
'96
'95
'93
'94
'92
'91
'90
'89
'88
'87
'86
'85
THOMSON REUTERS
Figure 3.19
First vs. Follow-on
THOMSON REUTERS
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
NVCA
Figure 3.20
Number of Companies Receiving
7,000
(Number of Companies)
6,000
Follow-on
Series2
First
Series1
5,000
4,000
3,000
2,000
1,000
NVCA
'13
'12
'11
'10
'09
'08
'07
'06
'05
'03
'02
'04
Year
'01
'00
'99
'98
'97
'96
'95
'94
'93
'92
'91
'90
'89
'88
'87
'86
'85
THOMSON REUTERS
Figure 3.21
First vs Follow-on
Year
No. of Cos
Receiving
Initial Deals
Financing
No. of Cos
Receiving
Follow-On
Financing
No. of Cos
Receiving
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
THOMSON REUTERS
NVCA
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
Total
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
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
302.9
2005
2006
2007
2008
2009
2010
2011
2012
2013
Seed
2,522.9
632.4
266.8
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
892.9
740.1
915.5
1,068.0
495.3
700.0
981.0
692.2
644.9
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
Total
314.5
711.6
Figure 3.23
First Sequence by Stage of Development (Number of Deals)
Stage
1985
1986
1987
Seed
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
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
435
507
580
510
450
351
266
394
354
428
902
1,145
1,305
1,430
2,468
Total

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
3,391
1,233
847
777
975
1,075
1,277
1,419
1,309
830
1,091
1,346
1,275
1,334
Total
NVCA
THOMSON REUTERS
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
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
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
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
0.5
2.0
6.0
0.0
32.7
0.0
0.2
13.0
0.5
15.3
26.8
92.3
Other
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
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
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
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
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
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
727.3
905.3
1,008.4
1,098.4
907.4
847.2
551.7
1,302.5
1,274.8
Unknown
Total
1,644.6 3,976.7 4,198.9 4,869.1
7,154.7 16,333.3
2012
2013
1,687.9 1,883.0
2,279.1
Figure 3.24
First Sequence by Industry ($ Millions)
Industry
2000
2001
2002
2003
2004
2005
2006
2007
2008
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
Biotechnology
2009
2010
817.8 1,006.2
2011
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
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
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
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
37.0
36.6
17.0
13.6
0.1
2.7
3.5
2.0
12.4
25.2
85.9
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
Other
Telecommunications
Unknown
Semiconductors
Total
THOMSON REUTERS
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
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
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
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
19.7
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
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
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
NVCA
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
29
33
46
33
33
23
11
27
27
31
70
76
107
113
379
IT Services
11
11
20
28
67
62
90
230
Biotechnology
28
32
57
47
37
26
21
54
45
42
54
69
85
106
81
26
30
33
18
23
26
18
21
19
28
55
52
71
69
139
Industrial/Energy
57
59
73
69
73
52
28
33
35
40
80
79
96
84
100
40
53
61
57
61
36
28
45
41
36
55
85
109
96
87
12
27
22
13
10
17
10
32
39
50
74
146
Financial Services
14
19
24
22
12
10
13
17
12
32
37
43
63
101
Healthcare Services
33
19
11
12
17
13
20
42
59
53
37
52
13
26
39
26
13
12
13
36
36
33
45
116
Telecommunications
25
25
25
20
24
10
13
18
27
23
69
88
93
139
228
26
18
23
18
15
10
10
10
21
19
19
17
15
Semiconductors
25
13
17
21
13
14
11
12
25
29
54
43
51
10
28
34
33
35
28
17
11
27
15
20
42
35
43
32
35
18
22
19
23
21
16
14
23
13
17
32
47
52
82
102
435
507
580
510
450
351
266
394
354
428
902
1,145
1,305
1,430
2,468
Other
Total

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
393
73
43
39
57
101
157
181
165
89
146
210
192
170
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
100
29
24
20
30
41
43
58
52
32
41
58
81
79
Industrial/Energy
124
81
59
52
70
69
115
149
156
84
90
91
75
57
70
63
63
77
80
84
126
123
108
79
70
71
61
55
223
52
25
29
37
36
40
55
47
26
29
29
16
34
Financial Services
172
40
29
19
36
32
32
47
30
17
34
21
18
22
Healthcare Services
58
20
20
17
15
25
18
17
13
20
11
14
18
121
19
20
23
10
13
15
11
15
25
23
18
Telecommunications
393
128
44
39
58
70
96
75
44
24
32
44
38
17
26
25
18
18
22
32
22
26
30
16
16
10
13
11
Semiconductors
116
76
53
65
79
43
47
41
35
15
15
21
15
11
12
18
51
28
11
21
18
19
13
25
19
16
13
14
Other
Total
NVCA
208
92
37
20
37
24
19
23
11
11
3,391
1,233
847
777
975
1,075
1,277
1,419
1,309
830
1,091
1,346
1,275
1,334
THOMSON REUTERS
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
THOMSON REUTERS
NVCA
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
Total
NVCA
23.9
19,009.3
THOMSON REUTERS
Figure 3.29
Sources and Targets of Invested Capital Investments 2013 ($ Millions)
Target State
SOURCE
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
5.1
AZ
0.0
0.0
0.0
5.1
1.9
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
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
THOMSON REUTERS
NVCA

Target State
SOURCE
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
2.5
22.5
6.5
427.5 25.4 32.9 10.8
14.8
113.3 14,471.5 431.3 162.6 274.6 88.4 421.0 413.4
3,062.1 662.8 26.8 99.9
Figure 3.29b
Target State
SOURCE
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
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
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
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
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
FL
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.3
0.0
0.0
GA
5.2
0.0
0.0
0.0
0.9
0.0
0.0
0.6
0.0
0.0
IA
0.2
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
IL
5.7
11.6
0.0
0.0
0.7
0.0
0.0
1.5
IN
2.3
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
KY
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.5
0.0
0.0
2.5
0.0
0.0
0.0
6.0
0.0
4.2
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.3
0.0
0.0
0.0
0.0
0.0
0.0
0.0
21.5
0.0
3.9
34.8 0.0
18.9
8.6
0.0
0.0
69.8
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
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
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
2.7
12.9
0.0
0.0
2.1
0.0
0.0
0.0
0.0
18.1
22.6
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
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
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
NVCA
THOMSON REUTERS
Figure 3.29b
Target State
SOURCE
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
130.3 441.1
0.0
81.7
85.7
11.9
THOMSON REUTERS
2,686.3 301.8
8.0
109.3 1,272.4 0.0
NVCA
Figure 3.29c
Sources and Targets of Invested Capital
Investments 2013 ($ Millions)
Target State
SOURCE
NVCA
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
THOMSON REUTERS
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
Seed
Early Stage
THOMSON REUTERS
($ Millions)
348.75
6,036.86
Expansion
7,559.33
Later Stage
5,064.38
TOTAL
19,009.32
NVCA
Figure 3.31
2013 Internet-Related Investments By Industry Sector
Industry Group
($ Millions)
Software
10,821.33
2,771.45
IT Services
1,966.98
1,074.01
669.55
Telecommunications
572.39
Financial Services
324.00
228.44
222.24
Semiconductors
132.53
Healthcare Services
107.14
53.76
Industrial/Energy
22.52
Biotechnology
16.23
15.65
Other
5.61
5.50
Total
19,009.32
Figure 3.32
2013 Internet-Related vs. Non Internet-Related By Industry Sector ($ Million)
Industry
Biotechnology
Non-Internet Related
Total
16.2
4,545.7
4,561.9
53.8
164.2
218.0
222.2
295.0
517.2
1,074.0
171.5
1,245.5
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
2,771.4
164.1
2,935.5
15.6
2,114.5
2,130.2
669.6
669.6
5.6
93.0
98.6
228.4
12.0
240.4
Other
Semiconductors
Software
Telecommunications
Total
NVCA
Internet Related
132.5
464.9
597.4
10,821.3
198.7
11,020.0
572.4
71.2
643.6
19,009.3
10,514.8
29,524.1
THOMSON REUTERS
Figure 3.33
2013 Internet-Related vs. Non Internet-Related By Industry Sector
(Number of Companies)
Industry
Internet Related
Non-Internet Related
Total
Biotechnology
367
371
17
41
58
18
11
29
114
35
149
31
33
Financial Services
26
25
51
Healthcare Services
13
24
37
Industrial/Energy
191
198
IT Services
292
297
368
15
383
244
250
22
Other
10
11
38
40
Semiconductors
13
60
73
1,291
25
1,316
Software
Telecommunications
Total
22
49
55
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
THOMSON REUTERS
NVCA
Figure 3.36
Number of States Invested Into in 2013
By State of Venture Firm
Location of Venture Firm
Figure 3.37
Number of States California Venture Firms
Into By Year
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
Capital Deals
# Deals with CVC

Involvement
Calculated Percentage
of Deals with Corporate
VC Involvement
$M Average
Amount of All
VC Deals
$M Average
Amount of CVC
Participation
Total VC
Investment
$M
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%
NVCA
Total CVC
Calculated Percentage
Investment $M of Dollars Coming from
CVCs
THOMSON REUTERS
Figure 3.39
Clean Technology Investments By Year
Year
Clean Technology
Investments
($ Millions)
# Clean Technology
Deals
Average Investment
Per Deal ($ 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%
70%
50.0%
63.4%
SoCal
60%
NoCal
50%
40%
30%
11.0%
8.5%
39.0%
41.5%
2008
2013
55.7%
8.8%
20%
10%
Other
27.8%
9.7%
0%
1998
THOMSON REUTERS
2003
NVCA
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 distribute 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 technology 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
This chapter focuses on company exits by venture funds through IPOs
and through acquisitions (trade sale, M&A). Some additional charts are
provided on private equity-backed acquisitions because of the venture industrys interest in that data. With Thomsons expansion of global deals
coverage beginning in 2012, the criteria used to report these exits were
redefined and refined. These are explained below.
In this chapter and throughout this Yearbook, we use the classic nomenclature for describing the two main types of private equity:
Private Equity = Venture Capital + Buyout/Mezzanine
Therefore, charts describing Private Equity in this chapter and throughout this Yearbook include both buyout/mezzanine activity and venture
capital activity.
The Thomson Reuters venture capital (private equity) exits coverage
Figure 4.01
Venture-Backed IPOs
300
30.00
No of IPOs
Offer Amount ($B)
25.00
200
20.00
150
15.00
100
10.00
50
Offer ($ Billion)
No. of IPOs
250
5.00
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
NVCA
THOMSON REUTERS
includes full history for the US and Canada as well as Global Exits from
2005 to the present. Multiple exits per company are now tracked, including IPOs (although secondary offerings are not tracked, since the first
IPO is considered the exit), Secondary Sales (sponsor to sponsor), Trade
Sales (VC (PE) Firm to Non-PE Firm), Buybacks, Reverse Takeovers
and Writeoffs. All values are sourced from the industry-leading Thomson
Reuters Deals database with hyperlinks to the Tearsheets to view the underlying details of the transactions. The private equity-backed exits component in ThomsonONE.com can be used to further analyze all of the VC
and PE Exits content herein.
Specifically, venture capital IPO exits reported in this chapter are those
done on United States stock exchanges/markets with at least one United
States domiciled venture fund investor.
Specifically, venture capital (private equity) acquisition exits reported
in this chapter are completed secondary sales and trade sales where the
company was domiciled in the United States and had at least one United
States domiciled venture capital (private equity) investor.
Fig. 4.02
Number of Venture-Backed IPOs
vs. All IPOs
Year
# of All IPOs
# of VentureBacked 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
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.
THOMSON REUTERS
NVCA
Fig. 4.03
Venture-Backed IPOs 1985 to 2013 Value and Age Characteristics
Year
NVCA
Num Offer Amount Med Offer

of IPOs
($Mil)
Amt ($Mil)
Mean Offer
Amt ($Mil)
Post Offer
Value ($Mil)
Med Post
Value ($Mil)
Mean Post
Value ($Mil)
Median Time
to Exit (yrs)
Mean Time to
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
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
THOMSON REUTERS
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

Services
58
33
44
66
70
193
70
35
496
185
58
1,137
135
306
267
116
150
74
118
295
203
122
339
357
75
59
215

Services
177
91
186
240
169
58
335
177
160
541
602
60
17
48
91
372
155
296
224
111
76
135
Financial Services
91
39
10
47
21
1,248
51
237
273
1,597
209
45
521
Healthcare Services
89
15
22
14
69
435
144
132
180
162
269
235
123
458
Industrial/Energy
29
58
177
75
127
242
346
325
670
437
495
1,064
794
138
207
IT Services
15
32
27
163
48
41
68
308
396
151
239
2,141
51
599
22
17
10
103
253
710
562
207
727
505
199
2,872
Medical Devices and

Equipment
61
89
147
22
71
90
241
601
254
388
995
1,666
444
90
25
105
136
42
43
82
346
284
233
457
313
749
416
235
2,912
Other
54
12
203
46
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
153
1,155
997
854
3,507

Services
594
248
62
507
1,202
190
322
152
617
63
124
188
367
193

Services
295
120
39
82
280
542
154
163
727
847
262
631
251
46
438
95
Financial Services
50
771
231
353
1,447
706
551
1,178
558
185
253
Healthcare Services
156
306
83
59
124
77
130
94
132
138
Industrial/Energy
1,107
747
638
299
1,114
1,007
88
955
984
247
IT Services
2,030
49
140
207
836
379
163
636
576
1,243
353
75
1,434
376
864
209
830
3,210
16,236
2,839
Medical Devices and

Equipment
634
673
456
806
380
633
1,407
134
299
145
115
283
4,339
275
69
479
313
267
316
301
Other
177
100
459
26
259
65
28
144
452
178
Semiconductors
1,052
133
381
522
472
136
975
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
175
542
651
731
1,591
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
THOMSON REUTERS
NVCA
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
16
14
31
27
22
13
16
33
21

Services
16
14
11
11

Services
13
Financial Services
10
Healthcare Services
13
Industrial/Energy
13
10
19
14
11
18
18
IT Services
28
10
10
13
32
Medical Devices and

Equipment
10
12
27
14
17
20
44
13
11
13
10
10
25
Other
12
17
Semiconductors
13
16
Software
15
10
14
13
26
19
56
53
26
20
80
Telecommunications
14
10
18
36
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
26
15
16
20
13
11
12
42

Services

Services
Financial Services
Healthcare Services
Industrial/Energy
IT Services
16
11
Medical Devices and

Equipment
11
13
11
11
17
Other
Semiconductors
10
10
Software
58
10
13
12
13
Telecommunications
33
Total
238
37
24
26
82
59
67
91
13
70
51
49
81
NVCA
THOMSON REUTERS
Fig. 4.06
Average and Median Age in Years by MoneyTree Industry Companies at IPO 2000-2013
2000
Industry
2001
2002
2005
2006
Mean Median
Mean
Median
Mean
Median
Mean
Median
Mean
Median Mean
4.6
8.4
6.7
6.0
5.1
5.6
5.1
5.6
5.5
5.3
5.0
N/A
N/A
2.7
2.7
5.7
5.7
N/A
N/A
4.3
4.4
N/A
N/A
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
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
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
Mean
Median
Biotechnology
4.5
4.3
4.5
2.0
1.7
4.3
1.4
3.4
2003
2004
Median
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
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
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
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
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
Industry
Biotechnology
2007
2008
2009
2010
Mean Median
Mean Median Mean Median
2011
2012
2013
Mean
Median
Mean
Median
Mean
Median
Mean
Median
5.7
4.8
6.6
5.5
5.9
6.0
8.2
7.5
5.1
5.1
7.0
7.0
10.4
10.4
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
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
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
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
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
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
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
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
THOMSON REUTERS
NVCA
Fig. 4.07
Venture-Backed Merger & Acquisitions by Years
Year
Number
Total
Number ($ Millions) Average

Known
Price
1985
300.2
100.1
7.0
1986
63.4
63.4
1987
11
667.2
1988
17
1989
21
1990
19
1991
Fig. 4.08
Private Equity-Backed Merger & Acquisitions by Years
Mean Time Median Time

