VENTURE CAPITAL INVESTING REACHES HIGHEST LEVEL SINCE Q WITH $13.0 BILLION INVESTED DURING Q2 2014, ACCORDING TO THE MONEYTREE REPORT

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1 Contacts: Clare Chachere, PwC US, , Jeffrey Davidson, Brainerd Communicators for PwC, , Ben Veghte, NVCA, , Owen Davis, PwC US, , Lori Akalski, PwC US, , VENTURE CAPITAL INVESTING REACHES HIGHEST LEVEL SINCE Q WITH $13.0 BILLION INVESTED DURING Q2 2014, ACCORDING TO THE MONEYTREE REPORT Software Continues to Dominate VC Investing MoneyTree Reports Largest Ever Quarterly Investment of $1.2 billion in Q2 CT First Half Highest since 2000 Stamford, CT, July 18, 2014 Venture capitalists invested $13.0 billion in 1,114 deals in the second quarter of 2014, according to the MoneyTree Report from PricewaterhouseCoopers LLP (PwC) and the National Venture Capital Association (NVCA), based on data provided by Thomson Reuters. Quarterly venture capital (VC) investment activity rose 34 percent in terms of dollars and 13 percent in the number of deals, compared to the first quarter when $9.7 billion was invested in 985 deals. The total dollars invested in Q marks the largest quarterly investment total since $13.1 billion was invested in Q VC investments for the first half of 2014 reached $22.7 billion, the highest first half total since Dollars invested in the Software industry experienced another significant increase in Q2 2014, reaching $6.1 billion, which marks only the fourth time since 1995 that investments in Software companies have exceeded $6 billion in a single quarter. The large quarterly total is due in large part to half of the 10 largest deals of the quarter falling into the Software industry, including a $1.2 billion deal, the largest single quarterly deal reported by the MoneyTree Report in the history of the report, which began in Investments going into companies with disruptive technologies remained strong in the second quarter, and VC investing is on pace to exceed the $30 billion invested in 2013, remarked Mark McCaffrey, global software leader and technology partner at PwC. When we step back, we not only see technology as a megatrend impacting the way we live, but it s also disrupting entire industries by bringing the suppliers even closer to consumers. And, as the value of this technology is undeniable, we see VCs as well as non-traditional investors pursuing these deals more aggressively, resulting in higher valuations and larger capital investments. We re also seeing a shift in the risk profile from the risk of adoption of the technology to the risk in investing in a segment where companies are fiercely battling for market share and the market leader is yet to be determined.

2 Not since the early 2000s have we witnessed this level of quarterly investment activity. Despite being over $15 billion below the peak, you can t ignore the historical significance of venture investment during the second quarter, said Bobby Franklin, President and CEO of NVCA. Before alarmists declare a repeat of the dot-com bubble, it s important to keep in mind that a lot of this activity was driven by a handful of eye-popping investment rounds, including a recordsetting funding round of $1.2 billion. Additionally, we hear anecdotally from members about the emergence of new investors in the innovation economy, including the rise of hedge funds, mutual funds and other non-traditional investors making direct investments into presumably pre- IPO companies. In Connecticut, 19 companies received over $119.7 million in funding during the second quarter of The number of deals has increased by approximately 73%, from the prior quarter, while overall funding has nearly tripled since Q2 of 2013 and the amount of deals has grown by 6%.. Connecticut fund raising is the highest we have seen in well over a decade. This level of deals and amounts invested are very encouraging said Owen Davis, Partner, PwC. Connecticut Summary Quarter Deals Amt Invested Q $119,744,000 Q $196,574,800 Q $76,006,100 Q $68,788,000 Q $40,435,000 Industry Analysis The Software industry received the highest level of funding of all industries, rising 50 percent from the prior quarter to $6.1 billion invested during the second quarter of The Software industry also counted the most deals in Q2 at 454, a 7 percent increase from the prior quarter. Part of the dramatic increase in investing can be attributed to the largest deal of the quarter going to a software company. The $1.2 billion Expansion stage investment in a transportation software company is the largest deal of the quarter as well as the single largest quarterly investment recorded by the MoneyTree Report since it began reporting on venture capital investing in The Biotechnology industry was the second largest sector for dollars invested with $1.8 billion going into 122 deals, rising 69 percent in dollars and 7 percent in deals from the prior quarter. The increase in dollars invested can be at least partially attributed to two large Later stage funding rounds totaling nearly $320 million. The Medical Devices and Equipment industry also experienced an increase in dollars and deals compared to the first quarter, rising 8 percent in dollars and 12 percent in deals in Q2, to $649 million in 73 deals. The Media & Entertainment industry captured the third largest total in Q2 with $1.0 billion flowing into 124 deals. This represented a 40 percent increase in dollars and a 9 percent increase in deals compared to the prior quarter. The increase in dollars invested can be partially attributed to a large deal, the fifth largest in the quarter.

