Horngren’s Financial & Managerial Accounting, 7th edition by Miller-Nobles so...
National Money Tree Full Year Q4 2009
1. PricewaterhouseCoopers
National Venture Capital Association
Report*
Data provided by Thomson Financial
Q4 2009/Full-year 2009
The Q4 2009 MoneyTree™ results are in! This special, expanded report provides detailed results of Q4 2009 as well as comprehensive findings for full-
years 2008 and 2009. More detailed results, including historical data back to 1995, can be found on the MoneyTree™ website at www.pwcmoneytree.com
*connectedthinking
2. Total equity investments into venture-backed companies
Q1 2002 to Q4 2009
Venture capitalists invested $17.7 billion in 2,795 deals in 2009, marking the Double digit declines in investments were spread across almost every industry
lowest level of dollar investment since 1997, according to the MoneyTree Report including Clean Technology, Life Sciences and Software. Investment dollars
by PricewaterhouseCoopers and the National Venture Capital Association also fell across every stage of development category, with the exception of a
(NVCA), based on data from Thomson Reuters. Venture investments in 2009 2 percent increase in Seed stage investments. First-time financings fell to the
represented a 37 percent decrease in dollars and a 30 percent decrease in deal lowest dollar and deal level since the MoneyTree began reporting venture capital
volume from 2008. It was the second consecutive year of annual deal and dollar investing in 1995. However, fourth quarter investing did show increases in the
declines. Investments in the fourth quarter of 2009 totaled $5.0 billion in 794 number of first-time and Early stage deals completed, potentially marking the
deals, a 2 percent decline in dollars but a 15 percent increase in deals from the beginning of an uptick in investment levels for 2010.
third quarter of 2009 when $5.1 billion went into 689 deals.
$ in millions
`02 `03 `04 `05 `06 `07 `08 `09
20
15
10
8,043
7,749
7,405 7,321 7,384
7,118 7,071
6,465 6,278 7,685
5,859 6,103 5,866 5,853
5,821
5,476
6,578 5,101
4,774 4,717 6,313 6,307
5 4,302 4,133 5,775 4,166
5,231 5,048
4,813 5,019
4,351
3,394
0
Quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Number of deals (845) (856) (696) (728) (708) (743) (724) (792) (731) (865) (699) (853) (737) (839) (802) (830) (881) (980) (920) (965) (875) (1,063) (1,011) (1,078) (1,016) (1,064) (995) (910) (632) (680) (689) (794)
Q4 2009/Full-year 2009 US Report
www.pwcmoneytree.com 2
3. Investments by industry
2008 to 2009
With the lone exception of Networking and Equipment, which experienced a 5 For the year, Software remained the largest single industry category in terms
percent decline in dollars in 2009, every industry category recorded double digit of deal volume and second largest behind Biotechnology in terms of dollars.
declines for the year. Despite 2009 investment declines of 19 percent in both Venture capitalists invested $3.1 billion into 619 Software deals, a 40 percent
dollars and deals, Biotechnology was the single largest investment sector for the decline in dollars and a 35 percent decline in deals from 2008 when $5.1 billion
year with $3.5 billion going into 406 deals. The Medical Device sector finished went into 948 deals.
the year as the third largest sector with $2.5 billion going into 309 deals—a 27
The Clean Technology sector experienced a significant decline in 2009 with
percent drop in dollars and 19 percent in deals. Overall, the Life Sciences sector
$1.9 billion invested in 185 deals. This investment level represents a 52 percent
(Biotech and Medical Devices combined) accounted for 34 percent of total
decrease in dollars and a 31 percent decline in deal volume from 2008 when $4.0
venture capital dollars invested in 2009 compared to 28 percent in 2008.
billion was invested in 268 deals. Clean Technology investing accounted for 11
percent of all venture capital dollars in 2009 compared to 14 percent in 2008.