To Exit
To Exit
(Years)
To Exit (Years)
Year
Number
Total
Mean Time
To Exit
(Years)
Median Time
To Exit
To Exit (Years)
4.8
1985
300.2
100.1
7.2
5.3
3.4
3.5
1986
13
246.4
61.6
3.6
4.0
166.8
4.9
3.5
1987
17
1422.2
177.8
4.1
3.3
920.7
102.3
4.7
4.1
1988
35
21
4139.2
197.1
3.8
3.4
10
746.9
74.7
4.3
3.6
1989
120.3
17.2
5.8
5.5
1990
30
17
2594.8
152.6
4.4
3.6
29
12
929.7
77.5
6.1
5.3
16
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
1996
108
76
3801.8
65.5
4.6
4.1
1995
144
90
11057.4
122.9
5.1
4.8
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

by the number of transactions where the proceeds are known, not the total number
of transactions.
NVCA
Number ($ Millions) Average

Known
Price
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 of
transactions. Note: Private Equity includes venture capital, buyouts, mezzanine, and
other private equity financed companies. Therefore, data from fig. 4.07 is included
here.
THOMSON REUTERS
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
Biotechnology

Services
1994
1995
1996
1997
1998
1999
68
33
640
25
89
388
265
141
846
109
181
47
397
149
61
79
16
110
58
140
827
373
422
721

Services
10
26
23
46
237
388
503
81
36
13
49
42
12
105
60
133
Financial Services
140
1,204
91
144
734
67
34
459
1,299
Healthcare Services
199
60
88
178
475
130
180
64
Industrial/Energy
99
63
238
59
20
203
122
764
53
1,127
193
381
962
IT Services
15
315
80
523
699
30
119
29
38
2,160
2,106
343
10,878
201
317
234
43
295
110
298
507
130
298
18
250
317
352
1,024
1,090
178
981
11,521
Other
95
35
80
29
39
28
689
Semiconductors
59
84
54
11
627
1,903
Software
25
22
83
264
116
455
617
1,228
2,176
2,888
5,621
Medical Devices and

Equipment
Telecommunications
Total
298
790
328
381
1,133
521
2,241
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

Services
1,637
157
870
151
3,024
132
409
2,124
570
314
181
315
697
4,610
357
51
47
680
248
492
49
500
348
557
764
945

Services
2,611
519
343
418
444
582
486
245
284
141
1,143
615
3,456
167
71
116
72
38
87
80
510
115
Financial Services
1,355
617
557
98
250
890
985
1,896
988
812
466
435
Healthcare Services
286
177
818
37
6,227
624
968
542
27
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
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
433
932
414
465
1,168
1,268
1,704
1,832
499
2,569
1,571
3,809
1,779
1,528
18,359
5,425
818
813
1,311
1,290
628
549
609
643
678
24
146
430
Medical Devices and

Equipment
Other
350
212
246
95
824
857
118
463
180
10
930
14
30
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
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
Total
THOMSON REUTERS
NVCA
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
10
10
11
12

Services
11

Services
11
Financial Services
13
Healthcare Services
Industrial/Energy
10
18
11
IT Services
11
16
11
10
19
Medical Devices and

Equipment
13
13
11
10
13
22
Other
Semiconductors
Software
11
15
24
29
21
44
62
59
Telecommunications
12
12
19
Total
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
15
24
29
32
32
24
19
38
34
33
22

Services
15
29
14
15
20
22
24
35
14
13
14
13
15
13
10

Services
16
14
11
10
11
10
11
11
11
Financial Services
13
19
13
14
12
16
12
10
12
Healthcare Services
13
12
12
11
12
14
15
Industrial/Energy
13
12
12
12
22
18
19
22
16
24
20
29
14
IT Services
23
31
38
25
33
22
30
38
27
22
46
48
51
26
40
51
27
16
33
31
26
49
36
33
63
65
46
46
Medical Devices and

Equipment
19
12
23
27
25
27
13
26
21
37
32
25
24
16
20
23
30
22
28
15
25
23
23
18
12
Other
14
15
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
Telecommunications
Total
NVCA
31
32
40
37
25
36
42
44
30
29
46
23
31
16
379
384
365
323
402
446
484
488
417
351
523
490
473
376
THOMSON REUTERS
Fig. 4.11
Private Equity-Backed Acquisitions by MoneyTree Industry Total Transaction Values 1985 to 2013
Industry
1985
1986
1987
1988
1989
Biotechnology

Services
766
640
149

Services
116
Financial Services
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
68
33
25
93
448
412
472
498
904
263
12
750
419
220
1331
694
61
79
16
110
81
140
827
387
620
758
1444
798
45
10
30
634
1729
706
1078
1360
1676
827
81
115
36
13
49
42
375
107
162
312
340
1204
461
695
2305
2728
2745
1520
1605
Healthcare Services
199
60
94
178
598
1494
3702
317
112
Industrial/Energy
99
63
275
1490
311
20
102
792
1881
922
2490
2120
4610
4783
2841
IT Services
15
485
1620
533
2820
100
100
32
220
30
213
351
398
3428
3195
11433
19721
201
68
383
317
167
575
182
1731
244
1000
1378
2075
1341
18
250
317
354
1024
1090
178
1497
12000
Other
229
295
475
96
94
90
472
452
8034
3738
3265
Semiconductors
67
97
54
11
640
3066
Software
25
16
22
83
686
128
467
629
1228
2357
3196
10115
Medical Devices and

Equipment
Telecommunications
Total
79
299
1042
698
2399
1187
1331
2449
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
2532
520
1381
254
4077
1982
11642
4709
6517
567
2262
2540
3711
6515
4732
528
229
47
995
739
492
29
769
500
348
754
851
1473

Services
3666
1628
2711
3656
5264
6074
10591
22156
2252
1451
7257
2413
4720
1137
3456
1204
381
447
1698
77
2997
392
1333
2517
2275
1240
Financial Services
1383
1116
3435
292
564
2957
1406
3349
3796
3463
2271
9887
7102
7267
Healthcare Services
668
617
1223
37
7417
3440
3646
4214
780
581
8210
4950
8403
1010
Industrial/Energy
2973
3360
4073
7492
12455
20938
24190
56947
12165
1998
25034
26358
31086
17253
IT Services
3138
533
674
1312
2135
2192
935
5362
5604
373
3717
2172
3960
4426
42607
6332
4460
1733
7223
5397
26597
8756
3066
1708
2446
3816
15613
3213
556
1196
954
1168
2395
2364
3121
6691
6285
3610
8212
6201
8215
13093
22320
6226
854
942
1420
2373
1561
991
782
1281
678
3838
590
2613
176
350
200
143
1676
630
426
8358
2865
871
3521
635
1660
2227
175
3174
1042
978
1700
31001
924
945
6524
3108
4266
7021
Medical Devices and

Equipment
Other
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
Telecommunications
Total
THOMSON REUTERS
11303
32082
7399
458
2232
5736
12634
4624
2162
31490
3948
3574
9320
5874
136326
64565
36264
26265
56180
68468
112915
183218
64079
57884
101808
95369
134158
91618
NVCA
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
13
11
10
15
14

Services
13

Services
10
13
14
19
15
Financial Services
10
12
12
11
17
Healthcare Services
10
12
Industrial/Energy
17
20
13
25
20
35
39
33
IT Services
12
12
21
12
17
19
28
Medical Devices and

Equipment
15
11
17
17
14
10
13
11
24
Other
10
13
Semiconductors
10
11
Software
13
17
26
30
21
45
66
67
Telecommunications
14
14
21
Total
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
23
34
21
18
29
34
42
65
33
19
32
39
54
43
15
13
11
10
12
12

Services
23
25
22
25
39
33
55
62
40
25
43
43
49
57
11
10
18
14
11
15
10
14
Financial Services
16
26
19
13
19
19
22
23
19
14
27
28
29
35
Healthcare Services
11
15
14
25
30
30
22
10
33
38
40
30
Industrial/Energy
37
35
33
45
66
128
113
148
115
57
122
137
219
154
IT Services
26
32
41
27
36
26
42
49
30
24
56
52
65
39
54
58
31
28
43
43
54
84
50
48
76
84
82
68
Medical Devices and

Equipment
13
20
14
14
27
35
32
41
20
40
42
55
51
39
26
17
20
25
31
28
32
21
30
25
25
25
16
14
Other
10
14
19
18
15
14
21
24
28
17
29
16
29
24
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
Telecommunications
38
35
45
43
29
39
53
54
36
35
57
29
39
23
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.
NVCA
THOMSON REUTERS
Fig. 4.13
Venture-Backed M&A Transaction Values vs.
Amount Invested
Year
< TVI
1x-4x TVI
4x-10x TVI
>10x TVI
1995
14%
26%
22%
38%
1996
8%
27%
30%
34%
1997
10%
41%
15%
34%
1998
15%
22%
31%
32%
1999
14%
15%
26%
45%
2000
8%
23%
22%
46%
2001
41%
19%
23%
17%
2002
50%
26%
13%
11%
2003
45%
38%
11%
5%
2004
36%
33%
20%
11%
2005
30%
37%
19%
14%
2006
29%
37%
18%
16%
2007
22%
30%
24%
23%
2008
28%
29%
25%
18%
2009
44%
21%
25%
10%
2010
31%
31%
22%
16%
2011
15%
27%
34%
24%
2012
18%
25%
29%
28%
2013
18%
37%
29%
16%
This chart is prepared by analyzing all deals where total venture investment and acquisition price are confirmed. Each deal is classified as a ratio of company acquisition (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
total venture investment (<TVI) clearly did not result in a good return. Four times
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.
Fig. 4.14
Venture-Backed IPOs Cos In Registration vs.
Number of Venture-Backed IPOs
Year
# of Venture Backed
IPOs
# of Moneytree Cos. in
Registration
2003
26
31
2004
82
57
2005
59
16
2006
67
36
2007
91
31
2008
20
2009
13
23
2010
70
31
2011
51
60
2012
49
27
2013
81
22
*Beginning in 2012, companies could elect confidential registration.

Those, of course, cannot be counted in the number in registration.
As of this writing, it appears that half or more of companies
seeking to go public are electing confidential registration.
Fig. 4.15
Post-Offer Value Ranges by Number of Companies
Year
$10B or
Greater
>$1B
$500M-$1B
$100M-$500M
<$100M
1995
59
62
1996
11
110
89
1997
58
66
1998
50
17
1999
28
46
181
22
2000
27
37
138
18
2001
18
2002
15
2003
22
2004
10
64
2005
35
13
2006
11
44
2007
15
16
57
2008
2009
2010
21
41
2011
17
13
19
2012
29
2013
13
12
50
* Count only includes IPOs with disclosed post-offer values
THOMSON REUTERS
NVCA
Fig. 4.16
Deal Value Ranges by Number of Companies
Year
>$1B
$500M-$1B
$100M-$500M
<$100M
1995
10
47
1996
17
56
1997
22
77
1998
27
86
1999
12
58
84
2000
15
23
101
106
2001
43
125
2002
28
134
2003
29
103
2004
45
143
2005
58
139
2006
62
141
2007
15
74
112
2008
42
87
2009
34
68
2010
11
49
90
2011
12
63
93
2012
10
53
64
2013
45
39
* Count only includes transactions with disclosed values
Fig. 4.17
Venture-Backed US Company IPOs by Year by Country
2005
Country
2006
2007
Offer
Offer
#
Amt
#
Amt
#
Exits ($ Mil) Exits ($ Mil) Exits
2008
Offer
Amt
($ Mil)
#
Exits
2009
Offer
Amt
($ Mil)
#
Exits
2010
Offer
Amt
($ Mil)
#
Exits
2011
Offer
Amt
($ Mil)
#
Exits
2012
Offer
Amt
($ Mil)
#
Exits
2013
Offer
Amt
($ Mil)
#
Exits
Total
Offer
Amt
($ Mil)
#
Exits
Offer
Amt
($ Mil)
332.8
Argentina
332.8
Bahamas
137.5
137.5
Bermuda
621.3
621.3
Canada
91.1
57.5
148.6
China
621.1
624.7
12
2,482.5
220.0
21
2,838.3
1,739.7
165.7
556.3
59
9,248.2
France
77.0
288.1
365.1
Hong Kong
103.3
103.3
India
80.5
80.5
Israel
67.5
78.0
208.2
353.7
Netherlands
304.6
89.7
394.3
Norway
43.8
43.8
Russia
380.5
1,434.8
1,815.3
South Korea
190.8
144.1
334.9
Taiwan
70.4
70.4
United
Kingdom
74.0
74.0
48
4,072.5
57
5,655.9
77
9,466.5
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
United
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.
NVCA
THOMSON REUTERS
Fig. 4.18
Ratio of IPO Pre-Money Valuation to Amount
Invested
Year
Post Offer Offer Amt

Value
($ Billion)
($ Billion)
IPO Pre
Money
Valuation
Total
Venture Inv.
($ Billion)
Ratio
Fig. 4.19
2013 Venture-Backed IPOs Valuations as of IPOs
Year
of
IPO
Avg Val
($ Mil)
Max
($ Mil)
Upper
Quartile
($ Mil)
Median
($ Mil)
Lower
Quartile
($ Mil)
Min
($ Mil)
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.
THOMSON REUTERS
NVCA
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

strong today. In 2013, we identified 342 growth equity deals in the United
States. This compares with 406 in 2012, but is very much in line with
the past several years. A disclosed $12.3 billion in equity investment was
reported for 2013. This does not count the approximately 105 deals for
which no dollar equity amounts were disclosed.
An analysis of the charts in this chapter helps profile the growth equity
activity. Approximately 38% of disclosed equity dollars went to California companies. This compares with 50% of traditional venture capital dollars going to California companies.
As with traditional venture capital, the sector receiving the most dollars through the most deals is Software. By count, 148 of the 342 deals,
or 43%, were into software companies. By contrast, no other MoneyTree
sector garnered more than 10% of the total number of deals.
The definition of a growth equity company:
Companys revenues are growing rapidly
Company is cash flow positive, profitable or approaching profitability
Company is often founder-owned and/or managed
Investor is agnostic about taking a controlling position and usually
purchases minority ownership position
Industry investment mix is similar to that of earlier stage venture
capital investors
Capital is used for company needs or shareholder liquidity
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
While still nascent in its application, our 2014 Yearbook methodology

for tagging growth equity transactions from the full venture capital/buyout database bears some explanation. We expect these criteria to mature
over time as we gain more experience defining the asset class. For now:
Date: 1/1/2000 and later
Equity dollar amount invested: Zero (not disclosed) or more than$15
million
Geographic location of company: United States
Deal stage: expansion, later stage, acquisition for expansion, acquisition, LBO, mezzanine, MBO, recap or turnaround, secondary
buyout, secondary purchase
Firms investing: Must include at least one firm from a list of 65
known, active growth equity investors
It should also be noted that the dollar value of many of these growth
equity transactions are not disclosed, so therefore the dollar amounts reported in the charts will understate the amount of equity investment made
by growth equity firms. For this chapter, we have excluded equity investment reported from $1 to $14.99 million, because growth equity deals
tend to be larger in size.
Also, unlike traditional venture capital portfolio companies that enter
the portfolios with smaller and earlier stage rounds and exit with an IPO,
acquisition, or failure, growth equity-backed companies enter those portfolios with more maturity, and, presumably, with a shorter track to liquidity.
Methodology
The growth equity asset class really emerged after the 2000 tech bubble.
Therefore, our statistics begin in 2000. These growth equity transactions
for the most part were already captured in the Thomson One database. But
they were, and still are, reported under the respective venture capital or
buyout categories. For purposes of this chapter, they are aggregated and
reported as if they were a standalone dataset.
NVCA
THOMSON REUTERS
Figure 5.01
Growth Equity Investments ($ Billions)
2000 to 2013*
30
25
($ Billions)
20
15
10
5
3
201
2
201
1
201
0
201
9
200
8
200
7
200
6
200
5
200
4
200
3
200
2
200
1
200
200
Year
Figure 5.02
Growth Equity Investments By Industry Sector
Financial Services Retailing/Distribution 1%

Telecommunications
Business Products and Services 3%
2%
1%
Semiconductors
1%
1%
Healthcare Services
1%
Biotechnology
2%
2%

1%
Software
34%
IT Services
5%
6%
Industrial/Energy
8%

10%
21%
THOMSON REUTERS
NVCA
Fig. 5.03
Growth Equity Investments
By Company State*
State
# Companies
# Deals
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
Total*
Amt. Invested ($Bil)
11
10
300.3
247
229
10,057.8
*Total includes top 5 states only
Figure 5.04
Growth Equity Investments 2000-2013 By Industry ($ 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

Services
612.08
222
444
75
154
139
158
368
2,451
94
83
41
137
Computers and
Peripherals
778.08
136
196
88
187
122
83
97
55
73
118
261
2,549
Consumer Products
and Services
839.55
186
221
176
739
61
1,224
448
93
228
442
987
924
747
Electronics/
Instrumentation
197.00
83
30
96
96
110
164
251
212
164
115
123
129
72
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
Entertainment
2,007.22
607
215
458
589
297
487
1,020
713
1,061
1,127
1,848
794
1,277
Medical Devices and