3 Nine of the 17 MoneyTree industries experienced decreases in dollars invested in the second quarter, including Business Products and Services (69 percent decrease), Telecommunications (43 percent decrease), and Semiconductors (29 percent decrease). Venture capitalists invested $2.7 billion into 270 Internet-specific companies during the second quarter of This investment level is 18 percent higher in dollars and 20 percent larger in deals than the first quarter of 2014 when $2.3 billion went into 225 deals. Two of the top eleven deals for the quarter were in the Internet-specific category. Internet-Specific is a discrete classification assigned to a company with a business model that is fundamentally dependent on the Internet, regardless of the company s primary industry category. The Biotechnology sector represented 53% of all funding in Connecticut during the second quarter of 2014 with $63.4 million in funding across 3 deals. The Software sector followed with nearly $50 million in funding for 10 deals. Medical Devices and Equipment followed with $5.6 million in five deals. We are seeing significant activity in Software and Biotech / Medical Devices sectors said Owen Davis. Connecticut Top Industries Industry Deals Amt Invested Biotechnology 3 $63,389,000 Software 10 $49,748,000 Medical Devices and Equipment 5 $5,607,000 IT Services 1 $1,000,000 Stage of Development Seed stage investments rose 46 percent in dollars and 20 percent in deals with $189 million invested into 55 deals in the second quarter. Early stage investments rose 17 percent in dollars and 9 percent in deals with $3.8 billion going into 522 deals. Seed/Early stage deals accounted for 52 percent of total deal volume in Q2, compared to 53 percent in the prior quarter. The average Seed deal in the second quarter was $3.4 million, up from $2.8 million in the first quarter of The average Early stage deal was $7.3 million in Q2, up from $6.8 million in the prior quarter. Expansion stage dollars rose 53 percent in the second quarter, with $5.7 billion going into 308 deals. Overall, Expansion stage deals accounted for 28 percent of venture deals in Q2, up slightly from 27 percent in the first quarter of The average Expansion stage deal was $18.7 million, up dramatically from $14.0 million in Q1 2014, due in part to the largest deal of the quarter falling into the expansion stage of development. Investments in Later stage deals increased 25 percent in dollars and 19 percent in deals to $3.2 billion going into 229 rounds in the second quarter. Later stage deals accounted for 21 percent of total deal volume in Q2, up slightly from 20 percent in the prior quarter when $2.6 billion went into 193 deals. The average Later stage deal in the second quarter was $14.0 million, up from $13.3 million in the prior quarter.

4 In Connecticut, the largest share of funds received during the second quarter of 2014 went to Early stage companies with 8 deals and nearly $60 million, representing 50% of total funding. There are relatively large transactions closing in all stages of development. There were 5 transactions this quarter in excess of $10 million said Owen Davis. Connecticut MoneyTree Stage Deals Amt Invested Expansion 7 $33,148,000 Early Stage 8 $59,796,000 Later Stage 4 $26,800,000 First-Time Financings First-time financing (companies receiving venture capital for the first time) dollars increased 48 percent to $1.9 billion in Q2, while the number of companies rose 20 percent from the prior quarter to 351. First-time financings accounted for 14 percent of all dollars in Q2 while firsttime deals accounted for 32 percent of all deals in the second quarter. Of the companies receiving venture capital for the first time in Q2, Software companies captured the largest share and accounted for 40 percent of the dollars and 44 percent of the deals with 155 companies capturing $743 million. First-time financings in the Life Sciences sector rose 3 percent in dollars from the prior quarter with $267 million going into 32 companies, compared with 38 such companies receiving $261 million in Q1. The average first-time deal in the second quarter was $5.3 million, a jump from $4.3 million in the prior quarter. Seed/Early stage companies received the bulk of first-time investments, capturing 57 percent of the dollars and 75 percent of the deals in the second quarter of MoneyTree Report results are available online at and Note to the Editor Information included in this release or related venture capital investment data should be cited in the following way: The MoneyTree Report by PricewaterhouseCoopers and the National Venture Capital Association based on data from Thomson Reuters or PwC/NVCA MoneyTree Report based on data from Thomson Reuters. After the first reference, subsequent references may refer to PwC/NVCA MoneyTree Report, PwC/NVCA or MoneyTree Report. Charts and tables displaying the data are sourced to PricewaterhouseCoopers/National Venture Capital Association MoneyTree Report, Data: Thomson Reuters. After the first reference, subsequent references may refer to PwC/NVCA MoneyTree Report, PwC/NVCA, MoneyTree Report or MoneyTree.

5 About the PricewaterhouseCoopers/National Venture Capital Association MoneyTree Report 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. The survey includes the investment activity of professional venture capital firms with or without a U.S. 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 spun-out of existing companies. The survey 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 U.S. states or DC even if substantial portions of their activities are outside the United States. 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. About the National Venture Capital Association Venture capitalists are committed to funding America s most innovative entrepreneurs, working closely with them to transform breakthrough ideas into emerging growth companies that drive U.S. job creation and economic growth. As the voice of the U.S. venture capital community, the National Venture Capital Association empowers its members and the entrepreneurs they fund by advocating for policies that encourage innovation and reward long-term investment. As the venture community s preeminent trade association, the NVCA serves as the definitive resource for venture capital data and unites its nearly 400 members through a full range of professional services. For more information about the NVCA, please visit The PwC Private Equity & Venture Capital Practice is part of the Global Technology Industry Group, The group is comprised of industry professionals who deliver a broad spectrum of services to meet the needs of fast-growth technology start-ups and agile, global giants in key industry segments: networking & computers, software & Internet, semiconductors, life sciences and private equity & venture capital. PwC is a recognized leader in each industry segment with services for technology clients in all stages of growth.

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