# of ($ in millions) All results rounded
Deals 0 1,000 2,000 3,000 4,000 5,000 6,000
$3,543
Biotechnology 406
501 $4,351
$3,096
Software 619
948 $5,146
$2,502
Medical Devices and Equipment 309
383 $3,408
$2,305
Industrial/Energy 232
353 $4,582
$1,177
Media and Entertainment 251
407 $1,722
$1,077
IT Services 203
272 $1,819
$772
Semiconductors 118
196 $1,645
$716
Networking and Equipment 93
108 $756
$559
Telecommunications 140
249 $1,671
$365
Financial Services 52
73 $501
$362
Consumer Products and Services 81
105 $435
Computers and Peripherals 59
76
$342
$458
Electronics/Instrumentation 60
93
$301
$574
Business Products and Services 81
124
$253
$484 2009
Retailing/Distribution 31
39
$172
$237
2008
Healthcare Services 33
51
$102
$183
Other 27
7
$36
$20
($ in millions) All results rounded
0 10,000 20,000 30,000
2,795 17,680
Grand Total 3,985 27,992
Definitions of the Industry categories can be found on the MoneyTree™ Web site at www.pwcmoneytree.com
Q4 2009/Full-year 2009 US Report
www.pwcmoneytree.com 3
4. Investments by industry
Q4 2008, Q3 2009 and Q4 2009
Despite annual declines, 11 out of 17 industry sectors experienced fourth quarter Funding for Software companies increased in the fourth quarter of 2009 to that
increases in funding. For the fourth quarter, Biotechnology investing increased sector’s highest quarterly deal and dollar level for the year with $959 million
10 percent in dollars and fell 4 percent in the number of deals from the third going into 177 deals. Venture-backed funding going to Clean Technology deals
quarter with $1.0 billion going into 108 rounds. Biotechnology was the number in fourth quarter reached $385 million going into 47 deals, a 58 percent drop in
one sector for dollars invested in the fourth quarter and the only industry sector dollars and 13 percent drop in deals from the third quarter of 2009 when $926
receiving more than $1 billion for the quarter. Medical Devices saw a fourth million went into 54 deals. For the fourth quarter, Internet-specific investment
quarter increase of 13 percent in dollars and 18 percent in deals from the third increased 20 percent in deals and 14 percent in dollars with $908 million going
quarter 2009 with $719 million going into 87 deals. into 187 deals compared to $795 million going into 156 deals in the third quarter
of 2009.
# of ($ in millions) All results rounded
Deals 0 250 500 750 1,000 1,250 1,500
108 $1,013
Biotechnology 112
119
$919
$1,094
177 $959
Software 146
228
$788
$1,046
87 $719
Medical Devices and Equipment 74
83
$639
$632
69 $570
Industrial/Energy 57
86
$938
$934
83 $439
Media and Entertainment 63
81
$390
$419
51 $243
IT Services 52
56
$299
$336
38 $227
Semiconductors 27
40
$192
$265
20 $150
Networking and Equipment 25
27 $182
$259
17 $147
Financial Services 8
15 $78
$90
46 $128
Telecommunications 32
58
$123
$410
22 $105
Consumer Products and Services 25
29 $91
$139
14 $80
Computers and Peripherals 13
11 $48
$82
9 $75
Retailing/Distribution 5
5
$46
$34
18 $62 Q4 09
Electronics/Instrumentation 19
26
$141
$184
Q3 09
16 $62
Business Products and Services 21
27
$41
$51 Q4 08
8 $28
Healthcare Services 8
17
$10
$42
11 $11
Other 2
2
$5
$8
($ in millions) All results rounded
0 2,000 4,000 6,000 8,000
794 $5,019
Grand total 689
910
$5,101
$5,853
Definitions of the Industry categories can be found on the MoneyTree™ Web site at www.pwcmoneytree.com
Q4 2009/Full-year 2009 US Report
www.pwcmoneytree.com 4
5. Investments by stage of development
2008 to 2009
Full year 2009 investments into Seed Stage companies increased 2 percent in Expansion Stage companies saw the biggest decrease in funding in 2009 with
terms of dollars but fell 37 percent in terms of deals with $1.7 billion going into a 47 percent in dollars and 35 percent in deals when $5.5 billion went into 801
312 companies. Seed Stage companies attracted 9 percent of dollars and 11 deals. Despite the notable decrease, Expansion Stage companies attracted 31
percent of deals in 2009 compared to 6 percent of dollars and 12 percent of percent of dollars and 29 percent of deals in 2009 compared to 37 percent of
deals in 2008. dollars and 31 percent of deals in 2008.