Equipment
395.22
571
482
240
447
485
531
1,050
875
469
963
1,217
284
290
4,240.43
2,500
1,226
570
532
654
414
590
268
176
441
199
696
100
46
130
266
350
306
52
Networking and
Equipment
Other
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
1,471
1,008
619
781
1,375
1,268
913
430
531
285
Telecommunications
Total
NVCA
5,727.49
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
185
325
220
12,961.99
10,370.76
12,329.17
THOMSON REUTERS
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
20
11
14
13
10
13
Computers and
Peripherals
12
Consumer Products
and Services
27
10
11
13
23
10
10
14
24
27
16
Electronics/
Instrumentation
10
Financial Services
16
12
14
12
16
19
16
14
13
12
Healthcare Services
10
11
10
13
Industrial/Energy
16
13
15
19
43
38
22
39
37
25
18
IT Services
76
24
15
12
17
27
54
43
33
33
53
35
33
Media and
Entertainment
65
15
13
17
12
23
32
35
27
30
35
41
31
Medical Devices and

Equipment
15
19
19
13
18
23
21
38
34
14
29
20
14
13
Networking and
Equipment
80
63
32
25
21
23
16
21
14
20
11
Other
11
23
Semiconductors
27
21
17
16
23
27
27
28
16
14
19
10
Software
203
86
42
32
62
58
64
83
87
57
91
117
168
148
Telecommunications
99
44
25
22
32
17
28
25
20
14
15
10
11
Total
713
317
205
183
286
281
308
454
386
235
353
388
406
342
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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
1,232
331
138
230
126
245
139
446
831
154
38
105
560
70
190
85
30
47
24
63
16
AK/HI/PR
190
Sacramento/N.Cal
19
30
27
50
19
16
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
Colorado
Upstate NY
Total
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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
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
13
19
33
17
17
21
27
37
17
DC/Metroplex
38
22
11
19
15
13
21
21
12
18
17
22
11
SouthWest
12
10
13
10
Colorado
16
14
10
North Central
12
Northwest
30
11
16
11
11
12
10
11
12
14
Philadelphia Metro
16
13
12
13
14
12
San Diego
13
13
10
12
South Central
Upstate NY
AK/HI/PR
Sacramento/N.Cal
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
Total
*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, Secondary 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 Jurvetson 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.
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APPENDIX A
Glossary
A round a financing event whereby angel groups and / or
venture capitalists become involved in a fast growth company that
was previously financed by founders and their friends and families.
Accredited investor a person or legal entity, such as a company
or trust fund, that meets certain net worth and income qualifications
and is considered to be sufficiently sophisticated to make investment
decisions in private offerings. Regulation D of the Securities Act of
1933 exempts accredited investors from protection of the Securities
Act. The Securities and Exchange Commission has proposed
revisions to the accredited investor qualifying rules, which may or
may not result in changes for venture investors. The current criteria
for a natural person are: $1 million net worth or annual income
exceeding $200,000 individually or $300,000 with a spouse.
Directors, general partners and executive officers of the issuer are
considered to be accredited investors.
Alternative asset class a class of investments that includes
venture capital, leverage buyouts, hedge funds, real estate, and oil
and gas, but excludes publicly traded securities. Pension plans,
college endowments and other relatively large institutional investors
typically allocate a certain percentage of their investments to
alternative assets with an objective to diversify their portfolios.
Alpha a term derived from statistics and finance theory that is
used to describe the return produced by a fund manager in excess of
the return of a benchmark index. Manager returns and benchmark
returns are measured net of the risk-free rate. In addition, manager
returns are adjusted for the risk of the managers portfolio relative to
the risk of the benchmark index. Alpha is a proxy for manager skill.
Angel a wealthy individual that invests in companies in relatively
early stages of development. Usually angels invest less than $1
million per startup.
Anti-dilution a contract clause that protects an investor from a
substantial reduction in percentage ownership in a company due to
the issuance by the company of additional shares to other entities.
The mechanism for making an adjustment that maintains the same
percentage ownership is called a Full Ratchet. The most commonly
used adjustment provides partial protection and is called Weighted
Average.
B round a financing event whereby investors such as venture
capitalists and organized angel groups are sufficiently interested
in a company to provide additional funds after the A round of
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financing. Subsequent rounds are called C, D and so on.

Basis point (bp) one one-hundredth (1/100) of a percentage
unit. For example, 50 basis points equals one half of one percent.
Banks quote variable loan rates in terms of an index plus a margin
and the margin is often described in basis points, such as LIBOR
plus 400 basis points (or, as the experts say, beeps).
Beta a measure of volatility of a public stock relative to an index
or a composite of all stocks in a market or geographical region.
A beta of more than one indicates the stock has higher volatility
than the index (or composite) and a beta of one indicates volatility
equivalent to the index (or composite). For example, the price of
a stock with a beta of 1.5 will change by 1.5% if the index value
changes by 1%. Typically, the S&P500 index is used in calculating
the beta of a stock.
Beta product a product that is being tested by potential customers
prior to being formally launched into the marketplace.
Board of directors a group of individuals, typically composed of
managers, investors and experts who have a fiduciary responsibility
for the well being and proper guidance of a corporation. The board
is elected by the shareholders.
Book see Private placement memorandum.
Bootstrapping the actions of a startup to minimize expenses and
build cash flow, thereby reducing or eliminating the need for outside
investors.
Bp see Basis point.
Bridge financing temporary funding that will eventually be
replaced by permanent capital from equity investors or debt lenders.
In venture capital, a bridge is usually a short term note (6 to 12
months) that converts to preferred stock. Typically, the bridge lender
has the right to convert the note to preferred stock at a price that is
a 20% to 25% discount from the price of the preferred stock in the
next financing round. See Mezzanine and Wipeout bridge.
Broad-based weighted average anti-dilution A weighted
average anti-dilution method adjusts downward the price per
share of the preferred stock of investor A due to the issuance of
new preferred shares to new investor B at a price lower than the
price investor A originally received. Investor As preferred stock is
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repriced to a weighted average of investor As price and investor

Bs price. A broad-based anti-dilution method uses all common
stock outstanding on a fully diluted basis (including all convertible
securities, warrants and options) in the denominator of the formula
for determining the new weighted average price. See Narrow-based
weighted average anti-dilution.
Burn rate the rate at which a startup with little or no revenue uses
available cash to cover expenses. Usually expressed on a monthly
or weekly basis.
Business Development Company (BDC) a publicly traded
company that invests in private companies and is required by
law to provide meaningful support and assistance to its portfolio
companies.
Business plan a document that describes a new concept for
a business opportunity. A business plan typically includes the
following sections: executive summary, market need, solution,
technology, competition, marketing, management, operations, exit
strategy, and financials (including cash flow projections). For most
venture capital funds fewer than 10 of every 100 business plans
received eventually receive funding.
Buyout a sector of the private equity industry. Also, the purchase
of a controlling interest of a company by an outside investor (in a
leveraged buyout) or a management team (in a management buyout).
Buy-sell agreement a contract that sets forth the conditions under
which a shareholder must first offer his or her shares for sale to the
other shareholders before being allowed to sell to entities outside
the company.
C Corporation an ownership structure that allows
any number of individuals or companies to own shares. A C
corporation is a stand-alone legal entity so it offers some protection
to its owners, managers and investors from liability resulting from
its actions.
Capital Asset Pricing Model (CAPM) a method of estimating
the cost of equity capital of a company. The cost of equity capital
is equal to the return of a risk-free investment plus a premium that
reflects the risk of the companys equity.
Capital call when a private equity fund manager (usually a
general partner in a partnership) requests that an investor in the
fund (a limited partner) provide additional capital. Usually a
limited partner will agree to a maximum investment amount and the
general partner will make a series of capital calls over time to the
limited partner as opportunities arise to finance startups and buyouts.
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Capital gap the difficulty faced by some entrepreneurs in trying to

raise between $2 million and $5 million. Friends, family and angel
investors are typically good sources for financing rounds of less than
$2 million, while many venture capital funds have become so large
that investments in this size range are difficult.
Capitalization table a table showing the owners of a companys
shares and their ownership percentages as well as the debt holders.
It also lists the forms of ownership, such as common stock, preferred
stock, warrants, options, senior debt, and subordinated debt.
Capital gains a tax classification of investment earnings resulting
from the purchase and sale of assets. Typically, a companys
investors and founders have earnings classified as long term capital
gains (held for a year or longer), which are taxed at a lower rate than
ordinary income.
Capital stock a description of stock that applies when there is only
one class of shares. This class is known as common stock.
Capital Under Management A frequently-used metric for sizing
total funds managed by a venture capital or buyout firm. In practice,
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
collects management fees. This calculation ignores whether portions
of the committed capital have not yet been called and whether
portions of the fund have been liquidated and distributed. It typically
does not include aging funds in their out years on which fees are
not being collected. For purposes of this book in calculating capital
managed in figure 1.04, because direct data is not available, the last
eight vintage years of capital commitments is considered a proxy for
the industrys total capital under management.
Capped participating preferred stock preferred stock whose
participating feature is limited so that an investor cannot receive
more than a specified amount. See Participating preferred stock.
Carried interest the share in the capital gains of a venture capital
fund which is allocated to the General Partner. Typically, a fund must
return the capital given to it by limited partners plus any preferential
rate of return before the general partner can share in the profits of
the fund. The general partner will typically receive a 20% carried
interest, although some successful firms receive 25%-30%. Also
known as carry or promote.
Clawback a clause in the agreement between the general partner
and the limited partners of a private equity fund. The clawback gives
limited partners the right to reclaim a portion of disbursements to a
general partner for profitable investments based on significant losses
from later investments in a portfolio.
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Closing the conclusion of a financing round whereby all necessary

legal documents are signed and capital has been transferred.
Club deal the act of investing by two or more entities in the same
target company, usually involving a leveraged buyout transaction.
Co-investment the direct investment by a limited partner alongside
a general partner in a portfolio company.
Collateral hard assets of the borrower, such as real
estate or equipment, for which a lender has a legal interest until a
loan obligation is fully paid off.
Commitment an obligation, typically the maximum amount that a
limited partner agrees to invest in a fund. See Capital call.
Common stock a type of security representing ownership rights
in a company. Usually, company founders, management and
employees own common stock while investors own preferred stock.
In the event of a liquidation of the company, the claims of secured
and unsecured creditors, bondholders and preferred stockholders
take precedence over common stockholders. See Preferred stock.
Comparable a private or public company with similar
characteristics to a private or public company that is being valued.
For example, a telecommunications equipment manufacturer whose
market value is 2 times revenues can be used to estimate the value
of a similar and relatively new company with a new product in the
same industry. See Liquidity discount.
Control the authority of an individual or entity that
owns more than 50% of equity in a company or owns the largest
block of shares compared to other shareholders.
Consolidation see Rollup.
Conversion the right of an investor or lender to force a company
to replace the investors preferred shares or the lenders debt with
common shares at a preset conversion ratio. A conversion feature
was first used in railroad bonds in the 1800s.
Convertible debt a loan which allows the lender to
exchange the debt for common shares in a company at a preset
conversion ratio. Also known as a convertible note.
Convertible preferred stock a type of stock that gives an owner
the right to convert to common shares of stock. Usually, preferred
stock has certain rights that common stock doesnt have, such
as decision-making management control, a promised return on
investment (dividend), or senior priority in receiving proceeds from
a sale or liquidation of the company. Typically, convertible preferred
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stock automatically converts to common stock if the company

makes an initial public offering (IPO). Convertible preferred is the
most common tool for private equity funds to invest in companies.
Co-sale right a contractual right of an investor to sell some of the
investors stock along with the founders or majority shareholders
stock if either the founder or majority shareholder elects to sell stock
to a third-party. Also known as Tag-along right.
Cost of capital see Weighted average cost of capital.
Cost of revenue the expenses generated by the core operations of
a company.
Covenant a legal promise to do or not do a certain
thing. For example, in a financing arrangement, company
management may agree to a negative covenant,
whereby it promises not to incur additional debt. The
penalties for violation of a covenant may vary from repairing the
mistake to losing control of the company.
Coverage ratio describes a companys ability to pay debt from
cash flow or profits. Typical measures are EBITDA/Interest,
(EBITDA minus Capital Expenditures)/Interest, and EBIT/Interest.
Cram down round a financing event upon which new investors
with substantial capital are able to demand and receive contractual
terms that effectively cause the issuance of sufficient new shares by
the startup company to significantly reduce (dilute) the ownership
percentage of previous investors.
Cumulative dividends the owner of preferred stock with
cumulative dividends has the right to receive accrued (previously
unpaid) dividends in full before dividends are paid to any other
classes of stock.
Current ratio the ratio of current assets to current liabilities.
Data room a specific location where potential buyers / investors
can review confidential information about a target company. This
information may include detailed financial statements, client
contracts, intellectual property, property leases, and compensation
agreements.
Deal flow a measure of the number of potential investments that a
fund reviews in any given period.
Defined benefit plan a company retirement plan in which the
benefits are typically based on an employees salary and number of
years worked. Fixed benefits are paid after the employee retires. The
employer bears the investment risk and is committed to providing
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the benefits to the employee. Defined benefit plan managers can

invest in private equity funds.
Defined contribution plan a company retirement plan in which
the employee elects to contribute some portion of his or her salary
into a retirement plan, such as a 401(k) or 403(b). The employer
may also contribute to the employees plan. With this type of plan,
the employee bears the investment risk. The benefits depend solely
on the amount of money made from investing the employees
contributions.
Demand rights a type of registration right. Demand rights give an
investor the right to force a startup to register its shares with the SEC
and prepare for a public sale of stock (IPO).
Dilution the reduction in the ownership percentage of current
investors, founders and employees caused by the issuance of new
shares to new investors.
Dilution protection see Anti-dilution and Full ratchet.
Direct secondary transaction A transaction in which the buyer
purchases shares of an operating company from an existing seller.
While the transaction is a secondary sale of shares, the transacted
interest is a primary issue purchase directly into an operating
company. Sellers are often venture capitalists selling their ownership
stake in a portfolio company. Buyers are often funds that specialize
in such investments.
Disbursement an investment by a fund in a company.
Discount rate the interest rate used to determine the present value
of a series of future cash flows.
Discounted cash flow (DCF) a valuation methodology whereby
the present value of all future cash flows expected from a company
is calculated.
Distressed debt the bonds of a company that is either in or
approaching bankruptcy. Some private equity funds specialize
in purchasing such debt at deep discounts with the expectation of
exerting influence in the restructuring of the company and then
selling the debt once the company has meaningfully recovered.
Distribution the transfer of cash or securities to a limited partner
resulting from the sale, liquidation or
IPO of one or more portfolio companies in which a general partner
chose to invest.
Dividends payments made by a company to the owners of certain
securities. Typically, dividends are paid quarterly, by approval of the
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board of directors, to owners of preferred stock.

Down round a round of financing whereby the valuation of the
company is lower than the value determined by investors in an
earlier round.
Drag-along rights the contractual right of an investor in a
company to force all other investors to agree to a specific action,
such as the sale of the company.
Drawdown schedule an estimate of the gradual transfer of
committed investment funds from the limited partners of a private
equity fund to the general partners.
Due diligence the investigatory process performed by investors to
assess the viability of a potential investment and the accuracy of the
information provided by the target company.
Dutch auction a method of conducting an IPO where-by newly
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
the shares are committed. Note that the price per share paid by all
buyers is the price commitment of the buyer of the last share.
Early stage the state of a company after the seed (formation)
stage but before middle stage (generating revenues). Typically, a
company in early stage will have a core management team and a
proven concept or product, but no positive cash flow.
Earnings before interest and taxes (EBIT) a measurement of the
operating profit of a company. One possible valuation methodology
is based on a comparison of private and public companies value as
a multiple of EBIT.
Earnings before interest, taxes, depreciation and amortization
(EBITDA) a measurement of the cash flow of a company. One
possible valuation methodology is based on a comparison of private
and public companies value as a multiple of EBITDA.
Earn out an arrangement in which sellers of a business receive
additional future payments, usually based on financial performance
metrics such as revenue or net income.
Elevator pitch a concise presentation, lasting only a few minutes
(an elevator ride), by an entrepreneur to a potential investor about an
investment opportunity.
Employee Stock Ownership Program (ESOP) a plan established
by a company to reserve shares for employees.
Entrepreneur an individual who starts his or her own business.
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Entrepreneurship the application of innovative leadership to

limited resources in order to create exceptional value.
Enterprise Value (EV) the sum of the market values of the
common stock and long term debt of a company, minus excess cash.
Equity the ownership structure of a company represented by
common shares, preferred shares or unit interests. Equity = Assets
Liabilities.
ESOP see Employee Stock Ownership Program.
Evergreen fund a fund that reinvests its profits in order to ensure
the availability of capital for future investments.
Exit strategy the plan for generating profits for owners and
investors of a company. Typically, the options are to merge, be
acquired or make an initial public offering (IPO). An alternative is
to recapitalize (releverage the company and then pay dividends to
shareholders).
Expansion stage the stage of a company characterized by a
complete management team and a substantial increase in revenues.
Fair value a financial reporting principle for valuing assets and
liabilities, for example, portfolio companies in venture capital fund
portfolio. In 2008, more defined rules took effect. See FAS 157.
Fairness opinion a letter issued by an investment bank that
charges a fee to assess the fairness of a negotiated price for a merger
or acquisition.
rate used is the cost of equity.

