Venture Capital Industry Overview

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Venture Capital Industry Overview
John Gabbert Managing Director, Private Markets,
Dow Jones/VentureOne
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Fundraising on Pace to Exceed 2005Commitments to
Venture Capital Funds (Annual)
Funds Raised (B)
Number of Funds
Source Dow Jones VentureOne
YTD06 1Q06 3Q06
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U.S. Investment Overall
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Investment Level On Track to Surpass 2005 Deal
Flow and Equity into Venture-Backed Companies
Amount Invested (B)
Number of Deals
Source Dow Jones VentureOne/Ernst Young
YTD06 1Q06 3Q06
5
Industry Deal Flow Consistent _at_ 60/25/10/5 Deal
Flow Allocation by Industry Sector (Annual)
Total Number of Deals
Source Dow Jones VentureOne/Ernst Young
YTD06 1Q06 3Q06
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Majority of New Cos in Four Segments Initial VC
Financing, 1Q06 - 3Q06
Source Dow Jones VentureOne/Ernst Young
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Early Stage Investment Slowly GrowingDeal Flow
Allocation by Round Class (Annual)
6
8
11
36
39
36
33
of Total VC Rounds
22
22
54
36
28
YTD06 1Q06 3Q06
Source Dow Jones VentureOne/Ernst Young
Seed and First Rounds Combined
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Round Sizes Hold Steady in 2006Median Amount
Invested by Round Class (Annual), VC Only
Median Amount Invested (M)
Source Dow Jones VentureOne/Ernst Young
YTD06 1Q06 3Q06
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Valuations Continue Upward TrendMedian Premoney
Valuation by Year
Median Premoney Valuation (M)
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Second Later Round Valuations ClimbMedian
Premoney Valuations by Round Class (All
Industries)
Median Premoney Valuation (M)
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U.S. Investment Regions
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43 of Deals in California CompaniesRegional
Deal Flow in the United States YTD 2006
Source Dow Jones VentureOne/Ernst Young
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Northwest Deal Flow Consistent Past 3 Yrs.Deal
Flow and Equity into Pacific Northwest
Venture-Backed Companies
Amount Invested (B)
Number of Deals
Source Dow Jones VentureOne/Ernst Young
YTD06 1Q06 3Q06
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Northwest Deals by Industry SegmentDeal Flow in
Pacific Northwest, 1Q06 - 3Q06
Source Dow Jones VentureOne/Ernst Young
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U.S. Liquidity
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Amount Paid in MAs on Track in
2006Transactions and Amount Paid in MAs
Amount Paid (B)
Number of Transactions
YTD06 1Q06 3Q06
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Gains from MA Exits Hold Steady in 06Median
Amount Paid in MAs vs. Median Amount Raised
Prior to MA
Median Amount Raised Prior to MA (M)
Median Amount Paid (M)
YTD06 1Q06 3Q06
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2006 IPO Activity On Track to Surpass 2005Deals
and Amount Raised Through IPOs
Amount Raised (B)
Venture-Backed IPOs
YTD06 1Q06 3Q06
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More Information
For a copy of this presentation, email
john.gabbert_at_dowjones.com