Early Stage companies attracted 26 percent of dollars and 32 percent of deals In 2009, $5.9 billion was invested into 799 Later Stage deals, a decline of 44
in 2009 compared to 19 percent of dollars and 27 percent of deals in 2008. percent and 33 percent, respectively, for the year. Later Stage companies
However, Early Stage investments fell by 13 percent in terms of dollars and 17 attracted 33 percent of dollars and 29 percent of deals in 2009 compared to 38
percent in terms of deals in 2009 to $4.6 billion into 883 deals. percent of dollars and 30 percent of deals in 2008.
# of ($ in millions) All results rounded
Deals 0 2,500 5,000 7,500 10,000 12,500 15,000
799 $5,919
Later stage 1,199 $10,656
801 $5,484
Expansion 1,225 $10,393
883 $4,627 2009
Early stage 1,068 $5,320
2008
312 $1,650
Startup/seed 493 $1,624
($ in millions) All results rounded
0 5,000 10,000 15,000 20,000 25,000 30,000
2,795 $17,680
Grand total 3,985 $27,992
Definitions of the Stage of Development categories can be found on the MoneyTree™ Web site at www.pwcmoneytree.com
Q4 2009/Full-year 2009 US Report
www.pwcmoneytree.com 5
6. Investments by stage of development
Q4 2008, Q3 2009 and Q4 2009
For the fourth quarter, venture capitalists invested $390 million into 91 seed Expansion funding declined in terms of dollars in the fourth quarter, dropping
stage companies, an 18 percent decrease in dollars and a 2 percent increase in 6 percent from the prior quarter to $1.6 billion. The number of deals, however,
deals compared to the third quarter of the year. Conversely, Early Stage deals increased during the quarter, improving 19 percent to 234. Late stage fourth
experienced double digit increases with $1.6 billion going into 277 deals, a quarter funding reached $1.5 billion into 192 deals, which represents a 5 percent
32 percent increase in dollars and 26 percent increase in deals from the third increase in terms of deals but a 16 percent decline in terms of dollars from the
quarter 2009. third quarter of 2009.
# of ($ in millions) All results rounded
Deals 0 1,000 2,000 3,000 4,000
192 $1,478
Later stage 183
265
$1,760
$2,192
234 $1,583 Q4 09
Expansion 197
276
$1,681
$2,019
$1,569
Q3 09
277
Early stage 220 $1,185
$1,335
272 Q4 08
91 $390
Startup/seed 89
97 $306
$476
0 2,000 4,000 6,000 8,000
794 $5,019
Grand total 689
910
$5,101
$5,853
Definitions of the Stage of Development categories can be found on the MoneyTree™ Web site at www.pwcmoneytree.com
Q4 2009/Full-year 2009 US Report
www.pwcmoneytree.com 6
7. Investments by sequence of financing
2008 to 2009
First-time financings fell to the lowest annual levels since the MoneyTree began Forty-seven percent of first-time deals in 2009 were in the Early Stage of
reporting in 1995. Just $3.4 billion went into 725 deals in 2009, a 45 percent development followed by the Seed Stage of development at 26 percent,
decline in dollars and a 40 percent decline in deals. Expansion Stage companies at 17 percent and Later Stage companies
at 10 percent.
Industries receiving the most dollars in first-time financings in 2009 were
Biotechnology, Industrial/Energy and Software. Industries with the most first-time
deals in 2009 were Software, Media/Entertainment, and Biotechnology.