Free cash flow to the firm (FCFF) the operating cash flow
available after operating expenses, taxes, reinvestment needs and
changes in working capital, but before any interest payments on
debt are made. In a discounted cash flow model to determine the
enterprise value of a firm using FCFF, the discount rate used is the
weighted average cost of capital (WACC).
Friends and family financing capital provided by the friends
and family of founders of an early stage company. Founders should
be careful not to create an ownership structure that may hinder the
participation of professional investors once the company begins to
achieve success.
Full ratchet an anti-dilution protection mechanism whereby
the price per share of the preferred stock of investor A is adjusted
downward due to the issuance of new preferred shares to new investor
B at a price lower than the price investor A originally received.
Investor As preferred stock is repriced to match the price of investor
Bs preferred stock. Usually as a result of the implementation of
a ratchet, company management and employees who own a fixed
amount of common shares suffer significant dilution. See Narrowbased weighted average anti-dilution and Broad-based weighted
average anti-dilution.
Fully diluted basis a methodology for calculating any per share
ratios whereby the denominator is the total number of shares issued
by the company on the assumption that all warrants and options are
exercised and preferred stock.
FAS 157 the original designation of an accounting

standard effective in 2008 for private companies for the fair
value measurement of portfolio holdings. Literally, Financial
Accounting Standard number 157, this standard is now officially
Accounting Standard Codification Topic 820 (ASC 820) but
it is more widely known by its original name. In 2013-2014, the
Financial Accounting Foundation conducted a post-implementation
review of this standard to determine if it is working as intended.
Fund-of-funds a fund created to invest in private equity funds.

Typically, individual investors and relatively small institutional
investors participate in a fund-offunds to minimize their portfolio
management efforts.
First refusal the right of a privately owned company to purchase

any shares that employees would like to sell.
General partner (GP) a class of partner in a partnership. The

general partner retains liability for the actions of the partnership.
Historically, venture capital and buyout funds have been structured
as limited partnerships, with the venture firm as the GP and limited
partners (LPs) being the institutional and high net worth investors
that provide most of the capital in the partnership. The GP earns a
management fee and a percentage of gains (see Carried interest).
Founders stock nominally priced common stock issued to

founders, officers, employees, directors, and consultants.
Free cash flow to equity (FCFE) the cash flow available after
operating expenses, interest payments on debt, taxes, net principal
repayments, preferred stock dividends, reinvestment needs and
changes in working capital. In a discounted cash flow model to
determine the value of the equity of a firm using FCFE, the discount
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Gatekeepers intermediaries which endowments, pension funds

and other institutional investors use as advisors regarding private
equity investments.
GP see General partner.

GP for hire In a spin-out or a synthetic secondary, a GP for hire
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refers to the professional investor who may be hired by a purchasing

firm to manage the new fund created from the orphaned assets
purchased. In past cases, the GP has often expanded its role to
fundraise for and run new funds aside from the initial fund.
to impress potential investors.
Going-private transaction when a public company chooses to

pay off all public investors, delist from all stock exchanges, and
become owned by management, employees, and select private
investors.
Hot issue stock in an initial public offering that is in high demand.
Golden handcuffs financial incentives that discourage founders

and / or important employees from leaving a company before a
predetermined date or important milestone.
Holding period amount of time an investment remains in a

portfolio.
Hot money capital from investors that have no tolerance for lack
of results by the investment manager and move quickly to withdraw
at the first sign of trouble.
Hurdle rate a minimum rate of return required before an investor
will make an investment.
Grossing up an adjustment of an option pool for management

and employees of a company which increases the number of shares
available over time. This usually occurs after a financing round
whereby one or more investors receive a relatively large percentage
of the company. Without a grossing up, managers and employees
would suffer the financial and emotional consequences of dilution,
thereby potentially affecting the overall performance of the company.
Incorporation the process by which a business receives a state

charter, allowing it to become a corporation. Many corporations
choose Delaware because its laws are business-friendly and up to date.
Growth stage the state of a company when it has received one or

more rounds of financing and is generating revenue from its product
or service. Also known as middle stage.
Indenture the terms and conditions between a bond issuer and

bond buyers.
Hart-Scott-Rodino Act a law requiring entities that acquire certain

amounts of stock or assets of a company to inform the Federal Trade
Commission and the Department of Justice and to observe a waiting
period before completing the transaction.
Hedge fund an investment fund that has the ability to use
leverage, take short positions in securities, or use a variety of
derivative instruments in order to achieve a return that is relatively
less correlated to the performance of typical indices (such as the
S&P 500) than traditional long-only funds. Hedge fund managers
are typically compensated based on assets under management as
well as fund performance.
High yield debt debt issued via public offering or public
placement (Rule 144A) that is rated below investment grade by S&P
or Moodys. This means that the debt is rated below the top four
rating categories (i.e. S&P BB+, Moodys Ba2 or below). The lower
rating is indicative of higher risk of default, and therefore the debt
carries a higher coupon or yield than investment grade debt. Also
referred to as Junk bonds or Sub-investment grade debt.
Hockey stick the general shape and form of a chart showing
revenue, customers, cash or some other financial or operational
measure that increases dramatically at some point in the future.
Entrepreneurs often develop business plans with hockey stick charts
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Incubator a company or facility designed to host startup

companies. Incubators help startups grow while controlling costs by
offering networks of contacts and shared backoffice resources.
Initial public offering (IPO) the first offering of stock by a

company to the public. New public offerings must be registered
with the Securities and Exchange Commission. An IPO is one of
the methods that a startup that has achieved significant success can
use to raise additional capital for further growth. See Qualified IPO.
In-kind distribution a distribution to limited partners of a private
equity fund that is in the form of publicly trades shares rather than
cash.
Inside round a round of financing in which the investors are
the same investors as the previous round. An inside round raises
liability issues since the valuation of the company has no third
party verification in the form of an outside investor. In addition, the
terms of the inside round may be considered self-dealing if they are
onerous to any set of shareholders or if the investors give themselves
additional preferential rights.
Institutional investor professional entities that invest capital on
behalf of companies or individuals. Examples are: pension plans,
insurance companies and university endowments.
Intellectual property (IP) knowledge, techniques, writings and
images that are intangible but often protected by law via patents,
copyrights, and trademarks.
Interest coverage ratio earnings before interest and taxes (EBIT)
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divided by interest expense. This is a key ratio used by lenders to

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

of an acquisition by a larger company or in the context of selling off
all assets prior to cessation of operations (Chapter 7 bankruptcy).
In a liquidation, the claims of secured and unsecured creditors,
bondholders and preferred stockholders take precedence over
common stockholders.
Liquidation preference the contractual right of an investor to
priority in receiving the proceeds from the
liquidation of a company. For example, a venture capital investor
with a 2x liquidation preference has the right to receive two times
its original investment upon liquidation.
Liquidity discount a decrease in the value of a private company
compared to the value of a similar but publicly traded company.
Since an investor in a private company cannot readily sell his or her
investment, the shares in the private company must be valued less
than a comparable public company.
Liquidity event a transaction whereby owners of a significant
portion of the shares of a private company sell their shares in
exchange for cash or shares in another, usually larger company. For
example, an IPO is a liquidity event.
Lock-up agreement investors, management and employees often
agree not to sell their shares for a specific time period after an IPO,
usually 6 to 12 months. By avoiding large sales of its stock, the
company has time to build interest among potential buyers of its
shares.
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
a relatively volatile rate and is typically quoted in maturities of one
month, three months, six months and one year.
Management buyout (MBO) a leveraged buyout controlled by
the members of the management team of a company or a division.
Often an MBO is conducted in partnership with a buyout fund.
Management fee a fee charged to the limited partners in a fund
by the general partner. Management fees in a private equity fund
usually range from 0.75% to 3% of capital under management,
depending on the type and size of fund. For venture capital funds,
2% is typical.
Management rights the rights often required by a venture
capitalist as part of the agreement to invest in a company. The
venture capitalist has the right to consult with management on key
operational issues, attend board meetings and review information
about the companys financial situation.
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Market capitalization the value of a publicly traded company as

determined by multiplying the number of shares outstanding by the
current price per share.
MBO see Management buyout.
Mezzanine a layer of financing that has intermediate priority
(seniority) in the capital structure of a company. For example,
mezzanine debt has lower priority than senior debt but usually has a
higher interest rate and often includes warrants. In venture capital, a
mezzanine round is generally the round of financing that is designed
to help a company have enough resources to reach an IPO. See
Bridge financing.
MoneyTree Report Officially known as The MoneyTree Report
from PricewaterhouseCoopers and the National Venture Capital
Association based on data provided by Thomson Reuters. This report
provides much of the data in this report. It is used for investment
statistics in United States based companies. Specific definition
information is available in several of the appendices of this Yearbook.
Multiples a valuation methodology that compares public and
private companies in terms of a ratio of value to an operations figure
such as revenue or net income. For example, if several publicly
traded computer hardware companies are valued at approximately
2 times revenues, then it is reasonable to assume that a startup
computer hardware company that is growing fast has the potential to
achieve a valuation of 2 times its revenues. Before the startup issues
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.
Narrow-based weighted average anti-dilution a type of antidilution mechanism. A weighted average
anti-dilution method adjusts downward the price per share of the
preferred stock of investor A due to the issuance of new preferred
shares to new investor B at a price lower than the price investor
A originally received. Investor As preferred stock is repriced to
a weighed average of investor As price and investor Bs price. A
narrow-based anti-dilution uses only common stock outstanding in
the denominator of the formula for determining the new weighted
average price.
NDA see Non-disclosure agreement.
No-shop clause a section of an agreement to purchase a company
whereby the seller agrees not to market the company to other
potential buyers for a specific time period.
Non-cumulative dividends dividends that are payable to owners
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
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cash flow is insufficient, the owners of the preferred stock will not
receive the dividends owed for that time period and will have to wait
until the board of directors declares another set of dividends.
Non-interference an agreement often signed by employees and
management whereby they agree not to interfere with the companys
relationships with employees, clients, suppliers and sub-contractors
within a certain time period after termination of employment.
Non-solicitation an agreement often signed by employees and
management whereby they agree not to solicit other employees of
the company regarding job opportunities.
Non-disclosure agreement (NDA) an agreement issued by
entrepreneurs to protect the privacy of their
ideas when disclosing those ideas to third parties.
Offering memorandum a legal document that provides details
of an investment to potential investors. See Private placement
memorandum.
OID see Original issue discount.
Operating cash flow the cash flow produced from the operation
of a business, not from investing activities (such as selling assets)
or financing activities (such as issuing debt). Calculated as net
operating income (NOI) plus depreciation.
Option pool a group of options set aside for long term, phased
compensation to management and employees.
Outstanding shares the total amount of common shares of a
company, not including treasury stock, convertible preferred stock,
warrants and options.
Pay to play a clause in a financing agreement whereby any
investor that does not participate in a future round agrees to suffer
significant dilution compared to other investors. The most onerous
version of pay to play is automatic conversion to common shares,
which in essence ends any preferential rights of an investor, such as
the right to influence key management decisions.
Pari passu a legal term referring to the equal treatment of two or
more parties in an agreement. For example, a venture capitalist may
agree to have registration rights that are pari passu with the other
investors in a financing round.
Participating dividends the right of holders of certain preferred
stock to receive dividends and participate in additional distributions
of cash, stock or other assets.
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Participating preferred stock a unit of ownership composed of

preferred stock and common stock. The preferred stock entitles the
owner to receive a predetermined sum of cash (usually the original
investment plus accrued dividends) if the company is sold or has an
IPO. The common stock represents additional continued ownership
in the company.
PEIGG acronym for Private Equity Industry
Guidelines
Group, an ad hoc group of individuals and firms involved in the
private equity industry for the purpose of establishing valuation
and reporting guidelines. With the implementation of FAS 157 in
2008, the groups mission was essentially complete. Several of its
members then joined IPEV, which is viewed by US VCs as the
international successor to PEIGG.
Piggyback rights rights of an investor to have his or her shares
included in a registration of a startups shares in preparation for an
IPO.
PIK dividend a dividend paid to the holder of a stock, usually
preferred stock, in the form of additional stock rather than cash. PIK
refers to payment in kind.
PIPEs see Private investment in public equity.
Placement agent a company that specializes in finding institutional
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
fund partners can focus on making and managing investments in
companies rather than on raising capital.
Portfolio company a company that has received an
investment from a private equity fund.
Post-money valuation the valuation of a company including the
capital provided by the current round of financing. For example, a
venture capitalist may invest $5 million in a company valued at $2
million pre-money (before the investment was made). As a result,
the startup will have a post-money valuation of $7 million.
PPM see Private placement memorandum.
Preemptive rights the rights of shareholders to maintain their
percentage ownership of a company by buying shares sold by the
company in future financing rounds.
Preference seniority, usually with respect to dividends and
proceeds from a sale or dissolution of a company.
Preferred return a minimum return per annum that must be
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generated for limited partners of a private equity fund before the

general partner can begin receiving a percentage of profits from
investments.
Preferred stock a type of stock that has certain rights that common
stock does not have. These special rights may include dividends,
participation, liquidity preference, anti-dilution protection and veto
provisions, among others. Private equity investors usually purchase
preferred stock when they make investments in companies.
Pre-money valuation the valuation of a company prior to the
current round of financing. For example, a venture capitalist may
invest $5 million in a company valued at $2 million pre-money. As a
result, the startup will have a post-money valuation of $7 million.
Primary shares shares sold by a corporation (not by individual
shareholders).
Private Equity Growth Capital Council (PEGCC) an advocacy,
communications and research organization for the buyout industry
in the United States.
Private equity equity investments in non-public companies,
usually defined as being made up of venture capital funds and
buyout funds. Real estate, oil and gas, and other such partnerships
are sometimes included in the definition.
Private investment in public equity (PIPEs) investments by
a private equity fund in a publicly traded company, usually at a
discount and in the form of preferred stock.
Private placement the sale of a security directly to a limited
number of institutional and qualified individual investors. If
structured correctly, a private placement avoids registration with the
Securities and Exchange Commission.
Private placement memorandum (PPM) a document explaining
the details of an investment to potential investors. For example, a
private equity fund will issue a PPM when it is raising capital from
institutional investors. Also, a startup may issue a PPM when it
needs growth capital. Also known as Offering Memorandum.
Private securities securities that are not registered with the
Securities and Exchange Commission and do not trade on any
exchanges. The price per share is negotiated between the buyer and
the seller (the issuer).
Prudent man rule a fundamental principle for professional
money management which serves as a basis for the Prudent Investor
Act. The principle is based on a statement by Judge Samuel Putnum
in 1830: Those with the responsibility to invest money for others
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should act with prudence, discretion, intelligence and regard for

