Title: Venture Capital Industry Overview
1Venture Capital Industry Overview
John Gabbert Managing Director, Private Markets,
Dow Jones/VentureOne
2Fundraising on Pace to Exceed 2005Commitments to
Venture Capital Funds (Annual)
Funds Raised (B)
Number of Funds
Source Dow Jones VentureOne
YTD06 1Q06 3Q06
3U.S. Investment Overall
4Investment 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
5Industry 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
6Majority of New Cos in Four Segments Initial VC
Financing, 1Q06 - 3Q06
Source Dow Jones VentureOne/Ernst Young
7Early 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
8Round 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
9Valuations Continue Upward TrendMedian Premoney
Valuation by Year
Median Premoney Valuation (M)
10Second Later Round Valuations ClimbMedian
Premoney Valuations by Round Class (All
Industries)
Median Premoney Valuation (M)
11U.S. Investment Regions
1243 of Deals in California CompaniesRegional
Deal Flow in the United States YTD 2006
Source Dow Jones VentureOne/Ernst Young
13Northwest 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
14Northwest Deals by Industry SegmentDeal Flow in
Pacific Northwest, 1Q06 - 3Q06
Source Dow Jones VentureOne/Ernst Young
15U.S. Liquidity
16 Amount Paid in MAs on Track in
2006Transactions and Amount Paid in MAs
Amount Paid (B)
Number of Transactions
YTD06 1Q06 3Q06
17Gains 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
182006 IPO Activity On Track to Surpass 2005Deals
and Amount Raised Through IPOs
Amount Raised (B)
Venture-Backed IPOs
YTD06 1Q06 3Q06
19More Information
For a copy of this presentation, email
john.gabbert_at_dowjones.com