# of ($ in millions) All results rounded
Deals 0 2,000 4,000 6,000 8,000 10,000 12,000
725 $3,350
First 1,217 $6,052
953 $5,323
Second & Third 1,437 $9,562
711 $5,898 2009
Fourth, Fifth & Sixth 909 $8,629
2008
406 $3,109
Seventh & beyond 422 $3,749
0 5,000 10,000 15,000 20,000 25,000 30,000
2,795 $17,680
Grand total 3,985 $27,992
Q4 2009/Full-year 2009 US Report
www.pwcmoneytree.com 7
8. Investments by sequence of financing
Q4 2008, Q3 2009 and Q4 2009
The dollar level and number of companies receiving venture capital for the first Companies in the Software, Biotechnology and Industrial/Energy industries
time increased in the fourth quarter by 51 and 37 percent, respectively, over the attracted the highest level of first-time dollars in the fourth quarter. Together, the
third quarter to $1.1 billion into 230 companies. The fourth quarter was the first in three industry sectors captured nearly 52 percent of total first-time financing
2009 in which first-time financings exceeded one billion dollars. dollars with over $578 million in funding.
# of ($ in millions) All results rounded
Deals 0 500 1,000 1,500 2,000 2,500 3,000
230 $1,108
First 168
262
$732
$1,167
267 $1,454 Q4 09
Second & Third 230
328
$1,531
$1,813
$1,529
Q3 09
181
Fourth, fifth & Sixth 191 $1,803
210 $1,895 Q4 08
116 $928
Seventh & beyond 100
110 $978
$1,036
($ in millions) All results rounded
0 2,000 4,000 6,000 8,000
794 $5,019
Grand total 689
910
$5,101
$5,853
Q4 2009/Full-year 2009 US Report
www.pwcmoneytree.com 8
9. Investments by Region
2008 to 2009
The decrease in full year 2009 funding was felt in all of the MoneyTree regions. Silicon Valley was the top region for the year attracting 40 percent of total US
Of the top ten regions, LA/Orange County reported the greatest drop in 2009 venture capital dollars and 31 percent of total US deals. New England was a
investment with a 53 percent decrease in funding followed by Texas with a 50 distant second at 12 percent of total US funding and deals. Taken together, the
percent decrease. top three regions—Silicon Valley, New England, and New York Metro—accounted
for 59 percent of venture-backed funding and 52 percent of deals reported
in 2009.
# of ($ in millions) All results rounded
Deals 0 2,000 4,000 6,000 8,000 10,000 12,000
863 $6,984
Silicon Valley 1,232 $10,728
348 $2,113
New England 474 $3,307
247 $1,416
NY Metro 319 $1,975
137 $986
Southeast 213 $1,219
159 $954
LA/Orange County 243 $2,010
107 $903
San Diego 132 $1,192
219 $721
Midwest 285 $1,278
132 $705
Northwest 210 $1,076
111 $645
Texas 154 $1,288
117 $540
DC/Metroplex 206 $985
71 $529
Colorado 105 $837
89 $424
Philadelphia Metro 149 $754
58 $369
North Central 81 $618
68 $314
SouthWest 81 $466
2009
37 $24
South Central 42 $79 2008
13 $18
Upstate NY 32 $90
8 $17
Sacramento/N. Cal 19 $69
2 $7
AK/HI/PR 8 $21
($ in millions) All results rounded
0 5,000 10,000 15,000 20,000 25,000 30,000
$17,680
Grand total 2,795
3,985 $27,992
Unknown region totals not included
Definitions of the Region categories can be found on the MoneyTree™ Web site at www.pwcmoneytree.com
Q4 2009/Full-year 2009 US Report
www.pwcmoneytree.com 9
10. Investments by Region
Q4 2008, Q3 2009 and Q4 2009
In the fourth quarter, six of the top ten regions saw an increase in funding New England deals were up 9 percent compared to third quarter 2009, but down
compared to third quarter 2009. In direct contrast, six of the top ten regions seven percent from the fourth quarter 2008. Silicon Valley, New England and New
reported a decrease in funding compared to investment the same time last year. York Metro were the top regions for the quarter and accounted for 60 percent of
Investment in Silicon Valley was down 18 percent from the third quarter and five dollars and 53 percent of the deals reported in the fourth quarter 2009.
percent compared to the fourth quarter 2008.