the safety of capital as well as income. In the 1970s a favorable
interpretation of this rule enabled pension fund managers to invest
in venture capital for the first time.
Qualified IPO a public offering of securities valued at or above
a total amount specified in a financing agreement. This amount is
usually specified to be sufficiently large to guarantee that the IPO
shares will trade in a major exchange (NASDAQ or New York
Stock Exchange). Usually upon a qualified IPO preferred stock is
forced to convert to common stock.
Quartile one fourth of the data points in a data set. Often, private
equity investors are measured by the results of their investments
during a particular period of time. Institutional investors often prefer
to invest in private equity funds that demonstrate consistent results
over time, placing in the upper quartile of the investment results for
all funds.
Ratchet a mechanism to prevent dilution. An antidilution clause
in a contract protects an investor from a reduction in percentage
ownership in a company due to the future issuance by the company
of additional shares to other entities.
Realization ratio the ratio of cumulative distributions to paid-in
capital. The realization ratio is used as a measure of the distributions
from investment results of a private equity partnership compared to
the capital under management.
Recapitalization the reorganization of a companys capital
structure.
Red herring a preliminary prospectus filed with the Securities
and Exchange Commission and containing the details of an IPO
offering. The name refers to the disclosure warning printed in red
letters on the cover of each preliminary prospectus advising potential
investors of the risks involved.
Redemption rights the right of an investor to force
the startup company to buy back the shares issued as a result of the
investment. In effect, the investor has the right to take back his/her
investment and may even negotiate a right to receive an additional
sum in excess of the original investment.
Registration the process whereby shares of a company are
registered with the Securities and Exchange
Commission under the Securities Act of 1933 in preparation for a
sale of the shares to the public.
Regulation D Often referred to as simply Reg D, an SEC
regulation that governs private placements. Private placements
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are investment offerings for institutional and accredited individual

investors, but not the general public.
rather its owners pay taxes on their proportion of the corporations

profits at their individual tax rates.
Restricted shares shares that cannot be traded in the public

markets.
SBIC see Small Business Investment Company.
Return on investment (ROI) the proceeds from an investment,

during a specific time period, calculated as a percentage of the
original investment. Also, net profit after taxes divided by average
total assets.
Rights offering an offering of stock to current shareholders that
entitles them to purchase the new issue, usually at a discount.
Rights of co-sale with founders a clause in venture capital
investment agreements that allows the VC fund to sell shares at the
same time that the founders of a startup chose to sell.
Right of first refusal a contractual right to participate in a
transaction. For example, a venture capitalist may participate in
a first round of investment in a startup and request a right of first
refusal in any following rounds of investment.
Risk-free rate a term used in finance theory to describe the return
from investing in a riskless security. In practice, this is often taken to
be the return on US Treasury Bills.
Road show presentations made in several cities to potential
investors and other interested parties. For example, a company will
often make a road show to generate interest among institutional
investors prior to its IPO.
ROI see Return on investment.
Rollup the purchase of relatively smaller companies in a sector
by a rapidly growing company in the same sector. The strategy is to
create economies of scale. For example, the movie theater industry
underwent significant consolidation in the 1960s and 1970s.
Round a financing event usually involving several
private equity investors.
Royalties payments made to patent or copyright owners in
exchange for the use of their intellectual property.
Rule 144 a rule of the Securities and Exchange Commission that
specifies the conditions under which the holder of shares acquired
in a private transaction may sell those shares in the public markets.
S corporation an ownership structure that limits its
number of owners to 100. An S corporation does not pay taxes,
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Scalability a characteristic of a new business concept that entails

the growth of sales and revenues with a much slower growth of
organizational complexity and expenses. Venture capitalists look for
scalability in the startups they select to finance.
Scale-down a schedule for phased decreases in management fees
for general partners in a limited partnership as the fund reduces its
investment activities toward the end of its term.
Scale-up the process of a company growing quickly while
maintaining operational and financial controls in place. Also, a
schedule for phased increases in management fees for general
partners in a limited partnership as the fund increases its investment
activities over time.
Secondary market a market for the sale of limited partnership
interests in private equity funds. Sometimes limited partners chose
to sell their interest in a partnership, typically to raise cash or because
they cannot meet their obligation to invest more capital according to
the takedown schedule. Certain investment companies specialize in
buying these partnership interests at a discount.
Secondary shares shares sold by a shareholder (not by the
corporation).
Securities and Exchange Commission (SEC) the regulatory
body that enforces federal securities laws such as the Securities Act
of 1933 and the Securities Exchange Act of 1934.
Seed capital investment provided by angels, friends and family to
the founders of a startup in seed stage.
Seed stage the state of a company when it has just been incorporated
and its founders are developing their product or service.
Senior debt a loan that has a higher priority in case
of a liquidation of the asset or company.
Seniority higher priority.
Series A preferred stock preferred stock issued by a fast growth
company in exchange for capital from investors in the A round
of financing. This preferred stock is usually convertible to common
shares upon the IPO or sale of the company.
Shareholder agreement a contract that sets out, for example, the
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basis on which the company will be operated and the shareholders

rights and obligations. It provides protection to minority shareholders.
Sharpe Ratio a method of calculating the risk-adjusted return of
an investment. The Sharpe Ratio is calculated by subtracting the
risk-free rate from the return on a specific investment for a time
period (usually one year) and then dividing the resulting figure by
the standard deviation of the historical (annual) returns for that
investment. The higher the Sharpe Ratio, the better.
Small Business Investment Company (SBIC) a company
licensed by the Small Business Administration to receive government
capital in the form of debt or equity in order to use in private equity
investing.
Stock option a right to purchase or sell a share of stock at a specific
price within a specific period of time. Stock purchase options are
commonly used as long term incentive compensation for employees
and management of fast growth companies.
Strategic investor a relatively large corporation that agrees to
invest in a young or a smaller company in order to have access to its
proprietary technology, product or service.
Subordinated debt a loan that has a lower priority than a senior
loan in case of a liquidation of the asset or company. Also known as
junior debt.
Success rate the proportion of venture funded companies that are
considered successful. A study of companies funded by VCs during
the 1990s indicated that 14% of the companies went public and
another 11%were acquired.
Sweat equity ownership of shares in a company resulting primarily
from work rather than investment of capital.
Syndicate a group of investors that agree to participate in a round
of funding for a company. Alternatively, a syndicate can refer to a
group of investment banks that agree to participate in the sale of
stock to the public as part of an IPO.
Takedown a schedule of the transfer of capital in phases in order

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
capital from the limited partners.
Tender offer an offer to public shareholders of a company to
purchase their shares.
Term loan a bank loan for a specific period of time, usually up to
ten years in leveraged buyout structures.
Term sheet a document confirming the intent of an
investor to participate in a round of financing for a company. By
signing this document, the subject company agrees to begin the legal
and due diligence process prior to the closing of the transaction.
Also known as Letter of Intent.
Tranche a portion of a set of securities. Each tranche may have
different rights or risk characteristics. When venture capital firms
finance a company, a round may be disbursed in two or three
tranches, each of which is paid when the company attains one or
more milestones.
Turnaround a process resulting in a substantial increase in a
companys revenues, profits and reputation.
Under water option an option is said to be under water if the
current fair market value of a stock is less
than the option exercise price.
Underwriter an investment bank that chooses to be responsible
for the process of selling new securities to the public. An underwriter
usually chooses to work with a syndicate of investment banks in
order to maximize the distribution of the securities.
Venture capital a segment of the private equity industry which
focuses on investing in new companies with high growth potential
and accompanying high risk.
Synthetic secondary A popular method of completing a direct

secondary transaction in which the buyer becomes a limited partner
(LP) in a special purpose vehicle (SPV) or similar entity which has
been set up out of the underlying investments in order to create a
limited partnership interest. The term arose because of the synthetic
nature of the direct purchase through the LP secondary transaction.
Venture capital method a pricing valuation method whereby an

estimate of the future value of a company is discounted by a certain
interest rate and adjusted for future anticipated dilution in order to
determine the current value. Usually, discount rates for the venture
capital method are considerably higher than public stock return rates,
representing the fact that venture capitalists must achieve significant
returns on investment in order to compensate for the risks they take
in funding unproven companies.
Tag-along right the right of a minority investor to receive the

same benefits as a majority investor. Usually applies to a sale of
securities by investors. Also known as Co-sale right.
Vesting a schedule by which employees gain ownership over time

of a previously agreed upon amount of retirement funding or stock
options.
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Vintage the year that a private equity fund stops accepting

new investors and begins to make investments on behalf of those
investors. Venture funds are generally benchmarked to funds of the
same vintage year.
Voting rights the rights of holders of preferred and common stock
in a company to vote on certain acts affecting the company. These
matters may include payment of dividends, issuance of a new class
of stock, merger or liquidation.
Warrant a security which gives the holder the right to purchase
shares in a company at a pre-determined price. A warrant is a long
term option, usually valid for several years or indefinitely. Typically,
warrants are issued concurrently with preferred stocks or bonds
in order to increase the appeal of the stocks or bonds to potential
investors.
Washout round a financing round whereby previous investors,
the founders and management suffer significant dilution. Usually
as a result of a washout round, the new investor gains majority
ownership and control of the company.
Weighted average cost of capital (WACC) the average of the cost
of equity and the after-tax cost of debt. This average is determined
using weight factors based on the ratio of equity to debt plus equity
and the ratio of debt to debt plus equity.
Weighted average anti-dilution an anti-dilution protection
mechanism whereby the conversion rate of preferred stock is
adjusted in order to reduce an investors loss due to an increase in
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the number of shares in a company. Without anti-dilution protection,

an investor would suffer from a reduction of his or her percentage
ownership. Usually as a result of the implementation of a weighted
average anti-dilution, company management and employees who
own a fixed amount of common shares suffer significant dilution,
but not as badly as in the case of a full ratchet.
Write-down a decrease in the reported value of an asset or a
company.
Write-off a decrease in the reported value of an asset or a company
to zero.
Write-up an increase in the reported value of an asset or a company.
Zombie a company that has received capital from investors but
has only generated sufficient revenues and cash flow to maintain
its operations without significant growth. Sometimes referred to as
walking dead. Typically, a venture capitalist has to make a difficult
decision as to whether to liquidate a zombie or continue to invest
funds in the hopes that the zombie will become a winner.
These definitions were graciously provided by the Center for Private
Equity and Entrepreneurship at the Tuck School of Business at
Dartmouth. Please refer to the Centers website for additional
definitions and information at http://mba.tuck.dartmouth.edu/pecenter/
resources/glossary.html. Used by permission. Thomson Reuters and
National Venture Capital Association are grateful to the Center for its
support.
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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

activity in the United States. As a collaboration between PricewaterhouseCoopers and the National Venture Capital Association, based upon
data from Thomson Reuters, it is the only industry-endorsed research of
its kind. The MoneyTree Report is the definitive source of information on
emerging companies that receive financing and the venture capital firms
that provide it. The study is a staple of the financial community, entrepreneurs, government policymakers and the business press worldwide.
Report Criteria
The MoneyTree Report records cash for equity investments as the cash
is actually received by the company (also called a tranche) as opposed
to when financing is committed (often referred to as a term sheet) to a
company. Accordingly, the amount reported in a given quarter may be less
than the total round amount committed to the company at the time when
the round of financing closed.
The type of financing as it is used in the MoneyTree Report refers to
the number of tranches a company has received. The number designation
(1, 2, 3, etc.) does not refer to the round of financing. Rounds are usually
designated alphabetically, e.g. Series A, Series B, and so on. The MoneyTree Report does not track rounds.
Summary Description
The MoneyTree Report measures cash-for-equity investments by the
professional venture capital community in private emerging companies in
the U.S. It is based on data provided by Thomson Reuters.
General Definition
The report includes the investment activity of professional venture capital
firms with or without a US office, SBICs, venture arms of corporations,
institutions, investment banks and similar entities whose primary activity
is financial investing. Where there are other participants such as angels,
corporations, and governments in a qualified and verified financing round
the entire amount of the round is included.
Qualifying transactions include cash investments by these entities either
directly or by participation in various forms of private placement. All recipient companies are private, and may have been newly-created or spunout of existing companies.
The report excludes debt, buyouts, recapitalizations, secondary purchases,
IPOs, investments in public companies such as PIPES (private investments in public entities), investments for which the proceeds are primarily
intended for acquisition such as roll-ups, change of ownership, and other
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
NVCA
even if substantial portions of their activities are outside the United States.
Specific Methodology
The focus of the report is on cash received by the company. Therefore,
tranches not term sheets are the determining factor. Drawdowns on commitments are recognized at the time the company receives the money
rather than recorded as a lump sum amount at the time the term sheet is
executed. Convertible debt and bridge loans are recognized only when
converted to equity.
Once a company has received a qualifying venture capital financing round,
all subsequent equity financing rounds are included regardless of whether
the round involved a venture capital firm as long as all other investment
criteria are met (e.g. cash-for-equity, not buyout or services in kind).
Angel, incubator and similar investments are considered pre-venture financing if the company has received no prior qualifying venture capital
investment and are not included in the MoneyTree results. Angel, incubator and similar investments that are part of a qualifying venture capital
round or follow a qualifying venture capital round are included to the extent that such investments can be fully verified as meeting all other criteria
(e.g. cash for equity, not buyout or services in kind).
Direct investment by corporations (not through a corporate venture capital
arm) is excluded unless (a) the investment is clearly demonstrated to be
primarily a financial investment rather than outsourced R&D or market
development, (b) it is a co-investment in an otherwise qualifying round, or
(c) it follows a qualifying venture round in a company and meets all other
criteria (e.g. cash-for-equity, not buyout or services in kind).
Data is primarily obtained from a quarterly survey of venture capital practitioners conducted by Thomson Reuters. Information is augmented by
other research techniques including other public and private sources. All
data is subject to verification with the venture capital firms and/or the
investee companies.
Only professional independent venture capital firms, institutional venture
capital groups, and recognized corporate venture capital groups are included in venture capital industry rankings.
Disclaimer
PricewaterhouseCoopers and the National Venture Capital Association
have taken responsible steps to ensure that the information contained in
the MoneyTree Report has been obtained from reliable sources. However, neither of the parties nor Thomson Reuters can warrant the ultimate
validity of the data obtained in this manner. Results are updated periodically. Therefore, all data is subject to change at any time.
THOMSON REUTERS
THOMSON REUTERS
NVCA
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
LA/Orange County: Los Angeles, Ventura, Orange, and Riverside
Counties (i.e., southern California, except San Diego)
Midwest: Illinois, Missouri, Indiana, Kentucky, Ohio, Michigan,
and western Pennsylvania
New England: Maine, New Hampshire, Vermont, Massachusetts,
Rhode Island, and parts of Connecticut (excluding Fairfield
county)
New York Metro: Metropolitan NY area, northern New Jersey,
and Fairfield County, Connecticut
North Central: Minnesota, Iowa, Wisconsin, North Dakota,
South Dakota, and Nebraska
NVCA
Sacramento/Northern California: Northeastern California

