1H 2013 Venture Capital Exits Presentation Slide Deck

1H 2013 Venture Capital Exits Presentation Slide Deck Try the PitchBook Platform: Email: demo@pitchbook.com Phone: 1-877-267-5593 Consult the Research Team: Email: research@pitchbook.com Phone: 1-877-636-3496

The PitchBook Platform REQUEST A DEMO:demo@pitchbook.com 1-877-267-5593

VC investors have had a heightened focus on liquidity events in recent years. Capital exited increased for a fourth consecutive year in 2012, hitting $38.2 billion, which was the second highest total ever.

Capital Exited has Jumped 68% from 2010 to 2012 while Exit Volume has been Virtually UnchangedU.S. VC Annual Exit Flow

VC Exit Activity has Held Fairly Steady From Quarter-to-Quarter Over the Last Three YearsU.S. VC Quarterly Exit Activity

Unlike Their PE Counterparts, VC Investors Did Not Make a Push to Exit in 4Q Ahead of the Fiscal Cliff Percent Change in Exits from 3Q to 4Q, PE vs. VC

Capital Raised Prior to Exit has Been Steadily Declining Since 2007, Helping to Increase Exit MultiplesExit Size/Total Capital Raised Prior to Exit

Exits by Type Analysis

IPOs Have Regained Some of the Prominence Lost in the Financial CrisisVC-Backed Exits by Type

Corporate Acquisitions Continue to Represent More than 70% of VC-Backed ExitsPercent of Exits by Type

Strategic Acquirers Tend to Acquire Younger CompaniesMedian Hold Time by Exit Type

IPOs were the Source of More than Half of the Capital Exited from VC-Backed Companies in 2012Capital Exited ($B) by Type

IPOs Have Consistently Returned More Capital to Investors than Both Acquisitions and BuyoutsMedian Exit Size ($M) by Exit Type

More than 10% of Strategic Acquisitions in 2012 were for Companies that had Only Raised a Seed/Angel RoundLast Financing Round Prior to Exit (2012)

IPOs have Historically Required Significantly More Financing Prior to Liquidity than Other Exit OptionsMedian VC Capital Raised ($M) Prior to Exit

Exits by Size Analysis

Liquidity Events Over $100M Have Steadily Increased Their Share of Exits Since 2008Percentage of Exits (#) by Exit Size

The $50M to $100M Size Bucket was the Only Range Where Acquisitions were Not the Preferred Exit StrategyPercentage of Exits (#) by Exit Size and Type

Exits by Sector Analysis

Software Expanded to More than 50% of Exits for the First Time in 2012Percentage of Exits (#) by Sector

Software Represented an Even Larger Proportion of Exits in Terms of Capital ExitedPercentage of Exits ($) by Sector

Software Exits have been Consistently Increasing, with Capital Exited More than Doubling from 2011 to 2012Software Exits by Year

Software Made Up a Significant 47% of Corporate Acquisitions in 2012Corporate Acquisitions (#) by Sector

Pharmaceutical & Biotech Investors Lean Heavily on Public Markets for LiquidityIPOs (#) by Sector

Private Equity Firms Seem to Favor Less Traditional VC Sectors, Like Commercial ServicesSecondary Buyouts (#,%) by Industry Sector

Exits by Region Analysis

Exits by Region Remained Fairly Unchanged from 2011 to 2012Percentage of Exits (#) by Region

In this video, you’ll learn how to: • Use the PitchBook Platforms analytic and charting tools. • Research relevant private company, investor and fund data. • Filter and slice your results using a variety of variables. VIDEO: Analyze Industry Trends with the PitchBook Platform WATCH NOW: http://pitchbook.com/Analyzing_Industry_Trends.html

1H 2013 Venture Capital Exits Presentation Slide Deck