# of ($ in millions) All results rounded
Deals 0 500 1,000 1,500 2,000 2,500 3,000
252 $1,923
Silicon Valley 217
250 $2,032
$2,349
101 $635
New England 93
109
$552
$798
66 $466
NY Metro 55
86
$259
$464
30 $300
San Diego 35
26 $197
$259
40 $288
LA/Orange County 39
52
$248
$311
30 $189
Texas 25
35
$205
$398
31 $189
Southeast 38
53
$330
$300
33 $185
Northwest 31
50 $124
$243
20 $172
Colorado 14
24
$51
$163
40 $163
DC/Metroplex 20
54
$158
$324
63 $160
Midwest 53
72
$186
$336
28 $142
Philadelphia Metro 25
37
$94
$126
21 $118
North Central 14
18
$104
$84
22 $67 Q4 09
SouthWest 14
14
$48
$137
4 $6 Q3 09
Upstate NY 1
6
$8
$6
Q4 08
1 $3
Sacramento/N. Ca 2
3
$2
$40
9 $2
South Central 12
17
$5
$12
- 0
AK/HI/PR -
4
0
$1
($ in millions) All results rounded
0 1,000 2,000 3,000 4,000 5,000 6,000
794 $5,019
Grand total 689
910
$5,101
$5,853
Unknown region totals not included
Definitions of the Region categories can be found on the MoneyTree™ Web site at www.pwcmoneytree.com
Q4 2009/Full-year 2009 US Report
www.pwcmoneytree.com 10
11. Investments by State
2008 to 2009
California was the top state to receive funding in 2009—picking up 50
percent of total US venture-backed investment for the second consecutive
year. Massachusetts was in second place, capturing 11 percent of total US
dollars. New York and Texas attracted 5 percent and 4 percent of total dollars,
respectively. Only nine of the 50 states recorded an increase in 2009 funding
when compared to full year 2008.
($ in millions) All results rounded
# of
Deals 0 3,000 6,000 9,000 12,000 15,000
1,137 $8,858
California 1,626 $13,999
303 $1,985
Massachusetts 422 $3,046
173 $855
New York 248 $1,392
111 $645
Texas 154 $1,288
108 $574
Washington 163 $875
74 $560
New Jersey 90 $719
71 $529
Colorado 105 $837
123 $403
Pennsylvania 190 $695 2009
44 $302
Georgia 80 $417
2008
30 $295
Florida 37 $236
($ in millions) All results rounded
0 5,000 10,000 15,000 20,000 25,000
2,174 $15,005
Top 10 total 3,115 $23,503
Q4 2009/Full-year 2009 US Report
www.pwcmoneytree.com 11
12. Most active venture investors
Full-Year 2009
The most active US venture firms closed 18 or more deals in 2009.
New Enterprise Associates topped the list of most active venture firms for the full
year, completing a total of 70 deals in 2009. Kleiner Perkins Caufield & Byers and
Polaris Venture Partners rounded out the top three firms. For the year, the top 10
firms invested in 8 percent of all total deals completed in 2009.