San Diego: San Diego area
Silicon Valley: Northern California, bay area and coastline
South Central: Kansas, Oklahoma, Arkansas, and Louisiana
Southeast: Alabama, Florida, Georgia, Mississippi, Tennessee,
South Carolina, and North Carolina
Southwest: Utah, Arizona, New Mexico, and Nevada
Texas: The state of Texas
Upstate New York: Northern New York state, except Metropolitan
New York City area
THOMSON REUTERS
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THOMSON REUTERS
NVCA
APPENDIX D
Industry Codes (VEIC)
1000
Communications and Media
1100
Commercial Communications
1110
Radio & TV Broadcasting Stations
1120
CATV & Pay TV Systems
1125
Cable Service Providers
1130 Radio & TV Broadcasting & Other Related
Equipment
1135
Services to Commercial Communications
1199
Other Commercial Communications
1200 Telecommunications
1210
Long Distance Telephone Services
1215
Local Exchange Carriers (LEC)
1220 Telephone Interconnect & Other Equipment
1230 Telephone answering and/or management systems,PBXs
1299
Other Telephone Related
1300
Wireless Communications
1310 Mobile Communications, Pagers & Cellular Radio
1320
Wireless Communications Services
1325
Messaging Services
1330
Wireless Communications Components
1399
Other Wireless Communications
1400
Facsimile Transmission
1500
Data Communications
1510 Local Area Networks (incl. voice/data
PBX systems)
1515
Wide Area Networks
1520
Data Communications Components
1521 Communications Processors/Network
Management
1522
Protocol Converters & Emulators
1523
Modems and Multiplexers
1524
Other Data Communication Components
1525 Switches/Hubs/Routers/Gateways/ATM
1530 Network test, monitor and support equipment
1549
Other Data Communications
1550 Internet Communications and Infrastructure NEC
1551 Internet Access Services and Service
Providers
1552
Internet Multimedia Services
1553
Internet Backbone Infrastructure
1559
Other Internet Communications NEC
1560
E-Commerce Technology
1561
Internet Security and Transaction Services
1562
Ecommerce Services
1563
Ecommerce Enabling Software
1569
Other Ecommerce
1600
Satellite Microwave Communications
1610
Satellite Services/Carriers/Operators
1620
Satellite Ground (and other) Equipment
1630
Microwave Service Facilities
1640
Microwave & Satellite Components
1699
Other Satellite & Microwave
1700
1710 Entertainment
1720 Publishing
NVCA
1800
Other Communications Related
1810
Defense Communications
1825
Other Communications Services NEC
1899 Other Communications Products (not yet
classified)
2000
Computer Related
2100
Computers and Hardware
2110
Mainframes & Scientific Computers
2111 Mainframes
2112
Supercomputers and Scientific Computers
2119
Other Mainframes and Scientific Computers
2120
Mini & Personal/Desktop Computers
2121
Fail Safe Computers
2122
Mini Computers
2123
Personal Computers (micro/personal)
2124
Other Mini and Personal Computers
2125
Portable Computers (notebooks/laptops)
2126
Handheld Computing (PDA)
2130
Optical computing
2140
Servers and Workstations
2141 Servers
2142
Web Servers
2143 Workstations
2144
Thin Client Hardware
2149
Other Servers and Workstations
2200
Computer Graphics and Digital Imaging
2210
CAD/CAM, CAE,EDA Systems
2220
Graphic Systems
2230
Scanning Hardware
2234
OCR (Optical Character Recognition)
2236
OBR (Optical Bar Recognition)
2238
MICR (Magnetic Ink Character Recognition)
2239
Other Scanning Related
2250
Graphics Printers/Plotters
2255
Graphics/Enhanced Video Cards
2260
Other Graphics Peripherals
2280
Other Multimedia NEC
2290
Digital Imaging Hardware and Equipment
2295
Digital Imaging Services
2299
Other Computer Graphics
2300
Integrated Turnkey Systems and Solutions
2311
Business and Office
2312 Consumer
2313 Retailing
2315 Transportation
2316
Finance/Insurance/Real Estate
2317 Agriculture
2318 Recreation/Entertainment
2319 Manufacturing/Industrial/Construction
2320 Medical/Health
2321
Computer related
2322
Communications Products/Services
2323 Education
2324 Reference
2325 Scientific
2399
Other Intergrated Systems and Solutions
2500 Peripherals
2510 Terminals
2511
Intelligent Terminals
2512
Portable Terminals
2513
Graphics Terminals
2519
Other Terminals
2520 Printers
2521
Laser Printers
2522
Color Printers
2523
Inkjet Printers
2524
Dot Matrix Printers
2529
Other Printers
2530
Data I/O Devices
2531
Mouse Input Devices
2532
TouchPad Input Devices
2533
Pen based computing
2539
Other Data I/O Devices
2540
Disk Related Memory Devices
2541
Floppy Disks & Drives
2542
Winchester Hard Disks and Drives
2543
Optical Disks & Drives,CD-ROM DVD
2546
Disk Drive Components
2549
Other Disk Related
2550
Tape Related Devices
2551
Magnetic Tapes
2552
Tape Heads & Drives
2553
Continuous Tape Backup Systems
2559
Other Tape Related Devices
2560 Other Memory Devices (excl. semiconductors)
2561
PC or PMCIA cards
2562
Memory Cards
2563
Sound Cards
2564
Communications Cards
2569
Other Peripheral Cards
2590
Other Peripherals (not yet classified)
2600
Computer Services
2630
Time Sharing Firms
2640
Computer Leasing & Rentals
2650
Computer Training Services
2655
Backup and Disaster Recover
2660
Data Processing,Analysis & Input Services
2665
Computer Repair Services
2670
Computerized Billing & Accounting Services
2675
Computer Security Services
2691 Data communications systems management
2699
Other Computer Services
2700
Computer Software
2710
Systems Software
2711
Database & File Management
2712
Operating Systems & Utilities
2713 Program Development Tools/CASE/Languages
2716
Graphics and Digital Imaging Software
2719
Other Systems Software
2720
Communications/Networking Software
2721
Security/Firewalls,Encryption software
2722
Email Software
2723 Groupware
2724
Multimedia software
2729 Other Communications/Networking
Software
THOMSON REUTERS
2730
Applications Software
2731
Business and Office Software
2732
Home Use Software
2733
Educational Software
2734
Manufacturing/Industrial Software
2735
Medical/Health Software
2736
Banks/Financial Institutions Software
2737
Retailing Software
2738
Integrated Software
2739
ERP/Inventory Software
2740
Recreational/Game Software
2741
Scientific Software
2743
Agricultural Software
2744
Transportation Software
2748
Other Industry specific Software
2749
Other Applications Software
2750
Artificial Intelligence Related Software
2751
Expert Systems
2752
Natural Language
2753
Computer-Aided Instruction
2754
Artificial Intel. Programming Aids
2755
Other Artificial Intelligence Related
2760
Software Services
2761 Programming Services/Systems Engineering
2762
Software Consulting Services
2763
Software Distribution/Clearinghouse
2765 Internet/Web Design and programming
services
2766
Internet Graphics Services
2768
Other Internet Software Services
2769
Other Software Services
2780
Internet Systems Software
2781 Site Development and Administration
Software
2782
Internet Search Software and Engines
2783
WebServer Software
2784
Web Languages (Java/ActiveX/HTML/XML)
2785
Web Authoring/Development Software
2798
Other Internet Systems Software
2799
Other Software Related
2800
Internet and Online Related
2810 E-Commerce--Selling products Online or
Internet
2811
Business and Office Products
2812
Consumer Products
2813
Retailing Products
2814
Publishing Products
2815
Transportation Products
2816
Finance/Insurance/Real Estate products
2817
Agricultural Products
2818 Recreation/Entertainment/Music/Movies
2820 Medical/Health
2821
Computer Related
2822
Communications Products
2823
Education Products
2824
Reference Products
2825
Scientific Products
2826
Legal Products
2829
Other Ecommerce Selling Products
2830 Ecommerce--Selling Services Online/
Internet
2831
Business and Office Services
2832
Consumer Services
2833
Retailing Services
2834
Publishing Services
THOMSON REUTERS
2835
Transportation Services
2836
Finance/Insurance/Real Estate Services
2837
Agricultural Services
2840
Medical/Health Services
2841
Computer Related services
2842
Communications Products/Services
2843
Education Services
2844 Reference
2845 Scientific
2846 Legal
2848
Recreation/Entertainment Services
2849
Other Ecommerce Selling Services
2850
Web Aggregration/Portal Sites/Exchanges
2851
Business and Office Info/content
2852
Consumer Info/Content
2853
Retailing Info/Content
2854
Publishing Info/Content
2855
Transportation Info/Content
2856 Finance/Real Estate/Insurance Info/
Content
2857
Agriculture Info/Content
2859
Manufac/Industrial/Constr. Info/Content
2860
Medical/Health Info/Content
2861
Computer Related Info/Content
2862
Communications Info/Content
2863
Education Info/Content
2864
Reference Info/Content
2865
Scientific Info/Content
2866
Legal Info/Content
2869
Other Aggregation/Portal/Exchange Sites
2870
Internet Services
2871
Internet Marketing Services
2873
Data Warehousing Services
2879
Other Internet and Online Services NEC
2900
Other Computer Related
2910
Voice Synthesis
2911
Voice Recognition
2990
Other Computer Related (not yet classified)
3000
Other Electronics Related
3100
Electronic Components
3110 Semiconductors
3111
Customized Semiconductors
3112
Standard Semiconductors
3114
Flash Memory
3115 Optoelectronics semiconductors (incl
laser diodes)
3119
Other Semiconductors
3120 Microprocessors
3130
Controllers and Sensors
3132 Controllers
3135 Sensors
3139
Other Controllers/Sensors
3140
Circuit Boards
3160
Display Panels
3170 Other Electronics Related (including
keyboards)
3200 Batteries
3300
Power Supplies
3310
Uninterruptible Power Supply (UPS)
3400
Electronics Related Equipment
3410 Semiconductor Fabrication Equip. &
Wafer Products
3420
Component Testing Equipment
3499
Other Electronics Related Equipment
3500
Laser Related
3510 Laser Components (incl. beamsplitters,
excimers)
3599
Other Laser Related
3600
Fiber Optics
3610
Fiber Optic Cables
3620
Fiber Optic Couplers and Connectors
3630 Fiber Optic Communication Systems (see
1510)
3699
Other Fiber Optics
3700
Analytical & Scientific Instrumentation
3710 Chromatographs & Related Laboratory
Equipment
3720
Other Measuring Devices
3799 Other Analytical & Scientific Instrumentation
3800
Other Electronics Related
3810 Military Electronics (excluding communications)
3820 Copiers
3830 Calculators
3835 Security/Alarm/Sensors
3899 Other Electronics Related (incl. alarm
systems)
3900 Optoelectronics
3910
Photo diodes
3920
Optoelectronics fabrication equipment
3930
Lenses with Optoelectronics applications
3940 Advanced photographic processes (incl
lithographs)
3989
Other Optoelectrinics Related
3990
Other Electronc Semiconductor
4000
Biotechnology and Pharmacology
4100
Human Biotechnology
4110
Medical Diagnostic Biotechnology Products
4111
In Vitro Monoclonal Antibody Diagnostics
4112 In Vivo Monoclonal Antibody Diagnostics/
Imaging
4113
DNA/RNA Probes
4119
Other Medical Diagnostic Biotechnology
4120
Therapeutic Biotechnology Products
4121
Therapeutic Monoclonal Antibodies
4122 Immune Response Effectors
(interferons,vaccines)
4123 Other Therapeutic Proteins (incl. hormones & TPA)
4129
Other Therapeutic Biotechnology
4130
Genetic Engineering
4200
Agricultural/Animal Biotechnology
4210
Genetically Engineered Plants
4220 Genetic. Eng. Microorganisms to raise
plant yield
4230
Other Plant Related Biotechnology
4240 Biotech Related Animal Health & Nutrition Products
4250
Genetically Engineered Animals
4290
Other Animal Related Biotechnology
4300
Industrial Biotechnology
4310
Biochemical Products
4311 Biotech Related Fine Chemicals (NOT
Pharmaceuts.)
4312
Biotech Related Commodity Chemicals
4319
Other Biochemical Products
4320 Biotech Processes for Food Industrial Applications
NVCA
4321 Biotech Related Food Enzymes and

Cultures
4322
Biotech Related Food Diagnostics
4329 Other Biotech Process for Food/Industrial
Products
4330 Biotech Processes for Pollution/Toxic
Waste Contrl
4340 Biotech Processes for Enhanced Oil
Recovery/Mining
4390
Other Industrial Biotechnology
4400 Biosensors
4410 Biosensors for Medical Diagnostic Applications
4420
Biosensors for Industrial Applications
4490
Other Biosensors
4500 Biotech Related Research & Production
Equipment
4510 Biotech Related Analytical Instruments &
Apparatus
4520
Biotech Related Production Equipment
4525
Biotech laser and optronic applications
4599 Other Biotech Research & Production
Equipment
4600
Biotech Related Research & Other Services
4610
Pure & Contract Biotechnology Research
4699
Other Biotechnology Services
4900
Other Biotechnology Related
5000
Medical/Health Related
5100
Medical Diagnostics
5110
Diagnostic Services
5120
Medical Imaging
5121 X-Rays
5122
CAT Scanning
5123
Ultra Sound Imaging
5124
Nuclear Imaging
5125
Other Medical Imaging
5130
Diagnostic Test Products & Equipment
5140
Other Medical Diagnostics
5200
Medical Therapeutics
5210
Therapeutic Services
5220
Surgical Instrumentation & Equipment
5221 Surgical lasers (including laser delivery
fibers)
5230
Pacemakers & Artificial Organs
5240
Drug Delivery & Other Equipment
5299
Other Therapeutic (including defibrillators)
5300
Medical Health Related Products
5310
Disposable Medical Products
5340
Handicap Aids
5350
Medical Monitoring Equipment
5380 Health related optics (including glasses,
lenses)
5399
Other Medical/Health (NEC)
5400
Medical Health Services
5410
Hospitals/Clinics/Primary Care
5412
Long Term Care/Home Care/Elder Care
5414
Dependent Care (child care/assisted living
5420
Managed care (including PPO/PPM)
5429
Other Healthcare Facilities
5430
Emergency Services/Ambulance
5440
Hospital & Other Institutional Management
5499
Other Medical/Health Services
5500 Pharmaceuticals
5510
Pharmaceutical Research
5520
Pharmaceutical Production
NVCA
5530
Pharmaceutical Services
5540
Pharmaceutical Equipment
5550 Pharmaceuticals/Fine Chemicals (nonbiotech)
5599
Other Pharmaceutical NEC
6000
Energy Related
6100
Oil & Gas Exploration and Production
6200
Oil & Gas Exploration Services
6300
Oil & Gas Drilling & Support Services
6400 Oil & Gas Drilling,Exploration & Extraction Equip.
6410
Oil & Gas Drilling & Extraction Equipment
6420
Oil & Gas Drilling Instrumentation
6430 Oil & Gas Exploration Equip. Instrumentation
6499
Other Oil & Gas (NEC)
6500
Alternative Energy
6510
Solar Energy
6511
Photovoltaic Solar
6512
Other Solar
6520
Wind Energy
6530
Geothermal Energy
6540
Energy Co-Generation
6599 Other Alternative Energy (incl. nuclear
energy)
6600
Enhanced Oil Recovery/Heavy Oil/Shale
6700
Coal Related
6710
Coal Mining
6720
Coal Related Equipment
6799
Other Coal Related
6800
Energy Conservation Related
6900
Other Energy Related
7000
Consumer Related
7100
Entertainment and Leisure
7110 Movies,Movie Products & Theater Operations
7120
Amusement & Recreational Facilities
7125
Casino and Gambling
7130
Toys & Electronic Games
7140 Sporting Goods,Hobby Equipment &
Athletic Clothes
7150
Sports Facilities (Gyms and Clubs)
7155 Sports
7160 TVs,Radio,Stereo Equipment & Consumer
Electronics
7170
Music,Records,Production and Instruments
7199 Other Leisure/Recreational Products and
Services
7200
Retailing Related
7210
Drug Stores
7220
Clothing and Shoe Stores
7230
Discount Stores
7240
Computer Stores
7245 Retail Publishing (books,magazines,
newspapers)
7246
Office Supply Stores
7247 Music/Electronics
7248
Specialty Department and retail stores
7250 Franchises(NEC)
7299
Other Retailing Related
7300
Food and Beverages
7310
Wine & Liquors
7320
Health Food
7330
Soft Drinks & Bottling Plants
7340
Food Supplements/Vitamins
7350
General Food Products
7399
Other Food and Beverages
7400
Consumer Products
7410 Clothing,Shoes & Accessories (incl. jewelry)
7420
Health & Beauty Aids
7430
Home Furnishing & Housewares
7431 Housewares
7432
Furnishings & Furniture
7433
Garden and Horticultural Products
7434
Other Home Furnishings (NEC)
7450
Mobile Homes
7499
Other Consumer Products
7500
Consumer Services
7510
Fast Food Restaurants
7520
Other Restaurants
7530
Hotels and Resorts
7540
Auto Repair Shops
7550 Education & Educational Products and
Materials
7560
Travel Agencies and Services
7599
Other Consumer Services
7999
Other Consumer Related (not yet classified)
8000
Industrial Products
8100
Chemicals & Materials
8110
Plastic Fabricators
8111
Homogeneous Injections/Extrusions
8112
Non-Homogeneous Injections/Extrusions
8113
Fiber-Reinforced (Plastic) Composites
8114
Other Fabricated Plastics
8115
Processes for Working with Plastics
8119
Other Plasti Fabricators
8120
Coatings & Adhesives Manufacturers
8121
Optical coatings
8129
Other Coatings & Adhesives
8130
Membranes & Membrane-Based Products
8140
Specialty/Performance Materials
8141
Semiconductor Materials (eg. silicon wafers)
8142 III/V Semiconductor Mater. (eg. gallium
arsenide)
8143
Specialty Metals (incl. coatings, alloys, clad)
8144 Ceramics
8145
Lubricants & Functional Fluids
8146
Other Specialty Materials
8147
Specialty materials for laser generation
8148
Superconducting materials
8149
Other Special Performance Materials
8150
Commodity Chemicals & Polymers
8151
Industrial Chemicals
8152
Polymer (Plastics) Materials
8160
Specialty/Performance Chemicals
8161
Electronic Chemicals
8162
Other Industrial Chemicals
8170
Agricultural Chemicals
8189
Other Commidity Chemicals and Polymers
8199 Other Chemicals & Materials (not yet
classified)
8200
Industrial Automation
8210
Energy Management
8220 Industrial Measurement & Sensing Equipment
8221 Laser related measuring & sensing equipment
8230
Process Control Equipment & Systems
THOMSON REUTERS
8240 Robotics
8250
Machine Vision Software & Systems
8260 Numeric & Computerized Control of
Machine Tools
8299
Other Industrial Automation (NEC)
8300
Industrial Equipment and Machinery
8310 Machine Tools, Other Metalworking
Equipment
8320
Hoists,Cranes & Conveyors
8330 Pumps,Ball Bearings,Compressors,Indus.
Hardware
8340
Mining Machinery
8350
Industrial Trucks and Tractors
8360
Other Industrial Process Machinery
8370 Power Transmission Equipment (generators & motors)
8399
Other Industrial Equipment & Machinery
8500
Environmental Related
8510 Air Filters & Air Purification & Monitoring
Equip.
8520
Chemical and Solid Material Recycling
8530 Water Treatment Equipment & Waste
Disposal Systems
8599
Other Environmental Related
8600
Other Industrial Products (not yet classified)
8700
Industrial Services
9000
Other Services and Manufacturing
9100 Transportation
9110
Airlines and Aviation Related
9120 Trucking
9125
Railway related
9130
Leasing of Railcars,Buses and Cars
9140
Mail and Package Shipment
THOMSON REUTERS
9150 Motor Vehicles,Transporation Equipment