Firm Location # of deals Firm Location # of deals
New Enterprise Associates, Inc. Timonium, MD 70 Sigma Partners Menlo Park, CA 25
Kleiner Perkins Caufield & Byers Menlo Park, CA 63 Atlas Venture, Ltd. Waltham, MA 23
Polaris Venture Partners Waltham, MA 58 CMEA Capital San Francisco, CA 23
Draper Fisher Jurvetson Menlo Park, CA 54 DCM Menlo Park, CA 23
First Round Capital West Conshohocken, PA 51 Lightspeed Venture Partners Menlo Park, CA 23
Venrock Associates Palo Alto, CA 50 Morgenthaler Ventures Menlo Park, CA 23
U.S. Venture Partners Menlo Park, CA 41 Alta Partners San Francisco, CA 22
Sequoia Capital Menlo Park, CA 38 August Capital Management Menlo Park, CA 22
Canaan Partners Westport, CT 36 Charles River Ventures Waltham, MA 22
Highland Capital Partners LLC Lexington, MA 34 De Novo Ventures Palo Alto, CA 22
Innovation Works, Inc. Pittsburgh, PA 33 Greylock Partners Cambridge, MA 22
Versant Ventures Menlo Park, CA 33 Redpoint Ventures Menlo Park, CA 22
North Bridge Venture Partners San Mateo, CA 32 Intersouth Partners Durham, NC 21
Domain Associates LLC Princeton, NJ 30 Battery Ventures, L.P. Waltham, MA 20
Duff Ackerman & Goodrich LLC San Francisco, CA 30 Flybridge Capital Partners Boston, MA 20
Menlo Ventures Menlo Park, CA 30 Khosla Ventures Menlo Park, CA 20
Accel Partners Palo Alto, CA 29 Rho Capital Partners New York, NY 20
Foundation Capital Menlo Park, CA 29 Ben Franklin Technology Partners Southeastern PA Philadelphia, PA 19
InterWest Partners Menlo Park, CA 28 Ignition Partners Bellevue, WA 19
ARCH Venture Partners Chicago, IL 27 Maryland Technology Development Corporation Columbia, MD 19
Benchmark Capital Menlo Park, CA 27 Norwest Venture Partners Palo Alto, CA 19
Bessemer Venture Partners Larchmont, NY 27 Novak Biddle Venture Partners, L.P. Bethesda, MD 19
Intel Capital Santa Clara, CA 27 Sanderling Ventures San Mateo, CA 19
Mohr Davidow Ventures Menlo Park, CA 27 Thomas, McNerney & Partners LLC Minneapolis, MN 19
SV Life Sciences Advisers Boston, MA 27 JAFCO Ventures Palo Alto, CA 18
Advantage Capital Partners New Orleans, LA 26 OVP Venture Partners Kirkland, WA 18
Flagship Ventures Cambridge, MA 26 Oxford Bioscience Partners Boston, MA 18
Oak Investment Partners Westport, CT 26 VantagePoint Venture Partners San Bruno, CA 18
True Ventures Palo Alto, CA 26 Warburg Pincus LLC New York, NY 18
Q4 2009/Full-year 2009 US Report
www.pwcmoneytree.com 12
13. Most active venture investors
Q4 2009
The most active venture firms in the fourth quarter closed five or more deals
each. New Enterprise Associates topped the fourth quarter’s most active list
with a total off 27 deals, followed by Kleiner Perkins Caufield & Byers, which
participated in 23 investments during the quarter.
Firm Location # of deals Firm Location # of deals
New Enterprise Associates, Inc. Timonium, MD 27 Accel Partners Palo Alto, CA 6
Kleiner Perkins Caufield & Byers Menlo Park, CA 23 ARCH Venture Partners Chicago, IL 6
First Round Capital West Conshohocken, PA 20 Austin Ventures, L.P. Austin, TX 6
Draper Fisher Jurvetson Menlo Park, CA 18 Band of Angels Menlo Park, CA 6
Polaris Venture Partners Waltham, MA 18 Clarus Ventures Cambridge, MA 6
Venrock Associates Palo Alto, CA 18 Flagship Ventures Cambridge, MA 6
Versant Ventures Menlo Park, CA 14 Greylock Partners Cambridge, MA 6
Advantage Capital Partners New Orleans, LA 12 Highland Capital Partners LLC Lexington, MA 6
Flybridge Capital Partners Boston, MA 12 Ignition Partners Bellevue, WA 6
North Bridge Venture Partners San Mateo, CA 12 Morgenthaler Ventures Menlo Park, CA 6
Domain Associates LLC Princeton, NJ 11 Scale Venture Partners Foster City, CA 6
Bessemer Venture Partners Larchmont, NY 10 Shasta Ventures Management LLC Menlo Park, CA 6
Canaan Partners Westport, CT 10 Sigma Partners Menlo Park, CA 6
Sequoia Capital Menlo Park, CA 10 Thomas, McNerney & Partners LLC Minneapolis, MN 6
Benchmark Capital Menlo Park, CA 9 Adams Street Partners LLC Chicago, IL 5
Intel Capital Santa Clara, CA 9 August Capital Management Menlo Park, CA 5
Mohr Davidow Ventures Menlo Park, CA 9 Ben Franklin Technology Partners Southeastern PA Philadelphia, PA 5
True Ventures Palo Alto, CA 9 Charles River Ventures Waltham, MA 5
Atlas Venture, Ltd. Waltham, MA 8 DFJ Frontier Sherman Oaks, CA 5
Essex Woodlands Health Ventures New York, NY 8 General Catalyst Partners Cambridge, MA 5
Founders Fund, The San Francisco, CA 8 Horizon Ventures Los Altos, CA 5
Innovation Works, Inc. Pittsburgh, PA 8 In-Q-Tel, Inc. Arlington, VA 5
InterWest Partners Menlo Park, CA 8 Kansas Technology Enterprise Corporation Topeka, KS 5
Lightspeed Venture Partners Menlo Park, CA 8 Kepha Partners North Waltham, MA 5
SV Life Sciences Advisers Boston, MA 8 Maryland Technology Development Corporation Columbia, MD 5
Advanced Technology Ventures Waltham, MA 7 Menlo Ventures Menlo Park, CA 5
Alta Partners San Francisco, CA 7 Novak Biddle Venture Partners, L.P. Bethesda, MD 5
Battery Ventures, L.P. Waltham, MA 7 ONSET Ventures Menlo Park, CA 5
De Novo Ventures Palo Alto, CA 7 ProQuest Investments Princeton, NJ 5
Duff Ackerman & Goodrich LLC San Francisco, CA 7 Rand Capital Corporation Buffalo, NY 5
Foundation Capital Menlo Park, CA 7 Rho Capital Partners New York, NY 5
Foundry Group Boulder, CO 7 Sutter Hill Ventures Palo Alto, CA 5
Frazier Healthcare and Technology Ventures Seattle, WA 7 Tenaya Capital New York, NY 5
Norwest Venture Partners Palo Alto, CA 7 Three Arch Partners Portola Valley, CA 5
U.S. Venture Partners Menlo Park, CA 7 Valhalla Partners Vienna, VA 5
Village Ventures Williamstown, MA 7 VantagePoint Venture Partners San Bruno, CA 5
Q4 2009/Full-year 2009 US Report
www.pwcmoneytree.com 13
14. Venture-backed merger and acquisitions exits Venture-backed initial public offerings
2007 to 2009 2007 to 2009
The 2009 venture-backed exit market was well below historical norms. Mergers The tally of venture-backed IPOs completed in 2009 was more than double the
and Acquisitions (M&A) dipped to 262 with a total disclosed value of $12.3 number reported in 2008. However, activity was still slow with 13 exits valued
billion. In 2007, by comparison, there were 378 M&A transactions with a total at $1.9 billion. Contrastingly, in 2007 eighty-six companies floated newly issued
disclosed value of $29.3 billion. stock, raising more than $10 billion dollars.
`07 `08 `09 `07 `08 `09
$ in millions $ in millions
15,000 5,000
$4,147
$11,114
3,750
$9,646
10,000
$3,044
$7,765
2,500
$2,191
$4,640
5,000
$4,885 1,250
$3,080
$3,912 $2,570
$2,391
$721
$3,321 $649
$945
$657
$188 $572
$0 $0 $0 $0
$1,262 $283
0 0
Quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Number of M&A (88) (90) (107) (93) (108) (87) (89) (64) (63) (64) (68) (67) Number of IPOs (18) (25) (12) (31) (5) (0) (1) (0) (0) (5) (3) (5)
Source: Thomson Reuters & National Venture Capital Association.
Includes all companies with at least one U.S. VC investor that trade on U.S. exchanges, regardless of domicile.
Data is current as of January 04, 2010.
Q4 2009/Full-year 2009 US Report
www.pwcmoneytree.com 14