& Parts
9160
Airfield and Other Transportation Services
9180
Advanced Aircraft/Aerospace
9199
Other Transportation
9200
Financial Services
9210
Insurance Related
9220
Real Estate
9230 Banking
9235
Non Bank Credit
9240 Securities & Commodities Brokers and
Services
9250
Investment Groups
9254
Venture Capital and Private Equity Investors
9255
Financial Transactions Services
9299
Financial Services,0ther
9300 Services
9310
Engineering Services
9320
Advertising and Public Relations
9330
Leasing (not elsewhere classified)
9340
Distributors,Importers and Wholesalers
9350
Consulting Services
9360
Media Related Services
9399
Other Services NEC
9400
Product Manufacturing
9410
Business Products and Supplies
9415
Office Automation Equipment
9420 Office Furniture & Other Professional
Furnishings
9430
Textiles (Synthetic & Natural)
9440
Hardware, Plumbing Supplies
9450 Publishing
9460
Packaging Products & Systems
9470
Printing & Binding
9499 Other Manufacturing (not elsewhere classified)

9500 Agriculture,Forestry,Fishing,Animal
Husbandry,etc.
9510
Agriculture related
9520
Forestry related
9530
Fishing related
9540
Animal husbandry
9599
Other Agriculture,Forestry,Fishing
9600
Mining and Minerals (non-energy related)
9700
Construction & Building Products
9710 Construction
9720
Manufacture of Building Products
9730 Manufacture of Pre-Fabricated Buildings
& Systems
9740
Distribution of Building Products & Systems
9750
Construction Services
9799 Other Construction & Building Products
Related
9800
Utilities and Related Firms
9810
Electric Companies
9820 Water,Sewage,Chem. & Solid Waste
Treatment Plants
9830
Gas Transmission & Distribution
9899
Other Utilities & Related Firms
9900
Other Products and Services
9910 Conglomerates
9912
Socially Responsible
9914
Environment Responsible
9915 Women-Owned
9918 Minority-Owned
9920
Holding Companies
9999
Other Products and Services
NVCA
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, Media 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
2811, 2824, 2831, 2844, 9300, 9310, 9320, 9330, 9340, 9350, 9360, 9399
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
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
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
NVCA
THOMSON REUTERS

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
5000, 5100, 5110, 5120, 5121, 5122, 5123, 5124, 5125, 5130, 5140, 5200, 5210, 5220, 5221, 5230, 5240, 5299, 5300, 5310, 5340, 5350, 5380, 5399
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
THOMSON REUTERS
NVCA
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, marketing, 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 capitalists 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 attained 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 industries.
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.
NVCA
THOMSON REUTERS
RECAP/TURNAROUND
Financing provided to a company at a time of operational or financial difficulty with the intention of improving the companys performance.
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.
THOMSON REUTERS
NVCA
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 Thomson 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 industrys 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 information available.
DATA SOURCES AND RESOURCES

MONEYTREE DATA
PricewaterhouseCoopers, Thomson Reuters, and the National Venture
Capital Association joined forces in December 2001 to produce what was
then known as the PricewaterhouseCoopers/Thomson Venture Economics/National Venture Capital Association MoneyTree Survey. Conducted on a quarterly basis, the designated PwC/NVCA MoneyTree Report
allows Thomson Reuters unparalleled access to primary sources of information from general partners.
SOURCES OF DATA
The online database of Thomson Reuters is ThomsonONE.com (VentureXpert), the foremost information provider for private equity professionals worldwide. The private equity portion of Thomson Reuters offers an incomparable range of products from directories to conferences,
journals, newsletters, research reports, and the ThomsonONE.com Private
Equity database. As of January 2014, the database included over 110,000
portfolio companies, over 18,000 private equity firms, over 31,000 private
equity funds, and nearly 250,000 financing rounds. By establishing working relationships with private equity and venture capital firms, institutional
investors, and industry associations such as the NVCA, PricewaterhouseCoopers and other such entities around the world, Thomson Reuters has
been able to gather, on a timely basis, complete and accurate information.
TIMELINESS OF DATA
Many of the tables and charts presented in this reportcan be produced
by using ThomsonONE.com. One of advantages of using ThomsonONE.
com is that the reader can customize a report to better fit the needs of
what they are seeking. In addition, because the online database is continuously updated, the information available is more up-to-date than what
can be presented in this report. Readers should note that timely industry
information on details concerning venture capital investment is available
from other sources such as PricewaterhouseCoopers at www.pwcmoneytree.com, the Industry Stats section of the NVCA website, www.nvca.
org, and the Private Equity section ofThomson Reuters Deals Intelligence
found at http://dmi.thomsonreuters.com/PrivateEquity.
NVCA
VERIFICATION AND UPDATING OF DATA

Collectively, PricewaterhouseCoopers, Thomson Reuters, and the
NVCA have the utmost commitment to provide an accurate historical
record of venture capital activity. On a daily basis, the database is constantly analyzed for consistency, crosschecked with other data sources,
and updated as new information comes in. On a quarterly basis, we have
worked with many venture firms to ensure that that their current and past
data is correct. Primarily for this reason, the private equity news releases
of Thomson Reuters will often restate statistics from prior news releases.
With the availability of the online data access, users are encouraged to
always use the most current numbers even regarding historical activity so
as to maintain accuracy and comparability.
REPORTING FUNCTIONALITY OF
THOMSONONE.COM
Users can access information in terms of profiles on private equity companies, funds, firms, executives, IPOs, and limited partners. In addition,
users can access the analytics portion of the database, which contains investment, valuation, IPO analytics, merger analytics, fund performance,
and fund raising information along with venture capital information such
as aggregate fund raising, investments, and IPOs broken out into state and
nation profiles.
COMPREHENSIVENESS OF
THOMSONONE.COM
Both the breadth and depth of ThomsonONE.com can perhaps best be
shown in that it, among other types of information, the user can find the
answers to the following questions:
Which venture firms actively co-invest with a firm I am considering
co-investing with?
Which venture firms are most active in funding online financial services companies in the Ohio Valley?
What does Yearbook Figure 3.15 look like for just biotech?
How much money was raised by each fund stage in 2010?
What was a particular venture-backed IPOs one year return at the
end of 2010?
As of December 2011, was the 10-year return to small buyout funds
larger than that of large buyout funds?
THOMSON REUTERS
Who are the most active acquirers of ecommerce security companies?

How much money was committed to mezzanine funds from 1997 to
2011?
How much money was invested in the venture capital industry from
1987 to 2011?
What is the performance at quarter end for private equity funds that
were formed from 1998 to 2011?
In 2011, how much money was invested at each development stage in
Research Triangle Pharmaceutical companies? In addition, there are
also advantages of using the database for a general partner as well.
Although this is not an inclusive list, utilizing the database by general
partners can be helpful to them for among the following reasons:
Plan your companies exits with data on both venture-backed IPOs
and mergers and acquisitions
Aid in recruiting talented executives from otherventure-backed companies
Quickly spot venture-backed companies in competition with your
own portfolio companies
Create industry analyses to benchmark both performance and portfolio investments
Find other venture capitalists likely to support follow-on rounds
Provide clarity to investment decisions by comparingthem to current
market conditions
THOMSON REUTERS
Compile valuation reports for comparable portfolio companies

Identify prospective investors and their investment histories
Benchmark valuations among recent transactions and obtain valuation
comparables
Analyze investment trends by industry

Utilize returns information to limited partners using appropriate
benchmarks
Tailor your pitch to investor focus size and limited partner type
ACCESSING THOMSONONE.COM AND OTHER

SERVICES
For more information on ThomsonONE.com, please visit http://thomsonreuters.com/private-equity-venture-capital/ or by phone at 1-877-3651455. For information on NVCA membership, which can include a free
trial and discounts on an annual subscription, please contact Hannah Veith
at the NVCA. You may contact her online through the link on the member benefits section of the NVCA website or at 703-524-2549. For information on services PricewaterhouseCoopers provides for venture capital
firms as well as emerging companies, please visit their website at www.
pwcmoneytree.com.
NVCA
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;
FASBs parent, the Financial Accounting Foundation, created a new Private Company Council (PCC) to advise them on private company accounting. 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

rules become accepted as U.S. GAAP?
For years, the United States has been developing generalized accounting
principles referred to as
Generally Accepted Accounting Principles (GAAP). The keeper/arbiter/
decider of GAAP is the Financial Accounting Standards Board (FASB).
The FASB develops and updates GAAP and the SEC has adopted these
accounting rules for public company reporting and other situations over
which the SEC has jurisdiction. In recent years, on a parallel track, a separate set of rules emerged from the International Accounting Standards
Board (IASB), which was Europe-centric. These rules became known
as the International Financial Reporting Standards (IFRS, pronounced
EYE-fers). IFRS has now been adopted by most developed and many
developing countries around the world, with the exception of the United
States.
Over recent years, a large number of multinational corporations complained that they had to endure keeping two sets of books and this prompted the concept of convergence. In early September 2008, the
SEC and the FASB announced steps to pave the way for United States
public companies to convert from
U.S. GAAP to IFRS. The SEC roadmap provided for a three-year runup to an SEC go-no go decision in 2011, but the decision was deferred.
At about the same time, the FASB and the IASB met to review and reorient their convergence plan to be consistent with the SECs proposed
schedule. The 2008-2009 world financial crisis deferred and deprioritized
much of the work in this area.
The SECs 2012 staff report on adopting IFRS did not make a recommendation, but raised questions about consistent application, transparency, reliability, relevance, comparability, and ongoing costs in addition
to any conversion costs, which might be significant. More relevant to the
NVCA
United States venture capital industry are matters specifically affecting

fund reporting, the financial statements provided by GPs to LPs under the
eventual rules. Because of the recent change in IFRS consolidation rules,
United States venture capital firms would conceptually not be impacted
by a change to IFRS.
How United States GAAP and International IFRS

Compare Never Generalize
Even viewed from 30,000 feet, it is difficult to generalize on how the two
systems compare. First, while the IASB produces plain vanilla IFRS standards, there is no one flavor of IFRS in use. Much like the original UNIX
kernel, each country/jurisdiction has been able to create its own version
of IFRS. But unlike UNIX, sometimes the differences among the localized IFRS versions are large. So apples-to apples comparison of IFRScompliant financials from different jurisdictions can be difficult. Second,
it is true that IRFS itself is a very thin document compared to GAAP,
which has grown to roughly a two-foot stack of written rules. However, to
implement IFRS, you need the implementation guide that combines with
the original document to create its own two-foot stack. Again, much of the
surface comparisons are not useful. Until now, United States venture capital firms have been using U.S. GAAP accounting standards exclusively.
While seemingly distant from the United States venture capital industry,
it is important that all business constituencies weigh in on which system
(current U.S. GAAP vs. International vs. neither) is the best system overall for the United States business community going forward.
GP-to LP Reporting Can Meaningful

Statements Continue?
A key priority for the United States venture capital industry is being
able to continue producing quarterly financial statements using investment company (IC) accounting. Virtually all LP agreements (or accom-
THOMSON REUTERS
panying documents) require GPs to provide GAAP-compliant financial

reports to LPs. Annual audits include testing to ensure GAAP compliance.
Under GAAP, the United States venture capital industry now provides
Fair Value portfolio reports under the special rules of investment company reporting. In 2012, IFRS was modified to effectively create a financial
reporting framework substantially similar to U.S. GAAP.
GPs should not lose sight of the fact their LPs who prepare financial statements using either U.S. GAAP
or IFRS, in almost all cases, must report their LP fund positions on a
Fair Value basis. LPs are increasingly awakening to the specific conditions outlined in a change to U.S. GAAP from 2009, which codified an
LPs ability to use Net Asset Value (NAV) as an LPs estimate of the Fair
Value of their fund interest. These conditions include that the LP must
satisfy themselves that the GP reported NAV is based on the Fair Value
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
ASC Topic 946. If these three conditions are not met, or if the LP chooses
not to use NAV, then Fair Value would be determined using other techniques. The point here for GPs is that LPs need robustly determined Fair
Value on a timely basis, generally at least quarterly.
How the Same Words have Different Meanings

The 2012 change in IFRS consolidation rules for Investment Entities
and the 2011 adoption of a common definition of Fair Value for U.S.
GAAP and IFRS should have created a framework where financial reporting to investors would be identical for funds using IFRS and funds using
U.S. GAAP. If it were only that easy!
While we enter 2013 with a consistent framework under U.S. GAAP
and IFRS where venture capital and private equity funds report all investments at Fair Value; and while we now have an identical definition of Fair
Value (the amount a market participant would pay in an orderly transaction), schisms are developing.
Because of nuances in the way IFRS is drafted, IFRS auditors are ques-
THOMSON REUTERS
tioning whether Fair Value should be determined based on the investment or on a single share basis. While the reasons for such a question
are beyond the scope of this document, the question and potential results
could mean that IFRS and U.S. GAAP, though identical in principle,
would result in different Fair Value estimates (as an aside, this is an example of one situation that concerns the SEC in moving the United States
towards IFRS).
At the same time, many auditors of U.S. GAAP, as a reaction to their
regulators the PCAOB, and because of pressure from the SEC, which now
regulates private equity funds, are questioning whether or not the sale or
exit of an enterprise can be assumed when determining the Fair Value of
minority positions. Some auditors have gone so far as to indicate that they
may require the use of option pricing models for determining the Fair
Value of all minority positions.
Going Forward
With questions regarding whether or not IFRS should be interpreted as
requiring all Fair Value estimates to be on a single share basis, and with
U.S. auditors appearing to feel some pressure to use mathematical models
to document their audit conclusions, both GPs and LPs in the venture
capital and private equity industry could be faced with financial reporting that is either very costly and/or is not representative of how deals are
done in the industry. In December 2012, the International Private Equity
& Venture Capital Valuation (IPEV) Board updated its Valuation Guidelines. The updated valuation guidelines address both the unit of account
and mathematical model questions. In addition, IPEV released Investor
Reporting Guidelines in October 2012. While each fund manager must
decide both what information to report and how to estimate Fair Value, the
IPEV Valuation Guidelines and the IPEV Investor Reporting Guidelines
provide balanced, and industry created, assistance in dealing with reporting and valuation questions.
NVCA and Thomson Reuters acknowledge and appreciate the assistance of David Larsen of Duff and Phelps in updating and refocusing the
material in this Appendix.
NVCA
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 LPs 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

presentation formats, calculations, and disclosure. Examples of such
Guidelines are the Private Equity Provisions of the Global Investment
Performance Standards (GIPS), developed by the CFA Institute and the
IPEV Investor Reporting Guidelines. While many of the specifications
and terminology line up with current practice in the United States, the
NVCA has not endorsed or otherwise commented on these Guidelines.
Neither NVCA nor Thomson Reuters has determined how widespread the
adoption of those guidelines is or will likely be. These documents and accompanying guidance can be currently found at http://www.cfainstitute.
org/centre/codes/gips/ and www.privateequityvaluation.com.
require the venture firm to provide quarterly and annual financial statements using Generally Accepted Accounting Principles (GAAP). GAAP
requires Fair Value measurement for portfolio positions. Therefore, most
GPs must issue financial statements using Fair Value.
The second important category of guidelines is focused on valuation.
The Evolution of Reporting and Valuation Guidelines
Why Valuation Guidelines Matter

What ultimately matters to investors and private equity practitioners is the
cash that has been distributed to the investors during the life of the fund
compared with the original money put in. However, the specified life of a
typical venture fund is at least 10 years and often longer in the life sciences arena. During that period, the venture capital fund reports progress to
the limited partners. In many cases, this means quarterly portfolio updates
and a complete annual audited financial statement. For a typical venture
fund, very little money is paid out in the first four or five years. Also, while
every portfolio company receives funding with high expectations, it can
take several years to determine if a particular company is a likely winner.
Therefore, understanding progress in the portfolio requires some estimate
of the success of the investee companies by the venture capital or private
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
are required to report the Fair Value of their fund positions on a quarterly
or annual basis. This is where specific valuation rules and processes become important. The agreed valuation procedures for individual portfolio
companies become the basis for progress assessment as the fund matures
and ultimately distributes cash to the investors.
Thus, while portfolio company valuations are more of an art than a science, especially for pre-revenue or even pre-EBITDA companies, most
limited partner agreements (LPAs) establishing a venture capital fund
NVCA
Most important, if industry-created valuation guidelines are not used,

those outside the industry, such as auditors or regulators could impose
their view on the industry. A non-industry view could adversely impact
the LPs desire and ability to invest if interim values are not representative
of the way the industry sees value, and costs for determining valuation
could increase.
To understand the pressure on valuation and reporting in todays environment, a historical background review is instructive.
1940 United States Investment Company legislation (the 40 Act)
required investment companies to report the Fair Value of investments.
While the application of accounting standards has evolved over the past
70+ years, the underlying basis of reporting has always been Fair Value.
1989-90 A group of investors, private equity fund managers, and
fund-of-fund managers formed a group to develop a set of portfolio
company valuation guidelines for financial reporting. Contrary to a very
persistent rumor, the NVCA did not endorse, adopt, bless, publish, or
otherwise opine on the guidelines. Using the principle of conservatism,
these non-endorsed guidelines used cost or the value of the last round of
financing to approximate Fair Value.
Decade of the 1990s Two noteworthy developments occurred in the
1990s. Despite no endorsement by the NVCA, these guidelines became
accepted practice by much of the United States industry, especially in the
venture capital side of private equity. These guidelines were referred to
by many as being issued by the NVCA but in fact they were not. The second development is that international venture associations created localized guidelines based heavily on these guidelines. These were created in
Europe and other international regions. In fact, by 2005, there had been
multiple iterations of the European and British guidelines, again generally focused on cost or the value of the last round of financing.
THOMSON REUTERS
December 2003/September 2004 The Private Equity Industry Guidelines Group (PEIGG), a self-appointed group of private equity practitioners, fund managers, LPs and others, issued U.S. Private Equity Valuation Guidelines. The Guidelines were issued after extensive input and
review soliciting feedback and input from a number of industry groups
that included NVCA.
2 005 In part as a reaction to the PEIGG Guidelines, three Europebased venture capital associations (AFIC, BVCA, EVCA) created the
International Private Equity and Venture Capital (IPEV) Valuation
Board.
April 2006 IPEV released its Valuation Guidelines.
September 2006 Financial Accounting Standards Board (FASB)
issued its long-awaited and long anticipated Fair Value measurement
standard as FAS 157. Only a few of its 145 pages relate directly to typical venture capital and private equity funds. Because the FASB maintains that this is a clarification and further definition of Fair Value that
was already required for portfolio accounting, some auditors began requiring selective compliance in advance of the 2008 effective date.
March 2007 PEIGG issued a revised portfolio company valuation
guidelines document to reflect the Fair Value Measurement standard
(FAS 157).
September 2007 NVCA board reaffirmed its prior position on the
PEIGG guidelines to refer to the most recent version.
March 2008 the IPEV Board reconstituted and re-launched itself and
adds five practitioners from the United States. The initial focus of the
group was on convergence of U.S. PEIGG and IPEV valuation guidelines. Details at www.privateequityvaluation.com.
July 2009 Effective July 1, authoritative GAAP became contained in
a single codification and the prior nomenclature went away. Existing
U.S. GAAP was recast into 90 topics, which include all related FASB
pronouncements, AICPA guidance and EITFs under single Topics.
Familiar standards would no longer exist. For example, FAS 157 became Topic 820 Fair Value Measurements and Disclosure. Investment
Company accounting became ASC Topic 946.
February 25, 2014 The Financial Accounting Foundation (FASBs

parent organization) issues its findings of a Post Implementation Review of the fair value measurement standard (Topic 820) which is better
known by its original nomenclature: FAS 157. FAFs overall finding was
that overall the FASB got the standard basically correct, a point with
which NVCA does not disagree. However, the findings acknowledged
concerns raised by NVCA, LPs, and others while simultaneously declaring no unintended consequences.
NVCA Position on Portfolio Company Valuation

Guidelines
While publicly supportive of prior peer and eco-system generated valuation guidance (for example, PEIGG), NVCAs endorsement of IPEV valuation guidelines in May 2013 is the first such action it has taken.
NVCA Member Alert Fair Value Considerations for

Venture CapitalistsDecember 2008
In 2008, as a response to the economic crisis at the time, the NVCA issued
a membership alert. Much of that alert remains relevant today. The following alert was sent to the NVCA membership to highlight certain issues
and considerations to be explored in the application of FAS 157, the Fair
Value measurement standard. The NVCA thanks David Larsen of Duff
and Phelps and several members of the NVCA CFO Task Force for their
role in drafting this document:
We are operating in a severely distressed investment environment that
has deteriorated rapidly in the past few months. What does this mean for
venture capital investors as they attempt to value privately-held investments at December 31, 2008? The short answer is: despite the current
very challenging economic environment, fund managers must continue to
exercise their sound judgment in estimating the Fair Value of each portfolio company after considering the relevant facts, including current market
conditions. The valuation process does not change, but much more judgment is required when we are in a period of economic discontinuity. Virtually all LP agreements require GPs to use U.S. GAAP for financial reporting. U.S. GAAP requires Fair Value reporting for virtually all VC firms
because they are investment companies. U.S. GAAP continues to define
Fair Value as: the price that would be received to sell an assetin an
orderly transaction between market participants at the measurement date.
December 2012 IPEV updated its Valuation Guidelines to harmonize

with ASC Topic 820 and IFRS 13.
Fund managers need to establish Fair Values even though they may not
currently need to sell, or cannot sell, their private investments in this market. GPs must use their judgment in estimating the current Fair Values
of their investments, even though exit markets may have few buyers,
IPO markets appear closed, and there are few, if any, relevant comparable transactions. Such judgment should take into account all relevant
information, including a financing rounds specific terms and conditions.
There are no easy outs, rules of thumb or safe harbors for establishing
Fair Value. As always, best considerations for Fair Value determination
include the following:
May 28, 2013 In an unprecedented action, the NVCA Board formally endorsed the IPEV valuation guidelines issued in December 2012.
NVCA was joined in doing this by the Private Equity and Growth Capital Council (PEGCC).
T
he Fair Value of an investment portfolio is the sum of the Fair Value
determined for each portfolio company using a bottoms up approach.
Applying a top-down overall percentage adjustment to the aggregate
portfolios value is not compliant with U.S. GAAP.
May 2011 FASB amended ASC Topic 820 and the IASB issues IFRS
13, resulting in nearly identical Fair Value guidance.
October 2012 IPEV released Investor Reporting Guidelines
THOMSON REUTERS
NVCA
V
aluations should reflect specific factors in a buy/sell context. For example, a GP could ask: Given my portfolio companys current cash
position, cash burn rate, performance compared to plan, probability of
meeting forecasts, the projected environment for its product or technology, etc., as a board member, what is the lowest price that I would sell
the companys stock today in an orderly sale with a willing buyer?
[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
measurement date to allow for marketing activities that are usual and
customary from SFAS 157, Paragraph 7].
T
he valuations set by the most recent financing round perhaps even
one in the third quarter of 2008 may be stale and inappropriate for
determining Fair Value, especially given current market conditions.
T
he Fair Value at December 31 in many cases will likely be different
from the value at September 30, given the deterioration of the macroeconomic environment.
E
ach valuation should reflect a companys degree of progress from the
prior reporting date to the current one.
T
o determine a portfolio companys Fair Value, GPs should apply their
judgment in a consistent manner and evaluate the same data they use for
monitoring a companys performance and progress. There is no magic
formula or weighting of factors.
In summary, determining Fair Value continues to require the exercise of
judgment based on objective evidence, such as calibrating the original
investment decision with the current performance of the company and
the current economic environment. The fact that the macro market is distressed probably adversely impacts the value of most companies. This
negative impact may be compounded by disappointing company performance or mitigated by tangible and sustainable company progress. If you
need more details about Fair Value, you might consider the IPEV Valuation Guidelines at www.privateequityvaluation.com.
a. LPs are revisiting their internal valuation policies.

b. LPs are asking more detailed valuation questions of the GP.
2. T
he IASB has created investment company accounting by requiring
venture capital and private equity funds to report all investments at Fair
Value rather than consolidating control positions.
3. A
uditors of IFRS have raised questions concerning the level of aggregation (unit of account) that should be used to value venture capital and
private equity investments.
a. Some auditors believe that unit of account is a single share of an
investee company.
b. Single share valuations would likely result in reporting understated
Fair Values.
c. Reporting understated Fair Values would exacerbate the J curve,
and could cause some LPs to reduce investments in the industry because of lower interim returns.
d. IFRS could deviate from U.S. GAAP even though the Fair Value
principles are identical.
4. A
uditors of U.S. GAAP have raised questions concerning how to estimate the Fair Value of non-control positions.
a. Is it appropriate to assume that the entire enterprise is being sold when
estimating Fair Value?
b. For non-control positions, is it appropriate or required to use option
pricing models and theory to estimate Fair Value?
The IASB is expected to address the Unit of Account question during
early 2013. The AICPA has formed a task force to provide guidance on
investments of venture capital and private equity funds. Part of the reason
the AICPA has formed a task force is because the IPEV guidelines have
not been as widely accepted or acknowledged in the U.S. as they have
been in Europe. Further, while some parties have voiced concern that the
AICPA task force conclusions may be relatively auditor-friendly, several
members of that task force are from NVCA members.
As noted above, new pressure is emerging that could impact how venture
capital and private equity managers estimate Fair Value. Key factors include:
All of this raises the question: could GPs reduce LP questions and increase
LP valuation comfort by stating that they comply with the IPEV Valuation
Guidelines? Will current efforts at non-authoritative accounting guidance
provide a framework with which the great compliance community will be
comfortable? Over the next year, greater clarity should emerge.
1. L
Ps are awakening to the fact that they need to obtain more information
from the GP about how the GP estimates Fair Value so the LP can use
NAV to estimate the Fair Value of their LP interest.
NVCA and Thomson Reuters acknowledge and appreciate the assistance

of David Larsen of Duff and Phelps in updating and refocusing the material in this Appendix
2014 Headwinds
NVCA
THOMSON REUTERS
THOMSON REUTERS
NVCA
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
This appendix highlights various aspects of private equity activity outside of the United States and provides valuable information for comparison to the United States private equity environment. However, this appendix is not directly comparable to domestic data found in this Yearbook
due to differences in definitions between the regions and variations in the
currencies of each region. Additionally, this appendix provides a brief
overview of non-US private equity; data herein is not as comprehensive
as the United States data presented elsewhere in this publication. Despite
this, the reader can use this appendix to analyze trends in private equity
outside of the United States. All data is provided by Thomson Reuters. As
mentioned previously, readers should note the differences in methodology and definitions of private equity between United States and other regions before analyzing the data. For example, private equity outside of the
United States provides equity capital for entities not publicly traded and
consists of buyouts and venture capital. The category of buyouts includes
management buyouts (management from inside the company investing
with private equity investors), leveraged buyouts (the target taking on a
high level of debt secured by assets), institutional buyouts (outside investors buying a business from existing shareholders), and management buyins (management from outside the company investing with private equity
investors). On the other hand, venture capital describes the process of financing companies at the seed, start-up, or expansion stages. The United
States places more emphasis on the early stages of development than do
other regions, based on historical analysis of investments by stage. Like in
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
venture capital and buyouts inside and outside of the United States, it is
perhaps most comparable to analyze aggregate private equity in the two
regions as opposed to any classifications contained within.
**Special Note: The methodology used to generate the data within this
appendix differs slightly from the methodology used in previous years,
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.
$19.9 billion or 15% of the total. Venture Capital funds represented 8%

($10.2 billion). Private Real Estate funds raised $13.5 billion or 10% of
the share. Fund of funds, Generalist, and Mezzanine funds raised $6 billion, $10 billion, and $3.1 billion, respectively. It should be noted that
these totals reflect not only the amount raised by independent funds, but
also include capital gains and the amount raised by captive funds.
INVESTMENTS
Overall, private equity investing outside of the United States reached
$46.6 billion. Buyout stage financing led investment activity, accounting
for 43% of the total dollars. The Venture Capital investments followed
with 32% of the total. By number of deals, Venture Capital investments
led with 56% and the Buyouts investments followed with 37% of the total
deal activity outside of the United States. Canada received the biggest
share of private equity outside the United States in 2013 with $9 billion
worth of investments or 19% of the total value. The United Kingdom followed with $5.2 billion. China comes in at third with $4.9 billion or 10%
of the total. Private equity commitments experienced an increase while
investments saw a decrease outside of the United States in 2013. Commitments saw an increase of 16% from $113 billion in 2012. Private equity
investments dropped 21% from $59 billion of the previous year.
Figure J1
Private Equity Commitments Outside of the United States
in 2013
Fund World Location
# Funds
Amount Raised in Range (USD Mil)
Europe
170
77,544.94
Asia
116
30,943.34
Other Regions
88
22,354.11
Total
374
130,842.38
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 total. In the stage level, Buyout commitments outside the United States accounted for $68.3 billion or 52% of the total. The second largest part of the
commitments was Other Private Equity/Special Situations which raised
NVCA
THOMSON REUTERS
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
3,065.56
Fund of Funds
22
5,984.68
Other Private Equity/

Special Situations
19
19,856.58
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
THOMSON REUTERS
# 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
NVCA

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NATIONAL VENTURE

NATIONAL VENTURE CAPITAL ASSOCIATION 2014

2014 National Venture Capital Association Yearbook | 1

2 | 2014 National Venture Capital Association Yearbook

NVCA BOARD OF DIRECTORS 2013-2014

2014 National Venture Capital Association Yearbook | 3

For the National Venture Capital Association

Copyright 2014 Thomson Reuters

4 | 2014 National Venture Capital Association Yearbook

National Venture Capital Association 2014 Yearbook

President and CEO

Global Head of Deals & Private Equity

Head of Deals and Private Equity Operations

Global Business Manager Private Equity

Senior Vice President of Federal Policy and Political Advocacy

Vice President of Federal Life Science Policy

Global Private Equity Operations Manager

Vice President of Federal Policy and Political Advocacy

Vice President of Administration

Manager of Administration and Meetings

Sales Manager Publications (Buyouts, VCJ, peHUB)

Senior Content Specialist

Senior Art Director

2014 National Venture Capital Association Yearbook | 5

6 | 2014 National Venture Capital Association Yearbook

This page is intentionally left blank.

2014 National Venture Capital Association Yearbook | 7

WHAT IS VENTURE CAPITAL?

Risk Capital for Business

Venture Capital Backed Companies

Whole Foods Market, Inc.

The Home Depot

Venture Capital Backed Companies

More Than Money

Source: Global Insight; Updated fromThomsonOne 2/2013

Deal Flows Where The Buys Are

Many technologies currently under development by venture capital firms

Common Structure Unique Results

8 | 2014 National Venture Capital Association Yearbook

Economic Alignment of all Stakeholders

2014 National Venture Capital Association Yearbook | 9

No. of VC Firms in Existence

No. of VC Funds in Existence

No. of First Time VC Funds Raised

No. of VC Funds Raising Money This Year

VC Capital Raised This Year ($B)

VC Capital Under Management ($B)

Avg VC Capital Under Mgt per Firm ($M)

Avg VC Fund Size to Date ($M)

Avg VC Fund Size Raised This Year ($M)

Largest VC Fund Raised to Date ($M)

com (formerly VentureXpert) database of Thomson Reuters, which has

10 | 2014 National Venture Capital Association Yearbook

2014 National Venture Capital Association Yearbook | 11

12 | 2014 National Venture Capital Association Yearbook

2014 National Venture Capital Association Yearbook | 13

Biotechnology Business Products and

Media and Entertainment

14 | 2014 National Venture Capital Association Yearbook

Figure 8.0 2013 Investments By State

Figure 9.0 Venture-Backed IPOs

Med Offer Amt